The author of Robert Kiyosaki’s book says he has two parents, one his own biological father and the second. His best friend’s father, Robert’s own father, had a doctorate and taught at university, his second father, from whom Robert learned how to get rich.
Neither he even finished high school and learned everything practically by himself in the beginning, both of his parents earned enough money, but when they died, one died as the richest man in Hawaii and left millions of dollars to his family and the second left unpaid debts and taxes to his family Kiyosaki says that making money is a science that we are not taught in schools.
Schools teach us how to be employed and build a career, and that is why most parents teach their children similar things and direct them to the same direction, which is to become employees.
If you come from a middle class family, then there is a high probability that your parents have taught you to be poor, and this is not because your parents do not love you or do not want you to be successful.
It is simply because they themselves are not educated on this subject. They consumed expired information and when you were born, they passed the same expired information to you. Poverty is almost genetic, even from generation to generation.
My parents always advised me to study hard, get a diploma and find a steady job. However, when I started reading books like this, I realized that I learn more from some of these books than compared to my entire college years.
If too, you come from a middle class family and you haven’t read rich dad poor dad, so I highly recommend you read it. I wish someone had recommended it to me when I was 14 or 15. A lot of things could have been positively different in my life. If I had read it sooner in this post, I am going to talk about seven main ideas of the book.
The Financial education and the difference between an asset and a liability
The first idea is about the importance of financial education and understanding the difference between an asset and a liability. This difference is the most important step to getting rich in a nutshell. Assets are something that puts money in your pocket, and liabilities are something that takes money out of your pocket.
For example, if you have a car and you rent it and earn money every month, then this is an asset, but if you have a car and you take money out of your pocket every month for repairs, maintenance, etc.
Then it is a step example of assets can be properties to rent shares of companies, precious metals, etc and liabilities are your house, you live in your phone or car, you drive, etc.
Rich people focus on increasing their assets, while poor people buy liabilities and sit on their income. People, poor people buy iphone phone and rich people buy apel financial shares, which s are an asset and increase in value over time, but the phone loses its value.
The moment you take it out of the store growing assets are like planting a tree. You must care for it for years until its roots are deep enough to provide shade and fruit for your enjoyment.
Unfortunately, many people want to get rich, quick without learning about money. It’s like building a skyscraper with little or no foundation, and that’s why you see people making tons of money, but after a few years they lose it all.
The rich don’t work for money, their money works for them
The second idea is the rich don’t work for money, their money works for them, at a very young age, Robert had his first business partner, his schoolmate, and they worked for rich dad who taught them lessons on how to make money. The first rule they learned was that rich people don’t work hard for money.
Their money works hard for them. Rich people use their brain and find ways to make their money work for them, 24 hours a day from the perspective of a rich person, every dollar or peso earned, becomes a small employee and works hard to earn another. On the contrary, the poor and the middle class are driven by fear or desire.
They fear they won’t be able to pay their bills, so they work even harder or when they earn more money, their desire kicks in and they start spending it on responsibilities like nicer cars, bigger houses, etc, and because of these fears and desires, they don’t want to Invest their money and time in new opportunities, they are afraid of losing their money if they risk it, so they will buy a bigger screen tv, even if they already have one in comparison.
A rich person invests his money, no matter what, and even if he loses everything. Money still has an advantage, because at least you learn something, and this knowledge becomes an important asset for your future investments. On the other hand, television loses most of its value.
Understanding taxes, accounting, and law
After a few months – and you end up losing your money anyway, as well as losing the opportunity to learn something new, the third idea is about understanding taxes, accounting, and law. According to Kiyosaki win a lot money does not solve problems, learning to keep that money.
After earning it solves problems, if a rich person earns 100 thousand dollars, then he keeps everything. But if a poor or middle class person earns 100 thousand dollars, then he was very happy about taxes and loses between 30 and 40 percent.
