Rich Dad Poor Dad Book Summary

Authors Introduction:

ROBERT KIYOSAKI is a well-known American businessman and author of the book “Rich Dead and Poor Dead”. He is the founder of his private company “Rich Dead”. He is best known for his book Rich Dad, Poor Dad. It is one of the best-selling books in the world. The book is co-authored by SHARON LECHTER, a well-known American accountant and author. Has He studied law for a long time? She also has the distinction of being the best speaker on business topics.

Book Introduction:

This book by Robert Kiyosaki consists of three characters; That is, the author himself, his real father and the father of a rich friend from whom the author achieved many successes in life. The author’s real father was a poor man, while his best friend’s father was a rich man.

The author says at the beginning of the book that he is a lucky man who has two fathers and he has learned valuable lessons from him and dedicated this book to him. Life lessons make it clear to him that a rich father always has money. The focus is on moving towards and earning more money while the thinking of the poor father is stuck between earning and spending. In short, the book is written in the context of Kiyosaki’s life.

The author says at the beginning of the book that he is a lucky man who has two fathers and he has learned valuable lessons from him and dedicated this book to him. Life lessons make it clear to him that a rich father always has money. The focus is on moving towards and earning more money while the thinking of the poor father is stuck between earning and spending. In short, the book is written in the context of Kiyosaki’s life.

In this book, the author suggests learning business strategies, taking risks in business and making assets an effective source of income. In this book, the authors have mentioned many of the dangers of becoming rich. By following them, any man can become rich.

Highlights of the book:

The main points of the book are as follows.

Key-1. Instead of working for money, learn to make money so that money works for you.

Key-2. Learn financial matters so you can differentiate between assets and expenses and grow your assets.

Key-3. Think carefully before investing.

Key.4. Develop a financial strategy to protect your accumulated assets.

Key-5 – Use of financial intelligence.

Key-6: Try to learn something new at work.

Key-7: Overcome barriers to financial success.

Key-8. Getting Started Achieves Financial Success.

Key-1. Instead of working for money, learn to make money so that money works for you.

A job or a job is a short-term solution to a long-term challenge. So we are trapped in our spending trap and forced to work for someone else for the rest of our lives. No matter how much money they are paying someone to build assets. They keep looking for ways to build their assets and work to increase them continuously. They spend their extra time just to get rich. An amazing financial strategy is to start a business in such a way that it makes money for you even when you are not there. The majority of people pay more attention to the fact that they What compensation they are getting. So they miss all opportunities to improve themselves.

It has often been observed that the majority of people work for others because doing so gives them a sense of a secure future, ie they work out of fear that they will have to pay for their daily necessities in Kabul. Don’t do it. On the contrary, those who work for higher wages and are rich do not work to pay their bills. They are passionate. This means that they work to make their dreams come true.

People who get paid more for their work, instead of increasing their assets, on the contrary, their expenses increase as their income increases and this is due to all their desires.

The way to reduce such a gap is to learn how to use the money for profitable purposes instead of looking for a job or a way to make money. If you succeed in doing so, you can use it to your advantage instead of harming it out of fear and desire. The intensity of fear and desire is stupidity. Instead of emotional thinking, it is important to learn how your emotions can be creative for you. Instead of reacting to your emotions, decide how you think. Yes, doing so will lay a good foundation for moving forward.

Most people’s demand is the price of their work and their demand is a reflection of human emotions, fears and aspirations. Basically due to fear of lack of money people have to work hard and when they Once they get a decent paycheck, they start thinking about everything that can be bought with money in pursuit of greed and desire for more wealth. So the purpose of their life becomes to get up early in the morning, go to work and pay the bill. Their life always revolves around fear and greed. If they are offered more money, they will increase their working hours and adapt to a cross-lifestyle. That’s why we call their game a cat-and-mouse race. ”(Robert Kiyosaki and Sharon Leacher)

Key-2: Learn financial matters so you can differentiate between assets and expenses and grow your assets.

It doesn’t matter how much you care about your money, but it does matter how long you manage to keep the money in your custody. The basis is to know the difference between assets and expenses and to buy assets. Rich people build their assets. Middle class and poor people increase their expenses.

Asset: Anything that moves money in your pocket is called an asset.

Expenses (Liability): Everything that brings money out of your pocket is called expenses.

Understanding income statement and expenditure statement is the key to wealth. So spend your time creating and buying assets to get the highest total value. The majority of people spend most of their time on expenses, so she stays poor. Many people, without realizing what they are doing, fall into the trap of responsibilities because they are financially literate. This aspect is also based on the truth in terms of home ownership. Many people consider their home as their great asset and are busy making it better and bigger. In fact, instead of making it an asset, the home Making it a source of constant expenditure.

Key-3. Think carefully before investing.

Your business revolves around the income portion of your income statement, while your business revolves around the assets column of your balance sheet. So don’t let your profession get bogged down in your business. It is a universal fact that middle class people focus on their profession and spend their entire lives developing another person’s business. In contrast, rich people focus on growing their business.

