Name: Rich Dad Poor Dad
Author: Robert T. Kiyosaki
“Rich Dad, Poor Dad” is the tale of two fathers in which one has a set of degrees and diplomas and the other is a high school drop-out. When the overqualified father dies, he will leave next to nothing behind, and even a few unpaid invoices here and there. The school drop-out father will become one of the richest men in Hawaii and will pass on his domain to his son. During his life, the qualified dad would say things like “I don’t have money to treat myself to this or that”, while the uneducated would say: “How can I treat myself?”
The rich father in this book educates two small boys some priceless lessons about money through their own knowledge. The most important one is certainly to comprehend on how to best use your mind and your time to make your own prosperity through business and investments.
Get out of the rat race. Learn how to grab opportunities, find answers, take care of your commerce and investments and significantly, learn how to make money work for you and not be its slave!
The words “poor” and “rich” are used by the author in respect to clarify what type of conduct is better in order to have economical liberty. It is not about giving judgement yourself on the present state of your finances and your richness.
Some pearls of wisdom by the author:
- You are the copy of your thoughts,
- Being a worker is a short-term solution to a long-term problem,
- A slave, even if he is paid a fortune, remains a slave,
- What is the point of need to grow through the positions of a company when you can own a company?
Some of the important lessons from Rich Dad Poor Dad
1) The Rich Don’t Work for Money
2) Why Teach Financial Literacy?
3) Mind Your Own Business!
Keep your current job but begin to think about your own business.
4) The History of Taxes and the Power of Corporations
5) The Rich Invent Money
6) Work to Learn and don’t Work for Money
3 essential skills for management
- The cash flow management
- Management of systems (including time spent with family and friends!)
- People management
The initial step towards getting out of the rat race is to: understand the difference between an asset and a liability.
Types of Assets:
Here is why your main residence is NOT an asset:
- You will work your whole life to pay back the mortgage you took out.
- Your maintenance costs represent a significant amount.
- You must pay property tax.
- Your principal residence may depreciate if the real estate market drops or if you buy at the top of the cycle.
- Rather than investing in an asset that earns you money regularly, you repay your monthly credit to the bank. In other words, the real owner of your home is the bank!
If you really want to your obtain residence, you must first make the income to finance your monthly settlements.