Kiyosaki explains that in the beginning there were no taxes and the government created taxes to punish the rich and give them to the poor. The government used the robin hood mentality and people supported it, but the rich were smart and they found legal ways not to pay taxes.
One of the big differences is that the poor and the middle class earn money. They pay taxes on that money and live on. What is left the rich, on the other hand, make money, spend as much as they can and pay taxes on what is left.
The rich invent money
The fourth idea is the rich invent money. The author says that every person is born with talent, but that talent is suppressed because to debt fear; he comments that it is not necessarily the intelligent and educated people who get ahead, but the bold and adventurous people never get ahead financially, even if they have a lot of money because they have opportunities that they cannot take advantage of due to fear and doubt, most of them sit around waiting for the opportunity.
The author’s idea is that people believe luck, they shouldn’t wait for it; he says It’s the same with money t should be created.
Work to learn, don’t work for money
The fifth idea is work to learn, don’t work for money. Kiyosaki says his father is poor and intelligent, well educated and worked for money because job security was everything to him.
His rich dad became a millionaire rio working to learn. The author recommends that young people look for a job where they will learn more than they will earn, especially in the areas of sales communication. Marketing accounting leadership etc.
During an interview with a journalist, Robert Kiyosaki learned that the journalist worked hard to become best-selling. Author realized that she was a great writer and that she should get on with it.
She told her she had tried, but no one was interested accidentally offended her when he told her to take a sales course, so she could promote herself. She got defensive and replied. I have a masters in english literature because I would go to school to learn to be a salesperson. I am a professional. I went to school to train for a profession, so I would not have to be a salesperson.
I hate salespeople. All they want is money. She packed her things. Robert Kiyosaki gently pointed out that he he was the best selling author, not the best written author. This statement, just on the information even more and the interview ended.
The world has many successful and talented people, doctors, lawyers, dentists and still struggles financially, but as a wise business consultant once said, they are an aptitude for having great wealth. If you will take your skill set and combine it with financial intelligence, accounting, investing marketing law, you could get great wealth.
If that journalist had chosen a job in an advertising agency to learn how to sell, she could go on to create great wealth with his writing. Rich dad says you have to know a little about a lot in school and at work. You are expected to specialize those who win.
Promotions are usually specialists, however Robert Kiyosaki’s rich dad always recommended. Otherwise, that’s why, throughout of the years, Robert would work in different areas of the company, his rich dad’s daughter. He was expected to attend meetings with lawyers, bankers and accountants for rich dad. It was essential that Robert knew all aspects of building an empire
People who avoid failure, also avoid success
The sixth idea says the most people, never win because they are afraid of losing or failing. If you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling. If we never fell, we would never walk. The same is true for learning to ride a bike, the same is true for get rich.
Failure is part of the process of success, Kiyosaki says I see my money game as much as my tennis game, I play hard, I make mistakes, I correct, I make more mistakes, I correct and better. If I lose the game, I reach the net, I shake my opponents hand, I smile and say see you next Saturday. Personally, I know many and they have tried to create their own business, but have failed and finally gave up after three or four failures.
It always amazes me how these people expected to succeed. After a few trials, giving up after three or four failures is how you start going to the gym to get in shape, but after a few days you stop going because you don’t see any results. If you want to get in shape, you must be consistent. You must change your exercise routine, If it is not effective, you must try a different diet.
You must try a different trainer until you find what works for you. Unfortunately, people don’t they apply the same mindset when it comes to being financially fit.
Don’t focus on your income focus on your assets
The seventh idea is about don’t focus on your income, focus on your assets. The long term rich, build their asset column first, and only then does the income generated by the asset column buy their luxuries. The poor and the middle class buy luxuries with their own, sweat and blood.
In another s words: if a rich person wants to buy a luxury car, he doesn't buy it right away. He first buys assets like business or real estate, and if the assets generate good income, he uses them to buy the car always focus on the asset.