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Rich dad and Poor | Top 20 Key Learnings

Rich dad and Poor dad tells the story of a boy with two fathers, one rich, and one poor, to help you develop the mindset and financial knowledge you need to build a life of wealth and freedom.

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The main reason that over 90 percent of the American public struggles financially is because they play not to lose.They don't play to win".

The five big ideas from the book

  1. The poor and the middle-class work for money. The rich have money to work for them.
  2. It’s not how much money you make that matters. It’s how much money you keep.
  3. Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
  4. Financial aptitude is what you do with the money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you.
  5. The single most powerful asset we all have is our minds.

Who is this book for?

This book is a great read for anyone interested in finances and what it takes to be a wealthy person. In Rich Dad Poor Dad, Robert Kiyosaki summarises the lessons learned from two different perspectives, that of a poor man, and that of a rich man. Drawing on his own experiences, Kiyosaki discusses how to create financial independence through investing, property ownership, and building businesses.

Key insights

  1. ” Rich dad thought it best to go broke before 30. “You still have time to recover.”
  2. ” The fear of being different prevents most people from seeking new ways to solve their problems.”
  3. ” Proper physical exercise increases your chances of health, and proper mental exercise increases your chances of wealth. Laziness decreases both health and wealth.”
  4. ” Many of us think that the objective behind working is to earn. Whereas the goal should be to learn.”
  5. ” Instead of saying you can’t afford it use your biggest asset- Your BRAIN.”
  6. ” There is a difference between being poor and being broke.” Broke is temporary. Poor is eternal”
  7. ” Great opportunities are not seen with your eyes. They are seen with your mind.”
  8. ” Real Estate is a powerful investment tool for anyone seeking financial independence.”
  9. ” Illiteracy is the foundation of financial struggle.”
  10. ” People’s lives are forever controlled by two emotions: fear and greed.”
  11. ” An asset puts money in your pocket. A liability takes money out of your pocket.”
  12. ” It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying.”
  13. ” So many people say they’re not interested in money. Yet also they will work at a job for eight hours a day.”
  14. ” Money is one form of power. But what is more powerful is financial education. Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.”
  15. ” Most people simply buy investments rather than first invest in learning about investing.”
  16. ” Always keep your expenses low, reduce liabilities, and diligently build a base of solid assets.”
  17. ” People who avoid failure also avoid success.”
  18. ” In today’s fast-changing world, It’s not so much what you know anymore that counts, because often what you know is old. It is how fast you learn. That skill is priceless.”
  19. ” The problem with being young is that you don’t know what it feels like to be old. If you knew what being old felt like, you would plan your financial life differently.”
  20. ” The moment you begin to think of time as precious and that it has a price, the richer you will become.”

About the Author

Robert Kiyosaki has written over 20 books, and Rich Dad Poor Dad can be considered the number one personal finance book ever written. He is passionate about sharing his knowledge and founded the Rich Dad company in 1997 dedicated to providing personal and business financial education. Kiyosaki lives in Arizona with his wife Kim and interestingly as a close relationship with Donald Trump. Kiyosaki has co-authored two books with Trump and endorsed him in is 2016 presidential campaign.

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