“Rich Dad Poor Dad” is one of the most influential financial mementos created huge impact in the 21st century. Robert T . Kiyosaki has masterminded the stories in a lucid and creative manner. I am sure you will realize lots of money making ideas to develop a habit of reengineered attitude to financial freedom. The book is a 241-pages long but exciting masterpiece published in 1997 and contains 9 chapters with introduction and final thoughts. I am really excited to present you this book in next three pages.
The book dealt with mainly with three characters kiyosaki (the author) himself, rich dad and poor dad. Two opposite characters were presented prolifically throughout the book contrasting rich dad and poor dad. Though poor dad has achieved higher education (Stanford University, University of Chicago and Northwestern University), financially he struggles while rich dad has become one of the richest men in Hawaii. Let’s look at some comparisons between rich dad and poor dad
|Rich Dad||Poor Dad|
|The lack of money is the root of all evil||The love of money is the root of all evil|
|How can I afford it?||I cannot afford it.|
|Taxes punish those who produce and reward those who don’t produce||Rich should pay more in taxes to take care of those less fortunate.|
|Study hard so you can find a good company to buy.||Study hard so you can find a good company to work for.|
|The reason I must be rich is because I have you kids||The reason I am not rich because I have you kids.|
|Learn to manage risk||Don’t take risk. Play money safe.|
|Money is power. And more powerful is financial education.||Money does not matter.|
|The rich have money work for them.||The poor and middle class work for money.|
Many people say “Oh, I am not interested in money” yet they will work at a job for eight hours a day. Poor are surrounded by their needs and desires. A job is only a short term solution to a long term problem. Emotion means energy in motion which is dangerous. Watch it and use it in your favor. Can you differentiate between emotions thinking and head thinking?
Money is really made up. It is an illusion. It is only because of the illusions of confidence and the ignorance of masses. Seeing what others miss is a key.
It is not how much money you make. It’s how much money you keep, and how many generations you keep it. Rich dad said “If you want to be rich, you need to be financially literate”
Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets. You must know the difference between an asset and a liability and buy assets.
An asset puts money in my pocket whereas a liability takes money out of my pocket.
Cash flow tells the story of how a person handles money.
For people, how the quest for a financial dream turns into a financial nightmare.
A person can be highly educated, professionally successful and financially illiterate.
The poor is trapped in “Rat Race” where higher salary leads to higher expenses and never think of investing in income-producing assets.