"The main reason why 90% of the population struggles financially
because they play not to lose.
They do not play to win"
-Robert T.Kiyosaki
Rich Dad Poor Dad is a modern classic of personal finance. Although controversial and often heavily criticized, people have decided it’s worth reading- otherwise it will not sold over 32 millions copies worldwide.
Rich Dad Poor Dad tells the story of a boy with two fathers, one rich, one poor, to help you develop
the mindset and financial knowledge you need to build a life of wealth and freedom.
The summary starts with the idea that many of us are too afraid of being branded as a weirdo, in order to exit the rat race. We let the two main emotions everyone has around money dominate our decisions: fear and greed. That’s why we still stick to the outdated mantra “Go to school, go to college, get a job, play it safe.” when in reality no job is safe any more.
For example, when you get a raise at your job, a wise choice would be to invest the extra money in something that builds wealth like stocks or bonds, which has medium to high risk, but also a very high reward. Maybe you find a good fund with a 60% chance to double your money within a year, but a 40% chance of losing it all. However, most likely your fear of losing the money altogether will keep you from doing so.
But when your greed takes over, you might then spend the extra money on an improved lifestyle, like buying a car, and the payments eat up the money – this way you’re guaranteed to lose 100%. This already gives you a glimpse of how important it is to educate yourself financially. Since we receive no financial education in school or college, sadly, this is entirely up to you.
10 Key Points To Remember:
1.The most important thing is that you start today. You are your own biggest asset, so the first thing you should put some money into is yourself.
2.Set realistic financial goals, even it means waiting a few more years for that shiny new Mercedes.
3.Adopt the mindset of “work to learn” instead of “work to earn".
4.Build your financial IQ by investing a short amount from your payroll to books,seminars,personal
finance courses etc.
5.Start learning to manage risk instead of avoiding them.
6.Treat the money as it's gone, this way you will worry less about losing it.
7.Mr. Kiyosaki strongly suggests creating a 'I want' and 'I don't want' list for yourself.
8.Use your money to acquire assets instead of liabilities.
9. Just stay at your full time job and “mind your own business”. In this case, your job is what pays the bills and your business is what makes you wealthy.
10.Build your business on the side and use it to invest in assets until your assets eventually become the main source of your income.
Book - Rich Dad Poor Dad | Author - Robert T. Kiyosaki & Sharon Lechter | Publisher - Warner Books Ed