Rich Dad Poor Dad PDF Book is one of the most influential and motivational book available free of cost.
Rich Dad Poor Dad authored by Robert Kiyosaki summarizes the lessons learned from two different perspectives, one of them is learned from that of a poor man, and other one is that of a rich man. Going through his own life experiences, Kiyosaki discusses how to create financial independence through investing, property ownership and building businesses.
Rich Dad Poor Dad Book PDF – Summary
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 PDF Free, Robert Kiyosaki summarizes the lessons learned from two different perspectives, one of them is learned from that of a poor man, and other one is that of a rich man. Going through his own life experiences, Kiyosaki discusses how to create financial independence through investing, property ownership and building businesses.
About the Author Robert Kiyosaki
Robert Kiyosaki is the author of more than 20 books, and Rich Dad Poor Dad PDF is considered the number one personal finance book ever written. Robert Kiyosaki is really passionate about sharing his knowledge and life experiences and finally founded the Rich Dad company in back in 1997 dedicated to providing personal and business financial education. Robert belongs to Arizona and lives with his wife Kim and interestingly have close relation with the Donald Trump. Kiyosaki has co-authored two books with Donald Trump and endorsed him in is 2016 presidential campaign.
Six Lessons to Learn Rich Dad Poor Dad Book
This rich dad poor dad book will discuss five lessons of the rich dad which Robert Kiyosaki highlights in this book.
Lesson #1 The Rich Don’t Work for Money
First lesson is the rich don’t work for money in which a rich dad tell his son that do not just work for getting rich or money.
Push Back Power of Rich Dad Poor Dad
Being rich is one of the most common dream we all have. We all talk about it to be rich but most of us never make it happen. Kiyosaki emphasizes the idea that if you are able to change yourself, you have to power to change your life if it’s what you really dream for. He explains that majority of people let life push them around, they let their boss, their job and their families direct their lives and standards of life. There is another kind of person which pushes back and these people will be successful. They understand changing and learning themselves would make them wiser and will lead them to achieve their goals.
Fear Over Passion
”Lesson No.1: The poor and the middle-class work for money. The rich have money work for them.”
Kiyosaki explains that when it comes to be rich, play safe with money and do not take risks you really don’t understand to be secure. The money behavior of poor and middle-class is that they feel fear instead of following passion. However, You need a passion to learn and find something that can make you successful. If you want to learn anything new or find real success. You cannot be living in fear. It’s the fear of change that makes people in the same job for decades. Fear of missing paying rents and bills. Fear is the one of major factor that drives people to same path for years.
”That’s the price of studying to learn a profession or trade, and then working for money. Most people become a slave to money… and then get angry at their boss.”
Desire for Money
”The pattern of get up, go to work, pay bills, get up, go to work, pay bills… Their lives are then run forever by two emotions, fear and greed. Offer them more money, and they continue the cycle by also increasing their spending. This is the Rat Race.”
Desires are the things that keeps people in the same jobs while they know the fact this job can’t make them feel any joy, they just continue to work. Because they have desire for money and the things only money can buy. They expect that money will bring the joy. However, Kiyosaki explains that joy of fulfilling desires is only temporary. Desires keeps on rolling up and up and demanding for more and more. The assumption is that money brings joys and solves all problems come up due to money but reality is that money does almost the opposite.
Paychecks Kill Opportunities
Kiyosaki explains it’s the paycheck that keep you holding back and makes your life actually difficult. If you can get to a point where you don’t get afraid of forgetting about the next paycheck, you will find yourself in a much better place and peace of mind. Working without caring about the money and paychecks and using your brain will unleash opportunities you currently can’t see. Paycheck blinds you from unleashing your opportunities you can have. If you can forget this paycheck, you can go far beyond than your 9am-5pm standard job. And most of the opportunities are missed because everyone is too concerned about the joy and security that a job and a paycheck can bring each month.
Lesson #2 Why Teach Financial Literacy?
Second lesson on the importance of teaching financial literacy that how financial literacy can improve a person’s finances and grooms him in every aspect of financial life.
Most people fail to realise that in life, it’s not how much money you make, it’s how much money you keep.
Kiyosaki explains that everyone is looking for a quick fix, the magic answer and formula to get themselves rich overnight. However, he explains that the only way to get rich is to become financially literate. The education is absolutely fundamental. Accounting is the most important thing you can learn and understand if you really want to make money in the long term. That’s why it’s so important to teach your kids the basics of accounting. Keep it simple and straightforward but make sure that they know the essentials.
