Let me give you a comprehensive summary and review of the all-time best-selling personal finance book, “Rich Dad Poor Dad” by Robert Kiyosaki. First published in 1997, this book quickly became a must-read for anyone interested in investment. Its central message emphasizes using money as a tool to build wealth.One Thing I should make it clear that reading summary you can get only have an overview of it. To take actual message of this book you must read full book.
I have also some other book summaries like Ikigai, Miracle Morning, Eat That Frog, Time Management, Dopamine Detox , The Four Agreements, Make Your Bed etc.
One Sentence Summary: This book explains why your home may not be an asset, the difference between an asset and a liability, and much more.
What Lessons you will Learn from “Rich Dad Poor Dad book summary “by Robert Kiyosaki ?
- You will learn six lessons from Rich Dad about making money and the mistakes that Poor Dad made.
- There are Five impediments to overcome before you can become rich and remain rich
- A ten steps strategy to follow to develop your financial genius
- To-do list you can put to work right away
Character Summaries: of book “Rich Dad Poor Dad “by Robert Kiyosaki
Rich Dad, Poor Dad revolves around three main characters:
- Poor dad – literate but lacking of smartness
- Rich dad – very little education , but smart.
- Kiyosaki – the spectator who learns lessons from both but exercises only rich dad’s traits.
Quotes ( Rich Dad Poor Dad book summary)
- “The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.” by Robert Kiyosaki.
- “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” by Robert Kiyosaki.
- “Poor people work for money. Rich people have money work for them.” by Robert Kiyosaki.
- “Money flows toward people who have valuable skills, knowledge, and experience to offer.” by Robert Kiyosaki.
- “Your income is the average of the five people you spend the most time with.” by Robert Kiyosaki.
- “If you want to be rich, you must be an expert at money, not just in making it, but in keeping it.” by Robert Kiyosaki.
- “Don’t let your emotions be controlled by your finances. Let your finances be controlled by your knowledge and understanding.” by Robert Kiyosaki.
Chapter wise-Rich Dad Poor Dad Book summary:
Rich Dad Poor Dad contains a total of ten chapters including introduction. We’ll discuss the this chapters with chapter wise summary.
Chapter 1: The Rich Don’t Work for Money (Rich Dad Poor Dad book summary )
The title of this chapter has led many to the false conclusion that the wealthy don’t have to work. In reality, the reverse is correct. Kiyosaki means that “The Rich Don’t Work for Money” when he titles this chapter that way. Note that the section’s meaning changes drastically if “money” is emphasized.
Most wealthy people work hard but approach their work in unique ways. Those who are rich and those who aspire to join their ranks study and practice every day the art of making their money work for them. Money is the driving force behind the lives of the impoverished and the middle class, according to Rich Dad, Poor Dad. The wealthy can put their wealth to good use. Kiyosaki notes that there are more long-term solutions to creating wealth and financial freedom than having a regular job.
The author says that many people stay at work because they are afraid. They need more money, lose their job, or start over. This fear of being unable to pay bills makes them work even if they don’t like their job. This fear is the cost of getting an education and then working for money. People become slaves to cash and get mad at their bosses.
Chapter 2: Why Teach Financial Literacy? (Rich Dad Poor Dad book summary)
Chapter two of Rich Dad Poor Dad talks about the difference between assets and liabilities. It explains that it’s not how much you earn, but how much you keep that really matters. Assets are valuable, make money or increase in value, and can be easily bought or sold.
On the other hand, liabilities cost money and take away from what you have. A home can be an asset if it goes up in value enough to cover the expenses of owning it. However, rental property is an asset because it generates enough passive income to pay for its costs.
The author says that if you want to become rich, focus on buying assets that produce income and keep your liabilities and expenses low. This will help you grow your assets.”
Chapter 3: Mind Your Own Business: (Rich Dad Poor Dad book summary)
This chapter talks about two important ideas:
- Pay off debts and invest in assets that make money.
- Spend time (not money) and put as much as you can into assets.
Chapter 4: The History of Taxes and the Power of Corporations: (Rich Dad Poor Dad book summary)
Poor people let big companies control them, but rich people know how to use them. The wealthy know how to use the power of companies to protect and grow their assets. The book says that companies pay less taxes than individuals. People get money, pay taxes on it, then use what’s left. Companies make money, spend it all, and pay taxes on what’s left. The book says that people might not know they’re being influenced. They pay taxes from January to May. Rich people don’t pay taxes.
The author says it’s important to learn about finance to be free from daily routine. You need to learn about money, investing, markets, and the law. If you don’t know about these things, you might be taken advantage of. But if you learn, you have a better chance of success.”
Chapter 6 : The Rich Invent Money: (Rich Dad Poor Dad book summary)
Making money means finding opportunities for others who don’t have the skills, knowledge, resources, or connections. The author talks about self-doubt holding people back from their talents. It’s only sometimes the smartest or most educated who succeed, but the brave and daring.
People don’t get ahead financially because they’re afraid to take advantage of chances. Most people wait for opportunities to come. The author believes you create your luck and that the same goes for money. It’s not something that happens; it has to be made.
