Rich Dad Poor Dad

Author Name: Robert T. Kiyosaki 
Published year: 1997 
Reading Time: 32 hours 
Information Score: 3/5 (Three out of Five)

  • Read this if you: 

Want to recognize how money works for you?
Aspire to know the thought process of a Rich Person and a Poor Person?
Want to learn about Cashflow? (I liked this theory)
Are excited to invest in Real Estate? OR desire to begin a new Business?
Want to manage your personal finance?

  • Who should skip?

You are interested in fairy-tale, romantic books or history-based books.
You don’t like the finance and money management topic.
Review:
This book is worth reading. This book has 179 pages including Introduction, Nine chapters, and Final Thought. The introduction is very impressive. In an Intro to this book, the author distinguished the thought process of his two dads. Obviously, as per the book name, one is RICH DAD and another is POOR DAD. Poor dad tells study hard, get a secure job in a good company and the Rich dad tells study hard, and find a good company to buy. Poor dad always says because of family finance responsibility I could not be rich and rich dad says I must be rich because I have a family. Poor dad wants to play safe (in matters of money) and the rich dad is a Risk-taker and learner to manage risks. Both are paying their bills on time but the difference is one (poor dad) is paying his bills first and the other paid his bills last. And here the best lines from Introduction, 
Money is one form of power. But what is more powerful is FINANCIAL EDUCATION. Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.
“There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.”
Chapter: 1 The Rich don’t work for Money
We all work to make money. Some of us working at an office from 9 to 5 and get paid monthly; some of us running our own business or working as a freelancer and earn money. Eventually, we are working for money. In this chapter, the author’s rich dad saying poor and middle-class people work for money and the rich people have money work for them.
This is the story of an ideology of the author’s influencer. The author’s biological dad is POOR DAD and his friend’s dad is RICH DAD.
In childhood, he and his friend want to become rich and earn a lot of money. After many trials, the author met with his friend’s dad. His friend’s name is Mike. Mike’s dad hires them for some work and paid a very less amount. They both worked also but after some days he questioned his friend’s dad to raise the payment otherwise he is not excited to work anymore. And here began the author’s first lesson of life. Rich dad taught him how money works for us. As per rich dad, everyone asks to increase payments and never get satisfaction; they always look for better opportunities. Instead of this crap, you should focus on how money can work for you.
According to Rich dad, people’s lives are forever controlled by two emotions: fear and greed. They work because not owning money is fear for them and they consume money on their increasing desire or greed. The first step is learning before earning. Work for free, and money will follow you. Avoid the rat race after money. With the direction of rich dad author and his friend mike experimented and started a small comic library at an early age. This business duration was 3 months but they had learned a lesson for life: They learned to make money work for them.
Chapter: 2 Why Teach Financial Literacy?
Throughout the Introduction and 1st chapter of this book, you already guessed who Rich dad is and who poor dad is. Who inspired the author in his career life? And etc.
In the second chapter, the author says about financial literacy. Rich dad’s lesson is about buying assets and not liabilities. Also, he described cash-flow patterns through pictures. The diagram portrays the flow of cash. In the diagram, there are two inter-connected columns which are the Assets and liabilities column and the Income and expenses column.
Assets – This generates income e.g. bonds, real estate 
Liabilities – This increase expenses e.g. personal car, house, and luxurious things
He emphasized the cash-flow of the poor and the middle-class person who always uses the money to buy liabilities and goes under the burden of mortgages. And how a rich person buys more assets than liabilities to create extra income and manage his expenses with that extra income. Cash flow shows the story of how a person handles money and homes themselves in rich or poor class.
Chapter: 3 Mind your own Business
To become financially stable, a person needs to mind their own business. He believes; keep investing in real estate and not liabilities. Rich people buy indulgences last, while the poor and middle class buy indulgences first. This is the main reason the poor struggle and the rich get richer.
Chapter: 4 The History of taxes and the power of corporations
He recommends being an employer because they play smart with the synergy of Financial IQ. They earn, spend, and pay taxes while employees earn, pay taxes, and then spend it. Financial IQ contains four skills: Accounting, Investing, Understanding markets, and the law.
Chapter: 5 The rich invent money
The author states old ideas are the biggest liability. Also, he suggested readers play the cash-flow game on his website and learn how money works. According to him we can learn about our behavior and get instant feedback through playing the cashflow games. He says mind and time is our powerful asset and it should be well qualified. He has given information and the importance of four skills of Financial IQ which is defined in the 4th chapter. The author believes to buy assets like small houses, apartments, companies, stocks, bonds, or the like. Rich dad’s dogma taught him to take opportunities, think with the mind. We learn by making mistakes, we learn to walk by falling. Winners are not afraid of losing. There is always a risk, so learn to manage risk instead of avoiding it.
Chapter: 6 Work to learn-Don’t Work for Money
As per the first chapter, he believes in learning. The world is full of smart and skilled people but they incapable to sell their talent. He defined the most important skill which is Sales and marketing. The ability to sell and to communicate with anyone. It is the basic skill of personal success.
Chapter: 7 Overcoming Obstacles
With Financial education, the author tells about how can defeat fear, cynicism, laziness, bad habits, and arrogance. He has given his example while learning to ride a bike, and how he overcomes the fear of falling. To overcome cynicism he has given an example of “The sky is falling! The sky is falling!” story of little chicken. Everyone has little chicken inside us. But how KFC founder colonel sanders fried that chicken (doubt and cynics) and built his empire. He said everyone should become a little greedy so we can overcome laziness and act accordingly. He advises overcoming bad habits and arrogance.
Chapter: 8 Getting started
The author insists us to see opportunities around us. Each of us has a financial genius within us. We can find the reason and make powerful choices. Choose friends carefully, control yourself, and keep your expenses low. Take risks but use financial intelligence.
Chapter: 9 Still want more? Here are some to do’s
Bring modification to your daily work. Be a thinker as well as a doer. Always try to do something new to achieve a different result.
Final Thoughts (From the book)
Money is only an idea. If you want more money, simply change your thinking. Think big and learn from history (related to your goal). The author suggests here to read THINK AND GROW RICH book. Because of today’s need is, don’t play it safe. Play it smart. He defines three types of income:
Ordinary earned (suggested by poor dad, finds a safe and secure job and get paid)
Portfolio (Income generates from paper assets like stocks and bonds)
Passive (Income generates from real estate)
Rich dad used to say; to become wealthy to convert earned income into passive or portfolio income.
My Thoughts:
I purchased this book without any idea. At bookstall, I saw this book and imagined this book has written on a life journey of an author who belongs to a poor or middle-class family but the story is different. I chose to buy this book and read it in my leisure. Before reading I never had any thought to become wealthy not even now. I believe converting rich is not any target; you should keep moving and keep improving always. The book’s greatest part is cash-flow and explanation about assets and liabilities. Also, the author explained how much financial education is essential. Not every child can meet RICH DAD so every school needs to include this in their syllabus with the academic skills. I must say, this is the Finance book and contains the career journey of the author and his influencer’s dogma. The author is too passionate about real estate and everyone seems not. But you don’t have to read every word as the gospel of the author. But financial education is an important thing which everyone should have. I like the way he explains how to overcome obstacles in our life. This book can be worked for fundamental financial education and develop understanding related investment.
Here are some of my favorite quotes from the book:

