Hey guys, Today I’m here with a summary of the book “Rich Dad Poor Dad ”. In the book, the author talks about his two dads(One his own dad and another is his friend’s dad). His own dad was a Ph.D. and used to say money is the root of all evil, he would tell the author to get a degree and then get a good job. On the other hand, his friend’s dad didn’t even pass the 8th. But he used to say that not having money is the root of all evil. He would tell the author to build a business and give jobs to others.
The author got up with two opposite advice about money. Then decided to take his friend’s dad’s advice seeing their financial situation. Because the Author’s friend’s dad became the richest man in Hawaii while his own dad’s financial situation never changed. Since the author followed his rich dad he later became a multimillionaire. In ‘Rich Dad Poor Dad’ Author shares what he had learned about money from his rich dad.
The author says the rich are getting richer because of their assets. In the author’s words asset means which puts money in your pocket and liability means which takes money out of your pocket. For example, if you buy a house and start living there it’s a liability but if you put the house for rent it will become your asset.
Now let’s understand the cash flows of the poor, rich and middle class.
From these simple images we can see, poor people never left with anything after vital expenses. So they don’t have money to buy anything. Middle-class people save their money and buy liabilities. On the other hand, rich people buy assets with their money and then make their assets work for them.
So according to the author if you want to get rich you need to learn how to make the money work for you. The way is buying as many assets as you can. When you are happy with your income you can buy luxurious things as a gift for yourself.
So this is it for today guys. Rich Dad Poor Dad by Robert Kiyosaki is a must-read. This book will teach you about earning and managing money in a very simple way. This was the first self-help book I have ever read. This made me interested in books. No more today catch you guys in the next one, till then peace.
Definitely check the book out: https://amzn.to/2JOk5qc