📚 Rich dad, Poor dad

Author:	Robert T. Kiyosaki
Year of release:	1997
Genre:	Business, Economics, Personal Finance
Pages:	336
Average WPM:	276
Date Started/Finished:	10-Jan-2022 to 23-Jan-2022
Time took:	3.3 Hours

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About the book

What I Liked About It and What I didn’t

• What I liked about the book
  • Gives a good overview on personal finances and why its important
  • Gives good tips on the same topic and how you can achieve it
• What I didn’t like about the book
  • A few of the tips given aren’t applicable to normal people, it is targeted to the wealthy which is pretty ironic and kind of gives into the idea of rich getting richer but it is what it is I guess
  • Really overrated

How I Discovered It

• My Dad told me about it

Who Should Read It?

• Anyone who wants to get into financial literacy and personal finance

Actionable Takeaways

• I see working / career in a very different perspective
• It showed me the use and importance of money and how it should & shouldn’t be used

Top Quotes

“I don’t work for money!” were words he would repeat over and over. “Money works for me!”

Opportunities come and go. Being able to know when to make quick decisions is an important skill.

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

An intelligent person hires people who are more intelligent than he is.

“Risk comes from not knowing what you’re doing.”

You will probably spend your life earning less than you could and working harder than you should

Summary + Notes

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Introduction

Both men believed strongly in education but did not recommend the same course of study.

One dad would say

“The love of money is the root of all evil.”

The other said

“The lack of money is the root of all evil.”

One of the reasons the rich get richer, the poor get poorer, and the middle class struggles in debt is because the subject of money is taught at home, not in school.

There is a difference between being poor and being broke.

• Broke is temporary. Poor is eternal.

Rich dad would say:

“I don’t work for money!” were words he would repeat over and over. “Money works for me!”

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.

Lesson 1: The Rich Don’t Work for Money

• If you can’t make up your mind decisively, then you’ll never learn to make money anyway. Opportunities come and go. Being able to know when to make quick decisions is an important skill.

• Most of the time, life does not talk to you. It just sort of pushes you around. Each push is life saying, ‘Wake up. There’s something I want you to learn.’

• If you learn life’s lessons, you will do well. If not, life will just continue to push you around. People do two things.
  • Some just let life push them around.
  • Others get angry and push back. But they push back against their boss, or their job, or their husband or wife. They do not know it’s life that’s pushing

• You’ll have lots of friends who really like you because you were such a nice hardworking guy. But the truth is that you let life push you into submission. Deep down you were terrified of taking risks. You really wanted to win, but the fear of losing was greater than the excitement of winning. Deep inside, you and only you will know you didn’t go for it. You chose to play it safe

• The poor and the middle class work for money. The rich have money work for them.

• Anger is a big part of that formula, for passion is anger and love combined

• He understood that every person has a weak and needy part of their soul that can be bought, and he knew that every individual also had a part of their soul that was resilient and could never be bought. It was only a question of which one was stronger.

People’s lives are forever controlled by two emotions:

• Fear
• Greed

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

Lesson 2: Why Teach Financial Literacy?

• 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

• Rich dad believed in the KISS principle—Keep It Simple, Stupid (or Keep It Super Simple)
• An asset puts money in my pocket. A liability takes money out of my pocket.
• An intelligent person hires people who are more intelligent than he is.
• 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?
• Net worth often includes non-cash-producing assets, like stuff you bought that now sits in your garage, wealth measures how much money your money is making

Lesson 3: Mind Your Own Business

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.

Lesson 6: Work to Learn—Don’t Work for Money

Focus on the most important law of money: “Give, and you shall receive.”

Chapter 7: Overcoming Obstacles

The primary difference between a rich person and a poor person is how they manage fear.

“Cynics criticize, and winners analyze”

• Criticism blinded while analysis opened eyes.
  • Analysis allowed winners to see that critics were blind, and to see opportunities that everyone else missed.

“Do what you feel in your heart to be right—for you’ll be criticized anyway. You’ll be damned if you do, and damned if you don’t.”

Chapter 8: Getting Started

Whenever you feel short or in need of something, give what you want first and it will come back in buckets. That is true for money, a smile, love, or friendship.

Chapter 9: Still Want More? Here Are Some To Do’s

The definition of insanity is doing the same thing over and over and expecting a different result.

• Profits are made in the buying, not in the selling.

Final Thoughts

• “They have more self-confidence because they are less afraid of losing.”
• “Risk comes from not knowing what you’re doing.”
• “If you want to be rich, you must know what kind of income to work hard for, how to keep it, and how to protect it from loss. That is the key to great wealth.”
• You will probably spend your life earning less than you could and working harder than you should.
• “Ordinary earned income is money you work for, and passive and portfolio income is money working for you.”