The Rich Dad and Poor Dad’s Book: Secrets of Richness
Rich father and poor father book
Most of the people spend their lives thinking and looking for ways that can make them rich. The vast majority believe that studying and obtaining a university degree that guarantees them a job is the best way to achieve this. The truth, however, is that their financial struggles continue, even though they are working jobs and making a monthly income, and the reason is that they learned to work for money, but they did not learn how to make money work for them.
From what can be seen on the ground, parents who are poor or who belong to the middle class do not teach their children how to deal with money in order to become rich, unlike wealthy parents. In this article, we will get acquainted with the correct way to deal with money by reviewing the summary of the book “The Rich Dad and the Poverty Father” by self-made billionaire Robert Kiyosaki.
Summary of the book Rich Dad and Poor Dad
The Rich Dad and Poor Dad book is based on a basic idea: The reason why you are poor or rich is the thoughts and behavior that you carry, not how much money you have.
The author draws an interesting comparison between rich and poor parents. We find that the poor father instills in his son’s mind that he must study and excel in order to get a job, while the rich father encourages his son to study in order to own his own company in the future. The poor father sees the love of money as the cause of all misfortunes, while the rich father sees the lack of money as the cause.
On the other hand, we find that the poor father advises his son to climb the career ladder one degree, while the rich father advises his son to own the whole ladder. The poor father also teaches his son the fear of taking risks, while the rich father encourages his son to take risks and teaches him that fear of risk will only make him poorer.
The poor father teaches his son how to write a CV to help him get a job, while the rich father teaches his son how to prepare a feasibility study for his project. In conclusion, the way we think about money is only a result of what fathers teach children, which is the same as what they inherited from their parents.
The illusion of a safe job
One of the most important things that Kiyosaki emphasizes in his book “Rich Dad and Poor Dad” is that the belief that a job is a safe haven and a bulwark to face future dangers is nothing but an illusion that dominates our minds. Dealing with the job must be on the basis that it is a temporary or short-term stage, from which we can learn some skills, and it is not correct to think of it as a means to achieve financial independence and financial freedom.
As for staying in the job indefinitely, it is a kind of slavery and a great mistake that we make against ourselves. When we do, our efforts will be wasted for others; We are tired and make our efforts in order for others to enjoy the fruits of these efforts, and when we reach an advanced age we will be replaced by new blood, and we find ourselves dependent on others.
Although some may receive a large salary, in the end, he remains a “great slave”, Kiyosaki said. It should not be taken into account from this that we encourage employees to resign from their jobs. Rather, what is meant is to establish a private enterprise and sponsor it so that it becomes stable and generates sufficient income. And then the moment of emancipation from the bondage of the office has come and there is no more justification for remaining in the job.
Assets and liabilities
Kiyosaki believes that those who want to get rich must learn to differentiate between assets and liabilities. Simply, assets are everything you own and the money goes into your pocket, while liabilities represent the expenses, expenses and money out of your pocket. The more assets you increase and operate in your favor, the more cash flow, and the more financial freedom you will enjoy. If you want to get rich, you have to have the largest number of assets and the fewest number of liabilities.
Learn to invest
Kiyosaki believes that the problem with middle-class people is that they learn to work for money, and not learn to make money work for them, and he thus points to the importance of learning to invest. According to Kiyosaki, the investment is not just money; Rather, it could be about the time you can have a lot of it and spend it learning things that benefit you about the money game. According to Kiyosaki, the best investment for an individual to make is to invest his time in learning the methods and techniques that make him rich, rather than wasting it on something that does not benefit him.
Because investing is associated with risk, which many are afraid of taking, Kiyosaki says: “The biggest risk in your life is to always look for safe options and try to avoid taking risks.” Of course, it is not intended here to be reckless and take unmatched risk. He says: All the rich lost their lives more than once, while not knowing what a poor person lost in his life. The reason is that the poor prefer to stay in the safety zone because they are afraid of taking risks, unlike the rich. Kiyosaki recommends that individuals who like prudence should make safe investments, and the sooner the better.
