Rich Dad Poor Dad

A fab book written by Robert T. Kiyoski especially focused to motivate you about financial literacy which also gives you some most important lessons before ending. Once you start reading it, it is difficult to stop reading before it ends.

Rich Dad Poor Dad mainly consist of 9 chapters which start with the child Robert eagerly want to make money. He has two fathers: Poor dad i.e. his real father & Rich Dad i.e. his best friend’s father

People’s life are forever controlled by two emotions: Fear and Greed

Basically nine chapters teaches you six lessons

1. Rich don’t work for money instead money work for them
2. Why teach financial literacy and what are the components of financial literacy
3. You always have to mind your own business, always
4. It tells you about the history of taxes and power of corporations
5. How rich invent money
6. Most importantly, Work to learn and Don’t work for money

Book tells the difference between assets and liabilities. It tells to always try to increase your your assets and decrease your liabilities but people often get confused in the definition of assets and liabilities. So for this, Robert clears that anything which put money in my pocket is called Asset and anything which put money out of my pocket is called liability.

Wealth is how many days we survive, if I stop working today

A person can be highly educated, professionally successful, and financial illiterate. This shows how important is the financial literacy. Books talks about financial IQ. It comprises of four different components i.e. Accounting, Investing, Understanding markets, The law.

In simple terms, Accounting is the ability to read numbers correctly. Investing is the science of money making money that is how money works for me. Understanding markets means science of supply and demands and The law means to understand legal terms correctly.

Games reflects behavior. They are instant feedback systems.

As we go further in the book, we understand that mind is the biggest asset with which we can achieve. Most importantly, We have to take action, not that much big but small. Also learn three major management skills i.e. management of cash flow; management of systems and time; management of people. Just remember it is not the smarter who gets ahead but ‘bold’.

Enjoy reading.