Rich dad, Poor Dad
I Suggest Every person on Earth Must Read this book once in Life
“This book is Financial spiritual book, not a hardcore financial book ”
Yes, spirituality in Finance. You read this right. When I purchased this book I thought it would be another kind financial book which will give you step by step list of do and don’t do. Fortunately, This book offer something different and I think this is the “Selling-Author” Philosophy. Without doubt this book is not boring as other financial book, I read (I am not good in reading and analyzing financial books). But I loved the way Robert explain things to dummy like me.
“Markets are about money, but markets are also about knowledge. Markets are also about egos; markets are also about the satisfaction of having been proved right. Especially, when that right is from an original thought and not from a guided source or following somebody.”- Rakesh Jhunjhun Wala
Kiyosaki (Japanese-American) writer who share his life story with millions of reader about his “Rich Dad”. He seems to be balanced between “Poor Dad” and “Rich Dad” when its comes to comparison and mindset about wealth. I agree with him, most of the people (Include me) has fear of losing money and ignorance about financial literacy. Recently, I understand that I have spent 10 years for few Rupees. This book, really asked to people Open their mind towards what they are doing regularly. Its shows how robotic and financial uneducated we have become.
“Rich people acquire assets. The Poor and Middle class acquire liabilities and they think they are assets”
Well Heading towards book again, The opening chapter show how writer keen to earn money after seeing cringe of educated father. He chose to listen his “Rich Dad” who teach him lesson though practical way. If you want to earn money, you need to stop seeing others as a problem for your financial condition. This is the first lesson in this book, stop considering that world should be more merciful to poor and rich shall give more money to poor so they can raise without hard work. This is the most common perception of people around the world that Rich loot money from poor (I consider it partialy true) and reuse it.
Rich don’t work for Money, Money Work for them
“An assets put money into the pocket & the liabilities takes money out-of-pocket”
Book explain great detail about the fear or ignorance about Money in current world. slangs like Rich are looters, Rich are criminal who suck poor blood, Rich must pay more to society etc. show how our religious approach is wrong about Money and Material. Rich always try to overcome their fear for Money and they clean their ignorance about money by “Financial Literacy”. While Middle class and Poor class, forced to think that Money is filthy, they don’t want to earn more money but This is not true. “Everyone wants to earn money” , But Yes this should be ethical.
“The Key of financial freedom and great wealth is a person’s ability to convert ordinary income into passive (Real state) and Portfolio Income (Stocks and Bonds).”
“Financial Literacy” this is sure one of the things which I want to increase in my country. A nation of 1.25 Billion people has only 60 Million stock holders. People afraid of losing Money in things which they don’t understand. But unfortunately they never try to understand also. For many people around the world. Stocks are risky (Yes, They are), but surely they are the way earn more money than traditional way of shopping. stocks make you passive partner of a enterprises or business in which you don’t need to work but only monitor externally. Other than that, Financial literacy teach how should a person need to understand the difference b/w assets and liabilities. Poor Understanding of these two things in life, drags many new comer into the hole name debt.
“Start Minding your own business. Keep your daytime Job, but start buying real assets, not liabilities”
I know for few of them its hard to understand that, how could it is possible that just investing in stocks and bonds will help to create wealth. No it is not. According to book, wealth is divided into three category : Ordinary, Passive and Portfolio Income. As clear with name, ordinary indicate the earning, Passive is what we hold in market like Home, shops, bare land and rent giving properties. Use for such properties will help to increase your assets column without even giving time. Your money work for you. So here comes something which this books want to say, Our school are designed to make us professional, not businessmen. Not even, understand finance because this will lead us a situation where we have to work for money all of our life. But there is way out, which most of the people never wanted to try because it will ask for their time and energy. It’s ask them to “Mind their own business except their Ordinary Job” . It’s ask for give up laziness and work hard to understand the money. few accepted, mostly rejected.
“Often in real world, it is not the smart who get ahead, but the bold”
Now, one of the powerful message of this book is that ” a person must have a side business who create money for him. who create wealth out of nothing. he must divert his energy from job and other worldly stuff and give few hours in each day to think about his financial growth. This book explains why Robin hood looting from Rich and Given to Poor will not help society to become equal. I agree many poor and middle class thinks rich must spend more money, they should pay more tax, they should contribute more to society.
“Great opportunity are not seen with your eyes, they are seen with your mind”
But question remains same, will giving money from Rich to Poor solve the problem of understanding finance and their grow up? Is this system is not eternal if we will not teach poor people, how money actually increase? Is looting from rich, and subsiding to poor will not create a generation who loved to not working hard? Few thing is explain in detail, why a person life style, his education, his financial literacy will not help him after even getting million dollar lottery. We all know what happened with Lottery Winners . They just bankrupt within months/year because they don’t know how to use their money. often they drag themselves in luxuries and they lose everything.
“Start early. Buy a Book. Go to a seminar. Practice. Start small and get Rich”
“If you really want to grow money, don’t do it without knowing much about finance and contract”.