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Richdad Poor Dad

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Autor:  anton  18 November 2010
Tags:  Richdad
Words: 1089   |   Pages: 5
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This book by Robert Kiyosaki is a great book for both business men and those who aspire to be businessmen someday. It teaches you that financial literacy will give you the freedom everyone dreams of. The author believes not in traditional path to success which is “go to school, get high grades, get a diploma and get a safe secure job.” In his case Robert had two dads (rich dad and poor dad). Rich dad is not actually his father but rather, it was his friends father and poor dad was his real father. Now the difference between the two fathers was that one was a school dropout and the other was a highly educated professor. What is ironic is that the one who did not finish school became “rich dad” and the highly accomplished teacher is “poor dad”. In this he shows people that getting rich didn’t have anything to do with your academic accomplishments because if it did poor dad would have been rich dad and vice versa. Of course traditional education gave you technical know how but it doesn’t equip you with the essentials of getting rich which are namely guts, financial know how, imagination, spotting opportunities and solving problems. Another thing is that traditional education creates this idea of graduating and getting a safe secure job which Robert believe is equal to slavery to money. Why? It is because you become attached to your job. It becomes your life support system and a person in a “safe secure job” stagnates and doesn’t use his IMAGINATION anymore on how to make money work for him because he is busy working for money. He says that a job is just a short term solution to a long term problem.

If you haven’t noticed most of the successful people we have scientists, inventors and tycoons are mostly school dropouts. This further reinforces the fact that we don’t need a diploma to get rich. It is just some old belief. A person also must enrich himself with experience which makes him street smart rather than book smart. The author himself took on different jobs, he became a fighter pilot, a salesman etc. in order to develop the different aspects of his personality. In the world of business being well rounded is also important.

On the cover it is written “Rich dad Poor dad, what the rich teach their kids that the poor and the middle class don’t.” I used to wonder why the rich keep on getting rich and the poor and middle class just remain there. After reading this book I realized that it is because of the reason that the rich know something about money that other people don’t, even though middle class people get high paying jobs they still are not rich because they soon deplete their money. A high paid slave is still a slave as what is mentioned in the book. The deception that the rich see through that the poor and middle class don’t is the deception that working your ass of will make you rich. The rich teach their children to work to learn; the poor and middle class teach their children to work for the pay. This is the BIG secret of the rich. In Roberts life he learned this when Rich dad made he and his friend work for a small amount and even later work for no pay at all. When Roberts real dad found out about this he was furious and told Robert to threaten rich dad to pay them properly or he will sue him. Robert did just this and so rich dad agreed to pay him a higher amount and then offered more and more and more and later asked him how he felt when he was being offered a raise and a bigger salary. He answered, every time you offered me a higher amount I imagined about all the things that I could buy. “Exactly!” said rich dad. “The higher your salary the more luxuries you want. That is why the rich keep on getting rich and the poor stay poor. While you were working for me without pay didn’t you think of ways on how to make more money? This is the kind of mentality getting a safe secure job gives you.”

The problem with traditional education is that they teach the students everything except how to make money, invest, and get rich. The traditional system of education for me simply breeds workers and more highly paid slaves. Another thing that the poor and middle class misunderstand is the difference between an asset and a liability. Again this is the fault of the traditional education system. Worse is, people even mix up a liability and an asset because of lack of financial know how. Someone may say that “my biggest asset is my house.”

When in fact it is his biggest liability. Long story short, an asset is anything that has a ready market and a liability is something that makes you spend and never earn i.e. a sports car, house, a computer. Other than the rich people, everyone does this. They get their first salary and buy an expensive watch, work some more and buy a car, work harder and buy a house and then before they know it their old and they don’t have anything. All the false assets that they bought depreciate or worse have no value. The houses’ roof start to leak, the car starts to have engine trouble and nobody even wants to buy the expensive watch. The middle class buy liabilities the rich buy assets.

The author in the book that you should not abandon your day job but “start minding your own business.” By this he means that you should use your income from your day job to purchase assets and spend later when you already have sufficient gains from your assets.

Rich dad stresses that you should take some courses to help you gain financial literacy. You should learn accounting, Investment strategies, market behavior, and law. In business he who knows the law holds the power and the rich knows the law which is why the corporation was invented. The corporation is a tool of the rich to pay less taxes and to get even richer in the process.

This book is definitely a great read. Enlightening, educational and funny. Everyone should read this although kids need guidance on the part about traditional education. If you kids read this without adult guidance they soon might lose interest in school.

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