Rich dad poor dad chapter summary

Book : Rich dad Poor dad by Robert Kiyosaki

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About Author : Before talking About the book “Rich dad poor dad summary ” . Let’s First Discuss book Author :  Best known as the author of Rich Dad Poor Dad—the #1 personal finance book of all time—Robert Kiyosaki has challenged and changed the way tens of millions of people around the world think about money. He is an entrepreneur, educator, and investor who believes the world needs more entrepreneurs who will create jobs.

His most recent books include Unfair Advantage: The Power of Financial Education, Midas Touch, the second book he has co-authored with Donald Trump, and Why “A” Students Work for “C” Students.
Let’s Begin Rich Dad Poor Dad Lessons…

Lessons From Rich Dad Poor Dad

  • The poor and the middle class work for money. The rich have money work for them. 
  • It’s not how much money you make its how much money you keep.
  • Great opportunities are not seen with your eyes. They are seen with your mind.

Rich Dad Poor Dad Summary

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.

 
It’s not how much money you make. It’s how much money you keep. Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets. An asset puts money in my pocket. A liability takes money out of my pocket.
 
A person can be highly educated, professionally successful, and financially illiterate. The rich focus on their asset columns while everyone else focuses on their income statements. Financial struggle is often the result of people working all their lives for someone else.
 
My rich dad just played the game smart, and he did it through corporations— the biggest secret of the rich. If you work for money, you give the power to you employer. If money works for you, you keep the power and control it.
 
Each dollar in my asset column was a great employee, working hard to make more employees and buy the boss a new Porsche. Often in the real world, it’s not the smart who get ahead, but the bold. The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.
 
The problem with “secure” investments is that they are often sanitized, that is, made so safe that the gains are less. It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying.
 
Great opportunities are not seen with your eyes. They are seen with your mind. Rich dad believed that the words “I can’t afford it” shut down your brain. “How can I afford it?” opens up possibilities, excitement, and dreams.
The primary difference between a rich person and a poor person is how they manage fear.
For most people, the reason they don’t win financially is because the pain of losing money is far greater than the joy of being rich. Failure inspires winners. Failure defeats losers. If I pay myself first, I get financially stronger, mentally and fiscally.
 
There is gold everywhere. Most people are not trained to see it. The sophisticated investor’s first question is: “How fast do I get my money back?” 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.
 
The reason positive thinking alone does not work is because most people went to school and never learned how money works, so they spend their lives working for money. “If you learn life’s lessons, you will do well. If not, life will just continue to push you around.
 
“Life pushes all of us around. Some people give up and others fight. A few learn the lesson and move on. They welcome life pushing them around.
 The reason many rich people are rich isn’t because of desire, but because of fear. They believe that money can eliminate the fear of being poor, so they amass tons of it, only to find the fear gets worse. 
 
 Be truthful about your emotions and use your mind and emotions in your favor, not against yourself.” A job is really a short-term solution to a long-term problem.”
 
Here Author Says If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer despite tough changes. If they think money will solve problems, they will have a rough ride. Intelligence solves problems and produces money. 
 
Money without financial intelligence is money soon gone. An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket.
 
If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities. “If you find you have dug yourself into a hole… stop digging.
 
Fear is the main reason that people say, “Play it safe.” That goes for anything, be it sports, relationships, careers, or money. When I want a bigger house, I first buy assets that will generate the cash flow to pay for the house.
 
 The most important rule is to know the difference between an asset and a liability. Once you understand the difference, concentrate your efforts on buying income-generating assets. 
 
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?  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.
 
The best thing about money is that it works 24 hours a day and can work for generations. An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first. “Be smart and you won’t be pushed around as much.”
 
My money was working hard to make more money. Each dollar in my asset column was a great employee, working hard to make more employees.
Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.
 
Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them. In school we learn that mistakes are bad, and we are punished for making them. Yet if you look at the way humans are designed to learn, we learn by making mistakes.
 
Here author says Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success. You see with your mind what others miss with their eyes.
 
There is always risk, so learn to manage risk instead of avoiding it. The most important specialized skills are sales and marketing. The ability to sell—to communicate to another human being.
 
To be truly rich, we need to be able to give as well as to receive.  There are five main reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow.
  1. Fear
  2. Cynicism
  3. Laziness
  4. Bad Habits
  5. Arrogance
The primary difference between a rich person and a poor person is how they manage that fear. The greatest secret of winners is that failure inspires winning; thus, they’re not afraid of losing.  “Winning means being unafraid to lose.”
 
If you have any desire to be rich, you must focus. Our lives are a reflection of our habits more than our education. Choice is the main reason people want to live in a free country. We want the power to choose.
 
Invest first in education. In reality, the only real asset you have is your mind, the most powerful tool we have dominion over. Smart investors don’t time the markets. If they miss a wave, they search for the next one and get themselves in position. 
 
Be careful what you learn, because your mind is so powerful that you become what you put in your head. When it comes to money, the masses generally have one basic formula they learned in school and it’s this: Work for money. If you cannot get control of yourself, do not try to get rich. It makes no sense to invest, make money, and blow it. 
 
The three most important management skills necessary to start your own business are management of:
  1. Cash Flow
  2. People
  3. Personal Time 
 
Don’t get into large debt positions that you have to pay for. Keep your expenses low. Build up assets first. If you’re not tough inside, the world will always push you around anyway. If your financial intelligence is low, money will run all over you. It will be smarter than you. If money is smarter than you, you will work for it all your life.
 
Here Author Says To be the master of money, you need to be smarter than it. Then money will do as it is told. It will obey you. Instead of being a slave to it, you will be the master of it. That is financial intelligence.
 
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