Royalties And really anything which appreciates in value over time If you think investing is scary and just another word for gambling, then I advise you to read into the low-risk, high-return strategy used by the investment greats: For most people, their profession is their income. For rich people, their assets are their income.
Understanding some basic principles can literally transform your thinking and set you on your path to creating wealth and, ultimately, financial freedom. I believe that once you remove finance as a daily worry and no longer have to commit so much of your time to employment, that frees up your capacities for other effective work for society at large.
There are some really good books out there, but I wanted to focus on just one today which was really useful for me personally and I know others have also taken great benefit from it. I want you to read the book for yourself, but to whet your appetite, I will run through some principles that are mentioned in the book.
Making money A book review on rich dad poor for you There is nothing novel about what Kiyosaki says here; everybody knows that sitting at home and getting passive income is a far better situation than having to work for your money.
But what Kiyosaki stresses is the importance of that journey and how you should be very strategic about that journey from employee, to being able to retire because your passive income is greater than your expenses.
He talks about how whether rich or poor, people need to control two emotions: To combat this, Rich Dad persuades the young boys as they are at this point in the book to stop thinking about wages and start thinking about how they can generate money for themselves. He argues that most people miss opportunities because they seek money and security, but once you get rid of this, you view the world in a different way: Money management Again, nothing novel here.
Managing money is obviously important.
But what many people fail to realise, according to Kiyosaki, is that financially successful people do one thing better: They tend not to spend on luxuries until they can actually afford it. Kiyosaki breaks it down very simply: He stresses how often misunderstood this is by using the example of a house.
The only things that can be classed as assets are things that actually bring in money: The key, Kiyosaki explains, is to limit your liabilities and grow your assets. He argues that average, middle-class people focus on their wage slips and what they bring in, whilst the rich focus on acquiring and building their portfolio of assets knowing that building passive income is the key to attaining financial freedom.
Financial literacy, or the lack thereof, is what stops them from becoming wealthy. Pay yourself first One of the major differences between Rich Dad and Poor Dad was that Poor Dad would get his monthly salary, pay off the bills, and use the remainder.
By contrast, rich Dad would pay himself first, even if that means his bills exceeded the remaining amount. The idea behind this, according to Rich Dad, is that when you do not have enough money to cover an essential thing like paying bills, this pressure drives your creative genius to inspire ways that will ensure you cover the bill money that month.
However, if you pay the essentials first with ease, your genius will not be inspired as you will simply pay yourself whatever the remainder is rather than being forced to come up with more.
This is why you often find that entrepreneurs come from financially unstable backgrounds — the pressure inspired them. He uses an example from his own life to paint this picture. He talks about how standard thinking is to save money, put something away every month in a bank account and come back to it in 40 years.
In the early 90s, the market in Phoenix, Arizona was terrible. He advocates learning a little about a lot.
For instance, he took a job with Xerox simply because he knew that he was a shy person and Xerox was renowned for having the best sales training programme out there. He ended up becoming one the top sales people in the company and, having gained what he wanted out of the job, left shortly after.
Kiyosaki also took jobs as a construction worker, a bus boy, reservations, marketing, and sat in on meetings with Rich Dad with lawyers, bankers, accountants, etc.
This was all part of learning a little about a lot so that he could run his companies in the most effective way.
Conclusion Kiyosaki finishes off the book imploring readers to overcome obstacles like bad habits and arrogance, and how you can get started.
The book is an extremely useful way of starting to think about the world and commercial opportunities differently in order to start creating wealth and I highly recommend the read!
You can pick it up fairly cheap new or used at Amazon. If you have read an interesting book that you would like to do a guest blog on or simply recommend to others, please comment below. Please remember to subscribe to our email list box on the top rightand follow us on Facebook and Twitter.The ideas presented in Rich Dad, Poor Dad aren’t particularly profound or fancy, but the concepts were entirely new to me.
This is especially true of how the book taught me to think of money not as an end-goal, but as a tool for wealth creation.
Rich Dad Poor Dad Summary Rich Dad, Poor Dad has been called the number one personal finance book of all time, boasting over 26 million copies sold.
In his book, Mr. Kiyosaki illustrates the mindsets and beliefs that make the rich, rich and the poor, poor by contrasting the advice of his real dad with that of his financial mentor, who was the. Rich Dad Poor Dad is a book written by Robert Kiyosaki, which criticizes the current education system for not teaching about money, and challenges the widely accepted dogma: “To be successful, you need to go to school, get good grades, so you can get a degree and find .
The #1 Personal Finance book of all time translated into dozens of languages and sold around the world.
Rich Dad Poor Dad is Robert's story of growing up with two dads — his real father and the father of his best friend, his rich dad — and the ways in which both men shaped his thoughts about money and investing. The book explodes the myth that you need to earn a high income to be rich. The author narrates in the rich dad poor dad PDF that he is pleased that he had the chance to learn different important perspectives about money such as savings, investments, and accounting that is also greatly emphasized in poor dad rich dad PDF and gave .
Book Review – Rich Dad, Poor Dad by Robert T. Kiyosaki with Sharon L. Lechter This is not a new book, in fact it was first published almost 10 years ago, but I just finished reading it I didn ’t even read the Coles Notes version! A friend gave me the book to read recently and not only is it an easy read, I think it is a MUST read.