BOOK SUMMARY 8: RICH DAD POOR DAD: ROBERT T. KIYOSAKI

 

General overview:
Rating: 5/5😍

Two roads diverged in a wood,
and I took the one less traveled by,
And that has made all the difference.

The Road Not Taken

Robert Frost💞

This poem has remained one of my favourites 💖 and will always remain. 

The author includes this poem in his book just to help focus the readers in whatever we are aiming for.

SUMMARY:

The author claims that he has two dads. One he names as a Poor Dad and the other he names as A Rich Dad. Both rich dad and poor dad teaches him something about money. But the way both dad teaches him about MONEY is so very different. So he says, If I had had only one dad, I would have had to accept or reject his advice. Having two dads offered me the choice of contrasting points of view: one of a rich man and one of a poor man. So he just focuses this book to give the readers the advice given to him by the RICH DAD. 

Before entering into the major lessons about making money he provides some background catching points which I really got so attached to. That's the major catch for any readers to move on. I am so agreed with each and every point he says before beginning his actual lessons. The one about the school. He says school  gives you education but not financial education. I hate School. The way they provide you lectures and focus on just some absurd topic is meaningless. If you make mistakes you are punished. You are not allowed to make mistakes at all. That's completely opposite from Life. Which is so so so true. 🤗🤗

One of the reasons the rich get richer, the poor get poorer, and
the middle class struggles in debt is that the subject of money is taught at home, not in school. Most of us learn about money from our parents. Which is 100%true.

For example, one dad had a habit of saying, “I can’t afford
it.” The other dad forbade those words to be used. He insisted I ask, “How can I afford it?” One is a statement, and the other is a question. Like the second statement focuses you to know about money rather to leave it the way it is as the first statement does. 

This book teaches us to use our brain in order to make money. Proper physical exercise increases your chances for health, and proper mental exercise increases your chances for wealth.

He writes the book in such a way as if he is talking to us as in person.Wow!!🤩😍

One said, “When it comes to money, play it safe. Don’t take
risks.” The other said, “Learn to manage risk."

One believed, “Our home is our largest investment and our
greatest asset.” 

The other believed, “My house is a liability, and if your house is your largest investment, you’re in trouble.”

Even when his rich dad was flat broke after a major financial setback, he continued to refer to himself as a rich man.
He would cover himself by saying, “There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.”

My poor dad would say, “I’m not interested in money,” or
“Money doesn’t matter.” My rich dad always said, “Money is power.” 

 Which is absolutely true. People judge you by your appearance with what you wear, how much money 💰 you carry, but not by your inner heart or how rich are you with humanity and feelings.

Although both men had tremendous respect for education and
learning. But they disagreed about what they thought was important to learn. One focused on study to get a  good job while others focused on study about money.

Money is one form of power. But what is more powerful is financial education.

The author explains about money in lessons which I have explained in brief.

LESSON 1: THE RICH DON'T WORK FOR MONEY

The year is 1956 when the author is a nine years old boy complaining his dad about the trip in which they were not allowed. The only reason they were not rich enough. His dad answers the boy to become rich by MAKING money. When the kid questions back how do we do it his own dad simply replies to use his brain.

The other friend who was not allowed in rich kids trip is Mike. He talks about making money and going on a trip after making money. So they discussed.
They started collecting leftover toothpaste tubes and when anyone would ask they would simply answer it to be a business secret.
The leftover were so much piled that his mother grew irritated and warned them not to repeat the pre business secret idea. She would otherwise throw it out.
They asked his mother a week long extension to know about their business.
When the day finally came, they were melting the toothpaste tubes on a metallic pot over a brazier.
They poured the metal inside a milk box. Let it cool down and extracted a nickel out of leads. Toothpaste tubes were actually made from leads in those days.
Author's father happen to pass by along with his friend when they saw all the mess in the backyard. His father humourously tells them that this is illegal to extract nickel or any metal.  Both the kids were so disappointed at their failure in the start of their first day of the business. They decide to give up.  Then his father replies,“Boys,You’re only poor if you give up. The most important thing is that you did
something. Most people only talk and dream of getting rich. You’ve
done something. I’m very proud of the two of you. I will say it again:
Keep going. Don’t quit.”

Then they decide to seek help from Mike's father and arrange first business meeting at 8 on Saturday morning.

