Rich Dad poor Dad by Robert Kiyosaki
A must read book for those who want to get started with financial independence/planning. An informal, easy read.
Animated Book Review
I found this resource on youtube and I highly recommend the video if you want a quick review on what the book talks about. This 7 minute video sums it all up!
The basic idea behind getting rich is getting out of the Rat Race.
Typically, you have a job. You earn money and you spend money as a part of your expenses and then you get back to square 1 every month. This is the Rat Race.
And you get out of the rat race when your passive income = expenses.
The book discusses few ways of generating a passive income. The video below also explains the concept beautifully.
The poor and the middle class work for money. The rich have money work for them.
Simple math and common sense are all you need to do well financially. “If I do not understand an investment, I don’t do it”
Learn a little about a lot
Always play to win.
Know the difference between an Asset and a Liability
An asset puts money into your pocket
A liability takes money out of your pocket
To be rich, own more assets than liabilities.
Workers work hard enough to not be fired and owners pay just enough sp that workers don’t quit.
JOB = Just Over Broke
As I became more successful, my bosses talked about promotions and raises. It was flattering, but I could hear my rich dad asking in my ear:
“Who are you working for? Who are you making rich?”
Land was wealth 300 years ago. So the person who owned the land owned the wealth. Later, wealth was in the factories and production, and the industrialist owned the wealth. Today, wealth is in the information. And the person who has the most timely information owns the wealth.
A journalist who interviewed Robert was concerned that her work doesn’t go anywhere.
Robert asks her to go back to college and learn how to sell.
She snaps and says,”I have a master’s degree in English Literature. I’m a professional. Why would I want to learn how to sell? I hate salespeople. All they want is money.”
Robert pointed to her interview notes and said,
“Robert Kiyosaki, best-selling author. It says best-selling author, not best-writing author”
Ray Kroc, founder of McDonald’s asked a bunch of MBA students, “What business do you think I’m in?”
The students replied, “Who doesn’t know you are in the hamburger business?”
Ray chuckled. “Ladies and Gentlemen. I’m not in the hamburger business. My business is real estate!”
Ray’s primary business focus was to sell hamburgers. But he owns the franchise, he owns the land beneath it as well.
Never think: I cannot afford this. Always ask: How can I afford this?
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