Rich Dad Poor Dad summary: Robert Kiyosaki is best known as the author of the book, Rich Dad Poor Dad. He has confronted and improved the way tens of millions of people throughout the world think about money. He is not only an author but also an entrepreneur, investor, and an educator who contemplates that every one of us in the world has the ability and strength to make changes in our lives, take charge of our economic prospect, and live the rich life we deserve.
Some of his most famous books are – Why the Rich Are Getting Richer, Why A students work for C students, and More Important Than Money, Second Chance etc. Those books and its intelligence, inspected throughout the world as a classic in the personal finance sphere, have stood the test of time.
His full name is Robert Toru Kiyosaki. He is an American entrepreneur and a businessman. He is also an author of many bestselling books. Being the founder of the company, Rich Dad Company which is a private financial tutoring company, he presents business education to people through books and videos. Robert is also the creator of the most brilliant game Cashflow board. He also develops software games to instruct adults and children business. He usually gives his seminars in the USA and Canada since they are done in collaboration with the company, Elite Legacy Education.
Robert Kiyosaki is the author of more than 26 books which also includes the international bestselling finance and entrepreneurship book, Rich Dad Poor Dad. His books have been translated into more than 51 languages and they are available in around 109 countries across the world. His book, Rich Dad Poor Dad had sellouts of over 27 million copies across the globe.
His first book was If You Want to Be Rich and Happy, Don’t Go To School. That book was published in 1992. In that book, he urged parents not to send their kids to college and rather make them penetrate the real estate business, taking extensions. Initially, it was presumed that the book would not go much acceptable. But after a year or so, the book achieved an all-embracing victory. The messages delivered in the book appealed to a number of youngsters who dropped out of college. That was completely based on the directions given in the book. Kiyosaki also propagated the message written on the book in popular talk shows. Kiyosaki affiliated with Amway to further sponsor his book. As per a transcript with Forbes, Kiyosaki’s foremost profits come through the Rich dad seminar franchisees.
Introduction to Rich Dad Poor Dad
In the book, Rich Dad Poor Dad, Robert Kiyosaki tells the story of his life growing up in Hawaii. His dad was well educated but he didn’t know the prospects of money for which he was tagged as the Poor dad. He was a teacher and made a good amount of money but still, he goes broke and sometimes in debt. On the other hand, the other dad who was a school dropout was financially prosperous. He is tagged as the Rich Dad.
Both the dads have distinctive aspects about making money, and Robert had the opportunity of contradicting both the prospects while growing up. But his rich dad’s viewpoints were more persuasive and useful to Robert. The preponderance of the text is addressed from the viewpoint of Robert acquiring financial opinions from his “rich dad” and seeing the blunders and missteps from his “poor dad”.
Robert fragments of his rich dad’s teachings and all that he acquired from him from when he was boyish growing up with his best friend. His rich dad had a lot of businesses, real estate investments, numerous workers, and worked obstinately to create passive income for himself. The book imparts some logical yet sensible lessons like we don’t need to earn a high income to be rich, Rich people make capital work for them and a lot more.
Rich Dad Poor Dad Summary
In the book, Rich Dad Poor Dad, Robert Kiyosaki portrays the story of his two Dad’s. His own father, the one who is educated but poor and the father of his best friend, Mike. He loved both of them. They both had different viewpoints of money and they were very varied when it came to trading with finances. For instance, one dad would state, “the lack of money is the root of all evil” but on the other hand the other dad’s say would be “The love of money is the root of all evil.” Again, one dad had a habit of saying, “I can’t afford it” but the other would say, “How could I afford it?’. Having two dad’s of different viewpoints helped the kids to compare and contrast points of view.
Things about ‘money’ are not taught in schools or colleges. They focus on only scholastic and professional skills and not anything on financial skills. That’s the reason why smart people like the doctors, accountants, professors etc, who have acquired good grades might financially not be successful all their lives. The national debt that occurs in most of tier two and three countries is due to the lack of proper financial decision. The politicians who make financial decisions for the country might be highly educated but they have little to no training in the subject of money.
The book throws light on how the world of finance actually works. The weak and the middle-class people work for money. And on the other note, the rich people have money work for them. It is also not how much money someone makes from their job and tasks. What matters is, how much money we keep.
In the initial part of the book, we find that the two kids offer business partnership to each other. They were both poor kids who studied in the public elementary school. Perhaps they two were the only ones who were poor in the school. His best friend, Mike and he discussed becoming rich and living a lifestyle which is now lived by their comrades in the class. They spent weeks on discussing and crafting their business idea.
