Summary of Rich Dad Poor Dad:
The author, Robert T. Kiyosaki, talked about how growing up with two fathers, a poor dad, and a rich dad, as he calls them throughout the whole book, has helped in shaping him into being the rich person he is today.
N.B: the terms “poor” and “rich” are used to explain what type of behavior is preferable to have financial freedom. It is not about judging yourself on the current state of your finances and your richness.
Some of my favorites quotes are:
- Great opportunities are not seen with your eyes. They are seen with your mind.
- For winners, losing inspires them. For losers, losing defeats them.
- They (most people) think that more money will solve the problem and don’t realize that it’s their lack of financial education that is the problem.
- A slave, even when paid a fortune, remains a slave.
This book’s message:
This book is not just about money, It’s about reviewing how we are thought to think. How we are programmed by the school and whoever we’re surrounded by to think that the rich are greedy and that opportunities are risks.
In a way it makes you question and look more into why we do what we do. Why do we want expensive cars, houses, clothes? Is it because we earned it or is it to maintain an image?
The author tries to point out, throughout the whole book, that being educated is key. That knowing a little bit of everything is better than focusing on one topic and revolving your world around it.
One of the main points of the book is explaining the difference between assets and liabilities, The first one is putting money in your pockets and the second one is taking money from your pockets:
- When you own something, it is either putting money into your pockets or taking money out of your pockets. Owning a business or earning royalties creates income. Owning a house and a car incurs expenses.
- Try to own things that put money in your pocket.
- If you rely on earning a wage or salary to put money in your pocket, you will be forever caught up in the vicious cycle of needing money, earning money, and spending money.
This book talks about opportunities like a given thing, but the thing is not everyone is offered the same opportunities.
The author talks about taking risks and stopping letting fear hold you back, but sometimes the risk is too big or it costs too much.
He also talks about “paying yourself first” before paying bills but sometimes you have to pay your bills because there are real-life consequences if you fail to do so.
He also repeats himself quite often throughout the book.
I would give this book a 3.5 or 4 stars rating on five because I feel like the author does make good points and the book is really motivating to start working on yourself and your path but you just can’t apply everything simply because it’s not that easy.
You can start with this book as a motivational push but be sure to read more to acquire more knowledge.
You can download the PDF version of the book from the following link: Rich Dad Poor Dad pdf
And be sure the check out the recording of the live session we had in our facebook page by clicking this link: Rich Dad Poor Dad book review live session