Rich Dad Poor Dad by Robert Kiyosaki

Rich Dad Poor Dad book summary

In Rich Dad Poor Dad, Robert Kiyosaki shares a unique perspective on money. Growing up, Kiyosaki had two fathers – a wealthy Stanford-educated PhD and a financially illiterate biological father. As a child, Kiyosaki lacked the wisdom to make good money decisions based on his own experiences. But he was determined to find financial independence, so he sought advice from his Rich Dad and began reading books and investing.

Rich Dad taught Robert Kiyosaki a contrarian view of money

The best money advice Robert Kiyosaki ever received was to become a contrarian when it came to spending his money. Rich dad taught him to learn from various types of experiences. He also told him to take on many different kinds of jobs before deciding on one. By contrast, poor dad believed that he should pursue a degree in a narrow field, which would lead to a secure job with a good salary and benefits in a big company.

Throughout his life, Robert Kiyosaki changed jobs multiple times to learn how to make money. After graduating from the US Merchant Marine Academy, he went to work for a tanker company owned by Standard Oil. After six months, he quit his job and joined the Marines instead. The job provided him with a great education and he learned how to lead a group of people. However, he had to wait an extra 60 minutes before he finally met his wealthy father.

Rich Dad’s assets brought in enough money to cover expenses

According to Rich Dad, Poor Dad, assets make money, while liabilities cost money. While this statement isn’t perfectly true, it generally holds true. For instance, a car is not an asset – it depreciates, requires repairs and maintenance, and will not bring in enough money to pay for expenses. A home, however, is an asset.

The wealthiest people are not those who work for someone else. Rich Dad worked for another person for a short period of time to acquire his assets. Poor Dad wrongly believes that working for someone else for a long time will bring wealth.

Rich Dad’s specializing didn’t translate into earnings

Many readers have credited Robert Kiyosaki’s books for introducing them to passive income. His motivational persona has inspired people to learn more about money management and improve their finances. Unfortunately, the reality is a bit different. Investing in a business may not translate into earnings.

Cynicism and Fear

Cynicism and fear are common problems in real estate investing. It is important to not let others’ cynicism and fear control your decisions or you could miss opportunities. Cynicism is an underlying fear of making mistakes, and Robert Kiyosaki identifies it as the “little chicken” in everyone. Cynicism stems from unchecked doubt and fear, which thwarts action and leads to inaction.

The book discusses various obstacles in wealth creation and discusses ways to overcome these obstacles. The chapter on risk, for example, gives examples of how to overcome fear and develop a solution-focused mindset.

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