Book Summary: Rich Dad Poor Dad – Robert T. Kiyosaki

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An absolute classic as Robert comes to terms with money and the difference between the poor, middle and rich. A simple guide with tools such as the cashflow quadrant and difference in mindset between the different classes would definitely come in handy for those aspiring to attain financial freedom.

Key takeaways:

  1. Poor mindset = Believes that the love of money is the root of all evil, does not take risks, does not have multiple sources of income. Rich mindset = Believes that the lack of money is the root of all evil, takes and manages risks, have multiple streams of income (passive and active).
  2. Know the difference between assets and liabilities.
  3. “It is not important how much money you make; it is how much money you keep.”
  4. Do not depend only on a salaried job or a single income source, else you would continue working for someone for your entire life.
  5. Sources of passive income: Business profits, Dividends from stocks, Interest payments as an investor, Rent, Royalties etc.
  6. Learn to minimise taxes
  7. Making full use of your time, everyone has a fixed amount of time daily, do not let it go to waste on unproductive tasks.
  8. Work to learn, don’t work solely for the money if possible. Learn useful skills such as public relations, interpersonal skills, marketing, sales etc.
  9. Do not to be afraid to take a second job when you are young without commitments, especially if it allows you to learn more.
  10. “The one thing that holds most of us back is our self-doubt.”
  11. Apart from academic results, soft skills such as perseverance, willingness to work hard and a constant openness to learning might be worth more than just good grades.
  12. In school, most of us learn by memorising predetermined answers for predetermined questions, however, in the real world, you learn based on the answers that you seek.
  13. Five obstacles to Financial Independence: Fear, Cynicism, Laziness, Bad Habits and Arrogance.
  14. Common excuses from a poor mindset:” I ‘can’t afford it”, “I’ll never be wealthy”, “Investing is risky”, “I’m not interested in money.”
  15. “Greatness is not a function of circumstance; it is largely a matter of conscious choice.”
  16. The power of association: “A man only learns in two ways, one by reading and the other by association with smarter people.”
  17. The power of learning quickly: “He is most original who adapts from the most sources.”
  18. Self-discipline: Suffer the pain of discipline or suffer the pain of regret. (Applicable in our daily lives, e.g., self-discipline to save a fixed percentage of our paycheck every month, regularly exercising etc.)
  19. “Many receive advice, only the wise profit from it.”
  20. “Action beats inaction. Think and take action.”

Grab the book: Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

Hope you’ve found this book summary useful!

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