Rich dad poor dad book summary
Hi, today we will talk about a very popular book named Rich Dad Poor Dad. This book is written by the American businessman, Robert Kiyosaki. It was first published in 1997 and till now have sold more than 3 Cr copies. This book is so popular because it tells about money to the middle class which was not taught in their upbringing.
He has talked about 2 fathers, one his own who is a Ph.D. who is the poor dad, And the other is his best friend’s father who is a businessman and is the rich dad. Though this book has many learning’s, we will cover the top 5 which I feel the best
So let us start Rich dad poor dad book summary
1. Not To Run Away From Challenges
So the first one is not to run away from challenges rather find opportunities in them. In middle-class families, kids are told that they cannot afford this which leads them to believe that a lot is out of their reach. On the other hand, rich kids are taught that if they want something, how can they afford it.
So if you say that you cannot afford something, you yourself kill all its opportunities and stop thinking about it. If you start thinking that how can you afford it, then your mind automatically starts to make way, and then you create opportunities yourself and you create wealth too
2. What Is Your Net Worth And How Much You Earn
The second learning is what is your net worth and how much you earn Robert Kiyosaki said that even though his father was a Ph.D., he didn’t use to have money by month-end.
On the other hand, the rich dad in the book, who was not even a high school graduate had all his focus on acquiring assets and retain all info. Assume that you earn 1 lakh and save only 5% and keep it in the savings account. Whereas your friend earns 50000 and saves 20-30% and uses it to acquire assets.
So he has a higher potential of making more wealth than you. You should focus on saving and acquiring assets.
3. Rich dad poor dad book summary: Take Risk
The third learning is to take risks. Kids in middle-class families are always encouraged not to take risks and especially in money matters. He says that you should learn to live with risks.
Because if you want to create wealth, you need to take calculated risks. And as you start accumulating wealth, you will learn how to manage risks. The middle class is scared of taking risks because they don’t have the capacity to bear the loss. The rich are not scared of making mistakes, rather they learn and do not repeat the mistake.
4. Should Educate Ourselves In Personal Finance
The fourth learning is that we all should educate ourselves in personal finance. According to Robert Kiyosaki, we should know these 4 things about personal finance.
- The first being basic accounting so that we can read the financial statements of companies.
- The second is investing so that we can grow our money.
- The third being one should know the basics of the financial markets.
- The fourth is tax soo that we can protect what we earn.
It is seen that the rich start losing their wealth gradually due to the lack of financial education.
5. Cannot Work For Someone
The fifth learning is that you cannot work for someone for a lifetime and create wealth. The employee trades his time for a monthly salary and the employers try to take out worth more than he pays. Rich Dad Poor Dad tells us how one earns less than their potential in a job.
So when you do a business and work for yourself, there is no ceiling on your income. No more you will earn, the more you will be able to save and the more you save more you can invest and the more you invest, the more you will be able to acquire assets. (Rich dad poor dad book summary) Thank you.
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