Rich dad poor dad summary
You must have heard about the rich dad poor dad book. Rich dad poor dad book summary will help you to know how many chapters in rich dad poor dad book. This post explains rich dad poor dad summary chapter wise.
Robert Kiyosaki is the author of famous book Rich dad, poor dad. Rich dad poor dad book is one of the important book written on financial literacy. Through this book, Robert has challenged the conventional way of thinking towards earning and money management.
This book also criticizes the way of traditional education which does not teaches enough about money management in school. Rich dad poor dad explained Assets and Liabilities in detail. Read Rich dad poor dad summary in this blog post.
Robert is a businessman, entrepreneur and author of many best selling books on personal finance and financial literacy. His books teaches about financial independence through financial literacy and investing mindset. I have read all the books of Rich Dad Poor Dad series.
Why Rich dad poor dad become so popular worldwide and translated in many languages? Why millions of people read this book and learn successful principles of money management and financial literacy? Why Rich dad poor dad book is in the list of top books on personal finance even after more than 23 years since first edition?
The answer to all these questions is Robert’s unique style of explaining complex words of finance in easy and interesting way. Robert oppose the thought that advocates the rich are born rich. Besides this, he successfully taught readers the difference between Assets and liabilities, which is key concept in becoming rich. Rich dad poor dad explains assets and liabilities in easy words which will surely helps readers to gather more assets and to minimize liabilities.
He also focused on words Rich people being used and poor people has used in their life. After all words you used to talk with yourself are also one of the the secret of being rich.
After reading the book Rich dad, Poor dad, I liked the way Robert Kiyosaki write and so I read all other books written by this author.
This book is the primary book for those who want to learn effective money management, investing, financial literacy etc. Rich dad poor dad summary is short introduction to this great book.
As I read many books on investing, money management, I personally liked some books more than other books and liked some quotes from such books. Rich dad poor dad is one such highly powerful book to teach financial literacy. I am very sure if readers read this book completely and act accordingly, they will benefitted by this.
Let’s summarize the book ‘Rich dad poor dad’ in Rich dad poor dad summary.
Rich dad poor dad summary
During schooldays, Robert and his friend Mike was studying together and were good friends. Robert’s father was highly educated and posted in education department of Government. On the other hand Mike’s father has some school level education and running his some businesses.
Robert use the term Rich dad for Mike’s father and Poor dad for Robert’s father.
Rich dad poor dad book summary
His father (Poor dad) was a supporter of education for getting a good and high paying job. On the other hand, Mike’s daddy (Rich dad) was also a supporter of a good education but for establishing businesses and not for a job.
‘Financial literacy is a must for great success’, says Robert. This book also introduces readers to complex terms such as Assets, Liabilities, cash flow, Balance sheet etc.
Chapter One: Rich dad poor dad
This chapter has introduction of Robert’s story about his Rich Dad and Poor Dad. Both the fathers had different views for money.
Poor dad says, ‘There is no importance for money in my life’; whereas Rich dad says, ‘Money has power’. At his growing age, Robert was confused about to whom he should listen for financial advice. Finally at the age of nine years, Robert decided to listen his Rich dad. Chapter one of the book ‘Rich dad poor dad’ tell all that what Robert has experienced about the words used by his Rich Dad and Poor Dad. Chapter one of ‘Rich Dad poor dad’ is also reflection of the financial education given by poor and middle class to their children.
Chapter Two: Lesson one: The Rich Don’t Work For Money
Chapter two of Rich Dad Poor Dad says, The poor and middle-class people work for money. The rich people ensure that their money will work for them. This is strange but true. In the chapter two-lesson one, Robert has wrote about how he learnt financial lessons from his rich dad through small works and actions.
Chapter Three: Lesson Two: Why Teach Financial Literacy?
Chapter 3 of book ‘Rich dad poor dad’: Financial literacy is utmost important for being rich. The author wrote “It’s not important how much money you make, rather than it is more important how much money you keep.
“If you are not aware with financial literacy your earned money will not retained for long time. This chapter also explains the cash flow pattern of rich and poor which is quite interesting. Income, expenditure, Asset and Liabilities are well explained with the help of simple diagrams.
Asset brings money in your pocket while liability withdraw money from your pocket. By reading chapter 3 of Rich Dad Poor Dad, reader slowly understands about the importance of asset and cash flow in successful money management.
Chapter Four: Lesson Three: Mind your business
There is big difference in your profession and your business, says Robert. If someone is working in bank, he is only employee and not the owner of bank. To secure financially, you must have your own business which will bring money for you. Rich people concentrate on asset and poor concentrate on income.
Chapter Five: Lesson Four: The history of taxes and power of corporations
This chapter written on power of corporations and history of taxes. Difference between Corporation owner and corporation employee has well explained.
Chapter Six: Lesson Five: The rich invent money
If base is strong, high building can be possible, says Robert. If anyone has financial literacy, he or she can earn and multiply money. In this chapter Robert shared his experiences about real estate investing and making money from those deals.
Chapter Seven: Lesson Six: Work to learn, Don’t work for money
I specially liked this chapter. ‘Work for learn and not for money’, is rare advice. Working for learning brings many qualities in you, says Robert. These qualities will then help to earn money.
The next section of book is about “starting”.
Chapter Eight: Overcoming obstacles
This chapter is about ‘Whatever you have read in this book, how it can apply in your life?’.
Though someone become financially literate, he or she can not become financially free immediately. The reasons behind this are: Fear of losing money, doubts about investing, laziness in doing essential works, bad habits about money etc.
Chapter Nine: Getting started
For starting you successful financial journey, You have to strong reason for why you want financial freedom. Before giving money to others make sure you have given money to yourself.
Chapter Ten: Still want more
This chapter is for more curious readers about how to do? This chapter is focused on actions.
Chapters Eight, Nine and Ten are helpful to every reader who want to START this financial literacy journey.
Rich dad poor dad chapter wise summary
Overall the book Rich dad poor dad is must in our library if we want to develop a correct mindset towards money and investing.
You may like: Stocks to Riches Book summary