,In this Chapter of Rich Dad Poor Dad authors identifies of investors:
- Investment packages are bought by people who entrust their money to a developer or fund manager. Most individuals invest in this fashion, whether it’s through an exchange-traded fund (ETF) or a crowd funding project for a piece of real estate.
- Professional investors look after their own investments, research the market fund deal that makes sense, then hire professionals to manage the daily oversight.
One of favorites quotes of this chapter is“Some people argue that there aren’t real estate bargains where they are, but there are prime opportunities everywhere that are overlooked. Most people aren’t trained financially to recognize the opportunities in front of them.”
Chapter 7: Work to Learn – Don’t Work for Money: (Rich Dad Poor Dad book summary)
This chapter focuses on the skills needed for financial success. The author contrasts the poor dad’s focus on job stability with the rich dad’s focus on developing skills. The author stresses the importance of managing cash flow, processes, and people and having solid sales and marketing abilities. He also highlights the value of good communication skills, noting that even those with a wealth of knowledge can only fall short with solid communication abilities.
Chapter 8: Overcoming Obstacles: (Rich Dad Poor Dad book summary)
The author states that 5 traits hold people back: anxiety, cynicism, laziness, bad habits, and arrogance. Fear is a normal thing, but how we handle it matters. He likes Texas and Texans because when they win, they win big; when they lose, it’s a significant loss. To achieve real estate success, one needs balance and focus and avoid being like “Chicken Littles” who have a victim mentality and live with cynicism and pessimism.
Chapter 9 : Getting Started: (Rich Dad Poor Dad book summary)
The author lays out 10 steps to create personal wealth in this chapter. These steps are:
- Finding a strong emotional motivation, combining what you want and what you don’t want.
- Embracing the power of choice and making the right decisions, including forming good habits.
- Carefully choose your social network and avoid the influence of negative or fearful people.
- Rapidly acquiring knowledge and creating a formula for making money.
- Prioritizing yourself by practicing self-discipline to manage your cash flow, relationships, and time.
- Assembling a top-notch team and compensating them well for their expertise, as their success will lead to your success.
- Focusing on the return on investment and considering how quickly you will get your money back.
- Using income from assets to buy luxury items and continuing to prioritize self-discipline to create more wealth.
- Emulating successful role models and tapping into their wisdom to improve your financial success.
- Understanding that success requires giving before receiving.
Chapter 10: Still Want More? Here are Some To Do’s: (Rich Dad Poor Dad book summary)
Do you want to achieve long lasting financial success? Then this chapter is just for you! It’s full of great advice to help you reach your goals.
If you’re unhappy with your current approach, it’s time to change it. The author suggests seeking inspiration from others who have found success. He also recommends taking classes, watching videos, and attending conferences to keep learning.
Take charge of your future, focus on your goals, and keep learning! You can reach financial success, and this chapter is here to help.
“Rich Dad Poor Dad “by Robert Kiyosaki Book review:
Positive Review : “Rich Dad Poor Dad” is a fun and exciting book that teaches important lessons about money. The author, Robert Kiyosaki, explains in a simple way how to be smart with your money and make it grow. I loved learning about the difference between assets and liabilities and how to make money work for me. A fun fact is that only 24 out of 100 Americans are good with their money, according to a National Financial Educators Council study. This book can help people become intelligent 24!
Negative Review: While it has helpful tips, it also has some ideas that might only work for some. The book says that investing is a good idea, but it can be risky, and you might only sometimes make a lot of money. So, it’s essential to be careful and research before making big decisions with your money.
Rewinding key areas of this book :
The author says it’s important to own things that make money, not just work for someone else. Being an employee can limit your opportunities and make success harder.
The author believes that being smart with money is essential. By learning about accounting and investing, you can learn the difference between things that are good for you and things that aren’t. It’s better to have things that make you money than things that cost you.
Big companies have power because they make, spend, and pay taxes. But poor people sometimes need to learn how to use this power.
The author thinks that the best things in life come from being smart with money and owning things that make you money. His wife worked hard to buy a fancy car because she wanted it. But the author warns against keeping up with your neighbors and going into debt.
The author says that people sometimes don’t do anything because they’re afraid, lazy, or think they’re too good at something.
My personal review and opinion about “Rich Dad Poor Dad”:
Let have quick view of the book relating to present world.
A recent National Financial Educators Council survey found that only 24% of Americans are good with money. This means many people need better money choices and get into debt.
The book teaches how to tell the difference between things that make you money (assets) and things that cost you money (liabilities). This is important today because many have student loans, credit card debt, and high housing costs.
The book also says it’s essential to control your money and not just rely on a job. This is especially true now because jobs are only sometimes safe, and the cost of living is rising. You can be financially secure by controlling your money and investing in assets.
In a sentence, “Rich Dad Poor Dad” is an excellent book for people who want to understand money better. The book helps you learn about financial literacy, assets and liabilities, and taking control of your money. All of these things are important for a secure financial future.”
Conclusion:
As I outline the summary and my review of this book, if you follow what’s in “Rich Dad Poor Dad,” you’ll get smart with your money. You’ll learn how to handle money, what things are worth having, and how to make sure you have control over your finances. Doing this will help you make wise choices with your money and ensure a bright financial future. So, take your chance to make a change and become rich for yourself and the people you love!
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