'Rich dad, Poor Dad', from Robert T. Kiyosaki is a real classic finance book. This book changed my view on real estate and how to handle your money. Maybe this book will also teach you a lot ;). We will discuss the 5 most important lessons from the book.
What is written in Rich Dad, Poor Dad?
In 'Rich dad, Poor dad', Robert tells about his two dads: his own 'poor' dad and the 'rich' dad of a friend named Mike. Both fathers have a different view on working, earning money and on the important aspects of life.
Robert explains how he experienced these two different views of his poor and rich dad in an amusing way. In the end it is clear Robert chose for the 'rich dad' way and he tries to teach us this view of life.
Why is this book a Bestseller?
Robert's book has been 7 years on the New York Besteller list and he has been invited to Oprah! Why is this book such a hit?
'Rich dad poor dad', from Robert Kiyosaki has a unique view on how to look at financial freedom and how you build up wealth, especially in the time this book got published, in 1997.
The book teaches you not only to look at your monthly income via your salary. It teaches you to look at your Assets and build these actively to create a passive income for real freedom.
Besides, Robert Kiyosaki doesn't believe in the popular 'Millionair Next Door' technique, where with putting every month a small amount of money in an ETF makes you a millionaire. Robert Kiyosaki believes in moving your capital to where the growth lies in the upcoming years.
Zo, nu weet je al een beetje wat Robert Kiyosaki's ideeën zijn over hoe je financiële vrijheid kan bereiken. Dit is nog maar het tipje van de sluiter. Laten we ons verder verdiepen in de interessante kijk van Robert.
Now, you already know a little bit about Robert and his views on wealth and freedom. Let's begin with the 5 most interesting lessons from Robert.
The 5 Most Important Lessons From Rich Dad Poor Dad
These are the 5 most important lessons from "Rich dad, Poor dad". Ofcourse you don't have to agree with every lesson. Try to look at it with an open mind.
1. "The Rich don't work for money"
Robert explains that every rich person has taken care of it so well, that the person doesn't have to work. Rich people have assets which generate a 'passive' cashflow. Rich could thus decide to not work for 2 years and probably even have a higher net worth after that.
For this you of course need a passive income of at least a few thousand dollars per month. It takes time to generate such cashflows and you need to work for this in order to make it work. It doesn't come naturally.
2. "You don't need money to get rich"
Often they say you need money to create more money. Robert doesn't agree with this statement. Robert explains he once bought a home with 100% debt (with no 'own money') and generated a positive cashflow of $ 25. Maybe this is not a lot of money, but it shows you don't need money to create money.
3. "Your house is a liability, not an asset"
Maybe you have heard it from your family: "Buying a home is the biggest investment of your life." Robert thinks differently about this. "Your home is a liability", he says contradictory. Robert only thinks something is an assets when it generates a positive cashflow every month. With your house every month you pay money to the bank, thus it is a liability.
4. "Financial education is your biggest asset"
Robert explains to be financial free, financial education is your most important asset. Everywhere there are good investing opportunities, but only someone who has a lot of financial knowledge will recognise these options. Robert often sees in 1 city already multiple good investments, while Neighbour Joe may not see one. Financial education is the key to success.
5. "Don't work to earn money, work to learn"
The last (but not least ;)) important lesson from "Rich Dad, Poor Dad", is that you shouldn't work to receive a monthly pay check. You should work to learn about the business world and use it for your own assets. It is thus not a bad thing to choose a less paid job if you learn a lot from it for your own good. You could use this knowledge to create your own assets with it. Marketing and selling are according to Robert the most important qualities for freedom.
My opinion about Rich Dad Poor Dad
The book inspired me to look different at incomes. For me it is now more important to build 'Assets' than to receive a high paycheck.
At this moment I have also read "The Cashflow Quadrant" and "Why the Rich are getting Richer" from Robert Kiyosaki. I believe it is good for everyone to read "Rich dad, poor dad" to enlarge your financial knowledge and think about what he tells you in the book.
What do you think of the book?
Have you read 'rich dad poor dad' already? Let us know whether you agree with Robert and what your view is on financial freedom.