Rich Dad Poor Dad by Robert Kiyosaki

"In school, we learn that mistakes are bad, and we are punished for making them. Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk."
― Robert T. Kiyosaki, Rich Dad, Poor Dad

Rich Dad Poor Dad kicked off my financial literacy journey. He helped view money in a completely new way, and I felt like I discovered a brand new world! You will need to read this book multiple times as the author Robert Kiyosaki flips between two dads, as you’ve already guessed, a Rich Dad and a Poor Dad. He mirrors the intentions of each dad with different behaviors to create the paradigm of a money mindset.  Let’s take this front the top, shall we? 

The book has an overarching idea about making money and then using it as a tool for more wealth development. This book kills the myth that rich people are always born rich and defines why your personal residence might not be considered an asset. You will also learn the difference between asset and liability. The author will learn from the experiences of a rich dad and will share how he grew from nothing to being a wealthy man. This book has a theme of personal experience and is narrated in the first-person narrative. 

In the book, one of the dads has a huge collection of degrees and diplomas, and the other one is a dropout of high school. At the death of the overqualified dad, there wasn't anything left behind for the son but bills to pay. 

Whereas the dad who dropped out of school became a millionaire and left a huge collection of assets for his son. The school dropout dad was the richest one in Hawaii and passed an empire down. All his life, the Poor Dad would tell himself things like, "I can't afford to treat myself to this or that," whereas the Rich Dad would say things like, "How can I treat myself?"

The book's rich dad has taught the two small boys a few valuable lessons regarding money through his own experiences. One of the most important lessons he gave was understanding how to use one's mind and time, the best way to create your wealth using business and investments. 

It would help if you got out of the rat race. Understand how you can grab opportunities, look for solutions, look after your business and investments, and, most importantly, learn how you can make money do the work for you and not be its slave. 

In this book, the terms "poor" and "rich" are used by the author to explain the types of behavior that are better to achieve financial freedom. It isn't about judging yourself on what you are in the present but about what you will achieve in the future. 

A few lessons that you can get from the book "Rich Dad, Poor Dad."

Lesson # 1 The rich don't work for money!

The author of the book created his company at the age of 9. Robert Kiyosaki and his friend Mike asked Mike's father, the rich dad in the book, to teach them how to make money. After three weeks spent cleaning one of Mike's Dad's stores for a wage of 10 cents a week, Kiyosaki thought to stop. He couldn't take it anymore and started thinking of quitting. This was the moment when Rich dad decided to give him his first lesson regarding money. Some people leave their jobs just because they are not being paid enough, but others see it as an opportunity to learn something new. 

Lesson # 2 Work to learn

Rich dad asked the two young boys to work for free for him. By acting this way, he thought of forcing them both to imagine some way to create a source of income. This income must be independent of their work. Some comics lying around made the young boys inspired by something new. They recovered the books, opened a library for their classmates, and paid an entrance fee, i.e., 10 cents for two reading hours. They paid 1 dollar to Mike's sister a week to deal with their little business, and hence they were making $9.50 a week without even having to deal with managing their library. This was their first library. 

Lesson # 3 You must strive to become financially literate

You don't learn to become rich at school. The growing gap between the richest and poorest isn't by chance. The education system is playing its part in creating this. It doesn't allow the gap to grow small. The main purpose is to teach you to enter the world of working people just like it is and only become a good employee. You have to train yourself and learn how you can start earning other streams of income to diversify your earnings.

Lesson # 4 Mind your own business

It would help if you keep your current job but must start thinking about your business. Kiyosaki started his professional career through the sale of photocopies for Xerox. He used this revenue to put in real estate. In 3 years, the revenue made from the investments in real estate surpassed his salary. He decided to leave the company and take care of his business full-time. And hence the lesson is not to spend all of your income. Build a diversified portfolio of assets and spend later when your assets start making enough.

Lesson # 5 The history of taxes and the power of the corporation

Income tax was started in England in 1874. In the US, it was introduced in 1913. Initially, the plan was to make the rich contribute to the development and growth of the nation, but it soon only extended to poor and middle-classed people. The rich always have secret ways to save themselves from hefty taxes. It’s important to learn more about the tax laws, so you understand how to work within them. 

Lesson # 6 The rich invest money

Self-confidence is linked to a high financial IQ and will undoubtedly be your safest resort when achieving financial freedom. You will need to save your money before investing. But this will not be enough. You need to use your time wisely and find the best opportunities for it.

You will have to be an expert in management, marketing, and communication. You need to train yourself to do this all for yourself. The Rich Dad taught the author and his best friend that being specialized in every optic that you are interested in is not what you are after, but you need to retain the essential lessons in every field to master only the 20% of it that gives 80% of added value in your future business.

These were the teachings of Rich Dad to the two young kids who later started their companies, and one of them is the author. If you find it hard to read a full book, then you can join the Avid Listener's Bookclub. The Avid Listener's Bookclub is created to read 1 book per month that can add value to your life, business, and relationships. Our goal is for members to generate a return on investment of your time, energy, and resources with each title read!  We cater to the audio listener; however, traditional readers who enjoy turning physical pages within a book are always welcome.