rich Dad Poor Dad - in Just 11 Minutes(All 7 chapters)

Summary

In *Rich Dad, Poor Dad*, Robert Kiyosaki shares lessons learned from his two father figures — his biological father, a well-educated man with a steady job, and his best friend's father, who became wealthy through self-education and investments. The book outlines key principles for financial success, including understanding the difference between assets and liabilities, letting money work for you, creating money instead of waiting for luck, and learning from failures. Kiyosaki emphasizes the importance of financial education, working to learn, and building assets first, to achieve long-term wealth and financial freedom.

Takeaways

• 😀 Rich Dad and Poor Dad: Robert Kiyosaki learned contrasting financial lessons from his two father figures—his biological dad (a PhD and teacher) and his best friend's dad (a self-made wealthy individual).
• 😀 The Importance of Financial Education: Kiyosaki emphasizes that financial education, which is not taught in schools, is essential for wealth-building. Most people are taught to become employees, not entrepreneurs.
• 😀 Assets vs. Liabilities: Understanding the difference between assets (things that put money in your pocket) and liabilities (things that take money out) is crucial to building wealth. Examples: rental properties vs. homes you live in.
• 😀 Money Works for the Rich: Rich people use their money as employees, ensuring that it works for them 24/7. In contrast, the poor and middle class often work harder for money, which they spend on liabilities.
• 😀 Taxes, Accounting, and Law: The rich focus on keeping their wealth through strategic tax planning, whereas the poor and middle class pay taxes first and live with what is left.
• 😀 The Rich Create Money: Wealth is not about waiting for luck. It’s about creating opportunities through bold, adventurous actions and making money through investments and entrepreneurship.
• 😀 Work to Learn, Don’t Work for Money: Kiyosaki advises young people to seek jobs that offer valuable learning experiences, especially in sales, marketing, and leadership, rather than just focusing on earning money.
• 😀 Avoiding Failure Avoids Success: Fear of failure is a major barrier to success. Failure is a natural part of learning and achieving wealth, much like learning to walk or ride a bike.
• 😀 Consistency Leads to Financial Fitness: Building wealth requires persistence. Just like getting fit, financial success requires consistency, learning from mistakes, and trying new strategies until you find what works.
• 😀 Focus on Assets, Not Income: The wealthy prioritize building assets first (e.g., businesses, real estate) and use the income from those assets to fund their luxuries, while the poor focus on earning income and buying luxuries immediately.

Q & A

What is the main difference between Robert Kiyosaki's two dads?

Robert Kiyosaki had two father figures: his biological dad, who was well-educated with a PhD but struggled financially, and his best friend's dad, who was a self-made millionaire with little formal education. The contrast highlights the different approaches to money and financial success.

What does Robert Kiyosaki mean by 'assets' and 'liabilities'?

In Kiyosaki's view, assets are things that put money into your pocket (e.g., rental properties, stocks), while liabilities take money out (e.g., personal homes, cars). He argues that the wealthy focus on acquiring assets, while the poor and middle class often purchase liabilities.

Why do Kiyosaki's two dads represent different approaches to money?

Kiyosaki's 'Poor Dad' believed in traditional education and job security, which led to a steady but limited income. In contrast, his 'Rich Dad' focused on financial education, investing, and creating assets, which led to greater wealth and financial freedom.

How do the rich view money, according to Robert Kiyosaki?

The rich view money as a tool that works for them. They invest money so that it generates more money, whereas the poor and middle class work for money and often spend it on liabilities that decrease in value over time.

What does Kiyosaki say about the role of fear and desire in financial success?

Kiyosaki explains that fear (such as fear of not being able to pay bills) and desire (such as wanting bigger houses or cars) often drive poor and middle-class people to work harder but spend more on liabilities, which prevents them from building wealth.

How does Kiyosaki suggest the rich manage taxes differently from the poor and middle class?

Kiyosaki argues that the rich use legal tax strategies to minimize what they pay, often spending money on investments first and paying taxes on what’s left. The poor and middle class, however, earn money, pay taxes, and then live on what remains.

What does Kiyosaki mean by 'the rich invent money'?

Kiyosaki suggests that the wealthy do not wait for opportunities to come to them. Instead, they create their own financial opportunities through bold action, innovation, and taking calculated risks. Money, in this sense, is something that must be actively created.

What is the importance of 'working to learn' rather than 'working for money'?

Kiyosaki emphasizes that rich people focus on learning new skills (e.g., sales, marketing, accounting) that can help them build wealth. In contrast, those who work simply for money often stay in a cycle of earning but not advancing financially.

Why does Kiyosaki believe failure is an important part of success?

Kiyosaki states that failure is essential for learning and growth. He compares it to learning to walk or ride a bike — you must make mistakes and correct them to improve. Those who fear failure miss opportunities for success.

What is the difference between focusing on income and focusing on assets?

Kiyosaki advises focusing on building assets (e.g., real estate, businesses) rather than merely earning a high income. Assets generate passive income over time, while income earned from a job is often spent on liabilities and does not build long-term wealth.