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Rich Dad Poor Dad by Robert T Kiyosaki: Learn the 10 life lessons: Book review

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Rich Dad Poor Dad is the no 1 Personal Finance Book of all time written by Rober T Kiyosaki. Here are the 10 most important affiliate marketing lessons in this book that can make you a better affiliate marketer. We will learn the zest of this book and how can leverage this book to improve your personal life.

A few days ago I went to a local Book fare and found this book. I heard a lot of this book and wanted to read it, so decided to buy that book. I read the book two times and it just blows my mind away. How you can build your knowledge of Financial Literacy and built an empire with little investment.

The main reason why people struggle with financial problems is that they spend several years in school but learn nothing about money and investments. The result is that people learn to work at the service of money… but never learn to put money to work for them. Rich Dad Poor Dad” is a financial self-help book that helps you set the right relationship with money and wealth.

So, let’s start with the review of the book and my personal thought. Here you go..

Who is Robert T Kiyosaki?

Robert Toru Kiyosaki was Born on April 8, 1947 (age 73) in Hilo, Territory of Hawaii, U.S. His Occupation is a Businessman and author. Graduated from United States Merchant Marine Academy (BS) but dropped out from the University of Hawaii at Hilo. His interesting subject is Personal finance and business investing. He is best known for his notable works Rich Dad, Poor Dad (financial education company), and his Rich Dad, Poor Dad book written in 1997.
His Spouse’s name is Kim Kiyosaki. For more details please visit his website www.richdad.com

Rich Dad Poor Dad by Robert T Kiyosaki

rich-dad-poor-dad-Book Review

Contents

  • Introduction
  • Chapter One: The Rich Don’t Work for Money
  • Chapter Two: Why Teach Financial Literacy?
  • Chapter Three: Mind Your Own Business
  • Chapter Four: The History of Taxes and the Power of Corporations
  • Chapter Five: The Rich Invent Money
  • Chapter Six: Work to Learn- Don’t Work for Money
  • Chapter Seven: Overcoming Obstacles
  • Chapter Eight: Getting Started
  • Chapter Nine: Still want more? Here are some To Do’s
  • Final Thoughts

Robert T Kiyosaki has been heralded as a visionary who has a gift for simplifying complex concepts, ideas related to money, investing, finance and economics and shared his personal journey to financial freedom in ways that resonate with audiences of all ages and backgrounds. The Book “Rich Dad Poor Dad” sold more than 30 million copies worldwide and has been translated into 36 languages.

Rich Dad Poor Dad is Robert’s personal story of growing up with two dads — his real father who is a scholar and highly qualified and the father of his best friend who is just completed his 6th grade, his “rich dad” — and the ways in which both men shaped his thoughts about money and investing. The book explodes the myth that you need to earn a high income to be rich and explains the difference between working for money and having your money work for you.

Once you start reading this book you will get to know which world are you living in. Basically, according to Robert, there are four (4) types of quadrants and every people falls one of these quadrants.
You will get to know how to jump from one quadrant to another. And what are the decisions you should take care of in your life so that you can earn like wealthy people.

Introduction

Book Review: Rich Dad Poor Dad

rich-dad-poor-dad-Book Review

Introduction

  • “Rich Dad, Poor Dad” is the story of two fathers; one has a collection of degrees and diplomas and the other is a high school drop-out
  • Poor dad says, “Love of money is the root of all evil” while the Rich dad says, ” The lack of money is the root of all evil”
  • Money is not taught in schools. Schools focus on scholastic and professional skills, but not on financial skills.
  • The rich father in this book teaches two small boys some invaluable lessons about money through their own experiences
  • Get out of the rat race. Learn how to seize opportunities, find solutions, take care of your business and investments and most especially, learn how to make money work for you and not be its slave!

Money is one form of power. But what is more powerful is financial education. Money comes and goes, but if you have the education right about how money works, you gain power over it and can begin building wealth. The reason positive thinking alone does not work is that most people went to school and never learned how money works, so they spend their lives working for money.

2 paths diverged in a wood, and I – I took the one less traveled by, And that has made all the difference

Lesson 1: The Rich Don’t Work for Money

Book Review: Rich Dad Poor Dad

rich-dad-poor-dad-Book Review

Lesson 1: The Rich Don’t Work for Money

  • The poor and the middle-class work for money. The rich have money work for them
  • Life pushes all of us around. Some people give up and others fight.
  • If you realize that you’re the problem, then you can change yourself, learn something and grow wiser.
  • When it comes to money, most people want to play it safe and feel secure. So passion does not direct them. Fear does
  • Most people are given more money, only get into more debt
  • It’s fear that keeps most people working at a job and became a slave to money – and then get angry at their boss.
  • A job is really a short-term solution to a long-term problem.
  • Most people do not know that it’s their emotions that are doing the thinking,

At the age of 9, Robert T Kiyosaki and his best friend Mike asked Mike’s father (Rich Dad) to teach them how to make money. After 3 weeks spent cleaning one of Mike’s Dad’s many stores for a poverty wage (10 cents a week!), Kiyosaki couldn’t take it anymore and increasingly began to think about quitting. This is the moment that Rich Dad chose to give him his first lesson about money: some people leave their job because they are not being paid enough. Others see it as the opportunity to learn something new.

