Summary and Review of “Rich Dad Poor Dad” book by Robert Kiyosaki
One of the top-selling and life-changing books “Rich Dad, Poor Dad” written by Robert Kiyosaki in 1997. This book teaches the importance of making wealth through investments. Also emphasizes financial independence by comparing two dads. This book highlights the importance of increasing your financial IQ for establishing a very successful business. The practical steps for you to manage your financial freedom in teenage.
In this article, I am going to summarize the whole book “Rich Dad, Poor Dad” and extract important lessons for you.
More than 32 million copies of “Rich Dad, Poor Dad” sold all over the world, and also translated into more the 40 languages across the world. The author Robert Kiyosaki deals with the concept of how people struggle with financial problems in their lives. Nowadays, people work very hard in their life but unfortunately, they are not able to save money to become rich. This book highlights the good ways to escape from this struggling in your life.
I extract the 20 most important lessons from this amazing book for your quick and better understanding. By reading this article and your time will be saved.
Most Important Lessons from Rich Dad Poor Dad book by Robert Kiyosaki:
- For normal people, their profession is their source of income and they live through their work to survive. For Rich people, investments and assets are their income.
- If you are going to buy something, you must first generate enough cash from your assets to cover these expenses. This book’s emphasis is to buy luxuries last, not first.
- If you have excess cash flow generated by your assets should be invested again to acquire more assets.
- Set your for more valuable assets, keep repeating the circle. Do not set your aim for more income.
- You have to reduce your expenses low and cut your liabilities. Liabilities and expenses beyond means are not good.
- You have to create a corporation to protect your assets and reduce tax expenses. First, the employee makes money, gets taxed, and then spends what is left.
- Build new skills by learning something about accounting, investing, markets, law, sales, marketing, leadership, writing, speaking, and communication. Analyze yourself which you can do. The famous man Bill Gates has also talked about it in his interviews.
- Your first priority should be work to learn, don’t work to earn. Learns skills by finding a suitable job for you. Jack Ma the founder of Alibaba’s also emphasizes the importance of learning skills in his interviews.
- Learn how to invest wisely as no one else can do it better than you.
- Choose your study materials carefully because you become what you study.
- Every Rich man lost money in his life, but many poor people have never lost a dime. Never lose money means you will never make money to become a rich man.
- Winners always learn from failure and defeat losers. Not to be afraid of losing money and be bold enough to admit and learn from your failures.
- Always control your emotions and do not let fear or the opinion of anyone dictate your actions.
- Many sellers ask too much and it is rare that the asking price is lower than something is worth.
- Always choose good friends who are smarter than you and you can learn a lot by surrounding yourself in their company.
- This sentence “I can’t afford it” shuts down your brain and kills thinking. To solve the problem and gets new ideas about a problem just say to your mind “How can I afford it?”.
- First, pay to yourself. Every month, before going to pay your bills, first invest a certain amount of money into income-generating assets. Short of cash, use this pressure to keep yourself on your toes to generate more cash.
- Always see a big dream, have a clear game plan in your mind. Seek some important answers to questions such as “why do you want to earn more passive income?”
- Make a habit to listen everyone. Don’t talk too much or constantly argue, just observe and listen to every person. Gather as much information as you can from others by asking questions and clarify yourself.
- Do not try to follow the crowd in the market. Actually, money is made when you buy a product, not when you sell a product.
These are the most important lessons that I draw it from Rich Dad Poor Dad” book by Robert Kiyosaki for you.
5 Obstacles that can Hurt you:
- Afraid, do not afraid based on what you can do or what you can’t do. if you cannot think big, probably you will never succeed.
- Cynicism, don’t care about what people are saying to you do not allow themselves to criticize what you are achieving.
- Laziness, don’t be so lazy like a rat race. If you want to escape from unsatisfactory then be proactive and preserve.
- Bad Habits, if you want to achieve your life goal then you have to stop unusual expenses and turns them into savings. it is a price of freedom.
- Arrogance, train yourself with trends, and don’t think that you know everything about money.
The book “Rich Dad, Poor Dad” written by Robert Kiyosaki is a very amazing book. I am unable to express in words that how it transformed my vision about money and most especially my perception of wealth.
You can also learn from this book that how to become rich and that financial freedom is a realistic goal if you move towards it methodically and patiently.
Book Review of Rich Dad, Poor Dad:
- The idea of the book Rich Dad, Poor Dad written by Robert Kiyosaki is an extremely effective presentation of educational financial concepts that are not as simple as they seem.
- Motivate yourself by an incredibly motivating book inspired by the personal experience of the author Robert Kiyosaki, who is himself a millionaire.
- So many testimonies from people all over the world who say they got started in network marketing, real estate investment, or opened a business after reading the book Rich Dad, Poor Dad written by Robert Kiyosaki.
- This book is a motivational book not for being a financial expert.