Rich Dad Poor Dad-summary
By Robert Kiyosaki
Robert Kiyosaki was born in Hawaii 1947. In 1957 Robert was in the same school as the rich kids were. Robert observed that the rich kids separated him from their group activities. His parents could not buy the newest toys unlike the rest of his class on comparing what they owned.
Rich Dad Poor Dad
One day Robert asked his father, “How do we get rich?”
His father who had a phd and excellent education replied,”Use your head son, study hard ,get good grades, so you an find a secure job.” Later in this book we shall refer to Robert’s biological father as poor dad.
Robert has a friend called Mike. Mike’s dad is refered to as rich dad. Rich dad started mentoring his son, Mike and Robert about becoming rich.
Assets vs Liabilities.
First you must know you need assets.
Assets- Something that puts money in your pocket.
Liability- Something that removes money from your pocket.
Lets draw a map of what a person’s incomes, liabilities, expenses, and assets would look like,
Income-Comes from his job
Expenses-Clothes, food, drinks and more.
Liabilities-mortgages, loans etc.
Lets wee how the rich spend and earn
Income=Asset: This means that the rich look for a way to earn through their assets that is investing, royalty, bonds, real estates that give you money and more. Expenses and liabilities are somewhat same as poor dad.
Poor dad formula- income=expenses & assets<liabilities
Rich dad formula-Income>expense because Assets>Liabilities
Rich Dad- Study hard so you can buy a company
Poor dad- Study hard so you can work in a good company
Rich dad- I am rich because I have a family to provide for, my motivation.
Poor dad- I am not rich because my family has too many expenses
Rich dad- Learn to manage risks
Poor dad-Don’t take risks.
Rich dad- How can I afford that?
Poor dad- I can’t afford that
A cycle for the poor is wake up then go to work and later pay bills. Fear controls this cycle.
Greed controls your joy over money, once you get money you need more of it. When you are poor you are scared of money. Usually because you have to pay the bills.
Learn to USE EMOTIONS TO THINK, NOT TO THINK WITH EMOTIONS.