Rich dad Poor Dad
Short Description
Book Review...
Description
Presented By : Deveshi Singh Mba(Gen)- A
Robert Kiyosaki ( April 8, 1947) was born and raised in, Hawaii. He is an American investor, businessman, self-help author, motivational speaker, financial literacy activist, and occasional financial commentator. He is well known for his rich Dad Poor Dad series of motivational books & other material published under the Rich Dad brand.
He has written over 15 books , which have combined sales of over 26 million copies.
The book is largely based on Kiyosaki's upbringing and education in Hawaii.
It highlights the different attitudes towards money, work and life of two men i.e. his so called "rich dad" and "poor dad”
And how they in turn influenced key decisions in Kiyosaki's life.
Rich Dad, Poor Dad revolves around three main characters:
Poor dad – very educated but not street smart.
Rich dad – attained education only till 8th grade, but is very street smart.
Kiyosaki – the spectator who learns lessons from both but internalizes only rich dad’s traits.
The author compares his poor dad to the millions of fathers who encourage their sons to do well in school so they could get a good job with a good company.
Poor dad believed in the traditional principles of working hard, saving money, and not buying material things that one cannot afford.
He believed that having a good job with a solid company is what one should aspire for.
He was the father of the author’s best friend Mike.
When the author was 9 years old he started realizing that his rich dad made much more sense than his poor dad.
It was from rich dad that the author learned not to say, “I can’t afford it”, but instead to ask, “how can I afford it?”
He explains this principle by relating an incident when he and his best friend Mike went to work for Mike’s father.
Rich dad paid them very low wages deliberately so that would stir anger & a sense of injustice in them & eventually make them to realize that in order to get ahead, one must work for himself and not for others.
He learned valuable lessons from both of them, but in Chapter 1 it becomes evident which father had the more sensible approach towards money.
He compares and contrasts both fathers’ views about working hard, getting an education, saving and investing and realizing how habits of the rich and poor significantly differ.
He attributes his financial acumen through the many conversations he carried out with his rich dad.
The love of Money is root of all Evil
The lack of Money is Root of all Evil.
How can I afford it ?
I can’t afford it.
Study hard so that you can find a good company to work for.
Study Hard so that you can find good company to Buy.
Play it safe, Don’t take Risk
Money- Don’t play safe, Play it Smart. Learn to manage Risk.
Depend on company/Govt for pay hike, medical insurance, retirement plan ,etc .
Believes in total financial self reliance.
“I am not interested in Money”
“Money is Power.”
Don’t work for money i.e. don’t depend your boss to make you rich.
Learn how to make money work for you i.e. cutting your expenses moderately, investing wisely and creating opportunities to earn passive incomes outside of salaries.
Seek to be a business owner and/or an investor, rather than an employee.
This specific lesson is meant to teach people not to be wise with your money once you have it, but rather be smart with your money before you have it.
In a way, don’t try to build a skyscraper or even a house without building a strong foundation first.
He says, “Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.”
People have to understand that it’s not how much they make, but how much they keep according to the author, and this is an essential principle that this chapter focuses on.
The author develops the concept of self-doubt. He says that each person is born with talent but that talent is suppressed because of self-doubt and fear.
The author discusses the importance of an education. He is clear by saying, “a trained mind is a rich mind.”
The author’s idea is that people create luck; they should not wait around for it. It’s the same with money. It has to be created.
There are skills individuals need to develop for financial success.
The author mentions management skills. He says individuals need to know how to manage cash flow, systems, and people.
He puts equal emphasis on communication skills.
One theme that’s apparent in this book is that for an individual to be wealthy, he must aim to own the system or means of production, rather than work for another individual. The author stresses that there is obviously something confining about being an employee; it shuts the mind to other possibilities and it stunts initiative. Financial intelligence is THE most powerful asset: By studying the precepts of accounting and investing, the author believes that individuals will be able to see the difference between an asset and a liability. in fact it is the more concrete application of learning what’s right and what’s wrong. Generating a string of expenses is wrong, building assets is right.
The author concluded by stating that parents should teach
these lessons to their children early enough, in order to guarantee their children’s financial future. It is never too late to start building your financial empire.
You could start right now, with your next pay check, or by looking around you, to see which need you can fulfill
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