Introduction
Hello and welcome to “atoz Library”, Through The article “Rich Dad Poor Dad summary”, I will tell you about the famous book “Rich Dad Poor Dad” written by Robert Kiyosaki.
You may have read this book or heard from someone, and if you don’t know, today I will tell you about the specialty of the “Rich Dad Poor Dad” book.
The book “Rich Dad Poor Dad” by Robert Kiyosaki mentions two people, one is Robert Kiyosaki’s own father who is identified here as Poor Dad and the other is Rich Dad, the father of Robert Kiyosaki’s friend Mike.
Whenever you know the Rich Dad Poor Dad summary I’m sure the word “Wow” will come out of your mouth because i will tell you.
What can you learn from the book Rich Dad Poor Dad?
Once you get to know the gist of the Rich Dad Poor Dad book, you will understand how the rich get richer and why the poor get poorer.
Your outlook on money will change and you will start thinking from a new perspective. Once you know the gist of this book, you will know how money should be used in our work without working for our money.
Now you must think that you also know the importance of money. Yes, you can know for sure but the subtle differences that the author has described and illustrated with the meaning will surely be clear to you.
What is money and how can you get rich, and what is the key to getting rich? This is explained in detail by the author Robert Kiyosaki in his book “Rich Dad Poor Dad”.
Why should you read the Book Rich Dad Poor Dad?
According to the Internet, the book “Rich Dad Poor Dad” by Robert Kiyosaki is one of the best books of all time on economic change and inspiration, explaining the importance of money. Considered the most famous accounting book of all time, the book has sold 32 million copies in more than 51 languages in more than 109 countries.
Robert Kiyosaki has changed the way people think about money around the world. Parents send their children to school but they are not given financial education even after many years of schooling. They are only taught security for the job but we are not taught how to make money for ourselves.
So to understand business and investment funds you need to know the essence of this book. It will give you a realistic understanding of the market and money which will bring economic change in your life and you will be able to earn more money in life.
Why did the author name the book Rich Dad Poor Dad?
The book is based on his personal experience, the author’s father was very educated and hardworking. He had a well-paying job, but his family was in need, and his entire income was spent on household expenses and debt repayment. When Robert demanded something from him, Dad would say, “Does money grow on trees?”
But when the writer looked at his dear friend, he saw that he was aristocratic and had a good business, even though his friend’s father had no college degree. He was financially involved. Why was that?
This is because the author’s father’s economic ideals were old-fashioned but his friend’s father had a rich mentality.
Poor Dad always said I can’t do it, I can’t afford it, but Rich Dad always thought about how I could do it. His poor dad used to say, “You study hard and get a degree so you can get a good job.”
But on the other hand, his rich dad used to say that you think, how can you give a job?
Rich Dad’s thinking about money was very different, Due to this, he was one of the rich people. The author understood this deeply, and he took the financial advice of Rich Day, the father of his friend.
Summary
At just nine years old, Robert Kiyosaki decided to ask his rich dad for money. This book discusses in detail seven topics learned from Rich Dad. These seven topics are briefly discussed below.
1-Rat race:
The rat race means constant action struggles and conflicts in our lives. We are taught from an early age that first, we have to get good marks on the boards so that we can get admission to good colleges,
You have to get good marks in college so that you can get a good job, this is what is going on from generation to generation. From childhood, we are taught to struggle but not to be rich. We can’t get rich even if we get out of poverty, and as the middle class, this rat race hinders us from getting rich.
The author says that children should be taught about economics and earning from infancy. You don’t have to have a big degree to be rich, you don’t even need a good grade in school. There are many other ways to succeed financially, Most people are unaware of these methods.
2-Change perspective:
The author says that different people have different views on money, Such as studying so that one can get a job in a good company or buy a good company.
The middle class thinks that they will not take financial risks. On the other hand, the rich think about how to manage money with financial risk.
Rich people did not become rich because of their education, look at Michael Jordan and Madonna, even the Billgrats who founded Microsoft. He was a dropout of Howard College, becoming the richest man in America at the age of 30.
If you want to learn something new or achieve real success, changing your mindset is most important. So you have to live without fear.
3-How does money work?
Rich people don’t work for money, money works for them, but the opposite happens to poor people. They work for money Money doesn’t work for them, it depends entirely on your thinking.
Rich people stay rich and increase their income because they know how money works, where they can make better income by investing money and where their money should be invested, whereas poor people work for money, instead of investing they save money By
For example, when an employer buys a car with a loan, he thinks it is his property, Instead of buying cars, he spends his money on EMIs, fuel, parking insurance, and maintenance. There, rich people invest money in property or market, so that no money is spent, but money is earned by selling.
Wealthy people invest thinking that they will get good returns and this money will be used in the future. People believe that we should also focus on benefits so that we can earn.
The author also mentions that he is very lucky because he got two mentalities close to two fathers. So his correct thinking about money developed.
4-Learn to take risks to get rich:
Repeatedly doing the same thing and expecting different results is called madness.
If you want to change your current financial situation, you have to manage your money differently. The biggest change in your life is learning to take risks.
All the people in the world who have become rich have taken risks, be it Steve Jobs or Ambani, only then they have succeeded, there is a saying “you can’t learn to walk without getting hurt”. Similarly, unless we take risks, we will not understand how to make money, how to get rich.
