Rich Dad Poor Dad by Robert Kiyosaki.
This is the First book read by me in my reading career and I can say this has helped me to read more and more books on Financial Independence. Financial Freedom wow two so small words which are just easy to say but very difficult to do when it comes to implementing it in REAL WORLD. I can say that when it comes to teaching anything Robert Kiyosaki and his team puts real effort and explained in very simple language and simple manner. When I started this book first I love it, the ways of explanations in this book which are acceptable in Real world and have become a kind of Fan of Robert Kiyosaki. I have also attended some events organized by Rich Dad Poor Dad Organisations, and I learned many many things from them.
RICH DAD POOR DAD – Strange name right..!! yeah, it is but it is not that he had 2 dads, but 1st was his own Father and 2nd was his best friends Father. Both taught him 2 separate things with same motive every father has either make their child successful in Life.
1st dad was well educated and 2nd was not well educated but known how to run a business, both were hard working and use to teach Robert different things with their own perspective. 1st dad uses to say get well educated so you can work for a big good company and have a happy life, 2nd use to say get well educated and start your own business to you give employment to other people and live a happy life. But as Robert was a smart kid he listens to both his fathers and implemented the learning in his own way, and now today he is a well-known person around the world.
Things I Learned from this book.
1) Learning Financial Literacy
Financial Literacy means knowing the difference between ASSETS and LIABILITIES
yeah, it’s to simple right ..?? everybody knows the meaning of Assets and Liabilities but very few know what it actually means.
ASSETS vs LIABILITIES – Many people think Assets is what is own by them either House, Car, Land & building, etc. but in actual Financial terms, they are Wrong. Any ASSETS which does not generate them INCOME is a LIABILITIES. Yes, that’s true. The main Financial literacy is knowing the difference between ASSETS vs. LIABILITIES.
An asset is something that generates income, while a liability is anything that has costs. In other words, by this definition, your primary residence is not an asset but a liability. It may have cash value, but it doesn’t generate income. Instead, assets are forms of passive income that you control, like a rental property or intellectual property.
Basically, you become rich by accumulating assets, assets as defined by this book. This basically means that, if I Own a house is not an asset but if I rent that house and it generates revenue on its own either – Rental Income now this is and Assets. Wealth comes from having enough assets that generate enough income so that all of your expenses are covered and there is enough left over to invest in more assets.
2) Make Money Work For You
Once you understand the meaning of Financial Literacy, you will understand that you need more Assets then Liabilities. This will help you to think ways to create more and more assets and this will lead to more and more Income.
This book also taught that our Education system does not teach us how to MAKE MONEY WORK FOR YOU, they just taught us to get a good Education, learn professional things and work for Money NOT Make Money Work For You. This lead us later on work for “Government”, earn more and pay more TAX.
People buy more things they do not require on loans, like buying expensive Cars, latest technology phones, branded watches, bikes and so on… they just look for temporary happiness which takes all their hard earned money from their pockets and make Banks or Government richer. So the only way to earn more TAX-Free money is to acquire assets that produce income is a way of having money work for you. Examples are passive income like real estate, portfolio income like stocks, bonds, etc…, or businesses.
In this Book, Rich dad is actually a quite simple living person. Although he has a lot of money in the bank, he drives a cheap car and doesn’t live in a mansion. Too many people equate rich with material things, so I enjoy it when it is shown that being rich often has very little connection to material possessions. Being rich means never having to worry about paying your bills.
3) Mind Your Own Business
As I have stated in the introduction, what Robert 2nd dad use to say, is own business. There a good story in the book about Mc Donalds, he goes to some event where he asks people to guess what business he owns..?? and some guy says that he is in the world own Burger business, but then he laughs so hard and explains he is in Real Estate business. He owns the places and then set business there.
Do read this and watch this movie https://en.wikipedia.org/wiki/The_Founder . its original movie on Mc Donalds.
I strongly agree with: pay off your debts and start investing as soon as you can into things that can generate revenue.
4) Work to Learn
We need to learn, how to Work to learn. This basically means we need to keep learning new things. Whatever we learn we can apply in normal life as well. The rich in fact do work, and they work quite hard. They work to learn things, and the things they learn can easily be applied to make money over and over again. The easiest way to mint your own money in today’s arena is through creating your own intellectual property.
Well, there are many more things to be learned from this book, for which I will suggest you all read it. Its a book every age member can read & it should be on your Must read book list.
please do leave a comment if you have any ideas to suggest and share this with your friends and family.