Rich Dad Poor Dad Review !
This book shows you how to start journey to wealth by teaching you the right mindset.
Accounting basics and wealth building strategies, even if you have had no clue about personal finance until now.
Author of this book Robert T. Kiyosaki tells the story of his two dad’s in his childhood.
His own father and father of his best friend. While he loved both, they were very different when it came to dealing with finances.
“The love of money is the root of all evil.”
The other said
“The lack of money is the root of all evil.”
==> The lesson rich dad taught is :
The poor and the middle class work for money.The rich have money work for them.
But there are two emotions that make most of the people to work for money .
That is fear and Greed .
First, the fear of being without money motivates us to work hard and then once we get that paycheque.
Greed or desire starts us thinking about all wonderful things money can buy.
“People lives are forever controlled by these two emotions.”
==> Know the difference b/w an Asset and a Liability:
You must know the difference b/w an Asset and a Liability.An Asset is something that puts money in my pocket.
A Liability is something that takes money out of my pocket.
==> Obstacles to become rich :
“ The Primary difference between a rich and a poor person is how they manage fear”Once people become financially educated they still face some obstacles to become rich.
In Particular, Robert T. Kiyosaki enumerate 5 obstacles :
1) Fear 2) cynicism 3) laziness 4) Bad habits 5) Arrogance.
==> Three types of income :
In the world of accounting there are three types of income.1) Ordinary 2) Portfolio 3) Passive.
Ordinary income is to work for money.
Portfolio and passive income is to make money work for you.
Passive income in most cases is income derived from estate investments.
Portfolio income is income derived from paper assets such stock and bonds.
The Rich dad used to say, the key to becoming wealthy is the ability to convert ordinary income into passive income or portfolio income as quickly as possible.
==> Favourite Quotes:
“ Proper physical exercise increases your chances for health, and proper mental exercise increases your chances for wealth.”“There is difference b/w being poor and being broke.
Broke is temporary and Poor is eternal.”
“ You are only poor if you give up.”
“ Learn to use your emotions to think, not think with your emotions.”
“ An intelligent person hires people who are more intelligent than he is.”
“ Great opportunities are not seen with your eyes. They are seen with you mind.”
“ if you want to be rich, you need to be financially literate.”
“ There is gold everywhere most of people are not trained to see it.”
You and your children’s future will be determined by choices you make today, not tomorrow.
I wish you great wealth and much happiness with this fabulous gift called life m.
-Robert Kiyosaki
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