One fine evening, Mike was stuck with an amazing idea which he got from his science book. It was a business related to toothpaste tubes. But due to the pressure from their family, they had to give up the business. They were depressed and at the same time frustrated on the failure. His father had to stop them from doing the business because it was illegal but at the same time, he also appreciated both the two kids for their creativity and the original thought.
His dad recounts them that if they really want to learn about money, Mike’s dad would be the ideal person. Mike’s dad is the Rich Dad in the book. He is brilliant when it comes to money. So, consequently both the kids went to Mike’s Dad and asks him about money. There were a series of deals regarding the teaching of finances.
Mike’s Dad offered them to teach about money but it won’t be like a classroom-style. He and Mike will have to work for Mike’s Dad and only then he will be imparting his lessons. He also says that he could teach them faster if they work for him and not just have a classroom-style teaching. He further addresses to take it or leave it. The kids wanted to ask the Dad some questions regarding the same but the Dad didn’t show interest in listening and walked away. The kids were made to work on every Saturday. According to the deal, it was a 3-hour work that the kids have to do which made them incompetent to practice their softball game. They had no options left. If they want to learn about money, they have to work for him, that too at a very mean cost. So consequently, they became a slave for 10 cents an hour. That’s the least revenue one could get doing the job.
The Rich Dad wanted to teach both the kids by giving them this task/job to do. Initially, both the kids were getting 10 cents per hour but later when they complained about this. Then the charges decreased even more. Now they were working for almost nothing. They were both working on the vision just to ensure that they will be learning about money if they do that in the first place.
Further, in the book, the Rich Dad keeps imparting money lessons in connection with the actuality of the world.
Issues of the Book
In simple words, the Rich Dad states, “we let the two main emotions everyone has around money dominate our decisions: fear and greed.” Due to these two factors, we end up working for others and stop taking risks of our own. Our life is influenced by the ones for whom we work.
He further says that that’s the reason why we adhere to the outmoded mantra “Go to school, go to college, get a job, play it safe.” But in reality, we all know that there is nothing called ‘safe’ and ‘security’ in jobs anymore.
One of the most powerful lectures delivered by the Rich Dad is about Asset. According to him, “The single most powerful asset we all have is our mind.”
“In school and colleges, we get to know that mistakes are defective and critical, and we are penalized for making them. Yet, if you look at the way humans are composed to learn, we learn by making mistakes. We learn to step by falling down. If we never fell down, we would never walk.” ― Robert T. Kiyosaki, Rich Dad, Poor Dad
One of the very principal tutoring Robert got as a teenager was that the rich do not sweat or work for money. What rich dad reveals is that the poor recapitulate to strive in a job for many unconventional understandings but they all boil down to despair and indulgence. Fear and Indulgence cause ignorance and scarcity because the poor keep their heads down and work their job to earn a paycheck day after day. The poor stay protected and play it safe in their jobs while the rich take chances and present themselves uncomfortable.
The reality of the world of finance today is, so many people say, ‘Oh, I’m not impressed in money.’ Yet they’ll work at a duty for eight hours a day.
However, most likely the concern or fear of losing the money altogether will keep every individual from doing so. When we say ‘yes’ to our greed and gluttony we might then employ the additional money which we made from the painstaking job on an improved and upgraded lifestyle. We do things buying a car, and the mortgages eat up the money we made and this is how we are assured to lose 100% of the money we made and get into debt.
This already delivers us an impression of how significant it is to educate and instruct our own self financially. Since we receive no financial or monetary training in school or colleges, sadly, this is entirely up to US! The author through the two kids consistently tried to bestow us the lesson which says, use your money to obtain assets instead of liabilities.
We all have a wish to be a king. Don’t we?
But we presume that the crown will come to us by itself without voluntarily working for it or chasing the dream.
We all want a luxurious and comfortable life which will provide us an enormous material as well as intellectual and rational growth. But here is a question. Have we surmised the very fundamental things we need to fulfill to take ourselves there? We need to have a goal, set in our mind to achieve and accomplish our dream.
In today’s knowledge economy, a thing which is very remarkable is that to access and reach our knowledge. Knowledge is the key to prosperity because we are existing in the knowledge economy.
We are our own biggest asset. As a result, the first thing we should put some money into is ourselves.
We learn all these pieces of stuff through the conversations of the two kids and the two dads. The author, Robert Kiyosaki presents every possible knowledge about money through the characters. The kid in the novel, Robert, had a privilege that he had witnessed both his father’s advancement with their reasoning. He had hearkened both bits of advice and finally chose to go with his Rich dad’s advice.