Rich Dad Poor Dad Summary- Lessons by Robert Kiyosaki | Trade Brains

rich dad poor dad book review

RICH DAD POOR DAD Summary- Lessons by Robert Kiyosaki: In the book ‘Rich Dad Poor Dad’, Robert Kiyosaki describes about his two fathers. The Poor dad was his real dad and the Rich dad was his friend’s dad. Here are the characteristics of his both fathers:

He never finished his 8th Grade.He used to acquire and run businesses.He was going to become one of the richest men in Hawaii.He used to say ‘How can I afford it?’He was going to leave a huge fortune for his next generation.

POOR DAD RICH DAD
He was a highly educated person with a PhD degree. He never finished his 8th Grade.
The Poor Dad gained a good substantial salary from his job. The Rich Dad used to acquire and run businesses.
He was financially ignorant and used to struggle financially. He was going to become one of the richest men in Hawaii.
The Poor dad always said ‘I cannot afford it’. The RICH dad used to say ‘How can I afford it?’
He was going to leave huge bills to be paid for his next generation. He was going to leave a huge fortune for his next generation.

At a very young age, Robert Kiyosaki decided to learn from his RICH dad instead of his highly educated POOR dad.

The book describes about the lack of financial education given to the kids. The problem with financial education is that it isn’t taught in school. Hence, the family has the responsibility to teach it. However, the trouble is that unless your parents are in top 1%, they are going to teach you how to be poor. This is not because the poor don’t love their kids. It’s because they don’t know what they are teaching.

Therefore, let us learn from Robert Kiyosaki about financial knowledge that he learnt from his RICH Dad.

First we need to know about financial statements. Here is how the RICH Dad taught Robert about the difference between an asset and a liability in simple terms:

  • An asset is anything that puts money in your pocket.
  • A liability is anything that takes money from your pocket.

Easy, Right? Now, the trouble is, anything can be an asset or a liability. In the book Robert argues that ‘Your house is not always your asset’. Let us understand what he means by this.

If you own a house and you pay expenses for running the house like electricity bill, water bill etc, then it is a liability. The house is taking money out of your pocket. However, if you own a house and it brings thousands of rupees a month by renting it, then it is an asset. The house is putting money in your pocket.

The RICH Dad taught Robert Kiyosaki to always invest in assets. Assets can be a business, real estate, paper assets like stocks, bonds etc. Whereas liabilities can be your expensive car, big house bought on mortgage, iPhone etc.

RICH DAD POOR DAD SUMMARY: THREE MOST IMPORTANT LESSONS

LESSON 1: WHAT KIND OF EDUCATION TO GET?

Poor RICH
·Poor Dad advised Robert to get a good education so that he can get a high paying job.

·they believe in conventional education.

·RICH Dad advised Robert to get a great education so that he can start his own business or buy businesses.

·RICH believe in financial education.

 LESSON 2: WHAT KIND WORK YOU SHOULD DO?

POOR RICH
·POOR work for money {believes is getting a job and work entire life}.

·They work for employer, government & bank.

·They are driven by FEAR & GREED. Fear of losing the job and greed of their next pay check.

·RICH do not work for money.

·They make money work for them. RICH owns business and leverages employees, government & bank for their advantages.

·They are driven by themselves.

 LESSON 3: HOW TO INVEST AND SPEND YOUR MONEY?

POOR MIDDLE CLASS RICH
·The poor only have expenses.

·They don’t pay themselves.

·The middle class buy liabilities that they think as assets.

·They pay themselves last.

·The Rich only buys assets.

·They pay themselves first.

RICH DAD POOR DAD BOOK REVIEW

RICH always pays themselves first. That’s the key point that the RICH Dad taught Robert. Further, he also taught, “It’s not how much you make, it’s how much you keep.”

So, that’s the summary of the book. The book helps all those who do not have a RICH Dad and want to learn what the rich teach their kids about money – which the poor and the middle class do not.

If you haven’t read the book, I highly recommend you to buy ‘RICH DAD POOR DAD’ through amazon at this link. It is currently selling on best price here only through Amazon. Rich Dad Poor Dad: What the Rich Teach their Kids About Money that the Poor and Middle Class Do Not!

Conclusion:

RICH DAD POOR DAD Summary:

  • Financial Literacy is just as equal important as professional education.
  • Do not work for money. Make your money work for you.
  • Invest in Assets, not liabilities.

I hope this post ‘RICH DAD POOR DAD Summary- Lessons by Robert Kiyosaki’ is useful to the readers.

Do comment below what do you think about the lessons from this book.

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