What I learned from Rich Dad Poor Dad

If you stopped working today, how long can you survive?

The book Rich Dad Poor Dad by Robert Kiyosaki is about how the author was raised by two dads, one “rich” and the other “poor”. And how “rich dad” taught him how to get rich.

Here’s a few take-away from the book.

 

 

1. The Key Is To Increase Asset And Decrease Liability.

Asset is something that puts money in your pocket. Liability takes money out of your pocket.

2. The Five Ideas

The poor work for money. The rich have money work for them.

It’s not how much money you make that matters. It’s how much money you keep.

Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.

Financial aptitude is what you do with money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you.

The single most powerful asset we all have is our mind.

 

3. Quotes

“There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.”

“Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.”

“People’s lives are forever controlled by two emotions: fear and greed.”

“So many people say, ‘Oh, I’m not interested in money.’ Yet they’ll work at a job for eight hours a day.”

“Thinking that a job makes you secure is lying to yourself.”

“Intelligence solves problems and produces money.”

“You must know the difference between an asset and a liability, and buy assets.”

“Cash flow tells the story of how a person handles money.”

“Most people don’t understand why they struggle financially because they don’t understand cash flow.”

“The number-one expense for most people is taxes.”

“More money seldom solves someone’s money problems.”

“A person can be highly educated, professionally successful, and financially illiterate.”

“Wealth is a person’s ability to survive so many number of days forward—or, if I stopped working today, how long could I survive?”

“The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.”

“Financial struggle is often directly the result of people working all their lives for someone else.”

“The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else’s business and making that person rich.”

“To become financially secure, a person needs to mind their own business.”

“The primary reason the majority of the poor and middle class are fiscally conservative—which means, ‘I can’t afford to take risks’—is that they have no financial foundation.”

“A new car loses nearly 25 percent of the price you pay for it the moment you drive it off the lot.”

“Keep expenses low, reduce liabilities, and diligently build a base of solid assets.”

 

According to Kiyosaki, real assets fall into the following categories:

-Stocks

-Bonds

-Income-generating real estate

-Notes (IOUs)

-Royalties from intellectual property such as music, scripts, and patents

-Anything else that has value, produces income or appreciates, and has a ready market

“For people who hate real estate, they shouldn’t buy it.”

“A true luxury is a reward for investing in and developing a real asset.”

(Images from the internet)