Does money ever make you nervous? Do you feel that you cannot deal with personal finances? Suppose, you have credit card debt, or maybe you are afraid of getting into debt? Or, maybe you are so afraid of debt that you never opened a credit card at all. You may have never opened a channel of credit at all. The author Robert Kiyosaki observes that the mindset is the most significant part of these limitations. The statements like: ”I am not smart enough to manage money”. That is not confusing, ”I cannot figure it out.”
According to the author, our experience with financial education lies at the helm of these insecurities. We need to know what the rich, or poor know about money.
Chapter 1 Explore Your Money Motivations
The author’s experience has shown that money, people are motivated by one, or two things such as greed, or fear. However, the question of managing money never comes in our minds. Emotions can drive our decisions. We must imagine a scenario in which you have started a new job with a raise in salary, but the next step is to decide how to manage the money. As you decide, what would be the right thing to do? Would you buy a new car, or a new house, or fashionable accoutrements? Or you should invest in stocks, or bonds? This is the point, according to the author, when class divide comes into play. Wealthy people ask children to hang on to their wealth.
It also means redistributing to invest in stocks. Besides, this people, who have less financial education are unlikely to make choices to secure a financial future. On the other hand, people born into poor families are unlikely to know about investment.
Chapter 2: Who Wants to be a Millionaire?
If you went to an average person on the street, it is clear that many would say yes, I want to be a millionaire. However, an excess amount of wealth can also be a problem because staying wealthy might be a problem because people then, do not have a handle on their spending like spending a million dollars on a house. According to the author, people who consider dilemmas, after getting a million dollars would have planned accordingly.
Chapter 3: How to Make Smart Investments
What is an asset, and a liability? An asset is an investment that help in making more money for the company. A liability is an investment that will cost you money. Besides, house is also thought of as an asset, but is a big liability because you are constantly putting money into it.
Chapter 4 Final Summary
The author shows that socio-economic divide between rich, and poor parents have created a disparity in financial education. Wealthy parents are comfortable with the inner workings of the stock market. Hence, the author uses his experience to create a roadmap by explaining the basics of the stock market. Besides there are many takeaways for Rich and Poor Dad
Key points of Rich Dad Poor Dad
- The poor and middle-class work for money, but the rich have money work for them, the truly wealthy understand the standpoint that money should come to them through assets, stocks and bonds. In other words, make money work for you.
- It is not how much money you make; it is how much money you keep. Many people believe that we are rich by the money we make, but it is how much we keep. According to the author, the key to becoming wealthy is to manage money smartly.
- Financial education is very important because graduates’ complete degree without knowledge of financial aptitude. Thus, educated individuals struggle because they cannot manage money, and they do not how to make money work hard for them.
- People need to mind their own business by focusing on the asset column, while everyone else focuses on income statements. The key is to acquire assets that generate income.
- You need to pay yourself first which means you need to prioritize on saving, before paying bills. It is the lack of self- discipline that causes most winners to go broke.
- Do not fear losing money, fear of failure prevents opportunities to build wealth and you, then cannot take financial risks.
- Patient investing is not gambling, it requires precision of thought, patience and knowledge, in addition to research.
Book Blurb
It is a thought-provoking book that challenges the mindset around wealth, and financial success. It highlights on the following differences:
- It provides eye opening insights into the differences between rich and poor. It also offers rich, valuable lessons on building wealth. It also shows how to achieve financial independence.
- The book empowers readers to take control of their financial independence.
Thus, Rich Dad Poor Dad is a great book for all those, who are looking to invest in wealth, build a vision for the future. If you want more such great self-help books, then, login at bookswagon.ae and order them now. It is a haven for book lovers in the UAE offering language diversity with multiple genres of books such as self-help, graphic novels such as Manga, historical fiction, memoirs, science fiction, children’s books and a lot more.
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