Rich dad poor dad is a bestselling finance book that everyone who wants to improve on his or her financial status ought to read and digest. Just like a wealth of common sense, Rich Dad Poor Dad is a popular personal finance book that offers a unique perspective on building wealth and achieving great financial success with time. The author of this book confidently expound on the aspect of financial growth using his personal lifestyle examples.
Here in this article, you shall learn some of the secrets to unlocking your financial success. Just continue reading a summary and review of the book below.
Rich Dad Poor Dad Summary
Rich Dad Poor Dad is a personal finance book written by Robert Kiyosaki. First published in 1997, the book has sold over 32 million copies in more than 109 countries and has become a cultural phenomenon. The book offers a unique perspective on building wealth and achieving financial success. This book is structured as a series of lessons that Kiyosaki learned from his two "dads." His biological father, who he refers to as "poor dad," was an educated man who worked hard as an employee in his entire life but struggled to make ends meet. His other father, his best friend's dad, who he calls "rich dad," was an entrepreneur and investor who became wealthy and financially free.
Also Read: What is Generational Wealth and How to Create a Legacy
Kiyosaki argues that the key to financial success is not a high income, but rather financial education and a shift in mindset. He emphasizes the importance of learning about money, investing, and entrepreneurship and becoming financially literate. He also argues that one must think like a business owner and seek out opportunities to create passive income streams in order to achieve financial freedom.
Important Lessons to Learn From Rich Dad Poor Dad
One of the key takeaways from the book is the difference between assets and liabilities. Kiyosaki defines assets as things that put money in your pocket, while liabilities are things that take money out of your pocket. He encourages readers to acquire assets that generate cash flow, such as real estate, stocks, and bonds, and to minimize liabilities, such as consumer debt and unnecessary expenses.
Another important lesson from the book is understanding taxes. Kiyosaki argues that the rich use tax laws to their advantage, while the poor and middle class do not. He recommends learning about tax strategies to minimize taxes and increase wealth.
The book also emphasizes the importance of taking calculated risks in order to achieve financial success. Kiyosaki argues that fear and a lack of financial education often hold people back from taking risks that could lead to wealth-building opportunities.
What I Learnt Reading Rich Dad Poor Dad
Reading this interesting personal financial book has improve my knowledge about running a personal business strategically and building wealth gradually. Below are some of the takeaways i got from this book that will also help you in building financial wealth.
Mindset shift:
In this book, the author emphasizes the importance of shifting one's mindset from being an employee to becoming an entrepreneur or investor. This means thinking like a business owner and seeking out opportunities to create several passive income streams that will keep the money coming while you invest. Even if you are employed as a civil servant working for the government, do not depend solely on your salary. Strive to invest in different ways to create multiple passive income that will keep the money flowing in.
Also Read: Learn the Basics on how Wealth is Created
The Difference between Assets and Liabilities:
Kiyosaki emphasizes that assets put money in your pocket, while liabilities take money out of your pocket. He encourages readers to acquire assets that generate cash flow, such as real estate, stocks, and bonds. Take for example, you hit a contract of $5 million, instead of buying your dream car worth millions of dollars to impress your peers, or buy a dream house of 5 million dollars, while not invest more than half of that money in a business that will grow with time and keep bring money in on daily basis? That is investing in assets rather than liabilities.
Understanding taxes:
Kiyosaki argues that the rich use tax laws to their advantage, while the poor and middle class do not. He recommends learning about tax strategies to minimize taxes and increase wealth. Here as a good business man, you are advice to register your businesses that brings in passive income under a conglomerate rather than allowing them stand individually on their own. This will help you reduce taxes on each of your business.
Taking calculated risks:
The author emphasizes the importance of taking calculated risks in order to achieve financial success. He argues that fear and a lack of financial education often hold people back and stop them from taking risks that could lead to wealth-building opportunities. Here the advice is that, you should sell your car and purchase equipment for your business if they need any. Do not hold back the decision because of the love you have for your car. Make that decision even if it looks like a risk, it is been calculated risk. Take it and you won't regret it.
Where to Get Rich Dad Poor Dad pdf Format
This book can be purchased both in hard and soft copies. As a blogger and writer, I strongly advice against infringement on people’s intellectual rights. I cannot promote or endorse the illegal downloading of copyrighted material. It is important to respect intellectual property rights and support the authors by purchasing their work legally. That been said, you can purchase or buy "Rich Dad Poor Dad" in various formats, including eBook, audiobook, and paperback, from online retailers such as Amazon, Barnes & Noble, and others. Additionally, many public libraries offer digital copies of books that you can borrow for free.
Criticism about Rich Dad Poor Dad
Rich Dad Poor Dad offers a fresh perspective on personal finance and encourages readers to think differently about money and wealth building. The book is well written and easy to read, with practical advice that can be applied by anyone, regardless of his or her financial situation.
However, the book has received criticism for some of its teachings. Some critics argue that Kiyosaki's advice is too simplistic and does not take into account factors such as economic inequality, systemic barriers, and the importance of social safety nets. Others have accused Kiyosaki of promoting get-rich-quick schemes and unrealistic expectations.
Additionally, some of the stories and anecdotes in the book have been called into question, with some accusing Kiyosaki of embellishing or even fabricating some of the events in the book.
Despite these criticisms, "Rich Dad Poor Dad" remains a popular and influential personal finance book. Its teachings have inspired many people to take control of their finances and work towards financial freedom. Whether you agree with all of the book's teachings or not, there is no denying its impact on the personal finance genre and its ability to inspire readers to think differently about money and wealth building.
So i will advice you get this book, read and digest it properly and follow the important tips and advice on wealth building to grow your financial status. If you have read this book, please share with us your experience and what lessons you learnt from the author’s claims as stated in the book. We will be glad to read your review via the comment section. Thanks.
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