Rich Dad Poor Dad - By Robert T Kiyosaki
Rich Dad Poor Dad - the international runaway bestseller that has held a top spot on the New York Times bestsellers list for over six years - is written by an investor, entrepreneur and educator whose perspectives on money and investing fly in the face of conventional wisdom.
He has, virtually single-handedly, challenged and changed the way tens of millions around the world think about money. In communicating his point of view on why 'old' advice - get a good job, save money, get out of debt, invest for the long term, and diversify - is 'bad' (both obsolete and flawed) advice, Robert has earned a reputation for straight talk, irreverence and courage. Rich Dad Poor Dad ranks as the longest-running bestseller on all four of the lists that report to Publisher's Weekly - The New York Times, Business Week, The Wall Street Journal and USA Today - and was named "USA Today's #1 Money Book" two years in a row.
It is the third longest-running 'how-to' best seller of all time. Translated into 51 languages and available in 109 countries, the Rich Dad series has sold over 27 million copies worldwide and has dominated best sellers lists across Asia, Australia, South America, Mexico and Europe. In 2005, Robert was inducted into Amazon.com Hall of Fame as one of that bookseller's Top 25 Authors. There are currently 26 books in the Rich Dad series. In 2006, Robert teamed up with Donald Trump to co-author Why We Want You To Be Rich - Two Men - One Message.
Robert Kiyosaki is a fourth-generation Japanese-American. After graduating from college in New York, Robert joined the Marine Corps and served in Vietnam as an officer and helicopter gunship pilot. Following the war, Robert went to work in sales for Xerox Corporation and, in 1977, started a company that brought the first nylon and Velcro 'surfer wallets' to market. He founded an international education company in 1985 that taught business and investing to tens of thousands of students throughout the world. In 1994, Robert sold his business and, through his investments, was able to retire at the age of 47.
During his short-lived retirement, he wrote Rich Dad Poor Dad.
Author Robert Kiyosaki narrates the story of his two Dads in his childhood. His father and the father of his best friend. While he speaks affectionately of both, they were very different when it came to dealing with finances.
Learning 1 – Two emotions dominate our decisions – Fear and Greed.
This is the reason for the middle class to stick to the outdated formula – Go to school, Go to College, Get a Job and Play it safe. The reality is that no job in the world can be termed “Safe”.
What will happen if you get a bonus or extra money? Will you allocate this money to improving your lifestyle or allocate it towards investing? You may find a good fund that has some risk of losing money while having the potential of creating wealth. A lot of times, the risk of losing money is overpowering and the greed for improving your lifestyle takes over. This results in you spending all this money and therefore losing its potential to multiply your wealth.
Learning 2 – Change your Mind Set from “Working to Learn” instead of “Working to Earn”
We receive no financial education in our schools and therefore, it entirely depends on our ability to learn how to manage and grow our finances.
This results in financially ignorant people or even entire cities or countries in huge debt. It is estimated that about 38% of Americans don’t save enough for retirement. The only way for you to counteract this is to start educating yourself and start your investments now. Today is the youngest you’ll ever be, so take a close look at what you can and can’t afford. This way you’ll be able to set realistic financial goals, even if it means waiting for that shiny new Dream Car.
He suggests setting aside 5% of your income each month to buy books, courses and attend seminars on personal finance to start building your financial intelligence.
Learning 3 – Learning how to manage risks Vs Avoiding Risks
Learning about the investment game and understanding playing safe doesn't always be more rewarding. You can start by investing as little as 5-10% of your monthly income in stocks, bonds, or other instruments.
Learning 4 – Pay yourself First
Take a portion of your salary and first and foremost, invest it towards your investments or learn about financial products and concepts.
Learning 5 – Assets Vs Liabilities
Use your money and investments to acquire assets and not liabilities. For example, a fine investment in real estate can generate cash flows. Stocks can generate dividends and appreciation, but the same money spent on buying an expensive car with mortgage payments and debt generates a depreciating asset and a liability in terms of interest paid to the bank.
Anything that takes money out of your pocket every month is a liability.
Robert also suggests working for your job and building your business by the side. This essentially means that invest in income-generating assets, so that eventually, your assets become the main source of your income.
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