Book Notes: ‘Rich Dad Poor Dad’
Disclaimer : This is not a Book Summary but a collection of insights I’ve gathered while reading this book.
Rich Dad Poor Dad is about Robert Kiyosaki and his two dads — his real father (poor dad) and the father of his best friend (rich dad) — and the ways in which both men shaped his thoughts about money and investing.
Assets: What puts money in your pocket. (Eg. Stocks, Real Estate, Anything whose value appreciates with time)
Liabilities: What takes money out of your pocket. (Eg. Car, Bike, Anything whose value depreciates with time)
- The Rich keep on buying Assets. (Eg. Stocks, Real Estate)
- Middle class people consider Liabilities as Assets. (Eg. Car)
- The Poor neither have Assets nor Liabilities.
The key is in increasing Assets which will pay your Expenses. Make your money work for you by investing it.
You should have multiple sources of income.
Quotes :
More money never solves someone’s money problems. It’s about how you manage your money.
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.” It means the habit of buying same expensive objects like your neighbor/ friend is root cause of Financial Troubles.
Rich dad believed that the words ‘I can’t afford it’ shut down your brain. ‘How can I afford it?’ opens up possibilities, excitement, and dreams.
