Rich Dad, Poor Dad by Robert Kiyosaki – Review

Rich Dad, Poor Dad – Review

rich-dad-poor-dad-www.pdfland.usRich Dad, Poor Dad is the self-help & Personal finance book of Sharon Lechter & Robert Kiyosaki. It was originally published in 1997. The subtitle of Rich Dad, Poor Dad reads ‘What the rich people teach their children about the money – that the poor & middle-class people do not.’ If you’re like me, then your father and mother might come from a rather poor-to-average background and their financial plan, if they even have one, is based on common save-now-live-once-you-retire, blame-the-rich mindset. So, it comes as no wonder they couldn’t teach you a lot about making a substantial amount of money because they didn’t know. They didn’t know, as they were never taught this by their parents.

Robert makes a great point about our educational system, as they are not teaching us financial literacy and how to manage our wealth. We’re taught, not to say, conditioned, by our parents. And so, if your parents had a rather strong opinion about money being a root of all the evil and clipping coupons all day to save a few dollars being a good time investment. You will probably associate money and the ones making it with a negative sentiment and limit yourself to a mediocre financial situation or even lifelong poverty. This is the part of the reason why doctors, or lawyers who got all the right degrees and certificates. And still, live life always depending on their next paycheck.

Robert Kiyosaki offers us 6 profound lessons that he has concluded out of 30 years of learning from both his friend’s rich dad and his biological poor dad by contrasting their views and mindsets.

Lesson #1: The Rich Don’t Work for Money:

This is the concept of Fear and Desire. These two core emotions can prevent us from reaching financial independence. The fear of a missing paycheck, which might result in our inability to afford our monthly expenses. The fear of losing money which keeps us entrenched in the devil’s cycle that is the office cubicle. You work many hours for a certain paycheck to persuade a promotion, so that you could work even longer hours, to receive more money, but what happens for most is, as our salary grows, our living standards tend to adjust, thus growing our expenses.

Now, going back to your former job would feel like a huge loss, even you would be getting enough time for your family, but they rarely ever see you and they’ve gotten used to their new pair of sneakers, smartphones and whatever else you can now afford to spoil them with. It’s the total mess & it can keep going forever until you’re on your deathbed and your major regret is that you’ve been working way too much. Your biggest regret would be that you worked for money instead of having money work for you. This devil’s cycle is what’s preventing them from evaluating investments and other sources of income and how could they even find the energy to do so, if their job drains them of all their energy. That’s the fear part.

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The desire part is just as bad, as I mentioned, our expenses give us no other choice, but to keep at it. We want to carry on our fake Facebook & Instagram lifestyle, that makes people miserable for not having the pretentious awesome life that we do. And we have to stay “popular” and upload photos of us eating at expensive restaurants, documenting our beach vacations and wearing that Louis Viton bag. “We feel the need to contest with one another to have a false sense of importance.” Because believe it or not we are not our bank account, we are not our job. Lesson one lets us understand the importance of seeing through this nonsense, induced by fear and desire. It’s hindering your success.

Instead of living pay-check to pay-check like a lowlander, you want to create income sources for yourself that don’t require your presence, meaning, income sources that grow and are profitable without you, once you’ve set it up.

Lesson #2: Learning Financial Literacy:

Financial Literacy equals financial independence. You study how to manage all of your finances most effectively considering the differences in cash flow for various income levels. The rich live well off of their investments’ returns. Their stocks & bonds cover any expenses they might have. Whereas the poor use most of their pay-checks to save them from drowning. To become wealthy, one must work on creating profitable assets instead of working towards a higher salary. You realize you can’t depend on your paycheck alone and use any time window you’ve to work on creating assets.

Lesson #3: Mind Your Own Business:

Little wordplay here, because it’s meant literally. Here is this question “What if you get fired tomorrow and the paycheck you and your family rely on doesn’t come?” Now some will say “Oh I’m good, I know many people who need me to work for them.” And that’s great, but not all of us are that connected and so having those assets in place, that you’ve built watching over your own business, working after hours to create more wealth for yourself, could not only dampen but even prevent the fall of you losing your job.

Of course, you may well be the best employee in the world, but if the 48 laws of power have taught us anything, you cannot hope for mutual loyalty from any profit-above-all businessmen, which are quite numerous at the top. They’ll saw you off the minute they think you can interfere with their careers or the success of their business, even if you quote on quote doing the correct thing.

Lesson #4: The History and The Power of Corporation:

By creating a personal corporation, the rich avoid many of the personal taxes the poor have to deal with through corporate exemption. They can pay taxes after they’ve paid for the expenses of their business, whereas it’s the opposite for the regular employee.

Lesson #5: The Rich Invent Money:

Saving at the bank might seem secure, but often the savings rates are below the rate of inflation. So, it’s better to have our money circulating, to invest it. To get rich, you need both financial literacy and boldness. I get pissed off when people talk to me about the risks of entrepreneurship. You take calculated risks. You test and see if there exist a market or a hungry audience for your products/services. It’s not like you just order 20’000 boxes of a new product that you created with capital you borrowed from friends and family, no one ends up buying it and you’re stacking those boxes in the cellar. There’s always a smart way of getting things done.

Unfortunately, when talking about the subject of money with most people, they don’t see that, but what else would you expect checking their bank account. I would rather the self-made billionaire told me how to make money than a highly opinionated. But “very qualified” co-worker who’s not only been stuck at the same job for 20 years but sees that as an attribute.

Lesson #6: Work to Learn:

Here’s why I think lots of young people are currently making a mistake believing the way to riches is to have an idea, crowdfund it with the right formula, raise loads of money from unsuspecting people and then it just happens for them. The thing is, it’s great to get that education first, then get into the company that sees your potential. Because you are working as hard as you possibly can and really using that time to learn. Ask questions, get into programs and language classes that are offered for free. Some corporations really do invest in you, if you are doing a great job.

Guess what I did during my first two-years in office, I immediately befriended everyone and had such the great co-worker relationship with the sales managers of all departments that they loved to answer all my questions & teach me their most valuable insights. Two of them became my tutors because they saw me as an asset. Investing in me now would pay dividends with time. As I’d become a young Junior Sales Manager acquiring new clients that they could take the praise for. That’s the game. I’d join them for lunch and ask them questions, not like I was interviewing them. But merely talking as friends and occasionally I’d feed their narcissism by acknowledging their success. I made that time count, especially when I was an intern when they have more patience with you. You’re in this long-term.

You might hate your job right now and work on getting out of there if so, I congratulate you for doing something about it, but on top of that, use that time to learn as much as it is possible for you. I recommend you read this book 5 times this year, chances are you’ve got children, who depend on your teaching them how the world works and a big part of that are understanding money. I wish I would’ve had a dad who could teach me anything valuable, other than being a major example of how not to turn out. So, please do yourselves and your children a favor & buy a copy of this book. You’ll be helping young, potential thought leaders develop such a strong mindset surrounding money that they will be more affluent financially for their whole life.

Download Links of Rich Dad, Poor Dad are Here:

Rich Dad, Poor Dad is the self-help book of Robert Kiyosaki. Unfortunately, it is a copyrighted book that’s why we can’t share its download links here. But you can easily buy from Amazon. The link is given below.

Amazon Link is Here:

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