Book Review: Rich Dad Poor Dad by Robert Kiyosaki

 

There are many inspirational books available in the market. The books which inspire your soul, the books which give you mantras to succeed in life and books about healing your wounds…

But there is one book, I only wish I had read this book when I was young or even better yet my parents had read this book! I wish I would have read this book fifteen years ago.

Yes, I am talking about Robert T Kiyosaki’s book ‘Rich Dad, Poor Dad’. This book is complete re-thinking of ‘How money works? That money which you earn for yourself and how it will flow in the market and how you can generate double or triple money by investing the same. I read this book when I became an entrepreneur and realized that Financial Literacy is more important. People struggle financially because they spend years in schools but learn nothing about how to earn money. The result is, People learn to work for money. They never learn to have money, work for them.

Our parents bind us in a middle class mentality from the beginning, “Work hard to get good grades in Academics, basis on which get a secured job, don’t take risks as you are the sole bread earner for your family. Save money and purchase a two-wheeler and throughout the life, installment for your dream home auto-debited from your account.

In this book Rich Dad Poor Dad, Robert T Kioyosaki emphasizes on 7 Principles.

1st Principle is that Rich don’t work for money. They acquire assets that make money for them. Most of the people are controlled by 2 emotions Fear & Greed. Life never talks to you. Rather, it gives sort of pushes by saying ‘Wake up’. Fears never allow you to take decisions. Fear of losing a secured job, fear of coming out from comfort zone.

2nd Principle is Financial Literacy.  Its not about how much money you make but how much money you keep. Rich people acquire assets while Poor people acquire liabilities. An audi is a liability whereas a 2 BHK is an asset. Increase your assets and reduce your liabilities.

Why Rich are becoming richer and poor becoming poorer? Poor earns money from ad hoc or from temporary job and spends his money in expenses like Taxes, Food, Rent, Clothes, Entertainment & Transport. Middle Class earn money from Job and spend in Taxes, Mortgages, Fixed expenses, Food, Entertainment & Clothing. While Rich Person generates income from Dividend, Interest, Rental income or royalties and spends it in making assets by investing in stocks, bonds, notes, real estate etc.

It does not matter that how much we are earning, which matters a lot is ‘ Where you are spending or utilizing that money and how?’

3rd Principle is Mind your own business. Rich people concentrate on real Assets. These fall into several categories like Stocks, Bonds, Mutual Funds, Real Estate, any business which don’t require your presence, where you are the owner but managed by other people. It can be a Blog, website or youtube channel as well. However, poor people concentrate on income statements like upcoming installment and how to fill.

4th Principle is Power of Corporation. Public believe in Robin Hood’s principle of looting the Rich and distributing among Poor. But Govy has imposed so much Taxes, GST that it has covered Poor and Middle Class. The Rich mend their ways off theses legal tax loopholes. The Rich hire smart lawyers, accountants and CAs so that they need not to pay higher taxes.

5th Principle is Rich invent money. Great opportunities are not seen through naked eye but seen through your mind. The Risk takers tend to make money and financially progress.. despite lack of intelligence.

We all have one personality within us who is brave, wise and intelligent. On the same time, we have another personality as well who is weak and in tough time, people go for begging as well.

Money can be invented with having Financial IQ, which is made by expertise in these 4 areas. Accounting, Investing, Understanding market and the law.

6th Principle is Work to Learn – Don’t work for money We have met many persons who are extra-ordinarily brilliant but earn less than $20,000 a year. A horrible theory is Employee works hard only because he wants to stay with the organization and owners give only that much that the employees will not leave.

Whatever you are doing, work to learn, not for job-security. Job is the acronym of ‘Just Over Broke’. You should know a little bit of lot of subjects. Focusing only on Job will prevent you from becoming wealthy.

7th Principle is Overcoming Obstacles There are 5 obstacles which hold you back in becoming rich. These are Fear, Cynicism (Self-Doubts), Laziness (100% Failure in lethargic approach), Bad Habits (Excess of TV & Social Media) & Arrogance (The belief that I know everything. I lose money because what I don’t know was more important).

These are the Seven Principles which are from Robert T Kiyosaki’s famous book ‘Rich Dad Poor Dad’. If you want to purchase this book and want to read it in detail, please go through the link http://ceesty.com/wJmP1r

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