Understanding Assets and Liabilities
Importance of understanding that there is a clear difference between assets and liabilities. You cannot spend your life buying liabilities, you need to be buying assets. This is the reason of majority of people that rich people focus on acquiring assets and poor people focuses on acquiring liabilities. It can also happen due to little knowledge of assets and liabilities assuming that it’s an asset. It’s very simple to know if the thing you’re investing in, is an asset or liability. Just ask yourself that if this thing will start putting money in your account or will start to take out your money.
”This is really all you need to know. If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities. It’s not knowing the difference that causes most of the financial struggle in the real world.”
Owning a House – Asset or Liability
We’ve already discussed the difference between assets and liabilities. So one of the biggest question we face now is about owning a house. Is a house considered an asset or a liability?
Kiyosaki explains that the majority of working people never actually have their own homes as they spend their money for houses and bills. They just upgrade by changing to a new house after years. You just pour all of your hard earned cash into the house leaving little or no money to invest in any other assets. Kiyosaki explains that you lose time, the time spent paying off your mortgage is time you lose with other assets that could be growing in value. You just miss out on additional capital from investments.
”Too often, people count their house, savings and retirement plan as all they have in their asset column. Because they have no money to invest, they simply do not invest.”
Lesson #3 Mind Your Own Business
”Most people work for everyone else but themselves. They work first for the owners of the company, then for the government through taxes, and finally for the bank that owns their mortgage.”
Robert Kiyosaki outlines the factor why most of the people can’t be rich as they spend their whole life working for someone else dream and in return just get a paycheck which keeps them holding to work for it. He explains that there are two schools of thought when it comes to earning an income:
- Your income is a direct result of your career. This is what most people think.
- Your income is a direct result of your assets. This is the perspective of the rich.
Lesson #4 The History of Taxes and the Power of Corporations
We need to look at the history of taxes and educate how taxes and corporations work. Kiyosaki points out the fact that the rich avoid being taxed. The middle class are the ones who end up paying taxes due to little knowledge of taxes and corporations that how it works. Rich people generally have a deep knowledge of the legal structure of corporations and how to avoid taxes employ. Rich people do not voluntarily pay more taxes. Whenever new initiatives are put in place, designed to tax the rich, the rich do their research and push back. The poor and the middle classes don’t have the education to push back, so they are the ones who end up paying all of the taxes.
Lesson #5 The Rich Invent Money
To be rich, don’t just work to make money, make something new and patent it to make passive money from it.
”I recommend to young people to seek work for what they will learn, more than what they will earn. Look down the road at what; skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race.”
There is an option for people who are unwilling trying to learn a new skill and are determined to become specialized in that single field. If this is the approach you want to take, ensure that you work for an organization. Specialists are well protected within labor unions.
Lesson #6 Work to Learn Don’t Work for Money
Don’t just focus on making money, learn everyday and learn from everything you can. Once you start focus on the learning, money will follow you automatically.
Work on Grooming Everyday
A fresh passed out student of a university will be taken under the wing of an organization and groomed to take over one day. These students will likely be moved all around the organization or a company, never specializing in just one department to ensure that they understand the entire organization. This is something that rich people often teach their children to have complete understanding of business operations and how the family manages their finances. Management skills that should be taught include managing cash flow, managing systems and managing other people.
Degree of Rich and Successful People
“Look around; the richest people didn’t get rich because of their educations. Look at Michael Jordan and Madonna. Even Bill Gates, who dropped out of Harvard, founded Microsoft; he is now the richest man in America, and he’s still in his 30s.”
Kiyosaki outlines that, it does not take years of education and higher degree to be rich person. You do not even need high grades and marks in school and college to be successful and rich. There are other ways to be rich and successful with money, ways that not many people seem to be talking about.
Home Learning Effects on Rich Dad Poor Dad
Robert Kiyosaki believes that an individuals wish and tendency to be richer can be measured through their self learning by staying at home. Parents are also responsible for teaching the fundamentals of finances as it is not something that schools and colleges focus on. Kiyosaki explains that learned things at home are act as a driver behind the rich getting richer, the poor getting poorer and the middle class keeps on struggling with constant debt. He believes that most of the govt officials and politicians have very little education and yet hold the position of power due to their home learning.
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.
Kiyosaki emphasizes that there are always two different perspectives you can take when thinking about money:
- The love of money is the root of all evil vs. the lack of money is the root of all evil.
- I can’t afford it vs. how can I afford it?
- Study so you can work for a good company vs. study so you can buy your own company.
- Don’t take risks with money vs. learn to manage risks with money.