Rich Dad poor Dad- by Robert T Kiyosaki

Ranked #9,071 in Books, Poetry & Writing, #320,079 overall

Rich Dad Poor Dad

I recently read a few books on finance. And of all the books I read, I found this book "Rich Dad Poor Dad" to be particularly interesting. Unlike typical complicated books, this is interesting yet easy to understand. It contained materials that even a 15-year-old could comprehend. Even if it contained big words, it simplified it in terms of which everybody could understand. This book is written by Robert T. Kiyosaki. He is a fourth-generation Japanese- American. He is an investor, entrepreneur and an educator. He is also known as the millionaire school teacher. He learnt about finance at the age of 9!!

Book Review

What the rich teach their kids about money that the poor or middle class do not!

Quoted by the author: "The main reason why people struggle financially is because they have spent years in school but learned nothing about money, but never learn to have money work for them..." I like this quote very much because it reflects what most of the world think. According to the author, parents usually tell their kids to go to school and get a good job, But it is NOT ENOUGH! I've learned that to be rich and successful you have to acquire something call financial literacy. (don't worry, the book is going to tell you what it is)

Lessons of the rich

Lesson 1: The Rich Don't work for Money

the author with his bookThe author uses his life experience as a young boy to teach people about money. This represents his creativeness in his field as well as innovativeness. It helps because it doesn't bore you to death like most financial books do. The story starts with his best friend Mike's dad, whom he calls his rich dad and his real dad who he calls his poor dad. One day he went to ask rich dad to teach Mike and him about money, but instead his rich dad told him to work for him for 10 cents an hour! Less then a month went by, and the author was furious. He went and demanded a raise. His rich dad just chuckled. Then he told him the most important lesson in Robert's life. "THE POOR AND MIDDLE CLASS WORK FOR MONEY, THE RICH HAVE MONEY WORK FOR THEM" And so begins Robert's life long journey on the path to financial freedom...

Lesson two:Work to Learn-Don't work for money

This is one statement that has really enlighten me. It teaches us that if we work for money, then you would certainly take a longer time earning . But if you work to learn then you would find that money comes easily. For example: Mary is a teenager who works in Macdonald who pays her RM5 per hour to serve people. If Mary sets her mindset that she "works to earn" then she will only go home with RM20 (she works 4 hours) and nothing else. BUT if she were to have the mindset of "work to learn" Then a hundred possibilities open up to her. When she works, she pays attention to the personalities of people who eat over there. From there she unconsciously hone her communication skills and she even gets a free survey of what people like or what people don't like. Furthermore, she even studies how and what makes Macdonald so famous. By the end of her workday, she goes home not only with a RM20 pay, but also a wealth of knowledge. Similarly I hone my writing and marketing skills through Squidoo. I work to learn and not to earn and from there money just flow in.

Conclusion

Well I would like to elaborate further on the book but that would be copy writing. This is just the tip of the iceberg! There are lots more to discover in this book! I really recommend this book to fellow teenagers and adults out there who either like me is a first timer at finance or an adult who just want to earn extra cash. This book really is a life-changing experience for me as well as my family, even my brother who is 12 years old showed interest in that book!

My recommendations

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Lessons from the Guru himself!

In the ten part video below Robert will explain a few Rich Dad philosophies that will enlighten you on your pursue of financial freedom

Lesson 1- The 3 types of education

Here is a myth about money that you don't know...
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Lesson 2-Cash flow Quadrant

By understanding the cash flow quadrant you are able to analyse where you are right now financially and take steps to improve your current financial situation.
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Lesson 3-Why savers are losers

Here is a brief explanation by property guru Robert T Kiyosaki
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Lesson 4-Assets vs Liability

The reasons why poor and middle class people don't get rich is because they do not know how to differentiate between assets and liabilities. In this video Robert will explain the basics of an asset and liability. "Your house is not an asset" a quote that is emphasize again and again by the author. So what did he mean by that? Click the video below to find out...
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Lesson 5-Good debt vs Bad debt

Another important lesson aside from the one above...
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Lesson 6-Live above your means

What did he meant by that? Didn't our parents taught us to live BELOW our means? Now what could he be blabbering about? Click the video below to find out
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Lesson 7- 3 types of income

There are altogether 3 TYPES of income- Passive, Portfolio and Earned income. The author will go into details about this in the video below
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Lesson 8- Investing isn't risky

How often have you heard someone saying- "Investing is risky, or for geniuses only" ? Well this only holds true for someone who lacks in financial education...
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Lesson 9- Life's 4 Quarters

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Lesson 10- The Cashflow game

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Lesson 11- The core of learning

Children do not do well in school because our education systems were not design according to our natural way of learning that is- BY PRACTICAL MEANS or HANDS-on. Instead it is design to turn out robots, capable of regurgitating everything they have learned but not able to apply it in life.
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Comments

Education system

Based on video 11 from above, what do you think of the current education system. Please vote below or share your opinions. Thanks

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Games

These are the games I recommend for a hands-on experience on financial education
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debbie95

HI people.My name is Debbie. You can add me in facebook (weiyuen_95@hotmail.com)I am just a typical person who is trying to find ways to earn money th... more »

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