  • It’s easier to change yourself than everyone else.
  • Winning means being unafraid to lose.
  • Everyone wants to go to heaven, but no one wants to die.
  • Balanced people go nowhere. They stay in one spot.
  • Our lives are a reflection of our habits more than our education.
  • FOCUS: Follow One Course Until Successful.
  • Listening is more important than talking. If that were not true, God would not have given us two ears and only one mouth.
  • Risk comes from not knowing what you are doing. (That means you should be aware and educated about what you are doing so ultimately there are fewer chances of risk)

Where are all bibliomaniacs? Do comments and write your reviews.
 Happy Reading!

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Pooja

”Wokeupmind” is the current pace of my life, where I released myself from Boring Task and Daily Grind.

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I am Pooja Kadam, the person behind the blog “wokeupmind” which is relatively new. I am based in Mumbai, India.

For a long-time wanted to start my own blog site and have a continuous dialogue with the audience. I wanted something more than limited vacation days and climbing corporate ladders. I am an outdoor person as well as passionate about Reading and Writing. I do write all type of content which is based on Food and Nutrition, Health and Fitness, Social Media Marketing, Art, Travel, Etc. so thought to start this blog to spread experience in my own words on the same topic.

I always had the idea of blog writing as a hobby also love to Read, Write, and takes food photographs. Other than being a blogger, I am a content writer and breakfast enthusiast. I Hope, you will see my work throughout the blog and enjoys reading it as much as I enjoy writing it.

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