Rich Dad and Poor Dad book summary and quotes
The best selling books of Robert Kiyosaki’s is the Rich dad and a poor dad. Everyone person who want to do something and earn more money in his life. I recommend this book to read, you must get smart ideas from this book. It will help you on how to earn more money. It’s not important, In what Professions you.
thought it best to go broke before 30.
“You still have time to recover”.”
About the Author
Robert Kiyosaki is an American businessman and author. He was born on 8th April 1947 in Hilo, Hawaii. He attended high school and graduated from Hilo high school in 1965. He graduated as a deck officer with Bachelor of Science degree from the United States Merchant Marine Academy at New York in 1969 and a commission as a 2nd Lt in the US Marine Corps. He was studied 2 year MBA Programme at the University of Hawaii at Hilo when he was in the Military. After honorably discharged from the Marine Corps in June 1974, he took a job as a sales associates for Xerox since 1978.
“When it comes to money, the only skill most people know is to work hard.”
― Robert Kiyosaki
In 1974, He attended the Ernhard EST seminars. Kiyosaki is the founder of Rich Global LLC and Rich Dad Company. They are providing business financial education to people through books and video. Kiyosaki has written more than 26 books, The rich dad and poor dad is translated into 51 languages and 27 copies are sold worldwide. To know more
Summary of Rich dad and poor dad book
Money working strategy
Rich people don’t work for money, but money work for them. May you have a question? how it does work. Why poor people work for money and rich people don’t work for money. Guess, You will have 1 Lakh rupees and what you do from this money. What do you buy? or Where you invest? There is a simple rule if you buy some properties or asset whose value increase in the future. So you will earn high in future.
If you waste money to buy just fulfill your desire like to buy a car, bike and others whose value not increasable in future. So where to use money is most important. I am not saying that you have to use money all in investment value, as your financial planning or goal you can buy your desired items, but you have to invest your more money in assets as comparing liabilities. You must have a knowledge about how money is working, how can you get more from a specific amount, what type of strategy you should follow. This is the basic knowledge you should have when investing.
” The poor and the middle class work for money.
The rich have money work for them.”
2. Right thing- Right Person
This is the most important point I learned from this book. When you are getting a job where you send your money to buy assets or liabilities. Most people buy a bike or something like who desire a long ago. We should try to buy assets first because its value increases in the future so you will gate more money. Then you choose to spend money on liabilities. Assets increase our income as if you invest in the business, mutual funds, insurance, bonds, etc.
Liabilities decrease our money from a pocket and increase our expenses like, if you buy a car, you have to pay fuel charges regular, maintenance charges, etc. It’s not so that you don’t use a car, but we have to focus on that our maximum income expenses are spent on assets. It will increase your expenses. Such items who are cut our wealth, we try to spend most of the money in assets and minimum money in liabilities from total income.
distinction is that rich people buy luxuries last, while the poor and middle
class tend to buy luxuries first.”
― Robert Kiyosaki
According to Robert Kiyosaki, real assets fall into the following categories
- Income generating real estate
- Royalties from intellectual property such as scripts, music, and patents
- Any such investment that gives income
3. Two types of income process- Active Income and Passive Income
Here is an active income means you will earn money at the same time when you are working. Like job, shop, etc. When you are in a shop, you can earn money by selling products but if you close your shop then you cannot earn any money from the shop.
Passive income means you can earn income even if when you are not doing any work. The poor dad says If you are working for active income then you are working for money. The rich dad says if you are working for passive income, money will work for you.
“Most people go along with the crowd. They do things because everybody else does it.”
― Robert Kiyosaki
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