Rich Dad Poor Dad Book Summary | What I learned from "Rich Dad Poor Dad" | By InvestTherapy

"Rich Dad Poor Dad" is a best-selling book by Robert Kiyosaki that has been a game-changer for many people seeking financial freedom. The book has sold over 32 million copies worldwide and has been translated into over 51 languages. Its popularity lies in its simple, yet powerful financial lessons that are relatable to everyone.

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The book is a memoir of Kiyosaki's life, growing up with two dads - his real dad, who was highly educated but struggled financially, and his best friend's dad, who was an entrepreneur and a self-made millionaire. Kiyosaki draws upon the contrasting financial lessons he learned from both dads and uses them to teach readers about wealth-building principles.

In this post, I will summarize this book and tell what I learned from Rich Dad Poor Dad and how it changed my perspective on money and wealth:

• Rich people don’t work for money:

One of the most important lessons I learned from Rich Dad Poor Dad is that rich people don't work for money; they make money work for them. In other words, they don't depend on a salary or a job to earn a living, but instead, they focus on creating assets that generate passive income.

According to Kiyosaki, the key to becoming rich is to acquire assets that appreciate the value and generate income, such as real estate, stocks, and businesses. By owning these assets, you can earn money even when you are not working, and your money can work for you and generate more money.

This lesson was a game-changer for me because I always believed that the only way to make money was to work hard and earn a salary. However, after reading Rich Dad Poor Dad, I realized that there is a better way to build wealth, and it doesn't involve working harder or longer hours. Instead, it involves creating assets that generate passive income and allow you to enjoy the fruits of your labor without sacrificing your time and freedom.

• Mind your own business:

Another important lesson from Rich Dad Poor Dad is to mind your own business. Kiyosaki defines "minding your own business" as focusing on building your own assets and creating passive income streams instead of working for someone else and helping them build their business.

Kiyosaki argues that the traditional model of going to school, getting a job, and working for someone else is flawed because it doesn't give you the freedom to control your financial future. Instead, he encourages people to start their own businesses, invest in real estate or stocks, and create their own sources of income.

This lesson resonated with me because I always had the desire to be my own boss and control my financial destiny. However, I was hesitant to take the leap because I didn't have the confidence or the knowledge to start my own business. After reading Rich Dad Poor Dad, I realized that there are many ways to build wealth and create financial freedom, and it doesn't necessarily involve starting a business. It can also involve investing in real estate, stocks, or other assets that generate passive income.

• The importance of financial education:

One of the main themes in Rich Dad Poor Dad is the importance of financial education. Kiyosaki argues that most people are not taught how to manage money in school, and as a result, they struggle with money throughout their lives. He believes that financial education is crucial for anyone who wants to become financially successful and achieve financial freedom.

Kiyosaki also emphasizes the importance of financial literacy, which involves understanding the language of money, such as financial statements, cash flow, and balance sheets. He argues that financial literacy is not just for accountants and finance professionals, but for anyone who wants to build wealth and achieve financial freedom.

This lesson was eye-opening for me because I realized that I lacked financial education and literacy, even though I had a college degree and a good job.

After reading Rich Dad Poor Dad, I started to take a more proactive approach to my financial education. I started to read books on personal finance and investing, attend seminars and workshops, and seek advice from financial professionals. I also started to track my expenses and budget my money more effectively, which helped me to better understand my cash flow and financial situation.

Through this process, I learned that financial education is not just about learning how to invest or make money, but also about learning how to manage your money effectively, control your expenses, and make smart financial decisions. Financial education is a lifelong journey, and it requires continuous learning, self-reflection, and discipline.

• The power of mindset:

Another key lesson from Rich Dad Poor Dad is the power of mindset. Kiyosaki argues that the way we think about money and wealth has a profound impact on our financial success. He believes that many people have a poverty mindset, which is characterized by fear, scarcity, and limiting beliefs about money and wealth.

On the other hand, he argues that successful people have an abundance mindset, which is characterized by optimism, confidence, and a belief that there is always enough money and resources to go around.

This lesson was particularly impactful for me because I realized that I had a poverty mindset, which was holding me back from achieving my financial goals. I had limiting beliefs about money and wealth, such as "money is evil" or "rich people are greedy." These beliefs were preventing me from taking risks, investing in myself, and pursuing my dreams.

After reading Rich Dad Poor Dad, I started to work on changing my mindset by focusing on abundance, gratitude, and positivity. I started to visualize my financial goals and affirm positive beliefs about money and wealth. I also started to surround myself with people who had a similar mindset, and who were supportive of my financial goals.

Through this process, I learned that mindset is not just about positive thinking or wishful thinking, but also about taking action and making choices that align with your values and beliefs. A mindset is a powerful tool for creating the life and the financial success you desire, and it requires conscious effort and intentional practice.

• The importance of taking action:

The final lesson from Rich Dad Poor Dad that I want to highlight is the importance of taking action. Kiyosaki argues that knowledge is not enough to achieve financial success; you also need to take action and apply what you have learned.

He believes that many people fail to achieve their financial goals because they get stuck in analysis paralysis, or they are afraid to take risks and make mistakes. He encourages people to take calculated risks, learn from their failures, and take action toward their goals.

This lesson was particularly impactful for me because I realized that I had been holding myself back from achieving my financial goals by not taking action. I had a lot of knowledge about personal finance and investing, but I was not applying that knowledge in my life. I was afraid to take risks, make mistakes, and fail.

After reading Rich Dad Poor Dad, I started to take more action toward my financial goals. I started to invest in stocks and real estate, start a side hustle, and network with other investors and entrepreneurs. I also started to embrace failure as a learning opportunity and focus on continuous improvement.

Through this process, I learned that taking action is essential for achieving financial success. Knowledge is important, but it is only a small part of the equation. You also need to have the courage, determination, and persistence to take action toward your goals.

Conclusion:

Rich Dad Poor Dad is a powerful book that has transformed the way I think about money and wealth. It has taught me that financial success is not just about working harder or earning more money, but also about changing the mindset towards money, investing in your financial education, taking control of your finances, having an abundance mindset, and taking action toward your goals.

These lessons have had a profound impact on my life, and I believe they can help anyone who is interested in achieving financial success. However, I want to emphasize that the journey toward financial success is not easy or quick. It requires hard work, discipline, and patience.

Overall, I highly recommend Rich Dad Poor Dad to anyone who is interested in achieving financial success. It is a powerful and inspiring book that can help you change your mindset, take control of your finances, and take action toward your goals.

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