In Rich Dad, Poor Father, Robert Kiyosaki teaches young boys to be less concerned with money and more concerned about generating it. He claims that most people miss out on opportunity because they are too preoccupied with money and security. So, we all need to work harder and generate money to make more money, and this is what we must do now. Rich Dad has three important lessons to teach us. Listed below are some of them.
Robert Kiyosaki’s father
The author of Rich, Poor, and Everything in Between, Robert Kiyosaki, was raised by two different fathers. His biological father was well educated, and finished his undergraduate degree in just two years. His other father, however, never finished high school, and had a difficult time managing his money. Both fathers encouraged Kiyosaki to get a respectable degree and climb the corporate ladder. Neither father was happy, however, and both struggled with money and had regressive views about money.
According to the author, his father was an “obsessive” storyteller. His father, who was an alcoholic, had a knack for embellishing stories. The resulting stories were handed down through the generations, with some embellishments inserted later. The author has since said that Rich Dad is not a single person; instead, it is a composite character based on several advisers.
In the book, Robert Kiyosaki tells the story of his father and teaches that people with high incomes struggle financially because they spend it the wrong way. We have a deep fear of taxes and we often exploit ourselves by not saving enough money. Even if we earn more money than our parents, we’re disappointed with our paychecks once we’ve paid taxes.
The real estate market is a fickle place, but the book teaches that we can learn from the mistakes of others. Robert Kiyosaki used to live in Portland, Oregon. In 1989, it was the aftermath of a massive market crash and real estate was selling poorly. Kiyosaki often jogged through a neighborhood full of gingerbread houses and for sale signs. But his father’s advice still holds true today: make sure to get something for free with your investment.
The author of Rich Dad Poor Mom discusses how his parents benefited from real estate. While the value of homes goes up over time, they often sell for much less than they originally paid for them. Robert’s parents were struggling with their budget when their property taxes rose, but they’re now thriving. The book is a classic of personal finance, and has sold over 32 million copies.
Eventually, Robert Kiyosaki quit his job as a waiter after he was paid just 10 cents an hour for two weeks. He promised to take his boys to ice cream park every Saturday. He then met his rich dad and asked him to pay him a little more than ten cents an hour. He got the job, but the money was not good enough for the wait.
During his youth, Robert Kiyosaki’s dad often recommended that he avoid specialization and attend meetings on different aspects of building a business empire. He wanted to learn every aspect of creating an empire. Kiyosaki said, “Managing people is the most difficult part of running a business.”
During the recession, Robert Kiyosaki and his wife spent the money they earned from his rental properties. During the crash, Robert Kiyosaki paid $45,000 for a six-unit house and rented it out to a local professor for a year. A year later, the market recovered and they sold it for $95,000. Kiyosaki then used the money they made to buy a twelve-unit apartment. Kiyosaki bought the house for $50,000, a bargain, and took a $2,500 processing fee.
As a result of Kiyosaki’s marketing efforts, his book became a bestseller. He even went on to recommend taking a quality sales course. The reporter was surprised to hear this recommendation, especially because she had a Masters degree in English Literature. In fact, she was offended and wrote a piece about Kiyosaki’s “poor writer” status.
One of the main themes of Rich, Poor, and the author’s father are the same: the importance of financial literacy. The wealthy use their knowledge of money and finance to legally pay less tax than the poor. Because of this, they do not pay much in taxes. And the government uses tax laws as an incentive for businesses and investments, which means that the rich pay less than the middle class.