What you get in this post: in this post, I have covered all chapter lessons.
So stay tuned till the end.
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Why do you have to read this Rich Dad Poor Dad summary?
Reason:
Do your parents also advise you to work hard in school, get good grades, and then apply to reputable colleges for employment?
This book is for you if your parents also tell you things like that.
Benefits:
You will realize that there is much more important than studies after reading this book.
what schools and colleges do not teach.
The proper use of money is more crucial than knowing the right ways to earn it.
Want to know how?
Favorite quote:
One of the reasons the rich get richer, the poor get poorer, and the middle class struggle with debt is that the subject of money is taught at home, not in school.
Let’s get started.
Chapter 1: Rich Dad, Poor Dad
The father of his friend and the author’s own father were both important in the author’s life.
His own father, whom the author called poor dad.
And whom the author used to refer to him as Rich Dad,
Is his friend’s dad.
Because he explained how they can make more money.
And his poor father, who was well educated had a degree of Ph.D. and always encouraged him to study and find employment.
But his friend’s dad used to advise him to work hard in school but not so that he could get a job, but rather so that he could learn how to become wealthy and provide jobs for others.
The distinction between the two dads was that the rich dad used to say how to give a job, while the poor dad used to say how to get a job.
His poor father always used to say, “I am very poor, I can’t get this, I can’t afford this,” but his rich father always said, “Always think that what you want to get you, think how can you get that thing.”
His rich father advised him to never say that he cannot get something; instead, say how he can get it.
Your mind will be opened, and this will lead the way.
However, when you claim that you can’t afford it or obtain it, your mind is closed.
For this reason, you should constantly ask yourself how you can achieve a goal in order to widen your perspective and provide you with multiple options.
Chapter 2: Lesson One: The Rich Don’t Work For Money
When the author asked his father why we weren’t wealthy, he replied I’m just a regular teacher and I don’t know how to get rich.
However, when a banker advised the author and his friend to go learn how to become wealthy from their friend’s father
Then his friend questioned why my father? My father is poor, not wealthy,
Then the banker responded that your father would become wealthy very soon.
Because of this, the author and his friend whose name is Mike went to Mike’s father’s place and said, “You teach us how to become rich.”
Mike’s father, however, turned him down and told him, “I will not teach you for free.”
You must work for me in exchange for the 10 cents I will pay you.
After four weeks of diligent work, the author declared that she was quitting her job. Mike then began to laugh, and the author questioned him as to why.
Mike then responds, “My father said you will quit your job, and when you say so, then I will take you to my father,” in that order.
And when he introduces him to his father, the latter remarks, “I knew you would talk about quitting the job.”
The author then scolds, “You did not teach me anything, I worked so hard, and you never even spoke to me,” in an irritated tone.
Mike’s father then claims, “I’ve been training you since day one.”
When the author asked what he was teaching him, Mike’s father responded that everyone makes the same mistake.
The difference between the wealthy and the poor is that the poor work for money while the money work for the rich.
I wanted to impart that knowledge to you. That is what poor people do to get a salary and work only for money.
Chapter 3: Lesson Two: Why Teach Financial Literacy?
The author and Mike were taught by their rich father that the poor used his salary as soon as their paycheck arrives and spend it on their luxuries.
And with the same spending, his expenses rise even higher.
For example, if his payday is at the end of the month, he will buy items that don’t make him money; instead, it increases his expenses.
For example; If you have an air conditioner, your bill will rise as a result, which will drive up your expenses even further.
and you will never be wealthy.
Because of this, wealthy fathers advise their children to spend their money on items that will increase their wealth rather than decrease it.
Giving the example of this wealthy father reveals two types of information.
He refers to one as assets and the other as liabilities.
What sets assets and liabilities apart from one another?
As you invest in assets, you will not need to work because assets are defined as those that give you money
, and liabilities as those that cost you money.
For example, investing in stocks and real states will increase your money.
Assets will automatically make you money,
but liabilities make your money lose.
For instance, when your paychecks arrive, you immediately buy an air conditioner.
It forces you to spend your money and does not provide you with any in return.
At this point, you must be wondering whether wealthy people don’t buy cars or reside in air-conditioned homes.
They do but when their salary comes, they invest first, and with the money that follows, they grant their wish.
They do not satisfy their desire with their salary; instead, they purchase things with the money that comes from assets.
Focus on assets, not on liabilities.
Chapter 4: Lesson Three: Mind Your Own Business
The author claims that while wealthy people concentrate on assets, poor people pay attention to salaries.
The author advises that you should put your all into whatever work you do, but avoid going over budget with your pay; instead, invest it in assets.
In this chapter, the author also teaches that if you work hard and go differently, most of the time you will not get support from the people.
you will encounter challenges, and you must consider how you can advance without paying attention to them.
As the author’s wife waited four years to only purchase a car, be patient and only purchase your luxuries from your assets.
Chapter 5: Lesson Four: The History of and The Power of Corporation
In this chapter, The author explains how you can pay less tax.
Warren Buffet pays less tax than his secretary, why does this happen?