Taking risks does not always mean balancing or securing money, which you do when checking basic banking and savings accounts at a bank.
Instead of keeping your money safe in a bank account, try investing it in stocks or bonds, although it is a bit risky but stocks can make a lot of money in a very short time.
If you are interested in the stock market, there are many other types of investment plans that can help you grow your property in the long run, such as real estate or the famous tax lien certificate. However, it is also true that the higher the risk of return, the greater the risk.
In the case of stocks, for example, there is always the possibility of sinking your entire investment, but for that reason, if you do not take any kind of risk, you will definitely not get a big return. One thing to clarify from this is that big bets are required for big income.
5-Always keep inspiring yourself:
The path to becoming rich is long and you have to work hard for it, it is normal to get frustrated when you face any obstacle. A lot of times you invest in a stock and the rate of that stock goes down, Even if you lose in the pursuit of financial goals, you will always have to find new ways to move forward.
One way to increase motivation is to personally make a list of what you want and what you don’t
For example, I want to live like a parent or not, or in three years I want to be free from my debt. At any time you can take out the list and remind yourself why you need to make regular efforts to get rich.
Another great way to stay motivated is to spend money on yourself before paying the bills. Although it may sound strange to hear a little bit, by doing this you will realize that you need extra income every month to fulfil its two purposes.
Suppose you want to buy a guitar for a long time but you also have a monthly expenditure obligation, in which case you need a lot of planning to meet both.
This does not mean that you will increase your credit card bills to fulfill your desires and obligations, but that the desire to spend on yourself or the extra pressure of bills will motivate you to look for new creative ways to earn money.
This approach will improve your financial discipline, which is one of the qualities of all individuals financially. For inspiration, you can research the life stories of rich people like Warren Buffett or Donald Trump.
You can read about how they have struggled in life and succeed in that fight. These will help you to maintain your ambition. Practice these ways so that you can be sure that it is not difficult to keep yourself motivated on the way to becoming rich.
6-Avoid laziness and arrogance:
Even after achieving financial success, your personality flaws can endanger your finances.
Both laziness and arrogance are very harmful because they work against you indirectly. We usually think of laziness as wasting time wandering around and sitting idle in our free time, but in reality, laziness means idleness, doing nothing.
Laziness means not doing the things that should actually be done, for example, a businessman who works more than 60 hours a week from the outside cannot be considered lazy at all, However, he was found to be working late into the night, isolating himself from his family.
He has seen troubles being created in the house before. But instead of solving these problems, he is immersing himself in work to avoid them. In short, he has become lazy, trying to avoid the things that should be solved, and as a result, he may have to bear the burden of expensive divorce in the future.
Similarly, arrogance can also be seen as a destructive weakness in terms of financial catastrophe it can be defined as an extraordinary ignorance or failure.
Incomplete financial knowledge and the pride of not acknowledging it can lead to loss. Pride is a particularly dangerous mistake when you invest.
For example, some stockbrokers will ask you to sell more shares to increase their own commissions and will try to persuade your inner pride. Like unscrupulous sellers, they will hide your investment from you and increase your arrogance.
So no matter who you are as a financial expert, keep this personality weakness in mind and in this way you can avoid your financial loss.
7-Learn to understand your taxes:
Learn to understand the tax code to reduce your taxes, the secret of getting rich is very common, corporations know how to do good deeds with taxes, which ordinary people do not know. Everyone knows that taxes reduce personal property, but most people do not try to figure out how to reduce taxes.
There are many ways to achieve this in the legal process. When you are an employee, you pay the taxes you earn, and with the money left over you try to run expenses or survive.
When you are protected by a corporation, you earn as much as you want to invest. Again you spend as you like and then you pay taxes on what is left. So it’s no surprise that corporations can help people get rich quickly.
There are many more ways you can reduce your tax burden, you need to be smart about the advantages and disadvantages of the tax system. By being aware of how the system works in your country, you can legally reduce the amount of money received by the government.
Conclusion:
Money is how to achieve financial freedom in life. Because our school is not taught about financial matters. So it is up to us to learn and develop about it, says the author, that whatever you invest in your mind brings you success because in any financial situation your brain is your most important asset.
The author suggests that if you want better results, start today if this book tells you the way to become financially self-sufficient and rich. But if you start trying to achieve them now, you will be able to fully realize these ambitions. This book is best for those who are just starting out.
Also, try to gain knowledge about the qualified people in the market you want to be associated with. You can follow them when their next publication comes out
Other general websites like- investopedia.com have very good information for newcomers. Being active in every situation helps you to maintain your position in the market. Gives you a better idea of your market.
The author had an important purpose in writing this whole book so that your earnings would be more than your expenses, The only way to do this is to keep track of your money, create a worksheet using a program like Microsoft Excel, which you can update monthly.
Make a chart of your income, including a list of expenses you receive each month, as well as any other expenses, including living expenses and taxes payable from your salary. Also, keep track of how much your current assets are earning for you each month and start monitoring how much you are spending on your liabilities.
It will also help you to decide what can be cut out of your life to widen the gap between your income and expenses. Finally, I hope you have found it very helpful to know about this book.
To the purpose of the reader
In fact, what rich people teach their children is not what poor and middle-class parents teach. This is for all parents because parents are the first teachers in a child’s life.
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