Rich Dad Poor Dad by Robert Kiyosaki is one of the top-selling books in the world. Written in 1997, the book focuses on the importance of financial independence and emphasizes the importance of building wealth through investments by comparing two fathers.
This article includes:
- What is the book rich dad poor dad about?
- Rich Dad Poor Dad Moral Lesson
- Rich Dad Poor Dad key points & learnings
The book also highlights the importance of increasing your financial IQ for establishing a successful business. The book states practical steps that teach you financial freedom at a very early age.
With over 32 million copies sold worldwide, Rich Dad Poor Dad is translated in more than 50 languages across 100 countries.
Many people work very hard in their life, few work more than ten hours a day but can not save money nor do they get rich. Rich Dad Poor Dad book identifies smart ways to escape this “rat race” of working for unlimited hours yet struggling to make ends meet.
We have summarized the book into 20 lessons for your quick and better understanding. Let’s take a look at what lessons we can draw from this amazing book.
- For most people, their profession is their income and they live through their work to survive. For rich people, assets and investments is their income.
- If you want to buy something, you must first generate enough cash flow from your assets to cover the expenses. The emphasis is to buy luxuries last, not first.
- Excess cash flow generated by your assets should be invested again to acquire more assets.
- Do not simply aim for more income, aim for more valuable assets, keep repeating the circle.
- Reduce your expenses low and cut your liabilities. Expenses and liabilities beyond means are not good.
- Create a corporation to protect your assets and reduce tax expenses. An employee earns, gets taxed, and then spends what is left.
- Know a little about everything. Learn something about accounting, investing, markets, law, sales, marketing, leadership, writing, speaking, and communication. Know little about anything you can. Bill Gates has also talked about the same point in his interviews.
- Work to learn, don’t work to earn. Find a job where you can learn skills. Alibaba’s Jack Ma often emphasizes the importance of learning skills in his interviews.
- Do not simply buy investments. first, learn how to invest as no one else can do it better than you.
- You become what you study, so choose your study materials carefully, read a lot.
- Every rich person has lost money at some point, but many poor people have never lost a dime. Playing not to lose money means you will never make money. “Winning means being unafraid to lose.“
- Failure inspires winners and defeats losers. Do not be afraid of losing and be bold enough to admit and learn from your failures.
- Be in control over your emotions. Do not let fear or opinion of anyone dictate your actions.
- Most sellers ask too much. It is rare that the asking price is lower than something is worth.
- Surround yourself with winners. Sit with people who are smarter than you and you can learn a lot by surrounding yourself in their company.
- Saying “I can’t afford it” shuts down your brain. Asking “How can I afford it?” opens up your brain. Change your questions to change your life.
- Pay yourself first. Each month, first invest a certain amount of money into income-generating assets before you pay your bills. Short of money, use this pressure to keep yourself on your toes to generate more cash.
- Dream big, have a clear game plan in your mind. Always seek answers to important questions such as “why do you want to earn more passive income?”
- Develop a skill to listen. Listening is more important than talking. Do not constantly argue, instead listen and observe. Ask questions and try to gather as much knowledge as you can from others.
- On the market: do not follow the crowd, and do not try to time the market. Profits are made when you buy, not when you sell.
We hope you have enjoyed the Summary of the book. You can Buy the Rich Dad Poor Dad Book from Amazon