Is what they do illegal?
So, no, they legally reduce their tax; you can do the same.
For this, you should learn a lot about taxes and use the law to your advantage.
This topic is covered in a lot of books as well.
The best book on tax author suggests (incorporate and grow rich)
This chapter has only explained that if you read up on legal taxation thoroughly and make an effort to comprehend the laws, you can pay less legal tax and even avoid it.
Chapter 6: Lesson Five: The Rich Invent Money
In this chapter, the author explains that there are many people with a lot of knowledge who do not use it because they are afraid that their money will sink if they make an investment.
However, you shouldn’t be afraid because a fearful person won’t take action.
If money is sinking, then a lot of the author’s money has also drowned.
The author continues by warning that investing will cause you to lose a significant amount of money.
But you’ll also receive a fairly large sum.
We shouldn’t be afraid like that because as your experience grows, your money will grow and you will know which mistakes to avoid.
Facebook founder Mark Zuckerberg claims that the biggest risk in today’s world is not taking a risk. Therefore, in order to advance, we must take risks and overcome our fear of failure.
You can take action and try something new in this way.
Chapter 7: Lesson Six: Work to Learn -Don’t Work for Money
The author argues that in order to become wealthy, you must be very good at many different things.
He uses the example of a reporter who said, “I want to be like you,” to illustrate this point.
The author asked, “Who has stopped you?” The reporter replied, “I don’t know,” so the author read her articles, which were excellent, but she lacked the ability to sell them.
The reporter became enraged when the author suggested that she should enroll in sales courses and she responded, “I have a degree, I’m such a good professional, you want me to take sales courses.”
When she questioned this, the author responded, “Can’t anyone make a better McDonald’s burger than that? You must have eaten a McDonald’s burger.”
You can make things great, but not only do you need to make them well, but you also need to know how to sell them.
Because no matter how well something is made, progress cannot be made until it is made through sales, we should constantly consider how we can sell things.
You’ve probably seen plenty of these people, excellent doctors and painters but they are unable to advance because they lack the ability to sell.
that is why it is important for us to develop our sales skills.
Chapter 8: Overcoming Obstacles
Financially knowledgeable persons may nonetheless struggle to build extensive asset columns for the following five key reasons.
1. Fear.
2. Cynicism.
3. Laziness.
4. Bad habits.
5. Arrogance.
1. Money loss concern is a genuine concern. Everybody owns it. also the wealthy. Though it’s the issue is fear itself. It’s how you deal with fear. Your response to losing determines this. The difference in one’s life depends on how one responds to failure. That holds true in many aspects of life, not just finances. The main distinction between a rich and a poor person is how they deal with anxiety.
2. We’re all unsure of things. “I’m not clever,” I am insufficient. so and so is better than me.” Maybe our doubts often leave us helpless. We engage in the. Game of “What if?” “What if the economy collapses just as I make an investment?” What if I lose control and am unable to repay the loan?
These doubtful thoughts frequently become so loud that we do nothing. We start to feel sick to our stomachs. We occasionally have trouble falling asleep.
We are unable to advance. As a result, we stick to what is secure and miss out on chances. We sit frozen with a frigid knot in our bodies, watching life go past. All of us have experienced this, though some more so than others.
3. author said the most sluggish people are frequently the busiest. We’ve all heard tales of successful businessmen who put in a lot of effort to succeed. He puts a lot of effort into providing for his wife and kids. He works long hours in the workplace and works on weekends at home.
I frequently go upon people who are too busy to look after their money. However, there are those who are too busy to care for their health. The root reason is identical.
People remain busy in order to avoid doing something they don’t want to desire to face. Nobody needs to inform them. They know it deep down. In fact, they frequently react angrily or irritably when you remind them. That’s the most common form of laziness. Laziness by staying busy.
How then do you overcome laziness?
Some greed is the solution.
The question, “What’s in it for me if I’m healthy, beautiful, and good-looking?” needs to be asked. Instead, “How would my life be if I never had to work again?” Another option is “What would I do if I had all the money I needed?” Progress cannot be done without a little bit of hunger or the yearning for something better.
4. Habits.
More than our education, our lives are a reflection of our habits.
The majority of people frequently pay themselves later.
The author utilized a comic book story that suggests “The majority of people allow bullies to stomp sand in their faces. I made the decision to strengthen myself by using my fear of the bully.
Others deteriorate. It’s like going to the gym and lifting weights when I have to force myself to think about ways to get extra money. I get stronger as I exercise my mental money muscles more.
These days, I don’t fear those bullies.”
The author advises paying yourself first so that you can become mentally and financially stronger.
5. Arrogance.
Ego plus ignorance equals arrogance. “What I know earns me money,” the author said. I incur financial loss due to ignorance.
The author elucidates I have always lost money when I have been haughty. I’ve seen many people try to conceal their own ignorance by acting arrogantly.
Chapter 9: Getting Started
We stay poor because our culture has taught us that the adoration of money is the source of all evil. It has pushed us to pursue a career so that we may earn money, but it hasn’t shown us how to make money work for us.
