Rich Dad Poor Dad Review
“Rich Dad Poor Dad,” by Robert Kiyosaki is the #1 personal finance book of all time. The book is focused on the life lessons Kiyosaki was taught by his “rich” dad and his “poor” dad.
One of his dads was college educated while the other dad had only finished the 8th grade. At the beginning of this book, both dads struggled. However, one dad was on his way to becoming one of the richest men in Hawaii. Both dads taught Kiyosaki valuable life lessons in which he wrote about in this book.
6 Lessons of Rich Dad Poor Dad
Lesson #1: The Rich Don’t Work For Money.
This lesson starts out with young Kiyosaki learning how to avoid one of life’s biggest traps – a high-paying wage. Unfortunately, most people fall into this trap and never realize it.
Rich Dad explains how wealthy people view money differently than everyone else. The rich know that money is an illusion but everyone else thinks it’s real. He also calls out that people may say that they don’t care about money yet they will spend all their life working to get more of it.
Lesson #2: Why Teach Financial Literacy?
Any money acquired without financial literacy will soon disappear. This lesson will teach you why it is important to focus on improving your financial IQ.
There is one rule that is stressed here. That rule is to know the difference between an asset and a liability.
Lesson #3: Mind Your Own Business.
This section focuses on acquiring assets and the thinking of the accumulation as a business. Kiyosaki includes a list of assets that people can invest in, which of course includes his favorite asset – real estate.
“…too many people forget to mind their own business. They spend their lives minding someone else’s business and making that person rich.”
Robert Kiyosaki
Lesson #4: The History of Taxes and the Power of Corporations.
Everyone hears that the rich don’t pay taxes. This statement often strikes anger in a lot of people. However, like it or not, the rich are only using the law to their advantage!
Throughout your life, taxes will be your largest expense. If you want to build wealth, you need to take advantage of all the legal ways to reduce the amount of taxes you pay.
This lesson outlines the best-kept secret of the rich, which is to avoid and reduce taxes.
Lesson #5: The Rich Invent Money.
Several examples here will teach you that rich people invent money through boldness and creativity while everyone else clings to old habits.
Additionally, Kiyosaki explains the two kinds of investors and the skills you need to be successful at both.
Lesson #6: Work to Learn – Don’t Work for Money.
The last lesson in Rich Dad Poor Dad is to work for knowledge, not money. Rich people work to learn, not for job security. Kiyosaki explains that he became a best-selling author not because he was a great writer, but because he is a great seller.
For example, he explains that he once worked for Xerox. He didn’t work at Xerox for the money though, he worked there to learn how to sell. That skill helped him tremendously throughout life.
In addition to outlining the skills needed for success, he explains the importance of being a good teacher to ensure generational wealth.
Concluding Chapters
Lastly, Rich Dad Poor Dad concludes with a few chapters that will help readers overcome the most common obstacles preventing people from having financial success. Additionally, you’ll learn how to awaken yourself to become a self-motivated, financial genius.
There is a reason why this book is the #1 personal finance book of all time. This book will shake out the nonsense you never knew you were taught. Without a doubt, we recommend that everyone reads this book.
To purchase via Amazon, click here.
P.S. Want to increase your financial IQ even more? Read Kiyosaki’s next book, Cashflow Quadrant or check out The Best Financial Independence Books for Beginners.
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