RICH DAD POOR DAD (SUMMARY)

                   Rich Dad Poor Dad is a personal finance classic written by Robert T. Kiyosaki. It presents financial education through the contrasting philosophies of two father figures: the author’s biological father (Poor Dad), who was highly educated but struggled financially, and his best friend’s father (Rich Dad), who had little formal education but became wealthy through entrepreneurship and investing.

It begins in the 1950’s. Robert and his friend Mike were curious boys with big ambitions: When they grew up, they wanted to become rich and make a lot of money. But just how they were going to accomplish that they didn’t actually know. So, after a failed attempt to produce coins from melted toothpaste tubes, the boys decided to get some advice. They asked their dads how they could start becoming rich.

You might be able to guess what Robert’s own well-educated but “poor dad” replied: “Go to school, study, and find a good job.” It’s familiar advice – but it’s pretty misguided.

If you follow guidance like this, you’ll spend your entire life breaking your back to increase your pay, while others – the government, bill collectors, and your bosses – take most of the reward.

In other words, Robert’s poor dad might as well have said, “Go and join the rat race, the endless routine of working for everyone but yourself.”

Now, lots of people still follow poor dad’s mantra – but many do it out of a sense of fear, a powerful sense of distress at the idea of violating the expectations that society drills into us. A good job is what leads to wealth, we’re told, so we study hard as kids and work even harder as adults. The result? We may be avoiding poverty, but we’re certainly not growing any wealthier.

But there are some people who don’t teach that mantra to their kids – people who know how money is created, increased and maintained. Rich people, in other words – people like Mike’s father, the rich dad who became a financial mentor to both boys.

So what did Mike’s dad suggest? At first, nothing. He made a deal with the young Kiyosaki, offering to teach him what he knew about money if the boy would work for him at the measly rate of 10 cents an hour.

Robert agreed – but after a few weeks of being underpaid, the boy returned to his “rich” dad,  seething with anger and ready to quit. “You’ve exploited me long enough,” he said, “and you haven’t even kept your promise. You taught me nothing about money in all those weeks!”

But there it was: his first lesson, delivered by his new mentor with a slight smile. Robert Kiyosaki had just learned that life often pushes you around. And he’d learned that working for money does not make you rich. Which is why: Rich people don’t work for money. So you might ask yourself: if the rich don’t work for money, then how do they get wealthy?

The Well of Don’t Work for Money

• Kiyosaki emphasizes the importance of financial literacy and understanding the difference between assets and liabilities. He suggests focusing on building assets that generate income rather than solely relying on a paycheck. Kiyosaki argues that having the right mindset is crucial for financial success. He encourages readers to continuously educate themselves about money, investing, and business. The book highlights the significance of achieving financial independence and not being reliant on a job or a single source of income.

 Make Money Work for You

•  Kiyosaki emphasizes the concept of passive income—earning money without actively working for it. He advocates for investing in assets such as real estate, stocks, or businesses that generate passive income. Rich Dad encourages taking calculated risks and learning from failures as valuable opportunities for growth and education.

The Power of Entrepreneurship

Kiyosaki promotes entrepreneurship as a path to financial freedom. He believes that starting a business can provide greater control over one’s financial destiny compared to traditional employment. The book underscores the importance of financial education and critical thinking about money matters. Kiyosaki suggests seeking out mentors and continuously learning about personal finance and investing.

 The Five Big Ideas

1. The poor and the middle-class work for money. The rich have money work for them.
2. It’s not how much money you make that matters. It’s how much money you keep.
3. Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
4. Financial aptitude is what you do with the money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you.
5. The single most powerful asset we all have is our minds.

   conclusion

• Overall, “Rich Dad Poor Dad” offers a mindset shift towards financial independence and wealth-building, advocating for entrepreneurship, investment, and financial education as keys to success. However, it’s also worth noting that some critics have questioned the specifics of Kiyosaki’s advice and his interpretation of financial principles. As with any personal finance book, it’s essential for readers to critically evaluate the concepts presented and determine how they apply to their own circumstances.  thinking matters a lot  one as one can think and grow.

The book also delves into the mindset and beliefs around money, discussing the importance of developing a positive relationship with wealth and overcoming limiting beliefs. Kiyosaki stresses the need for financial literacy and encourages readers to take control of their financial destinies by seeking out opportunities, learning from mistakes, and continuously educating themselves about money. This book was not only to help create ideas on how to become wealthier, but to motivate people to work for themselves and not for others.