About the Author:
This book is written by Robert Toru Kiyosaki who is an American businessman & an author. Kiyosaki is the author of more than 26 books including the international self-published personal finance ‘Rich Dad Poor Dad’ series of books which has been translated into 51 languages & sold over 41 million copies worldwide.
Summary of the Book:
In this book Robert Kiyosaki illustrates the mindsets and beliefs that make the rich person rich & the poor person poor by comparing the advice of his real dad with that of his financial mentor who was his best friend’s father.
The author states that formal education teaches scholastic and professional skills, not financial skills which leads to graduates having good grades but poor financial programming.
**The Lesson Learnt from this book are:
- Rich don’t work for money, in fact money works for them. The author starts with a lesson juxtaposing the rich and poor perspectives. The course of study to be rich is very different and most people never take the time to learn it. Most people are stuck in endless fear of being without money. They want to feel secure with their money, so passion doesn’t direct them, fear does. Learning to invest time to create assets that generate money is the course of study to become rich.
- You need to know the difference between an asset and liability. The poor and middle don’t become rich because they buy liabilities not assets. Assets create income but liabilities create expenses.
- The poor and middle class spend most of their time and energy working for other people like employer, government and bank (for mortgage and other loans). But in contrast to that rich people work for themselves & focus on buying the assets that generates enough cash to cover the liabilities.
- Everyone has two options in life: (i) Work hard, pay taxes, save anything left over and get taxed on the savings again or (ii)Take time to develop your financial intelligence and harness the power of your brain to create assets. You need to develop three skills : (a) How to find an opportunity that everyone else has missed (b) How to raise money (c) How to organise smart people.
- Aim to learn a little about a lot of things instead of seeking specialization, because specialization is for employment not for being rich. Develop the skills of communication, sales and marketing to create wealth. You need to overcome obstacles like fear of losing money, cynicism, laziness, bad habits & arrogance. You also need to have a reason why you want to be rich and this starts by knowing what you want and what you don’t want. Don’t buy a luxury until you have created an asset that pays for it. Choose your assets and friends wisely. Do your best to learn from people who support you, teach you, and make you a better person.
Why should you read this book?
This is very relatable and amazing book for beginners who desire to achieve economic prosperity. The best part of this book is that It explains complex ideas in a very simplified and understandable manner. It can help change your mindset to be more financially independent.
This book gives two perspective the rich one’s & the educated one’s. Both of which are powerful and important.
This book provides a deep insight into the methods that would enable us to achieve financial freedom.
A must recommended book to know where you are and how for you would go in your life.