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Are you someone who would like to know about personal finance or investing?
If so, then you must have already read or if not, then you must read the book 'Rich Dad Poor Dad' by Robert Kiyosaki. It is one of the most popular books on personal finance.
The book has sold over 32 million copies and has been translated into more than 50 different languages. The main premise of the book is that there are two ways to make money: working for money or having your money work for you. Robert Kiyosaki learned these two from his two fathers. His biological father, poor dad, was a highly educated man who worked for a large corporation, and his other father, rich dad, was a self-made millionaire. Robert's rich dad taught him how to have his money work for him, while his poor dad taught him how to work for money.
The book is written by Robert Kiyosaki and it talks about the different ways you can become successful financially. He learned these lessons from his two fathers. The book is filled with tips on how to become financially successful, but some of the most important lessons are to teach your kids about money.
The story starts with a young boy asking his father about how he could get rich. The young boy simply wanted to become rich as his classmate hurt him by not inviting him to his beach house because he was poor. All the kids in Robert's school were rich; the only exceptions were him and Mike. His biological father could only respond to his hurting child vaguely, saying that he needed to learn how to make money in order to be rich; he provided no explanation for the same, indicating how little he knew of the subject.
At school, young Robert told his friend Mike about this, and on the same day, a partnership was formed between the two kids. For the next couple of weeks, the two kids went around the neighborhood, asking people to save their toothpaste tubes. After they collected all the tubes, production began. The young boys were casting nickles out of the lead. Robert's dad smiled at their innocence and explained what they were doing was illegal. This made the boys sad. Then Robert's dad told them that he had no idea how to make money, but Mike's dad knows, and so, the boys went to him.
When the two boys went to Mike's dad, he made them an offer and asked them to make a quick decision. He said that if they work for him, then he will teach them, and if they don't work for him, then he won't teach them; they had to decide quickly whether they were in or not. What Mike's father had in mind regarding teaching the boys how to make money couldn't be taught in a classroom setting. The boys were traveling to unchartered territory, but they agreed quickly. They were being paid 10 cents an hour for three hours of work every Saturday for doing small tasks, such as shelving goods and dusting at the convenience store Mike's dad owned. This job gave the two kids a taste of life. For young Robert, this was too much work for too little money, and so after a couple of weeks, he told his friend Mike that he was going to quit. Mike's father, the rich dad, has suspected that this would happen since the beginning and asked Mike to tell Robert to meet him when he decides to quit.
Mike had to wait a long time to meet rich dad. Their conversation was a changing point in young Robert's life. On the one hand, Robert's biological father, poor dad, had filled his mind with getting a raise and how rich dad violated labor laws. On the other hand, rich dad taught young Robert a valuable lesson for life. Rich dad told him that life pushes you around, but you assume that your boss, low pay, or job is pushing you around and so you take it out on them. In such a case, some fight back, some don't. Many play it safe by working for money. If you want money to work for you, then you have to take risks. A paycheck and a secure job won't solve your money problem, learning how money is made and financial education, on the other hand, will. Robert and rich dad had an elaborate conversation on that day, and Robert continued to work for rich dad at 10 cents an hour.
Rich dad made the two boys understand how the emotions of fear and greed control the people; they let these two emotions take over and let money run their lives. Rich dad also taught them how people get stuck in the rat race. If all you do is go to school, get good grades, find a secure high-income job, pay taxes, and play it safe, then welcome to the rat race. Only letting go of the fear of losing money and mastering the power of money can help you get out of it.
The lessons that rich dad taught the two opened their minds. They didn't need to make money work for them, and so the two decided to start their own business. They began pilling comic books in Mike's basement from a distributor, all the distributor asked for in return was not to resell them, and they agreed. Not long after, they had a comic books library set up in Mike's basement, and they employed Mike's younger sister as the head librarian; she was paid one dollar a week and free access to the comic books. They charged the kids who used to come in to read those comic books, and they started to earn around $10 per week. Their business was shut down after a fight broke in, but with their own business, they did learn how to make money work for them.
