Rich Dad Poor Dad Summary
In Rich Dad Poor Dad, Robert Kiyosaki and Sharon Lechter delve into ideas on how to accumulate wealth in the modern world. The book attracts controversy ad admiration in equal measure. To illustrate the concept of finances vividly, the author talks about two dads. The first is his poor dad. The other is his friend’s father, who has much wealth. How the two fathers handled the issues of finance was different.
Many people do not want to be considered as weird. Therefore, what they do is guided by the opinion people hold. That includes how these people deal with money matters. The main driver is that people should get an education, ger employed, and ensure they always play safe. However, the author opines that no job can be said to be safe.
When one gets a salary increment at work, the best idea should be to invest in something that can lead to the accumulation of wealth. The suggestions, in this case, are things like bonds. Despite the investments having risks that range from minimum to high, one can gain huge rewards. There is a 60% chance of doubling the money and a 40% chance of losing everything within a year. Because people fear to lose their money, they avoid such investments.
Because of greed, people opt to use the money in improving the life they live. They buy things like cars which end up being financial burdens. That means they end up losing al the money. People need to get the right financial education.
Colleges do not offer any benightment on how to handle money, which leads to a situation where many people wallow in debts. The author insists that the time to begin building your life towards financial freedom is today.
Besides, you need to have the motivation of working so that you can learn rather than working to earn. People should venture into new areas to get new skills. 5% of income should be invested in materials that teach how to handle money. Moreover, people should learn how to manage financial risks rather than avoiding them. People can begin with small sums and assume the money is lost. That way, you cannot be depressed.
The journey towards financial freedom is long, and motivation can come in handy. Invest and pay bills with what remains. Avoid liabilities such as cars and electronics. Do not be in a hurry. Stay in your employment until your investment grows. Most importantly, start the journey today.