Rich Dad Poor Dad:-
Rich Dad Poor Dad is a 1997 book written by Robert Kiyosaki and Sharon.In this book Robert Kiyosaki telling his childhood story.It advocates the importance of financial literacy,Financial independence and building wealth through Assets.
Review:-
Robert Kiyosaki and his friend read in that school were all the childrens are belongs from rich families,and those students does not want friendship with Robert Kiyosaki and his friend Mike.One day Robert Kiyosaki and his friend thinks why our rich class fellows does not invite us on their parties,and the answer is we do not have money.Robert Kiyosaki and Mike now want money.They want to make a lot of money.Robert Kiyosaki and his friend does not choose any wrong way to earn money and they did not asked to their father's to gave him money.They both start thinking how we make money.Robert father was an educated person.He was a teacher,but their income is very low.All the money he earn was spended on their expenses and their is no money back to save or to invest on any-kind of business.
Robert dad was an educated person but a poor dad.On the other hand Mike's dad was a business man but less educated person.So the revolutionery story starts:
Rich Dad Vs Poor Dad
Robert knows that his dad was poor but he knows that his friend's Mike dad was a Business man.So Robert decided to meet Mike;s dad.Mike's arrange a meeting where Robert meet his father.When Robert meets Rich dad he asked a question how you make money.Rich Dad replied you both come to my departmental store every saturday and work for three hours i will pay you 10cents.Robert and his friend start working in the departmental store of Rich Dad.One day Robert thinks that we are not making money.We are just working as a slave for Rich Dad..Robert said to his friend that he wants to meet again with Rich Dad,and i wanted to know what he is doing with us.Robert again met with Rich Dad and said him that we work hard but you will gave us only 10cents.In the replied Rich Dad said:-
You sounded like the people who used to work for me
and people i fired a long ago
Rich Dad told Robert that earning money is not easy.Life gives you lesson by punishing you.
Poor works for money but Rich have money to work for them.Robert and his friend was both kids at that time so he does not understand what Rich Dad are saying.Rich Dad said to Robert:-You argue with me I like it.I love anger because When anger is combine with love it becomes passion,and i see;s a passion in you boy.If you do not argued with me then i will does not teach you a single word but you argued with me that's why i teach you.Rich Dad also told to him that:The people who want to play save and have a fear of loss,they did not acheive their goals.Passion does not drive them,Fear drive them.Work for money is not difficult:
Get a job and start making money.There is no risk of life in it.
Rich Dad loudly said to Robert that i make more money as compared with your dad but your Dad payed more tax because,Worker;s pay more taxes then investors.Robert does not understand what Rich Dad are saying.Rich Dad said that to both of them go back to your work and now i will pay you nothing.After listening this Robert stunned and sadly going to their home.After few days Rich Dad met with Robert and Mike and said that from now i will pay you 5dollars but the condition is that i will does not teach you any-thing.In 1965 5dollars is a very big ammount for childrens.Robert and Mike both looking at each other and they rejected the proposal from Rich Dad.Rich Dad become very happy that they did not accept the deal.Rich Dad told them:
Humans have two basic emotions.
Fear
Greed
And if any human become a slave of fear and greed they will not acheive their goals.
Fear of living without money
Fear of having no money.
That both fears motivate us to make money but when you make money there is other side also greed.Greed said use this money,But when you use this money and do the same thing what greed tells you than you again go back to 0.Doing this procedure of fear and greed you will start running the cycle of fear and greed.Means rat cycle
Rich Dad asked them how you both feels when i give you a offer of 10dollars.They replied that we think about your offer but we do not need salary we need knowledge of making money.Rich Dad replied this is the thing i like it.Both of the kids slowly slowly learns from Rich Dad and in 1990 they both become a very successful business man.
Summary:-
Poor works for Money.
Rich have money work for them.
Workers pay more tax then the investors.
Human have two basic emotions: Fear and Greed
Why Rich becomes more Rich:
There was a doctor his income was great but suddenly he increases hi expenses and his son wants to buy a new car,so the doctor increases his fees to fullfill his desires,now the poor cannot afford his fees and Rich becomes more Rich and Poor becomes more Poor.
School Systems:-
School systems always teaches you how can you work for money.
Financial Literacy:
Rich Dad always told them to read Financial Literacy.You have to know what is Accounting,because In 1923,there was a meeting in Chicago were all the rich business man's are invited but after few years some of them commit suicide,some of them died,some of them becomes poor.The reason behind them is that markets will crash but they do not have any-kind of financial intelligence.They are not financially illetrate.
Poor and Middle class person:-
Poor and Middle class persons are very depressed because of low income and more expenses because they did not know the difference between ASSETS and Liabilities.Poor people big mistake is that they always think that their Liabilities are their ASSETS.
Poor People:-
According to the diagram he gets money and their all money spends on their expenses.Nothing in Liabilities and ASSETS.Balance Sheet is blank.
Middle Class:-
He gets income all the income spends to pay liabilities,loan and then they spend on their expenses and their is no money left.ASSETS=0
Rich Family:-
He gets money from its ASSETS.
Japenes Philosphy:-
There are three types of power
Sword-Power of weapons
Jewel-Power of money
Mirror-Power of self knowledge
Poor and Middle class thinking:-
They take their home as an ASSET.
Rich said your home is your liability
Bigger home=Bigger expenses
Robert said if you want to buy a big home then increase your ASSETS.
Rich people increase ASSETS through ASSETS.
Minding your own business:-
If your main focus is promotion then you are increases the business of the company owner.You are not minding your own business.
Reason why you failed:
Fear
Negative thinking
Lazziness
Bad habbits
Arrogance
Results:-
Rich buy their luxuries last.
Poor and middle-class buy their luxuries first.
True luxury is the reward of investment.
Co-operate has low income tax.
Rich does not waste their time.
Lack of confidence is the big issue behind their faliure.
Change yourself according to the trend of market.
Ideas can make you rich.
Real opportunities are seen by mind not by the eyes.
When markets crash its a good time to invest because at that time ASSETS are cheaper but when market rises its a best time to sell.
People are not becoming rich due to the fear of losing money.
If you know how to sell you can sell everything.
Give money to receive money.
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