Ten steps are provided by the author for you to follow in order to improve your God-given abilities. powers that are solely under your control.
1. I require a justification greater than reality. the ability of the spirit. Most people would answer “yes” if you asked them if they would like to be wealthy or financially free.
2. I Chose Everyday: The freedom to choose.
People like to live in free societies for this reason above all else. We desire the freedom to decide.
In terms of money, we have the capacity to decide whether we will live in a wealthy, impoverished, or middle-class future with every dollar we get. Spending patterns reveal who we are. Simply put, those in poverty have bad spending habits.
3. SELECT FRIENDS WISELY: association’s influence.
The author explains that you shouldn’t judge your friends’ financial standing. I have friends who earn millions of dollars annually as well as others who have taken the vow of poverty.
It’s important to remember that you must actively seek to learn from each of them.
4. STUDY ONE FORMULAS, THEN MASTER ANOTHER:
The power of quick learning. Every baker follows a recipe when making bread, even if it is the only one they have in their heads. Making money is the same way. That’s why “dough” is a common nickname for money.
The majority of us have heard the proverb “You are what you eat,” yet different authors have interpreted it in different ways. “You become what you study,” says the author. To put it another way, you should be careful about what you read and study since your mind is so strong that you become what you believe. For instance, if you study cooking, you probably cook a lot. You learn to cook.
5. PAY YOURSELF FIRST:
The effectiveness of self-control. Do not attempt to get wealthy if you are unable to maintain self-control. Most lottery winners go bankrupt shortly after earning millions due to a lack of self-control. Those who receive a raise often spend it on a new automobile or a cruise right away due to a lack of self-control.
It is challenging to choose which of the ten steps is the most crucial. Yet if it is not already a part of your makeup, this stage is arguably the hardest to master out of all the processes.
6. Paying your brokers well: The value of sound guidance.
According to author Rich Dad, there are many people on TV nowadays who are claiming to be “Discount Brokers,” therefore instead of hanging a sign outside your house saying “For Sale by Owner,” you should go in the opposite direction.
He believed that paying professionals well was important, and the author has now adopted that stance.
The author now has pricey stockbrokers, real estate brokers, accountants, and attorneys. Why? For if the individuals are professionals—and the author does mean if—their services ought to generate income for you. Also, as they earn more money, so do you.
7. BE AN “INDIAN GIVER”: This is the power of getting something for nothing.
For instance, the Native might give a settler a blanket if they were cold. The settler frequently took it as a gift and took offense when the natives asked for it back.
The fact that the settlers did not want to return it infuriated the Indians as well. The phrase “Indian giver” originated from this. a simple mistake due to culture.
Being an Indian donor is essential to riches in the “asset column” world.
The savvy investor’s first concern is “How quickly can I get my money back?” They also inquire about what they receive for nothing, or what is known as a “piece of the action.” The ROI, or return on investment, is crucial because of this.
8. THE POWER OF FOCUS: ASSETS BUY LUXURIES.
In today’s consumer society, it is much simpler to just blow it out of the expense column due to external temptations.
Money flows in the direction of least resistance because mental fortitude is weak. The root of both poverty and financial hardship is that.
Nowadays, we spend far too much time focusing on borrowing money to acquire the things we desire rather than concentrating on making money. One is quicker to complete but more difficult over time. It’s a nasty habit that we as a people and as a country has developed.
Keep in mind that the easy road frequently turns into the hard road and vice versa.
It is best to start teaching yourself and the people you love how to manage their money as soon as possible. Money has great power. Regrettably, some people turn their wealth against them.
9. THE NEED FOR HEROES: Mythology’s influence.
We gain access to a vast reservoir of unadulterated talent through having heroes.
Nevertheless, heroes do more than just motivate us. Heroes make everything seem simple.
We are persuaded to want to be like them by the way they make it appear simple. I can do it if they can, too.
Too many individuals make investing sound difficult when they talk about it. Locate role models who make it seem simple instead.
10. The power of giving: TEACH AND YOU SHALL RECEIVE.
The author says Money and education were gifts from my wealthy father. He was adamant about tithing.
He would often say, “If you want something, you first have to give.” He just donated money to his favorite charity or his church when he was low on funds.
If I could only impart one thought to you, it would be that one. Give what you desire first whenever you feel “short” or “in need,” and it will come back to you in spades. Money, a smile, love, and friendship all fall under this category.
I am aware that doing it is frequently the last thing on a person’s mind, but it has always worked for me.
Chapter 10: Still Want More? Here are Some To Do’s
Put an end to what you are doing. Take a break, in other words, and evaluate what is working and what is not.
Seek fresh concepts. The author advises visiting bookstores and looking for books on various and unusual subjects if you’re looking for fresh investing ideas.
Identify someone who has accomplished the goal you have. Have lunch with them. Ask them for advice and helpful pieces of information.
Purchase tapes and take classes.
Study the past. All of the large corporations listed on the stock exchange began as startups.
Thank you for your time.
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