Book Review – Rich Dad, Poor Dad

Rich Dad, Poor Dad Summary: The book is proclaimed to be the #1 personal finance book of all time.. I will let you be the judge of that. Rich Dad, Poor Dad describes Roberts’s childhood in which he compares his own dad a teacher to his friend Michael’s dad a successful businessman. They both had their similarities and differences but the main difference was one was rich and one was poor, Roberts dad was the poor one. 

Title:  Rich Dad, Poor Dad

Author: Robert Kiyosaki

Publisher: Warner Books Ed                      

Date Published: 2000

Subject: Personal Finance

Pages: 207

About the author: Robert Kiyosaki is an American businessman and author who has created 26 books relating to personal finance and self-development.  One of his most popular books, which has sold over 27 million copies and is translated into 51 different languages, is Rich Dad, Poor Dad. 

Rich Dad Poor Dad PDF: No this book is not available for free download, you will be required to purchase the book.

Chapter Summary: 

Chapter One – Lesson 1: The Rich Don’t Work for Money 

Chapter Two – Lesson 2: Why Teach Financial Literacy? 

Chapter Three – Lesson 3: Mind Your Own Business 

Chapter Four – Lesson 4: The History of Taxes and the Power of Corporations 

Chapter Five – Lesson 5: Rich Invent Money 

Chapter Six – Lesson 6: Work to Learn – Don’t Work for Money

Chapter Seven – Lesson 7: Overcoming Obstacles 

Chapter Eight – Lesson 8: Getting Started 

Chapter Nine – Lesson 9: Still Want More Here Are Some To Do’s 

Rich Dad, Poor Dad Review:

I did find that this book harped on a little, and that the overall page numbers could have probably been halved with the same message being received. There was also some chapters which I didn’t really enjoy reading however the overall messages of the book far surpass the books negatives. 

Key Learning #1 

I think the key takeaway from the Rich Dad Poor Dad book is the fact that rich people buy assets, Poor people buy liabilities. When a rich person makes money from their day job, they will invest that money into assets, being real estate, the stock market etc. and will continue to reap the rewards of that income for a long time. Instead of continuing to work for every dollar you earn, the dollars you do earn go out there and make more and more and more dollars for you.  As Robert calls it babies go out there and make you more babies.  This is in contrast to poor people who when they make money they go and buy cars, new clothes. This type of item will never generate you any money and can be seen as a waste of earning potential. 

When I first read this it changed my mindset, I completely agreed with what he had to say and I really liked the example he made where you imagine a dollar of your pay being invested, eventually that will generate a dollar return and then you will have two dollars earning more dollars for you.  I started to use this concept in my own personal finance decisions. Any time I didn’t want to invest my money and instead buy new clothes I would visual the dollars going out there and earning more dollars and that made me want to invest. 

Assets include:

  1. Business not requiring your presence.
  2. Stocks
  3. Bonds 
  4. Income generating real estate
  5. Notes (IOU’s)
  6. Royalties
  7. Other 

Key Learning #2

Another concept, which I really enjoyed, was the one, which said you pay yourself first.  A rich person would take their salary and invest it in assets first, then with the remainder of their salary they would invest in real estate, stocks, bonds, notes, intellectual property. Each of these assets are generating income on a monthly basis for them. They are not so heavily reliant on their salary as there are other sources of income. 

A poor personal would take their salary and spent it on taxes, rent, food, transportation and clothing. They would not increase their assets at all. These poor people are dependent on working and generating income in order to survive. They do not have any assets, which are out there generating income for them. The only source of income is from them working. They are stuck in this crude cycle, which they cannot get out of. 

Make sure you grab a copy and check out the Rich Dad Poor Dad Robert Kiyosaki.

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