Early planning for the future
The Rich Dad and Poor Dad book emphasizes that planning for the future is one of the most important requirements for achieving financial freedom and wealth. However, the widespread belief that a job is a source of safe income is the reason many people suffer from poverty. What happens after retirement from a job, Kiyosaki asks, when an individual cannot count on a steady monthly income? Therefore, he believes that assets must be acquired early and relied upon to ensure a good quality of life in the future; Assets are a permanent source of income generation, and they do not require effort. Perhaps this explains why millionaires remain rich, even after reaching an advanced age.
In conclusion, we can learn from the book of the rich father and the poor father several lessons, the most important of which are: changing our view of the job and considering it the only resort for obtaining money, achieving financial stability and financial freedom, and differentiating between assets and liabilities, increasing as much as possible from the first and reducing the second. Also, the book of the rich and poor father tells us that living life without risk will not lead to the achievement of what we dream of, but quite the opposite. It impedes our march on the path to financial freedom. Finally, we can draw a useful lesson for those looking for money and wealth, which is that early planning for the future is an essential component of our journey to the world of finance, business and wealth.
We have presented to you, dear reader, the most important thing in the book of the rich father and the poor father, so do not forget to share and publish it with others so that the benefit is spread to everyone.
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The Untold Truth About Money: How to Build Wealth From Nothing.
17mins sum up in one sentence: solve some problems and create value and money will follow. Nothing new nothing secretive. Im sure everyone on this planet knows this ‘secret’. But the problem is not everyone is mentally strong enough to put in the effort and action of accelerated compounded high performance consistently every min, every day, every year despite the unknown risk, error, and failure. Growth is not enough, and only the accelerated growth can maintain the momentum and keep that snowball rolling. It’s all rooted in their mind and subconscious. It’s something that people gain from their family or environment and hard to change when they grew up. Most people are mentally weak including me, although we have a dozen great ideas to solve the world’s biggest problems we rather chose the short term comfort of consuming 17 mins content about something we already know rather than put in one-minute action toward the uncertain success in the future. It seems like we all want wealth and success but our subconscious mind wants something different often something opposite, so it makes the different choices for us and those accumulated choices every min lead to a different result in life. That is unfortunate.
My old boss used to say ‘don’t worry about money —worry about helping people the money will come ” and it changed my life not only money wise but with love and perceived value.
I started my bank account when I was 11 years old. First deposit was $ 50 I made from mowing lawns.
I started saving everything I made, I was very frugal.
It took me ten years to see $ 10,000 in my account. I thought I would never see it.
18 months later, I saw $ 20,000.
Ten years later I saw $ 100,000 in my account. 18 months after that I saw $ 200,000.
Just three years later I saw $ 1,000,000 in my account. And coming up on 18 months, I yet again, looking at a double of $ 2,000,000.
Once I started solving a problem, and scaling my business, money is coming in nicely, and I don’t take any of it for granted.
When I was a small child, my mom and I lived in a school bus in a junk yard, we eventually moved into a house in the worst part of town, (there was a bullet hole on my bed room door growing up, and bars on the outside of the windows and doors so you cant brake in).
It’s been a long road of working harder than anyone else I know, but I’m happy I can now have my mom live with me in a nice house in safe community. I almost cried writing that just now.
Success can happen, Don’t give up. I’ve been in the same business since I was 15, working it non stop, this week I’ll be 34. I believe in you.
Whatever you said is 100 % correct. Stop chasing money, chase solutions to the problems. I heard an inspirational story of Jack Ma. He brought China into the international market at the time when China had nothing to do with the international market. That was a problem and he found a solution and finding the solution for him was never easy. The bigger the problem, the larger you grow. He competed with eBay which had it’s roots in over 150 countries. He never feared and he faced every problem bravely.