In this article we are going to provide you Summary of a best selling and world’s number financial book “Rich Dad Poor Dad”
Introduction of Rich Dad Poor Dad
Are you financially free? If your life has come to a financial fork in the road, Rich Dad Poor Dad was written for you. Rich Dad Poor Dad is financially book written by Robert Kiyosaki and Sharon Lechter.
If you want to take control of what you do today in order to change your financial destiny, this book will help you chart your course.
If you’re looking for new answers to move forward in the Information Age, this book is for you. It doesn’t have all the answers, but it will share the deep personal and guiding insights I gained as I traveled from the E and S side to the B and I side.
Overview of Rich Dad Poor Dad
Part One The first part of this book focuses on the core differences between people in the four quadrants. It shows why certain people gravitate to certain quadrants and often get stuck there without realizing it.
It will help you identify where you are today in the quadrant and where you want to be in five years.
Part Two The second part of this book is about personal change. It’s more about who you have to be, instead of what you have to do.
Part Three The third part of this book explains how to find success on the right side of the CASHFLOW Quadrant. I will share more of my rich dad’s secrets on the skills required to be a successful B and I.
It will help you choose your own path to financial freedom.
Who Is This Book For?
This book is written for people who are ready to change quadrants, especially for individuals who are currently in the E and S categories and are contemplating moving to the B or I category.
This book is for people who are ready to move beyond job security and begin to achieve financial security. It’s not an easy life path, but the prize at the end of the road, financial freedom, is worth the journey.
Book Name : Rich Dad Poor Dad
Author : Robert Kiyosaki, Sharon L. Lechter
Country : United States
Language : English
Publication Date : April 1, 2000
ISBN : 0-446-67745-0
Number Of Pages : 207
Small Summary of Rich Dad Poor Dad
In Rich Dad Poor Dad Book, You will find 5 Financial Rules. here the list of all 5 Rules of Rich Dad Poor Dad
Rule 1: The rich do not work for money
On Mike’s dad’s suggestion, we started helping him at his office, running some errands. The pay was not much, just about enough to help us 9-year-olds buy some comic books. Soon, I was disillusioned enough to stand up and declare that I was ‘quitting my job‘.
When Mike’s dad met me, I told him how he was exploiting 9-year-olds. This is where Mike’s dad, my Rich Dad, offered me his first lesson :
- The poor work for money. The rich have money work for them
- Fear and greed lead us to the trap.
- Our money was working for us.
Rule 2: Financial literacy is necessary
In 1994, I retired at the age of 47. My money was working for me. By this time, Mike had taken over his dad’s business and grown it exponentially.
Both of us were able to reach where we were, thanks to Mike’s dad lessons in financial literacy
- Is your house an asset or a liability?
Rule 3: Mind your own business
If you are asked what the business of McDonald’s is, your answer, instinctively, would be ‘fast food’ or ‘burger’.
However, the founder of McDonald’s, Ray Kroc, believed that McDonald’s is in the business of real estate. The primary success factor for a McDonald’s restaurant is its location, the land it is built on.
This Ray Kroc story, recounted by Mike’s dad, became our third lesson: Mind your own business.
Rule 4: Use the cover of a corporation
The genesis of levying taxes emerged from Britain, and the US, unlike most things British, adopted permanent taxation with the 16th Amendment.
Taxes today have split us into two camps – the haves and the have-nots. The have-nots believe in the Robinhood philosophy of ‘take from the rich’.
Ironically, it is the have-nots who lose the battle on taxation. Being in a job and working hard only enables the government to tax you more.
Rule 5: The rich invent money
When Alexander Graham Bell had just patented his invention, the telephone, he went to the biggest corporation of that time. Bell offered Western Union his patent and his company for $100,000. Western Union refused and Bell went on to create a billion dollars communication industry, with AT&T at the helm.
Just like Alexander Graham Bell, we too have our ‘inner critic’ which makes us doubt ourselves and possibly beg with others like Bell did with Western Union. It is equally true that there is a ‘brave hero’ inside us who dares to build something.
It was possibly the ‘brave hero’ inside Bell that helped him overcome the rejection from Western Union and set him on the path of creating massive wealth using his invention of the telephone.
Rule 6: Work to learn
A business consultant once told me ‘(They) are one skill away from great wealth’. This phrase means that our income can jump exponentially if we master one more additional skill.
Earlier in this summary, we got to know that financial IQ is a combination of accounting, investing, understanding markets and understanding the law. However, what most people understand about making money is ‘work hard’.
For most of us, our income would go up exponentially if we combine ‘working hard’ with the additional skill of financial IQ.
While my Poor Dad encouraged to study more and become a specialist in one domain, my Rich Dad encouraged me to ‘know a little about a lot.’ It is important to understand at this stage, that learning does not get along well with job security.
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