Lesson 2: Why Teach Financial Literacy?

Book Review: Rich Dad Poor Dad

rich-dad-poor-dad-Book Review

Lesson 2: Why Teach Financial Literacy?

  • It’s not how much money you make. It’s how much money you keep.
  • Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.
  • Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
  • If your pattern is to spend everything you get, most likely an increase in cash will just result in an increase in spending.
  • In 80% of most families the financial story paints a picture of hard work to get ahead. However, this effort is for naught because they spend their lives buying labilities instead of assets
  • By not fully understanding money, the vast majority of people allow its awesome power to control them

In Lesson 2, Robert demonstrated a beautiful example of an Income statement which is also known as Profit & Loss and Balance Sheet. How rich increase their assets first and then generate Income out of it.

An asset is a title or contract that allows its owner to generate income in a layman language Money comes in the pocket. A liability, on the other hand, is to generate expenditure that is money that goes out of the pocket.

Lesson 3: Mind Your Own Business

Book Review: Rich Dad Poor Dad

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Lesson 3: Mind Your Own Business

  • To become financially secure, a person needs to mind their own business.
  • The Rich focus on their asset columns while everyone else focuses on their income statements
  • Financial struggle is often directly the result of people working all their lives for someone else. Many people will simply have nothing at the end of their working days to show for their efforts.
  • One of the main reasons net worth is not accurate is simple because the moment you begin selling your assets, you are taxed for any gains.
  • The Best thing about money is that it works 24 hours a day like an employee and can work for generation
  • An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.
  • The poor and middle class buy luxuries with their own sweat, blood and children’s inheritance.

The biggest lesson in this chapter is that Keep your current job but begin to think about your own Business. Robert T. Kiyosaki began his professional career by selling photocopiers for Xerox Company and became the best salesperson. Using his revenue earned the job, he invested in real estate. In the space of just 3 years, the revenue generated by his investments in real estate exceeded his salary.

He then decided to leave the company and to take care of his own business full-time. He knew that it was the only solution to get out of the rat race. Do not spend all your income. Build yourself a diversified portfolio of assets and you will spend later when these assets make you enough.

Lesson 4: The History of Taxes and the Power of Corporations

Book Review: Rich Dad Poor Dad

rich-dad-poor-dad-Book Review

Lesson 4: The History of Taxes and the Power of Corporations

  • The biggest secret of the rich is the power of the Corporation, play the game smartly.
  • Rich are not taxed. It’s the middle class who pays for the poor, especially the educated upper-income middle class.
  • Every time people try to punish the rich, the rich don’t simply comply. They react.
  • If you work for money, you give them the power to your employer. if money works for you, you keep the power and control it.
  • A person who understands the tax advantages and protections provided by a corporation can get rich faster.
  • Employees earn and get taxed and they try to live on what is left.
  • A corporation earns, spends everything it can, and is taxed on anything that is left.

A corporation is simply a legal document that creates a legal entity. It is not really a thing, not a factory or a group of people. it’s a body without a soul. But it offers a lower income-tax rate than individual have and certain expenses can be paid by a corporation with pre-tax dollars. You must have a minimum amount of legal knowledge for your business to grow in the right way. Takes lessons if you have to!

Lesson 5: The Rich Invent Money

Book Review: Rich Dad Poor Dad

rich-dad-poor-dad-Book Review

Lesson 5: The Rich Invent Money

  • Often in the real world, it’s not the smart who get ahead but the bold.
  • It was excessive fear and self doubt that were the greatest detractors of personal genius.
  • Rich people are often creative and take calculated risks.
  • A person who increases his financial intelligence creates his own luck.
  • The single most powerful asset we all have is our mind. If it trained well, it can create enormous wealth seemingly instantaneously.
  • If the opportunity is too complex to understand use your common sense and math to do well financially.
  • The problem with secure investments is that they are often sanitized , that is made so safe that the gains are less.
  • It is gambling if you’re just throwing money into a deal and praying but it is not gambling if you know hat you are doing.
  • Great opportunities are not seen with your eyes. They are seen with your mind.
  • It is what you know that is your greatest wealth. It is what you do not know that is your greatest risk.

Robert T. Kiyosaki believes that each person is born with the talent which sometimes gets suppressed because of fear and self-doubt. He expresses that not always smart people get ahead in life but adventurous and bold too. In order to get financially ahead, one has to tap the opportunities and take the risks. No risk no gain. One should not sit and wait for the opportunity to come to them.

