Rich Dad Poor Dad Summary
Rich Dad Poor Dad Summary is a story about two dads who have completely different ideas about money. The author is Robert Kiyosaki. The book has sold over 26 million copies in 13 languages. Rich Dad Poor Dad is also the title of an edutainment franchise, with books, games and television series that have sold over 25 million copies in 30 languages.
The book presents alternative lessons on money management and financial literacy to what majority of the society believes. It advocates that people should learn to invest their time and money differently from most investors who focus on stocks and bonds – such as real estate, small businesses and start-ups.
The book talks about the main difference in education between people who are rich and those who are not. There are two main characters – the father, who is rich, and the son, who is poor. The rich dad gives his son great advice about saving money, investing on assets instead of on liabilities which will increase his cash flow.
The poor dad on the other hand pushes his son to continue getting degrees which he don’t have any future in because they are expensive and it will take him 20 years to pay off his student debt while he doesn’t even get a good paying job with them.
The book starts with the premise of “what got you where you are?” followed by Kiyosaki saying that 99% of Americans are looking for quick-fix solutions to their financial woes without understanding that the real solutions require hard work and discipline.
Robert Kiyosaki persuades people to invest in themselves, negotiate profit sharing rather than salaries, start small businesses or purchase inexpensive used cars. He urges readers to rent out unused property instead of selling it at fire-sale prices because renters tend to be more reliable payers.
The crux of the story is that parents are responsible for passing down generational wealth or poverty to their children based on their own financial habits. When it comes managing money, kids are either given choices in how they spend money, in hopes that they will learn from mistakes, or they are given an unrewarding job in which they have no discretion in how the money is spent.
Robert Kiyosaki discusses the difference between having a job and having a business. He also explains how to become a successful investor. The book is aimed at young people who are just starting out in their careers and illustrate that the best way to become rich is to start your own business. He recommends that young people avoid getting into debt and invest in assets instead. He argues that jobs are a waste of time, because they only provide limited financial security. In contrast, businesses provide the opportunity to create wealth.
Kiyosaki also recommends investing in assets such as stocks, real estate, and businesses. These investments are more likely to generate profits than keeping your money in a bank account. The key is to find investments that offer good returns while also minimizing risk.
This book has been a master piece since its published and help thousand of people across the globe to take charge of their financial lives and enable them to achieve financial independence. This book is a must read specially for young people who are just starting out to get a perspective to life and how they can shape their lives without any financial worries and issues and enables them to take better financial decisions early in their career to avoid regrets later in the life.
We have included a link below as well if you wish to buy and read this complete book.
Also read: Think and Grow Rich Summary
