Robert Kiyosaki's Rich Dad, Poor Dad Book Review

 

The Rich Father The Poor Father is one of the best financial books I have ever read, which makes sense as to why it has always been the best-selling book of all time. The basic premise of the story is that the author, Robert Kiyosaki, as two fathers, one natural (poor), and his friends became, who he regarded as a wealthy father.

Robert's poor father emphasized the values ​​that many parents instill in their children today, study hard, go to college, so when you graduate you can find a secure, stable job and a good company with good profits. Don't go for less that your full potential, and save for a healthy retirement. This is what the book describes as a “mouse race” as you are always looking for a high-paying job with more benefits, but always with increasing spending.

One of the most important lessons my rich father taught Robert is that he should never say "I can't pay you", as that makes your brain stop working and forces you to give up. Instead, one should ask "How can I earn money?". To do this he made Robert work for very low wages, to learn that in order to be successful he had to work for himself, and to teach him to understand that he had to find his own ways to make more money.

Robert and his friend Mike initially started their own business, trying to start making money. Shortly thereafter, Robert's father told them that their spirit was right, but they were really trying to make a profit, and they found out that what they were doing was considered fraudulent and illegal. Robert's father suggests that if they are really interested in making money, they should talk to Mike's father, as he has a lot of business. Mike's dad agrees to teach them, but first he says they have to learn to work, not in a classroom style. The first lesson makes Mike and Robert work, 3 hours every Saturday for 10 cents an hour. Finally, after a few weeks, they become angry and demand a raise. Mike's dad offers an ever-increasing promotion, or opportunity to learn a lesson. Eventually they decided to study the lesson, refusing to earn more than most adults were doing at the time. The lesson in the end was to get out of the "rat race", and instead of spending your whole life working for less money and making someone else have more money, you should have other people who work hard to put money in your pocket. . This is a very important book study in my opinion.

In the chapter, The Rich Do Not Work For Money Robert explains how many people are so obsessed with their pursuit of safety and security that they often miss out on opportunities, while the rich often take advantage of them. and benefit themselves. He also discusses not letting emotions influence financial decisions.

The book goes on to show what happened to Robert and Mike later in life. Mike has successfully taken over his father's business, and has taken it to the next level, while Robert retired at just 47 years of age. The lesson in this chapter is that you need to keep financial records in order to preserve your treasure. Many paid athletes, as well as many other wealthy people end up frustrated by not understanding how rich they are, as well as how to preserve and grow their wealth. The main purpose of this chapter is to understand the difference between debt and assets, and to focus on buying commodities. One of my favorite quotes in this chapter is, "Intelligence solves problems and generates revenue. Money without financial intelligence money quickly disappears."

Robert goes on to explain that the reason why poor people stay poor is because they spend all their money foolishly, and in debt, while developing and purchasing zero goods. This is in stark contrast with the scheming of wealthy individuals, who spend large sums of money on property, and they may keep money in debt. Sometimes it is not so much about how much you make, but how much you save. Most people who get a high-paying job, or who decide to take a second job or work overtime, end up spending that extra money foolishly, and never go further.

In the lesson, "pay attention to your business" Robert used McDonalds as an example. McDonalds may not be the best hamburger you've ever tasted, but the most successful is real estate. McDonalds owns one of the most important real estate units in the world. In order for a person to "consider his own business", he must ignore the business of his employers, and focus on ways to be his manager and develop his business.

Robert then continued his discussion of building materials, including housing, stocks, bonds, mutual funds, investment properties and more. To get started, Robert recommends small stocks, as well as a small start-up with real estate, and use your profits to move up to larger housing projects.

Regarding taxes, Robert discusses very interesting topics. In short, Robert discusses that at first it was the poor and middle class who decided that they wanted to tax the rich, in order to get a share of their money through the government. As a result, the wealthy were actually too smart to pay the high taxes, and they found tax evasion around them, which resulted in the middle class paying the bulk of the tax burden. The very people who voted for these taxes, ended up not earning much.

Robert discusses how people can make money, pay taxes, and live on what is left, while companies can earn money, spend all they can, and then pay taxes on what is left over after expenses. The working class people, as well as the middle class, are working from January to mid-May just to give all those salaries to the government.

Robert recommends learning as much as you can to improve your financial IQ on topics such as accounting, investment, markets, and business law.

Later, Robert discusses the concept of skepticism, and how psychology contributes to human success. He says everyone is born with a talent, but often fails to recognize or use this talent. Most people prefer to live a safe, harmless life, and to avoid any opportunities that might arise. Many people are always waiting for the opportunity to happen, rather than going out and looking for good opportunities. Robert also discusses how you should always employ people who are smarter than you, and be surrounded by people who are as good as you can be.

In the next chapter, Robert explains how one should work to learn, not to earn money. You discuss how marketing, communication, and human skills are important in every aspect of your life, and just because you have a PHD doesn't mean you shouldn't have good marketing or communication skills.

Robert then discusses five personality traits that can hinder one's success. 

These are: 

1.) Fear 

2.) Criticism 

3.) Laziness 

4.) Bad habits 

5.) Pride

Lastly, Robert recommends when change is needed, that people stop what they are doing and explore a new approach. It is important to learn as much as you can, and talk to people who have been where you would like to go. He recommends reading, speaking, attending classes, and purchasing audiocassettes to learn as much as possible. When it comes to real estate, you recommend running around the area you might be interested in, and learning about opportunities where you can invest for little or no money.