Rich dad Poor dad
Book name: Rich dad Poor dad
Author: Robert T Kiyosaki
In the introduction part of the book, you will get a glimpse of what the book is all about. The story of a boy who wants to be rich and how he gets to know some good financial life lessons from a rich dad.
Chapter 1 Rich don’t work for money.
What I learned from this chapter is that never work for money. This sounds strange but this is cheaper all about. In the first chapter Robert( author) decides with his friend Mike that they want to be rich and learn lessons from Rich dad (Mike’s father) at the age of nine.
Following are the important lessons from the 1st chapter.
- “Experiential learning”
- “School never teach financial literacy”
- “Learning by making mistakes through trial and error is more and more important.”
- “Don’t try to change others – change your mindset. I must change.
- “The high-paying job means two things: you are working for money and taxes you will probably pay will increase.”
- Fear and greed emotions always control people’s mindset that stops them from doing something new or creative. They become slaves.
- “Emotions are what makes us human. The word emotion stands for energy in motion. Be thoughtful about your emotion and use your mind and emotion in your favour, not against yourself.”
The reader gets some good examples from this chapter that “how money works for you.”
Chapter 2 Why teach Financial literacy
In the 2nd chapter, the book talks about a phase where the author had already retired at the age of 47 and his friend Mike was in a better situation than his rich dad. This chapter mostly talks about liability and assets. Mike’s dad drew so many charts to explain the nine years what assets and liability is. Those all charts we can see in this book with a list of assets and liabilities examples. The author believes that purchasing a home is a liability and not assets because as per his mindset, liability is a thing that takes money out of your pocket. That means you should buy a house when you have substantial income from assets. Also, he defines wealthy people – “When your assets generate enough income to cover your expenses, you are wealthy, not rich.” The author gives examples of how wealthy people come in the category of poor people.
I learned from this chapter is that financial planning is key to a good life, that liabilities need to be less.