Rich Dad Poor Dad is a modern classic of personal finance and our all-time favorite financial book. Even though the book is controversial and frequently receives criticism, many people feel it is worthwhile to read. It would not have sold over 32 million copies otherwise.
Robert Kiyosaki recounts his boyhood memories of his two fathers. His father and his closest friend’s father. While he had fond memories of both, they were completely different when it came to money.
The synopsis on Blinkist begins with the notion that many of us are too terrified of being labeled as weirdos to leave the rat race. We allow the two most common emotions associated with money, fear, and greed, to rule our actions. That is why we still adhere to the antiquated maxim “Go to school, go to college, find a job, play it safe,” even though no job is safe any longer.
For example, if you obtain a pay rise at work, you should invest the extra money. Put it into something that can help you develop your money, like stocks or bonds, which have some risk but a lot of potentials. Perhaps you locate a solid fund that has a 60% probability of doubling your money in a year but a 40% danger of losing it all. Your fear of losing the money, on the other hand, will most likely deter you from doing so.
If your greed takes control, you could opt to spend the extra money on a better lifestyle. For example, you may buy a nice new automobile and the payments would deplete your savings. You’re nearly guaranteed to lose 100% this way. This already shows how crucial it is to educate yourself financially. Unfortunately, because we receive little financial education in school or college, this is totally up to you.
Look around you and you’ll notice lots of financially illiterate folks. Take a peek at your local politicians. Is their municipality in debt? Your mayor may be wonderful, but he probably doesn’t know how to manage money.
Similarly, 38 percent of Americans do not save for retirement. The only way to combat this is to begin immediately. Today is the youngest you’ll ever be, so consider what you can and cannot afford. This way, you’ll be able to set realistic financial objectives, even if it means delaying the purchase of that brand-new BMW.
Next, instead of “working to earn,” adopt the mindset of “working to learn.” Take a job in a field you’re unfamiliar with, such as sales, customer service, or communications, to develop new abilities; you never know when they’ll come in handy. Set aside 5% of your monthly income to acquire books and courses, and attend seminars on personal finance to begin developing your financial IQ.
Final Book Review
I read the book a year ago and enjoyed it. When I discovered that much of the plot is made up and that there is so much criticism around Robert and the book, I was saddened. That doesn’t make it any less of a fine story or piece of wisdom.
Unfortunately, the tale of his two fathers is what makes the book excellent – and it’s lacking from this Blinkist synopsis. While the financial advice is solid in the summary, it is not nearly as strong when wrapped in the tale of the book.
Rich Dad Poor Dad E-BOOK Download (Robert T.Kiyosaki)