Why Rich Dad, Poor Dad
This is one of the books that I had seen on the shelves of a thousand walls. I’ve known about it since I was young but I never actually took the time to read anything about how to become rich until 2010.
After working my way around the world picking fruit, cattle station handing and being a tour guide in various places, I realized that I wanted to hack the whole money game. Though all my previous jobs were adventures and really enjoyable… I was getting tired of resetting over and over again from broke to flush. I knew rich people and I knew what was possible, but I also knew there was a big gap in my financial knowledge. So I picked up this book up in Hawaii in 2011.
The lessons in this one are super important for anyone out there seeking to make lots of money. Hell, I haven’t made lots of money yet, but I’m starting to get to the point where cash flow is coming in without me actively spending time on it. This is the meaning of wealthy. When your income derived from your assets out paces your expenses.
So the lessons learned in this book are indispensable and if you’re reading this, you’ve gotta do yourself a favor and listen/read this book. While you do, take notes and make actions to get your way there.
Reading Notes for Rich Dad, Poor Dad
This is my second reading of this book. The first one was years ago.
What’s blowing me away is the focus on emotional intelligence in the first chapter. I remember none of this from reading years ago. If you asked me last month what the book was about I would have remembered the mechanics of of the cash flow quadrant and other superficial aspects of the book. Now I see that I missed a core ingredient of financial success: identifying fear and desire and work with it rather than it it.
“Harness money’s power.”
“Learn to use your emotions to think, not think with your emotions.”
“The rich really do, make money. They do not work for it.”
If you want to build the Empire State Building you have to dig really deep an pour a giant foundation. If you want to build a home in the suburbs, you have to pour a 6 inch slab. Most people trying to build massive wealth do it on a 6 inch slab.
Rule #1 and only. If you want to get rich you must know the difference between assets and liabilities and buy assets.
Wealth is a persons ability to survive so many number of days forward or, if I stopped working today, how many days could I survive?
Wealth vs Net Worth | wealth is how many days you can retire on… Net worth is a wushu washy number if what your junk is worth.
The rich but assets. The poor expense. The middle class but liabilities that they think are assets.
A corporation is just a file in an attorney’s office. Nothing more. It’s a structure that allows you to manage your risk of government invasion.
4 Areas of Exertise:
1. Accounting: being specific with every penny
2. Investing: money makin money
3. Expertise of Market: understanding the markets around all of us
4. Law: knowing what corps can do that individuals can’t
Self doubt is the #1 aspect holding people back. Many people know the answer but take no action.
It’s not the smart that get ahead, it’s the bold.
The poor and middle class work for money, the rich make money.
If you can grasp the idea that money is not real you will grow richer faster.
Investment Strategy.
Technical skills tht make up financial education:
1. Financial Literacy: the ability to read numbers
2. Investment Strategies: the science of money makin money
3. The Market: Supply and Demand.
4. Law: knowledge of state and federal laws and regulations regarding accounting.
Lesson 6 work to learn don’t work for money.
My overall take away from Rich Dad, Poor Dad
This is a game changer. I’ve begun to see my finances in this light and I can see the light at the end of the tunnel. These are lessons that where never taught to me neither in my home nor in my International Business course work. Yet it is essential.
Kiyosake is a big fan of real estate but I’m bearish on real estate. As freedom and movement are integral factors in my view of what wealth is, I’m trending more towards internet properties that allow for cash flow.
But hey, he even says in the book, “this is just what I used to get rich. Anyone can get rich in other fields as long as they understand the importance of Cash Flow in their finances (paraphrasing.)”
I Hope These Notes on Rich Dad, Poor Dad Were Useful to You
You can get a free copy of this book by singing up as a new member with Audible through this link.
You can purchase the book on amazon here.