Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert Kiyosaki
Book Overview
In Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!, Robert Kiyosaki tells the story about what he learnt about money from his two dads; one 'rich', the other 'poor', and how each shaped his thinking about financial wealth and freedom.
Main Takeaways
(1) Financial education is necessary for navigating the 'money game' and being able to experience financial freedom. We need to take personal responsibility for developing our financial literacy, as it's not typically taught in mainstream education.
(2) Those who are financially wealthy have learnt how to make money work for them, rather than working for money. Through financial education they also understand that wealth comes from not just making money, but in knowing how to keep it for as long as possible.
(3) In order to make enough money to experience financial freedom (having enough wealth that work becomes optional) we need to develop three management skills; management of cash flow, management of systems, and management of people.
(4) There's a big difference between assets (anything that generates money or increases in value over time) and liabilities (anything that takes money out of your account). But though big, it's not always obvious. This is made clear by the fact that rich people acquire assets, while others tend to spend money on liabilities they think are assets.
(5) Despite gaining financial education, it's still possible for people to fail at developing a healthy asset column. This is typically due to fear, cynicism, laziness, bad habits, or arrogance. That being the said, the single and most powerful asset we have is our mind, which is where investing in our education is key.
Favorite Quote(s)
“A person can be highly educated, professionally successful, and financially illiterate.”
“The best thing about money is that it works 24-hours a day and can work for generations.”
“Thinking that a job makes you secure is lying to yourself.”
“Most people don't understand why they struggle financially because they don't understand cash flow."
"Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth."
Buy the Book