If a person invests extra money for an income-generating asset, this kind of behavior will help increase his income, so everything is called an asset:

 

• Which has a value.
• From which income is earned.
• Which can be prepared for resale in the market.
  Some other items may also be included in the asset category, such as:
  ۔ A business that is making a profit in your absence.
  ۔ Someone else’s business partnership and sleeping partnership.
  ۔ Buying bonds.
  ۔ Mutual autonomy in business
• Intellectual property right

Robert Kiyosaki says: “As your income increases you become able to buy more luxury. The most important thing is that the rich buy luxury last while the poor buy luxury first. Poor and middle class people often buy big houses, diamonds and jewelery for themselves because they want to look rich. They may look rich but in reality they are drowning in debts. Wealthy people build their assets first to maintain their wealth and prosperity, then increase their income from their assets and finally buy luxuries for themselves.

Key.4. Develop a financial strategy to protect your accumulated assets.

The rule of thumb for expanding your business is to reduce your expenses and invest your assets safely.

۔ Accountancy and Financial Literacy Ability to read and understand financial complexities. By mastering this you can identify the strengths and weaknesses of any business.
۔ Understand investment formulas and strategies or techniques to make money.
۔ Understanding the technical aspects of the market means learning the way in which human emotions and economic perceptions influence demand and supply.
۔ The grasp of commercial and tax law that has a direct and profound effect on the wealth you acquire.

The main benefits of developing a financial strategy for your assets are:

Tax benefit:

What is earned by an individual is taxed first and the money saved is spent. Taxes are paid.

Protection from lawsuits:

Car corporations and trusts protect their assets from creditors. Wealthy people control everything but for themselves and not for others. They transfer their surplus assets to car corporations and trusts.

Corporations and trusts protect their assets from creditors. Wealthy people control everything but for themselves and not for others. They transfer their surplus assets to car corporations and trusts.

The idea of making money for money is the thinking of people who are unfamiliar with financial knowledge. This does not mean that they are not intelligent but they are not familiar with the science of making money. Money is not just an idea if you have more money. If you want to earn, you have to change your thinking. Every self-reliant person starts his business with small things first and then turns to big things.

Key-5 – Use of financial intelligence.

The main benefit of developing financial intelligence is that it gives you more opportunities to create a creative solution to your financial needs. Work hard for it and save some money regularly. Many people use this strategy. Succeed by following.

The big and fast game of development is going on around you in the world. In the age of information, money is increasing rapidly in terms of goodwill with any person and with the rich based on agreement with someone else. The greatest asset of any human being in the environment is his own mind. Working according to the ways of the past and adopting old ideas is very detrimental to financial health and prosperity. The rules have changed, it is very detrimental to your success. Taking your financial intelligence to the next level is a rare opportunity for ongoing assessment in business transactions. Instead, work with your mind. There are four technical skills of financial intelligence that need to be mastered:

• Financial literacy
• Investment strategy
• Understanding the supply and demand in the market
  ۔ Following legal requirements

Clearly, there are several benefits to enhancing financial intelligence:

۔ You become better acquainted with the society and better equipped with information. You are able to assess the merits and characteristics of the investment.
۔ You become more financially savvy and your chances of beating your opponent and going above average start to diminish.
“In my view, investing always pays off,” says Robert Kiyosaki. So the market goes up and down. The economy goes up and down. Every morning of life brings new opportunities for you but we often miss these opportunities. The world changes, the opportunities change. And we have new opportunities to take steps to make our future generations financially secure. Great opportunities cannot be seen with the naked eye, but great opportunities require insight.

Key-6: Try to learn something new at work.

Getting to the right job means choosing a job that will teach you something you don’t already know, instead of teaching you how to make money. Long-term success in business requires learning many combinations of skills. So follow these steps:
۔ Understand the flow of money in business and learn how to manage your resources cost-effectively and productively.
۔ Understand the business system, especially how to use / allocate time. How to set goals and how to develop invincible projects.
۔ Knowing the background of management skills and how they organize, motivate and guide people.
۔ Building a strong foundation in marketing and sales on how to manage productive interests by forcing oneself.
۔ Mastering good communication, how to talk and communicate with others.

There are very few jobs that provide a good foundation for working anywhere. Therefore, in order to be effective everywhere, it is important that you prepare yourself to move from one job to another in the early days of your career. Gaining the same skills is a trap that should be avoided. Or it is better to know a little bit about a lot of business circles than to know everything about a circle completely. The best conditions in business are to work with someone who is smarter than you.

There are many opportunities to work with intelligent and resourceful people when you can learn new things. So in real life it is not enough just to be intelligent but also many highly intelligent people are working for very low pay because they do not have a proper understanding of their skills and abilities and they do not even know that their abilities How to use it to your advantage.

When Robert Quissa asked his class how many of them could make a better burger than McDonald’s, all the students answered yes. Then I asked if you guys could make a better burger, then McDonald’s Why make more money than you. The answer was the same: McDonald’s business system is the best.

Many smart people will put all their skills into making the best burgers instead of using their skills to find good ways to sell and deliver burgers. McDonald’s may not be making the best burgers but They have a great way of selling an average burger and delivering it to the customer.

Key-7: Overcome barriers to financial success.

When it comes to financial growth, it is important to understand the pros and cons. In this regard, one should try to avoid the losses by anticipating them. Therefore, people fail to develop their assets for the following five reasons: