Rich Dad Poor Dad Robert Kiyosaki Summary

Rich dad poor dad was the first financial book I ever read when I was a teen. It was the only book that I manage to finish reading. I was given to me by an MLM leader from Amway. I believe it was called the bible of multi-level marketing, due to the ability to influent the way you think about money.
As financial knowledge is surprising not taught in school. You are typically being taught by your parents who haven't got a clue about it either. Unless of course if they are already at the 1%. With that most of us is miseducated on financial planning.

I had made a summary of what you can find in this book below.

Rich dad poor dad

Don't work for money

The rich don’t work for money. It important not to trade our hours for money, try to acquire assets that make money for you when you are not working.

Financial literacy

You need to have financial literacy in your life. It’s not about how much money you earn but how much you afford to keep. Money spent without intelligence is depleted quickly.
Smart people acquire true assets while middle class acquire liabilities which they perceived to be assets.

Income producing assets over income statement

Focus on income producing assets instead of your income statements. An increased income does not translate to a better wealth. The difference in how people manage their money play an important part in their wealth accumulation.
  1. Poor people pay into expenses first once they got their income,
  2. The middle class pays their income into liabilities which they see it as an assets
  3. Rich people pay themselves first before anything. What it means is that once they got their income they first buy into assets classes. Any spending is happening only when they had paid themselves which is only to spend from the income produced by their assets.
Assets like rental yielding properties, dividend-paying bonds, royalty from digital products, insurances and anything that create a positive income every month.

Leverage taxes on corporation

Leverage on the power of a corporation to help you take advantage of legal tax loopholes. To increase your financial IQ, you have to learn knowledge ranging from accounting, investing, understanding money market and know your local laws and money regulation.

Work for knowledge and not money

Work to learn and not work for money. Try to learn as many things as possible and not oneself falls into the trap of having income from only one job. Or else you are one job away to being jobless.

Overcome obstacles

Overcoming these obstacles to stand yourself from being the poor. These obstacles are fear, cynicism, laziness, bad habits and arrogance.

After reading it, I was so hyped up in making a change in my current employment situation. I hate my 9 to 5 job and so pump into speaking to more people to share the concept with them. I started to really see the money concept as a whole different view.



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