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HOW THE BOOK RICH DAD POOR DAD WILL CHANGE YOUR LIFE

Updated: Jun 11, 2023

There are a few select books that come along in a lifetime that completely floor you. They alter your perspective. The affect your thinking on a daily basis. They change your attitude and your mindset. They set you on a different course in your life. One of these 5 books in my life has been Rich Dad Poor Dad. I couldn't recommend highly enough the value and importance of this book. Robert Kiyosaki is a modern day guru with so much knowledge about business, life, and personal freedom. If you are looking to better your life financially, and you don't read this, you're an idiot. Sorry - but it's true.


WHAT IS RICH DAD POOR DAD?


Rich Dad Poor Dad is the #1 best selling finance book of all time. Written by Robert Kiyosaki and Sharon Lechter in 1997, Rich Dad Poor Dad is based mostly on Kiyosaki's young days spent in Hawaii. Enriched by Kiyosaki s personal experience and the teachings he received from his rich dad and poor dad, the book highlights different attitudes towards money, work and life. Framed around six main teachings and lessons, the book is mostly a self-reflection. Apart from the financial benefits, the book also describes and highlights the teachings he got from his poor dad, i.e., empathy and responsibility towards society.


Described as a personal finance book, it has not only challenged, but has also changed the way people think about money. The book talks about Kiyosaki s background, his business ventures and investments and variation between possessions and liabilities and what importance they both have in terms of starting and owning a business. It also sheds light on the teachings given by rich to their kids, which is usually missed by poor as well as the middle class parents and why it is important to have financial literacy over and above all. It also provides impetus on doing work for learning and not for earning and teaches the importance of investing and building business.


This book also showcases how you must be prepared to take action and risk and communicates the idea of how one s primary residence is a liability and not an asset. It communicates the importance of intelligence and literacy in terms of finance and how financial and entrepreneurial skills play a vital role in the success. How to use power and prosper with the help of investment skills and why it is important to possess investment skills are also written in clear and crisp words in this book. The book also talks of the importance of investment and free enterprise and urges the prospective investors and businessmen to learn from others, especially from rich people and generate new ideas to excel and succeed in life. Originally published in 1997, it was also selected commercially. Termed as New York-Times bestseller, the book has been a boon for management and financial aspirants.


WHO IS ROBERT KYOSAKI?


Robert Kyosaki is the author of this book. He is a successful author and businessman. He is the founder of Rich Global LLC and the Rich Dad Company, a private financial education company that provides personal finance and business education to people through books and videos. The company's main revenues come from franchisees of the Rich Dad seminars that are conducted by independent individuals using Kiyosaki's brand name for a fee. He is also the creator of the Cashflow board game to educate adults and children about business and financial concepts






WHAT DOES THE BOOK TEACH ME EXACTLY?


Rich Dad Poor Dad is about Robert Kiyosaki and his two dads. His real father (known as the poor dad) and the father of his best friend (the rich dad). He discusses the different ways in which both men shaped his thoughts about money and investing. Robert teaches that us that the difference between being rich and being poor is a simple difference of education.


The poor and middle classes slave away to find a job and work for a good company whereas the rich salve away to build businesses. Their businesses end up making more money than a job ever could while providing passive income - allowing you to live a life you could only dream of.


In the book you will learn:


-How the rich don’t work for money (i.e. Don't exchange hours for money)

-What financial literacy means

-How to take control of your own business

-The history of taxes and the power of corporations

-How the wealthy actually invent money

-Why you should work to learn instead of working for money



HOW CAN RICH DAD POOR DAD BETTER MY LIFE?


As Robert says, there is a difference between being poor and being broke. Broke is temporary. Poor is eternal.


If you want to become wealthy and live an amazing lifestyle where you can go on vacations, buy practically whatever you want, and have complete freedom (retire early), than this is the book for you. More than that it teaches you the responsibility of giving back. Poor people don't give as much money away to charity as wealthy people do. It teaches financial responsibility as well as civic duty.


How would more money completely change your life?


HOW DO I GET ON THE PATH TO FINANCIAL FREEDOM?


It starts with a simple idea:

  • Wealth is not net-worth: your house, your car, your personal effects.

  • Wealth is financial freedom: how long you could live if you stopped working today.

And this simple idea has a simple solution. To be financially free, your passive income must exceed your expenses. And for your passive income to exceed your expenses you must:

  1. Buy things that put money into your pocket (assets); and

  2. Reduce the things that take it out again (liabilities).

But what are these things? How do we find them? And, if it’s so easy, what holds us back?

Good questions, replies Kiyosaki, and the answer, he says, lies in three things: Right motive. Right mindset. Right skills.

True, most of us start from behind. In fact, most of us start with nothing. And few of us get even a basic financial education.

But the good news, he counters, is that everything is in your power to change.

Wealth building isn’t rocket science. Anyone can learn it.



 


About the Author


Matt Jones is a writer and entrepreneur with multiple businesses who loves inspiring others to reach their full potential. He is also a musician, educator, and world traveler whom has been to over 65 different countries on all 7 continents.

His personal mission is to create and inspire. He is from Los Angeles, but is now based in greater London where he lives with his wife and son.


 



 



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