Hello friends, in today’s article we see the new book summary i.e. rich dad and poor dad book summary. This is one of my favorite books of all time for personal finance. so let’s start
Rich Dad Poor Dad book summary:- (Rich dad poor dad )
Introduction: This book is all about personal finance, and also gives information about entrepreneurship, how to manage risk and also tells about how rich people think to get rich and how they attract the people and money.
In our school teacher doesn’t teach about the money because they don’t know about the money and how it works and the government takes the tax from the people and how it uses.
How common people be the target of these big banks and the political people or government and they live life like they are the servant of that people and how these people take benefit from the people and get the benefit because of lack of financial education.
This book provides you the financial education and gives information about how money works for us. this is all about the introduction part, let’s see the chapter vice summary.
Chapter 1: Lesson 1st: Rich don’t work for money:-(Rich dad poor dad )
this chapter headline looks weird but the author explains the insight of rich people. so let’s see
In this chapter, the author wrote about his financial condition in his childhood and how it away from luxury things, and authors don’t get the rich kid like an expensive gift, like bicycle, handcuffs, etc.
when this type of face the Robert(author) problem they ask about his poor father(real dad) “why were we got more money?” why the teacher doesn’t teach about the money? this all type of question asks Robert to his father they give the mike dad address to learn from him about money.
and become rich, then rich dad tells them I am teaching you about the money but one condition that is you have to work for me in my shop and I will give you the money in return it with the average price.
then two weeks have gone rich dad nothing teach to Robert and then Robert got to rich dad home and asking about his promise of teaching about the money. (Rich dad poor dad )
he waits for 2 hours then he asks why you do not simply meet me and nothing teach about the money. then rich dad says, I am teaching you that but you look like my employee, and start complaining.
if you start complaining you get harder if you start to change me and I told you that if you change yourself is easy instead of changing people.
then rich dad said to Robert,” if you won’t learn about the money you have work for me and I will not get you a single cent of money” and that the lesson is that Rich people never work for money.
Chapter 2: Lesson 2nd: Why teach financial literacy:
In this chapter rich dad give information about financial literacy, and how it affects the rich and poor mindset.
If you know about this financial literacy you also know about how money work and how to get away from it, common people only know about job security and stay away from the risk and adjust in that circumstances.
rich people and poor people’s financial literacy affect the most, and also give rich people balance sheet and its cash flow account.
and we think that house is an asset but reality is that it the liability and its asset of the bank and how middle class and poor people think about the money they give the money first to all and lastly,
give to himself but the reality is that he can’t get that much of money to himself and rich dad give his cashflow and balance relation and how money comes in and go out. (Rich dad poor dad )
this important to give in this chapter.
Chapter 3: Lesson 3rd: Mind your own business:
In this chapter rich dad teach us about the focus on our asset column instead of the income column.
but most of the people give the focus to increase the income column and they get more money and then they spend more money.
rich people only focus on the asset column and then buy the other things.
This chapter only focuses on the mind your own business before getting broke and money problem is long time problem we can not fix it in the income statement increasing account. (Rich dad poor dad )
Chapter 4: Lesson 4 : The history of taxes and power of corporations:
In this chapter how rich dad play the game smartly and get rich and they pay the minimum taxes and before give tax they himself first and lastly pay the tax.
This is the rule of taxes is different from the different people. in this, there are four types of people, Investor, Businessman, Self-employed, employed.
In history, those people come in the B and I quadrant they pay tax at last of his distribution. This chapter gives information about money and taxes.
Chapter 5: Lesson 5: Rich invent the money
In this chapter, we got how rich people think and how to get solved the problem and invent money.
rich people very well know about the government system and where the loopholes are and how to get benefit from it.
Rich people provide society with goods and services that give them proper knowledge about their product and how it solves the problem of other people. (Rich dad poor dad )
the author provides the people the cash flow game and gets financially knowledgeable.
Chapter 6: Lesson 6: work to learn- don’t work for money:
This chapter gives the importance of learning, and what warren buffet says about learning is that” more you learn, more you earn.”
So poor people learn up to college graduation after that they leave to learn.
but rich people always learn and they invent the new things that come from their learning.
Chapter 7: Overcoming obstacles:
In this chapter, the author gives information about how much and various type of obstacles come in our life to keep us poor they areas.
4. Bad habits
1) Fear: is the main enemy of success. most people are not taking action because of fear.
lots of people think I am not capable of handling that type of risk.
In one interview Robert Kiyosaki says, ” Poor people are very much fearful for taking big steps, whatever it is like become rich in that decision or become broke on that decision.”
So like that most people just afraid of failure, and the most important thing is what people say to me when I will fail, and what happens to my image and I am staying alone. (Rich dad poor dad )
and that happens in actual real-life also people are so afraid about his image after failure.
About fear T. Harv Eker ( author of Secret of the millionaire mind book) says,” If you don’t get the success means you are missing something that rich people do, so you have to do the same thing that rich people are doing then you get the what rich people get”
and this is really true. So rich people are also fearful, but they don’t mix fear with their goal, they also afraid of failure but then also they take the risk and do the business and that’s why they get the money and fame also.
so let’s see other obstacles.
all people like that chicken, those telling that sky is falling the sky is falling.
in that story, you learn that there is no sky falling but they only overthink.
Nowadays, also people overthink and their mind is full of doubt and fear.
they think I am not smart enough to get fame or richness. (Rich dad poor dad )
They overthink about that think they can’t control, that why they do not get rich
If you want to overcome this then take the action with the leap of faith.
let’s see other obstacles
This thinks is a very dangerous thing. poor people think, now take the rest and remaining work we can do in tomorrow or after some time.
so they can’t complete that work, but complete when times go, that why they can’t become the rich
rich people also have the laziness, but they know, now I work for five years then after 5o years, I will live a very happy life.
so they also get laziness but they do the work, in business they do the day and night work to stay in the competition and accomplish their goals. (Rich dad poor dad )
4) Bad Habits:
Poor people have very many bad habits instead of good habits
rich people have good habits like reading books, learn new things, learn about marketing, accounting, and also the other things that never want to do them. but they do and become that doing work in form of habit.
poor people only think that I do my better work, then only I get the money, but this is not like that for this you have to learn new things and keep learning and avoiding bad habits like all day on social media, seeing Netflix, etc.
poor People have more arrogance in their work and their self-respect, that’s why they only show off on them and for that, they do whatever they need to maintain their arrogance.
but rich people know that arrogance is damaging things to our business, so they live humble, and learn about communication without hurting people they get work done from them.
lastly, the author gives the final thought
Final thought of Robert Kiyosaki:
In this, the author explains the, which type of way to make money.
so they listed like that
- Ordinary Earned
so these are the three types of income from them each and every person make the money.
Poor dad gives the advice to become the Employee or Self employee but rich teach to their kid to become the investor and business. (Rich dad poor dad )
So those who are doing the jobs, get the ordinary earned income, and they pay the tax first.
Those are making money while selling something like, buying apple for 100 dollars and sell for 120 dollars
so this type of portfolio income, that most self-employed people make, and some small business.
In Rich people income is passive income, in this, they make the investment and make money from them, without doing any work.
develop the company that gives the passive income without doing work.
so if you want to become rich then you have to make the ways that give passive income.
this is not for an employee or self-employed person work.
so this is all about the final thought of the author
lastly author says, “Rich and poor people the main difference is that how to manage the fear.”
This all about the rich dad poor dad book summary,
I am 100% say that you have to read this.
Read more: Secrets of the millionaire mind book summary
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