This book is one you should read when you start your journey of financial independence. It gives a very good Big Picture view on what you need to do to be financially successful. The book is Rich Dad Poor Dad, by Robert Kiyosaki.
The Book
Rich Dad Poor Dad is about what Robert Kiyosaki learned from his two dads. One was his real father, whom he refers to as his poor dad, and the other is actually the father of his best friend, whom he refers to as his rich dad. The book is about the way the two men’s views towards money differ very much and the way their different attitudes and thought processes shaped their lives and how their views shaped his thoughts and ideas about money and investing.
The Five Big Ideas
- The poor and the middle class stay poor and middle class because they only know how to make money by working for it. The rich become rich and stay rich because they figure out how to make their money make money, so they don’t have to work for money.
- The most important thing for building wealth is not necessarily how much money you make, it’s how much of what you make, that you keep.
- The most important difference between Rich people and Poor people is that the Rich acquire assets and the poor and middle class acquire liabilities, which they think are assets.
- Financial aptitude is a level of understanding financial matters cultivated by learning, which changes what you do with the money you earn from labor. It focuses on preventing people from taking your money and teaching you how to not only keep your money, but how to make your money work hard for you.
- The most valuable asset that we all possess is our mind. But it only becomes a performing asset if we train our minds about financial matters and if we execute or carry out the plans for financial improvement that our minds create.
The book is divided into Rich Dad and Poor Dad Lessons.
- Lesson 1: The Rich Don’t Work for Money
- Lesson 2: Why Teach Financial Literacy?
- Lesson 3: Mind Your Own Business
- Lesson 4: The History of Taxes and The Power of Corporations
- Lesson 5: The Rich Invent Money
- Lesson 6: Work to Learn—Don’t Work for Money
Summary
The book is a popular one which teaches essential principles and thought patterns which you need to internalize to change the way you think about work and money, from the inside out. You need to change how you think, change how you plan and change how you execute plans. It’s not enough to read how someone did something that made them successful, but in order for you to become successful you need to learn what financially successful people know, you need to internalize this knowledge into your thought processes, so you think like a financially successful person, plan like such a person and you must be confident enough to execute the plans.
This is very important because anyone can conceive in their mind a plan, but only a few can carry it out. And this difference between planning and doing nothing versus planning and executing the plan is often the difference between financial success and financial failure.
Knowledge is power, and power is freedom.
Free yourself.
✍️ written by Shortsegments
Title: Book Review: Rich Dad Poor Dad, by Robert Kiyosaki.