Rich Dad Poor Dad

What is the most crucial factor for everyone? It could be love for some, food for others, or family for others, and it varies from person to person. However, in the vast majority of cases, the ultimate goal is to have enough money when it is needed. We'd like to have enough money to avoid having to look at the price card while eating our favorite cuisine in a restaurant.

Even though we all work hard, not everyone has a steady stream of income. Not everyone is financially self-sufficient. So, what exactly is the issue? Where are we falling short? And how do we get around it? Robert T. Kiyosaki provides good answers to all of these questions in his book “Rich dad Poor dad”.

Robert's story begins in his boyhood. Robert and his childhood friend Mike were not invited to his classmate's beach house when they were 9 years old since they were poor kids. This was the most painful to them. When Robert told his father, who he refers to as a poor dad, he simply said, "Go make money." After much thinking, the two boys came up with an idea and collected empty lead-paste tubes. They melted them down and made fake nickels out of plaster molds. This is against the law. Robert's father, seeing the two boys' involvement, invited them to meet Mike's father, who owned several profitable enterprises.

Mike's father, whom Robert refers to as "rich dad," agreed to help them, but only on his terms. He paid them ten cents an hour to work three hours every Saturday morning at one of his convenience stores. The two boys were in agreement. However, Robert was rapidly dissatisfied with the monotonous work and low compensation. Robert protested to Mike's father about not having taught him anything. His rich dad, on the other hand, denied it, explaining that life does not teach you with words, but rather by pushing you around. Those who fail to grasp this lesson spend their lives blaming others and hoping for a lucky break.

Money, he argued, would not address people's issues. Many people with high-paying occupations face financial difficulties because they do not understand how to make money work for them. The rich dad said, "School is vital, but it is the conclusion, not the beginning for most people." The majority of people think through their emotions. Instead, one should learn to think with their thoughts.

“ The poor and the middle-class work for money. The rich have money to work for them.”

"If we want to be wealthy, we must be financially literate," Robert says. Because without that financial literacy base, all of our efforts are like putting up a house on a shaky foundation. The most crucial rule, according to Robert, is to understand the difference between an asset and a liability and to only purchase assets. Assets supplement our income. They put cash in our hands. A liability depletes our financial resources. Although it appears to be straightforward, many people struggle because they purchase liabilities.

Robert says that real assets fall into the following categories:

1. Businesses that do not require our presence

2. Stocks

3. Bonds

4. Income-generating real estate

5. Royalties from Intellectual property such as music, scripts, and patents

6. Anything else that has value, produces income, or appreciates and has a ready market.

How can this be accomplished? What are the steps that must be taken? Is anyone capable of doing it? Yes, anyone can do it, and Robert gives us ten steps to follow.

1. Find a reason greater than reality; the power of spirit

A reason or purpose is a mixture of wants and dislikes. For example, Robert does not want to work his entire life. He despised being an employee and preferred not to be kept busy with his work. What is it that he desires? He desires the freedom to explore the world and live the life he desires. Similarly, he believes that each of us has a compelling motivation to become wealthy and financially self-sufficient.

2. Make daily choices; the power of choice

Every day, we have a choice about how we spend our time and money, as well as what we think about. He advises individuals to prioritize education because the mind is our most powerful tool. Then, with so many options, we can invest in real estate.

3. Choose friends carefully: the power of association

When it comes to investing, Robert advises us not to listen to individuals who are poor or afraid. Because when it comes to investments, they believe the sky is always falling. As a result, one should carefully select their companion.

4. Master a formula and then learn a new one: the power of learning quickly

We can learn a strategy and then alter it if it isn't profitable enough. It's also about learning new strategies faster, not just faster strategies.

5. Pay yourself first: the power of self-discipline

Robert provides two methods for paying ourselves first.

1. Avoid accumulating significant amounts of debt that you will have to repay. Keep your costs down.

2. Allow the pressure to grow when you're short on cash and don't touch your savings or assets. Use the pressure to motivate your financial wizard to think of new ways to make more money.

6. Pay your brokers well: the power of good advice

This is self-evident. Information is invaluable. A reputable broker will give us useful information as well as assist us in increasing our profits.

7. Be an Indian giver: the power of getting something for nothing

It implies that we must immediately recoup our initial investment.

8. Use assets to buy luxuries: the power of focus

If we have assets that generate money, we can use them to purchase the things we desire.

9. Choose heroes: the power of myth

Pretending to be our heroes is one of the most powerful ways we learn as youngsters. We tap into our heroes' genius, and they motivate us to attempt because they make it appear easy.

10. Teach and you shall receive: the power of giving

"If you want something, you must first give," the author argues. Give first whenever we need something, whether it's money, a smile, love, or friendship, and it will come back to us in buckets.

This book also covers topics such as how taxes work against the poor and middle class, what technical skills we need to improve our financial intelligence, what management skills we need to succeed, the importance of learning skills outside of our profession, how to overcome financial obstacles, how to escape the rat race, and much more.

The book's structure is well-organized. Robert begins with his childhood, explaining why he began, how he began, how he continued, and ultimately how he succeeded. He also provided numerous actual instances to help people comprehend. The book's language is also very straightforward, and anyone can read and comprehend it. What could be done differently? The instances, in my opinion, largely referred to American history and the American economy. But it's not that puzzling because he provides the context later.

This book is a masterwork in general. After reading this book, I have drastically altered my spending habits and investing strategies.

Do give it a read💗