Lesson 6: Work to Learn- Don’t Work for Money

Book Review: Rich Dad Poor Dad

rich-dad-poor-dad-Book Review

Lesson 6: Work to Learn- Don’t Work for Money

  • Learning meant everything to rich people where as Job security meant everything for poor people.
  • Job is an acronym for “Just Over Broke”
  • The more you learn the more you earn.
  • Life is much like going to the gym. The most painful part is deciding to go. Once you get past that it’s easy.
  • Being technically specialized has its strengths as well as its weaknesses.
  • Giving money is the secret to most great wealthy families.

In this chapter, Kiyosaki explains that in order to develop financial freedom, an individual needs certain skills. He also wrotes in this book the main management skill needed for success are

  1. Management of cashflow
  2. Management of System
  3. Management of People

Knowledge is power. The more you sharpen your skill with your knowledge the more you can understand better how things work.

Lesson 7: Overcoming Obstacles

Book Review: Rich Dad Poor Dad

rich-dad-poor-dad-Book Review

Lesson 7: Overcoming Obstacles

  • The primary difference between a rich person and a poor person is how they manage fear.
  • For most people, the reason they don’t win financially is that the pain of losing money is far greater than the joy of being rich.
  • Rich dad knew that failure would only make him stronger and smarter.
  • The five main reasons financially literate people may still not develop abundant cash flow are
  • Fear, Cynicism, laziness, bad habits, arrogance
  • Getting out of the Rat race is technically easy. It doesn’t take much education, but those doubts are cripplers for most people.

In this chapter, Robert T. Kiyosaki explains the five personalities that hamper human beings and teaches how to overcome it.

  1. How to overcome your fear,
  2. How to overcome your cynicism,
  3. How to overcome your bad habits,
  4. How to overcome your laziness, and
  5. How to overcome your arrogance.

He believes that it is normal to have fear but how you handle it is what actually matters. Fear of failure and how to conquer that fear and manage it. After all, getting rich is more of a psychology game rather than a skill game.

One should focus on rewards than the problems coming in the way and must know how to handle the cynics in your life who try to discourage you from taking risks that you believe have a good chance of winning.

Lesson 8: Getting Started

Book Review: Rich Dad Poor Dad

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Lesson 8: Getting Started

  • There is gold everywhere, most people are not trained to see it.
  • Find a reason greater than reality, the power of the spirit
  • Make daily choices, the power of choice
  • Choose your partner and friends carefully, the power of association
  • Master a formula and then learn a new one, the power of learning quickly
  • Pay yourself first, the power of self-discipline
  • Pay your brokers well, the power of good advice
  • Be an Indian giver, the power of getting something for nothing
  • Use your assets to buy luxuries, the power of focus
  • Choose your heroes who inspire you, the power of myth
  • Teach and you shall receives, the power of giving

if you do not have a strong reason why you should be rich and mind your own business, there is no sense in reading further. It will sound like too much work. This chapter gives tips on how to build your personal wealth.

If you want to get rich, you must find a reason to motivate you which is greater than your current reality. Continuous hunger to learn is very important. Also, he suggests that people should choose their friends carefully and should not hesitate to be friends with people who talk about money as there are great lessons to learn. This is contrary to what was taught to Kiyosaki by his Poor Dad: that talking about money is not good and one should stay away from such people.

Lesson 9: Still want more? Here are some To Do’s

Book Review: Rich Dad Poor Dad

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Lesson 9: Still want more? Here are some To Do’s

  • Take a break and assess what is working and what is not working
  • Look for new ideas, read books a lot.
  • Find someone who has done what you want to do.
  • Take classes, read, and attend seminars.
  • Make lots of offers. someone might say yes.
  • Jog, walk or drive a certain area once a month for 10 minutes
  • Shop for bargains in all markets
  • Look in the right places.
  • look for people who want to buy first, Then look for someone who wants to sell.
  • Think big. Good things take time
  • Learn from history and start from small
  • Action always beats inaction.

In his ninth lesson, Robert T. Kiyosaki offers great insights into creating personal wealth. He encourages people to keep looking for new ideas, have experiences, and keep the learning curve alive by taking various courses, attending seminars, and learning from other successful people who are in the industry. After all, the more you learn, the more you can earn and action always beats inaction.

Pros

  • One of the finest book to learn the basic of money management
  • An incredibly motivating book inspired by the personal experience of the author, who is himself a millionaire
  • Countless testimonial are there who started their own after reading this book
  • Smartly advise what to do and what not to.

Cons

  • A certain lack of detail in some areas mentioned by the author is regrettable.
  • As he says himself, his books are motivational toolsnot books by a financial expert
  • No concrete advice on how readers should proceed or work

Final thoughts on Rich Dad poor Dad book

Rich Dad Poor Dad is one of the classics in the field of wealth management for your affiliate marketing business. This book has helped me a lot and there is no denying the fact that it is mind-set shifting and thought-provoking book. If you want to set your money basics right, you simply can’t afford to miss reading this book.

My advice is that if you need to start your financial education with one book, begin with Rich Dad, Poor Dad and I guarantee you that you will not regret it. And you should not make a mistake. The objective of Kiyosaki is to coach you and to motivate you to allow you to take the path that leads to financial freedom. Not to offer you any ready-made answers.


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