Short books club: Rich Dad Poor Dad book

The key takeaways from Chapter 3 to 7 of the book “Rich Dad Poor Dad” are and I enjoyed the Cashflow game on the website too. 

Takeaways: 

Chapter 3 focuses on the title “Mind your own business” which is basically says that you should own your own business even if you are working for someone else.
A few claims made in this chapter which I liked are:

1. The rich focus on their asset columns while everyone else focuses on their income statements.

2. I liked the example quoted in the book about McDonald’s.” While most people assume that Ray Kroc, the founder of McDonald’s, is in the hamburger business, Kroc once told an MBA class that he’s actually in the real estate business. That’s why he carefully chose every location for his franchises.”

3.To become rich, you’ll need to buy luxuries last. People who buy luxuries first are often in much debt. The aim is to build income-generating assets that can buy luxuries.

Chapter 4: The History of Taxes And The Power of Corporations

Robert uses his own case study of “Xerox” to make us understand a few important things about assets and financial intelligence.

Financial IQ is made up of four key areas which everyone should learn.

Accounting: ability to read numbers
Investing: the concept of money making money
Understanding markets: knowing supply and demand
The law

Chapter 5: The Rich Invent Money

Three skills of an investor:

Find an opportunity that everyone else missed: see with your mind instead of your eyes
Raise money: know how to raise capital outside of a bank
Organize smart people: hire people more intelligent than you

Chapter 6: Work to Learn – Don’t Work For Money

Robert Kiyosaki recommends taking on jobs where you can learn new skills instead of jobs that pay the most.

Management Skills Needed for Success and one can pay for this to learn it better and it will help in the long run.

Management of cash flow
Management of systems
Management of people

Law of Money: “Give, and you shall receive.” is what Rich dad always advised for.

Chapter 7: Overcoming Obstacles

There are five core reasons why even the financially literate don’t become financially independent:

Fear
Cynicism
Laziness
Bad habits
Arrogance

I liked the line Laziness by staying busy. We don’t want to do or learn or work upon something and therefore we try to remain busy. This is one type of laziness.

Introscpection: 

Chapter 3 to 7 were discussed in detail with all participants with real-life examples. A few questions were raised after reading and discussing.

1. Why are we not taught Financial basics in school?
2. Why is it that females need to think about the family first before taking a risk?
3. Why there is so much fear when it comes to money?
4. Is real estate the way to earn money as described by the author?
5. Why there are many clubs in society but no financial club to discuss finances?
6. What if we want to learn now? Where do we learn it?

There is no end to questions that have arisen after reading these chapters. One thing which I have realized is don’t wait more but start walking on the way towards financial freedom. We cannot procrastinate now. 🙂

Regards,
Bhargavi.