The book talks about how the middle class doesn't handle the money as the rich do. The middle-class think that generating a high income will solve their monetary issues or bring back lost money. They let fear guide them. What the middle-class don't realize is that a higher income will only provide a temporary solution. This is exactly poor dad's thinking process and what he did in his life. On the other hand, what rich people do is turn assets into income. Before buying anything, they first generate cash flow to cover the expenses from their assets. They use passive income to generate more money. They understand the power of money; they have the financial education that they need in order to form an investment strategy that will work for their benefit. This is the thinking process of the rich dad and what he taught Robert and Mike.
Throughout the book, there are contrasting points of view of the rich dad and poor dad regarding money. Having two dads while growing up provided Robert with two contrasting points of view: one of a rich person from his rich dad and the other one was of a middle-class person from his biological father. He simply didn't accept one father's point of view and rejected the other. Instead, he would find himself thinking and comparing both points of view and forming his own views.
There are many things that the average person doesn't know about making more money or even how to handle it that the rich know. Financial education is essential for all. The book is filled with tips on how to become financially successful, but one of the most important lessons is to teach your kids about money. Financial education is important, and it is not something that they teach your kids in school. It is important that your kids don't end up getting stuck in the rat race. Read further to know about the lessons you will learn from this book and what you should teach your kids about money.
Make sure that your kids know how important it is to invest money. Another key to becoming rich is gaining financial literacy and investing your money wisely. Teach your kids about the management of cash flow, different types of investments, and how to make wise choices to get more money.
You should make your kids understand how important debt is and how to handle it. Too much debt can ruin your financial future; you might not end up having enough money to sustain yourself. Teach your kids about the dangers of debt and how to stay out of it.
Let your kids know that there is more than one way to earn and how important it is to have multiple streams of income. Diversifying your income is one of the best ways to protect yourself from a financial crisis. Teach your kids how to make money in different ways so they are not reliant on one source of income.
Teach your kids about how they should live below their means and why is it beneficial for them to do so. One of the best ways to become rich and retire early is to live below your means. Teach your kids how to live a frugal lifestyle and how to invest their money wisely.
Having financial goals is just as essential as having financial literacy to actually attain your financial goals. Without financial goals, it is difficult to achieve financial success. Teach your kids how to set financial goals and how to achieve them.
Irrespective of the praise and support that the book 'Rich Dad Poor Dad' received, some people did criticize the book. John T. Reed said that the book gave bad advice and that there were many factual errors. Some people said that the book does not make a lot of sense. They called the book 'self-help boilerplate'.
What is the story behind 'Rich Dad Poor Dad'?
Robert Kiyosaki learned some lessons from his two fathers. His biological father was a highly educated man who worked for a large corporation, and his stepfather was a self-made millionaire. Robert's rich dad taught him how to have his money work for him, while his poor dad taught him how to work for money.
What does 'Rich Dad Poor Dad' teach you?
'Rich Dad Poor Dad' teaches you about the thoughts and mindsets of rich and poor individuals. Robert tried to secure financial freedom with the counsel of his rich dad, who was his friend's father, and he explained why his biological dad was not too wealthy.
What is the difference between a rich dad and a poor dad?
The main difference is that rich dad taught Robert how to make his money work for him, while poor dad taught Robert how to work for money. Poor dad was always working hard, but he never seemed to get ahead financially. Rich dad showed Robert how to invest his money and create multiple streams of income so that he would be less reliant on one source of income.
What is 'Rich Dad Poor Dad' about?
The book is filled with tips on how to become financially successful, but one of the most important lessons is to teach your kids about money.
Who wrote 'Rich Dad Poor Dad'?
The book was written by Robert Kiyosaki. He is an American businessman, investor, self-help author, and motivational speaker. He has written several other books including The Cashflow Quadrant and Rich Dad's Guide to Investing.
When was 'Rich Dad Poor Dad' written?
'Rich Dad Poor Dad' was written by Robert Kiyosaki back in the mid-'90s.
How long is 'Rich Dad Poor Dad'?
'Rich Dad Poor Dad' was 336 pages long.
When was 'Rich Dad Poor Dad' published?
'Rich Dad Poor Dad' was initially published by Robert Kiyosaki himself back in 1997. The book soon became a New York Bestseller. It was again published on April 1, 2000, by Warner Books.
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