Rich Dad Poor Dad is a story of Robert Kiyosaki’s experiences of financial decisions and investments as he applies the teachings of his rich dad and poor dad. While growing up he listened to the advice of both rich and poor dad. At times he was confused but he figured out both were right from their point of view. And he realized he wants to follow the advice of rich dad more and want to become rich like him. I’ll list and discuss all the nine chapters of this book, in my Rich Dad Poor Dad Review
But wait a minute — does the author has two dads?
The answer is — poor dad is his own educated dad with a government job. And the rich dad is his dear friend Mike’s dad who owns businesses and corporation.
So he learned many lessons while growing and has been applying those pieces of information in real life as an adult. And Robert himself is a millionaire by mainly investing in real estate. And he is a New York Times best selling author with many books.
Book Revisited After 8 Years
When I read this book first time in 2013, I emulated few teachings but mostly didn’t find the book that helpful in my financial decisions. But I read this book again this month. And found out that all these lessons are valuable and easily applicable. Robert’s many experiences, teachings and tricks, can sure lead you to the path of making money work for you. Instead of the other way around. And few of his basic principles are very clear to me now. For example when your asset column is bigger than liabilities, and when you put every dollar to go to work for for you, then you can never be poor.
The book Rich Dad Poor Dad has nine chapters. And the first six chapters are the six lessons to get out of the rat race and become rich. And last three chapters are mainly steps to do, that lead to all the financial success, the author is talking about.
Here are the major six lessons in six chapters of Rich dad and Poor dad;
Chapter One – LESSON1: THE RICH DON’T WORK FOR MONEY.
The poor and middle class work for money.
The rich have money work for them.
Chapter two- LESSON 2: WHY TEACH FINANCIAL LITERACY?
It’s not how much money you make. It’s how much money you keep. First, find out what is an asset and what is a liability. Subsequently, your asset column should be bigger than liabilities.
Keep in mind here that only buy luxuries by increasing your asset by working smart.
Most importantly, Don’t cringe to invest in financial books courses and teachings.“What the Rich Teach Their Kids About Money–That the Poor and the Middle Class Do Not!” Click To Tweet
ChapterThree – LESSON 3: MIND YOUR OWN BUSINESS
The rich focus on their asset column while everyone else focuses on their income statements. Moreover, the rich mind their own business of getting richer and richer.
Today Macdonald is the largest single owner of real estate in the world, owning even more than the Catholic church.
Chapter Four – LESSON 4: THE HISTORY OF TAXES AND THE POWER OF CORPORATIONS
Firstly, Learn how to save money in taxes. Robert explains “My rich dad just played the game smart, and he did it through corporations—the biggest secret of the rich.”
Actually, the taxes originated in 20th century. And in those times, The rich knew about corporations, which became popular in the days of sailing ships. The rich put their money into a corporation to finance their voyage. The rich created the corporations as a vehicle to limit their risk to the assets of each voyage.
Secondly, develop your financial IQ.
And financial IQ is made up of knowledge from four broad areas of expertise:
- Understanding markets
- The law
Chapter Five – LESSON 5: THE RICH INVENT THE MONEY
Often in the real world, it’s not the smart who gets ahead, but the bold.
The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth seemingly instantaneously.
Take the time to develop your financial intelligence. Harness the power of your brain and the asset column.
Chapter Six – LESSON 6: WORK TO LEARN—DON’T WORK FOR MONEY
Job security meant everything to my educated dad. Learning meant everything to my rich dad.
Chapter Seven – OVERCOMING OBSTACLES
The primary difference between a rich person and a poor person is how they manage fear. Surprisingly, even if people become financially literate they still can be poor because of these five factors:
- Bad habits
Definitely, fear of losing money can keep you poor.
To add, showing signs of panic in big and small financial crisis makes you like a chicken little. So, that is form of cynicism and need to be avoided.
Furthermore, saying ‘I can’t afford it” is a form of mental laziness as there is no shortage of abundance in the world. Stay away from the bad habits such as paying yourself last.
To illustrate, rich dad would say “so if I pay myself first, I get financially stronger, mentally and fiscally.”
Chapter Eight – GETTING STARTED
There is gold everywhere. Most people are not trained to see it.
In this chapter Robert gives 10 steps as a process to start developing your God given powers to be wealthy
- Find a reason greater than reality: the power of spirit
- Make daily choices: the power of choice. 90 percent of people chose not to be rich. “All of us have choice. I just chose to be rich, and I make that choice every day.”
- Choose friends carefully: the power of association.
- Master a formula and then learn a new one: the power of learning quickly. If you’re not making enough then simply change the formula via which you make money.
- Pay yourself first: the power of self discipline. The statement, “Pay yourself first,” comes from George Classen’s book, The Richest man in Babylon.
- Pay your brokers well: the power of good advice. Find brokers who have your best interests at heart and pay them well. So that you’ve timely information and advice to act appropriately.
- Be an Indian giver: the power of getting something for nothing.
- Use assets to buy luxuries: the power of focus. Choose to be the master of money rather than being a slave of money. And to be the master of money, you need to be smarter than it. And then money will obey you.
- Choose heroes: the power of myth.
- Teach and you shall receive: the power of giving.
Chapter Nine- STILL WANT MORE?
Chapter nine has more steps to do to be rich. And to find them out you’ve to read the book itself. Happy reading!
You can buy Rich dad And Poor Dad on Amazon HERE.
To conclude, there is a lot of controversy about many stories and teachings inside the book. The title itself, makes one curious about someone’s two dads. As Robert himself states in the book that he himself decided his first book’s title to be controversial to gain publicity. So besides controversies and his constant harping on real estate investments in making money, the book has many valuable lessons that can change your mindset about how you handle money. And undeniably, his teaching- Let the money work hard for you and don’t be the slave of money, aren’t we all looking for that?
So I highly recommend the book and give 5 stars, mainly for the ideas – eg. invest in books, tutorials & courses for financial literacy, to remove mental laziness and Mind your own business to focus on your own success.
In addition, checkout my previous review of The Alchemist here.