Rich dad poor dad book summary

Tips to be rich:

Robert Kiyosaki

                                                 

This book is about the story of Kiyosaki who has two fathers. The poor dad was his biological father and the rich dad was the father of his childhood best friend who taught him financial education to become rich.

Contents:

Chapter 1: Rich Dad, Poor Dad

Chapter 2: The Rich Don't Work for Money

Chapter 3: Why Teach Financial Literacy

Chapter 4: Mind Your Own Business

Chapter 5:The History of Taxes and the Power of Corporations

Chapter 6: The Rich Invent Money

Chapter 7: Work to Learn, Don't Work for Money

Chapter 8: Overcoming Obstacles 

Chapter 9: Getting Started 

Chapter 10: Still Want More? Here are Some to Do's

Chapter 1: Rich Dad, Poor Dad

In this chapter, Robert says that once he and his friend, Mike,  want to get rich and start making money by the illegal method of creating nickels. But their plan was spoiled by the rich dad. Then the rich dad taught them about necessary financial education and the first lesson was about escaping the rat race.

Chapter 2: The Rich Don't Work Money 

In this chapter author says that the rich don't work for money. He says that the poor and the middle-class work for money, fear and greed because they are not taught to take risks, and are taught to stay in their comfort zone and work for a good salaried job. Kiyosaki also writes that opportunities come and go in life, the rich recognize them and grab, but the poor ignore the opportunities because they are top busy in seeking money and security.

 Chapter 3: Why Teach Financial Literacy

In this chapter,  Kiyosaki explains about one of the most important financial lessons which is assets and liabilities. In this book definitions of assets and liabilities re different. Assets mean those things that give you money without working or working very less like a home that you have given on rent or even a business that can work without you. On the other hand liabilities mean those things that you have bought and now per month you have to spend money on it like a car on which you have to spend money to pay it's EMI or on its maintenance. Is you did not know how to distribute your money between assets and liabilities you will also lost all your money like some celebrities and professional athletes. The rich continues to get rich because they buy assets and spend less money on liabilities. Author says that you should save at least 20 percent of your salary and save them. After some time invest your saved money by opening a business profit invest in a company.

  

  Chapter 4:Mind Your Own Business

According to author, you should mind your own business if you want to become commando financial free. You should not mind any other's business like your employer's business because it is not your business. Instead, you should strive for ways to become your own boss and create your business. After that, the author continues to talk about building assets. According to him, anything with value which is able to bring in the cash flow is considered an asset. For example stocks, bonds,  income-producing real estate, mutual funds, royalties , notes,etc.

  Chapter 5: The History of Taxes and the Power of Corporation

In this chapter, the author explains how the poor let the companies manipulate them, while the rich make use of companies to protect and enhance their assets. The rich manipulate companies to earn money, spend everything it can, and only be taxed on anything that is left. The author advises people to develop their financial IQ by gaining knowledge about investing, accounting, law and understanding the market.

Chapter 6: The Rich Invent Money

  In this chapter, the author says that every person is born with talent but the talent is suppressed because of fear and self-doubt. He says that it is not necessarily the smart people who get ahead, but the bold and adventurous people who do not get ahead financially even when they have a lot of money but because they have a lot of liabilities, first they enjoy and then come to a sticky end. They don't find opportunities and just sit and wait for the opportunityto come and if the opportunity come to them, they have a lot of excuses to not to invest.&nbsp;</span></div>

  Chapter 7: Work to Learn, Don't Work for Money

In this chapter,the author says that if you want to get rich you should always develop your skills. He had given an example of a woman who was annoyed, when author had advised him to learn sell and direct marketing. Author says that if someone wants to get rich, he must learn how to manage his cash flow, people and the system. So selling and marketing is an important thing to get rich. He also says that communication skills are also important to achieve financial success in life.

  Chapter 8: Overcoming Obstacles

In chapter 8,Kiyosaki discusses about the five personalities that stop human beings from being successful. And that are fear, cynicism,bad habits, laziness and arrogance. He says that it is normal to have fear, matters how you handle it. He suggests that people should focus on reward rather than problem. The author gives an example that most people say that they want to get rich, and when he suggests them to invest in real estate, their initial reaction is"but I don't want to fix toilets",which is ironic.

  

  Chapter 9: Getting Started

In this chapter, author give tips on holding personal wealth. Kiyosaki says that if you want to get rich,, you must find a reason greater than your current reality to motivate you. Then, he says that you must always continue to learn and develop skills. Next, he advised people to choose their friends carefully and do not to be afraid to make friends with people who talk about money because they can teach you about great lessons. After that, he says that one must learn to pay himself first, even if short of cash. Means first you should save 20 percent of your salary and then spend money on other things.

  

  Chapter 10: Still Want More? Here are Some to Do's

In this final chapter, Kiyosaki continues to give great insights about achieving personal wealth. He advises that one should stop doing things that are no longer viable. He suggests people to look do new ideas,experience and keep learning as long as they live, through taking courses, attending seminars, and learning from other successful people. You know that Bill Gates reads books whole day and then give their summaries at gatesnotes.com . And Warren Buffet the richest investor also says that every morning he sits on his table and start reading and then reads whole day and when Elon Musk was only of 8 years he had read so many books that even a graduate cannot read. After all, the more you learn, the more you can earn.