FIRST LESSON BEGINS

His rich dad, Mike's Dad says the two boys to work for him.
They agreed to be paid 10 cents an hour for three hours on Saturdays. That made thirty Cents a day. But not more than three Saturdays later The kid got bored. He told his friend that he is quitting his job at the store. They basically had to dirt off dust from the goods. So he has a
CONFRONTATION WITH THE RICH DAD. He says he wants a pay raise or is quitting the job. However rich dad reassures him in saying that what most people do. He convinces him in such a way either to work without any money or learn about making money.

LESSON 2: KNOWING FINANCIAL LITERACY

Rich dad believed in the KISS principle. KEEP IT SUPER SIMPLE.
Here he explains about assets and liabilities. Where the rich focus on buying assets that double their money while poor or middle class people focus on buying liabilities which tends to take out money from their pocket. Middle class people treat their home as their primary asset, instead of investing in income-producing assets. So when rich buys house they tend it as an asset where middle class people tend it as a liability spending as much as they can afford or sometimes more.

LESSON 3: MIND YOUR
OWN BUSINESS

The rich focus on their asset columns while everyone else focuses on their income statement. Here the rich are minding their own business while the other people are working hard as an employee to mind their Boss business. Here he explains to have your own business apart from your day time job.

LESSON 4: THE HISTORY OF
TAXES AND THE POWER
OF CORPORATIONS

Here he explains the readers to know about the laws and regulations of the country. He focuses to know about taxes. Because he claims that most Americans work full four months just to pay the taxes. The more hard work you do the more tax you pay. So he suggests us to work through a corporation to minimize those taxes in our budget. He says,My rich dad just played the game smart,
and he did it through corporations—
the biggest secret of the rich.

LESSON 5: THE RICH
INVENT MONEY

Here he explains about our behaviour. The fear and the greed. The fear of failure and the greed and desire to get more. He says if you want to make money you have to hold on to these two behaviours. You don't not be just smart but be bold enough. So he says,"Often in the real world, it’s not the smart
who get ahead, but the bold."

LESSON 6: WORK TO LEARN—
DON'T WORK FOR MONEY

Here the author explains to not work for money but work to learn about money 💰. He says to participate in seminars, interviews and any kind of programs regarding money making. He says to learn first then invest. He also says not to run after every one else. He warns us to not be a chicken little.
Who runs to save his life because he hears the sky is falling. He says us to first learn the situation and then implement it.

LESSON 7: Things not to do

Here he explains about the bad or the activities that should be avoided in a person. He explains about the major topics.
Fear
Doubt
Arrogance
Paying your self last

So here he tries to convince the readers to overcome behaviour awkwardness in order to make money.

Chapter Eight
GETTING STARTED

Here he explains about getting started from whatever scratch you have but get started. Even if you lose you will learn that this is not the right investment. So you search for the right investment. This is the best lesson for me.  I am surely going to implement it in my business career. You need to talk to people who knows the topic. Read books regarding the business. But get started.
He says the readers to get started by following major doings.

Choose friends carefully: The friends with same mindset.

Pay yourself first: the power of self-discipline. He says to pay yourself first and then pay your bills but within your laws.

Use assets to buy luxuries: the power of focus. Pile up assets to pile up luxuries.
10. Teach and you shall receive: the power of giving.

FINALLY:

He then ends the book with some to do's in the future. He says that each and every penny you get in your hand is solely yours. Only you will have the power to use that money. So it is better to use that money wisely.
This book is worth a read and Time. He explains everything about money with very simple use of words. As if he is talking to someone very close. He tries his best to explain every lesson with real life examples and his own experiences. So this is it.

And some of my best punchlines from the book:

1.  “The lack of money is the root of all evil.”
2. “Money is power.”
3. "To live a life dictated by the size of a paycheck is not really living a life."
4.“Be smart and you won’t be pushed around as much.”
5.“Winning means being unafraid to lose.”
6."Cynics criticize, and winners analyze”
7."Profits are made in the buying, not in the selling."

And there are lot much more sayings from the author that pushes the readers to complete the whole book in one sitting. I am so determined that I am sure I will using his business strategies someday in my future.
And let's share some of the knowledge or advises or criticism from the book that you felt most related to.

If you people have read the book please feel free to comment your favourite lesson in making money on the comments section below 👇🙂💰

BY SANJITA NAPIT