Sometimes, you need some fatherly advice about money–from someone else’s father, of course. Robert Kiyosaki’s book Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! combines good old-fashioned common sense with professional insights on financial success that apply to a wide range of investors (even–especially–the newbies).
Read this book to fill in your knowledge gaps regarding money and to get inspired to start an investment strategy today.
Key Takeaways
- The definition of the word “rich” is “able to live off the interest from one’s investments.” This is your goal.
- Look where no one else is looking for business opportunities. Don’t follow the crowd; buy when stocks crash rather than selling, as others do.
- Know the difference between an asset and a liability. An asset puts money into your income column and a liability takes it out. Everything else, including personal property that can’t be easily sold, is neutral. Many people see their home as an asset, but it is not an asset if you aren’t gaining income on it.
- Pay yourself first, even before paying your bills. Put money into your investments first! You’ll be forced to use your creativity to get the rest taken care of, too.
- Don’t fear risk. This is what keeps many people from investing in anything high yield and going with mutual funds and others safe investments instead.
- Money is not real. It’s all just a game. Have fun with it!
- If you don’t enjoy a certain type of investing, do something else. You’re unlikely to be successful at something you dislike.
- Hire people who are smarter than you.
- Most rich people lose it all at some point but they usually make it back–and then some–because they know what they’re doing.
- Create a corporation and wrap it around your largest assets.
- Educate yourself about money. Read advice books and follow it.
About the Author
Robert Kiyosaki is an American author, entrepreneur, and investor. He is best known for his book Rich Dad Poor Dad, which has become a personal finance classic and has been translated into 51 languages. In the book, Kiyosaki shares lessons he learned about money and investing from his “rich dad,” and contrasts them with the financial advice he received from his own father. He has written several other books on personal finance, including Cashflow Quadrant and Retire Young Retire Rich. Kiyosaki is also the founder of the Rich Dad Company, which provides financial education and training.
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