What's the secret to financial prosperity? One person has a story that might surprise you.
The book that started it all, Rich Dad Poor Dad has been a huge success since its publication in 1997. It is the #1 Personal Finance book of all time and has sold more than 26 million copies worldwide in over 50 languages. The book has also been translated into 51 other languages including Russian, Chinese, Korean and Vietnamese.
Rich Dad Poor Dad is a motivational book written by Robert Kiyosaki and Sharon Lechter in 1997. The book advocates the importance of financial literacy. It became a #1 New York Times bestseller in 2000, after which it was translated into more than 20 languages.
The concept of passive income is a very intriguing one, and the fact that it can be attained by anyone looking to achieve success in their life should be an attractive proposition for most. The difference between the rich and the poor is often attributed to this concept, as well as other factors. But what are some of the secrets behind achieving this type of success?
Rich Dad Poor Dad Lessons
- Lesson 1: The Rich Don’t Work for Money
- Lesson 2: Why Teach Financial Literacy?
- Lesson 3: Mind Your Own Business
- Lesson 4: The History of Taxes and The Power of Corporations
- Lesson 5: The Rich Invent Money
- Lesson 6: Work to Learn—Don’t Work for Money
Rich Dad Poor Dad Summary
“There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.”
“Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.”
“People’s lives are forever controlled by two emotions: fear and greed.”
“So many people say, ‘Oh, I’m not interested in money.’ Yet they’ll work at a job for eight hours a day.”
“Thinking that a job makes you secure is lying to yourself.”
“Intelligence solves problems and produces money.”
“You must know the difference between an asset and a liability, and buy assets.”
An asset puts money in your pocket. A liability takes money out of your pocket.
“Illiteracy, both in words and numbers, is the foundation of financial struggle.”
“Money often makes obvious our tragic human flaws, putting a spotlight on what we don’t know.”
“Cash flow tells the story of how a person handles money.”
“Most people don’t understand why they struggle financially because they don’t understand cash flow.”
“The number-one expense for most people is taxes.”
Higher incomes cause higher taxes. This is known as “bracket creep.”
“More money seldom solves someone’s money problems.”
“The fear of being different prevents most people from seeking new ways to solve their problems.”
“A person can be highly educated, professionally successful, and financially illiterate.”
“Many financial problems are caused by trying to keep up with the Joneses.”
Once you understand the difference between assets and liabilities, concentrate your efforts on buying income-generating assets.
“The problem with simply working harder is that each of these three levels takes a greater share of your increased efforts. You need to learn how to have your increased efforts benefit you and your family directly.”
“Wealth is a person’s ability to survive so many number of days forward—or, if I stopped working today, how long could I survive?”
“The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.”
“The rich focus on their asset columns while everyone else focuses on their income statements.”
“Financial struggle is often directly the result of people working all their lives for someone else.”
“The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else’s business and making that person rich.”
“To become financially secure, a person needs to mind their own business.”
According to Kiyosaki, real assets fall into the following categories:
1)Stocks
2)Bonds
3)Income-generating real estate
4)Notes (IOUs)
5)Royalties from intellectual property such as music, scripts, and patents
6)Anything else that has value, produces income or appreciates, and has a ready market
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