10 Best Ideas from “Rich Dad Poor Dad” by Robert Kiyosaki
Let’s talk about getting rich. What do the rich teach their kids about money? Today’s book summary and book review: Rich Dad Poor Dad by Robert Kiyosaki. This book is one of the most successful finance books out there. Robert Kiyosaki’s classic wealth income and money making off real estate book, Rich Dad Poor Dad is packed full of actionable ideas and take aways. You might also consider getting the full book or audiobook for this – it’s killer! Here are the best 10 ideas from “Rich Dad Poor Dad” by Robert T. Kiyosaki
Here are the Big 10 Ideas from “Rich Dad Poor Dad”
(2:30) 1. Models For Wealth
The book focuses mostly on the education and financial learned from his rich dad. We all have models for wealth. Money / Beliefs are LEARNED growing up – most the time not consciously. Become conscious of our beliefs / models in order to change them.
(4:20) 2. You’re Broke, Not Poor
“Being broke is temporary – being poor is eternal” -RK
Even if you don’t have money now, view yourself as broke, not poor.
Grab the book here
(5:20) 3. Finical Freedom
“The poor and middle class work for money. The rich have money work for them.” We have two options in life:
1. Work hard, pay taxes, save what little is left over, then get taxed on the savings (sounds fun). 2. Invest in our financial IQ and use it to create assets that allow us to achieve finical freedom. The rich ALL take option 02. The rich don’t work for money.
(7:50) 4. Financial IQ
Schools teach how to work in a job. Not how to get rich. EX: You get more money – spend it all. Money is a “X” multiplier for whatever going in your head already. Athletes who get GIANT contracts (no finical IQ) now bankrupt. EX: Lap band surgery for fat person – don’t change mindset / habits = gain ALL back. Solution? NEED to increase our Finical IQ
Finical IQ composed:
ACCOUNTING:understand financial statements.
INVESTING: The science of money making money.
UNDERSTANDING MARKETS: supply and demand; technical (emotion-driven) and fundamental (economic sense) investments
LAW: Understanding taxes / avoiding lawsuits.
Grab the book here
(11:10) 5. E.B.S.I.
EBSI: Employee / Business Owner / Self Employed / Investor. Four possible paths for us (can be a mix of all.)
(12:40) 6. Assets
“Know what an asset is, acquire them and become rich.” Big Idea: For most people, their profession is their income. For rich people, their assets are their income. EX of Assets: Businesses, Stocks, Bonds, Mutual funds, Income-generating real estate, Royalties, Anything which appreciates in value over time.
(15:00) 7. Liabilities
A Liability is something which takes money out of your pocket. Keep your expenses low and reduce your liabilities. Learn to live off of 75% of your paycheck. Favorite advice: “Grow your income not your lifestyle.”
(16:10) 8. Power of Compounding
Compounding is why the rich get richer. This is why we invest in the first place. The sooner you start, the more work compounding does for you in growing your money. Look into the power of compounding. Einstein: Compounding is the 8th wonder of world
Grab the book here
(16:50) 9. Pay Yourself First
Pay yourself first. Before you pay your bills each month. Save 10%. My personal tip: If there’s ice cream in freezer, it WILL get eaten. Separate bank account for this 10% money. Automatic withdrawal from paycheck.
(19:00) 10. Ten Action Steps to Get Started Today
1. Learn about investing before you invest.
2. Think of every dollar you spend as plus one or minus one.
3. Learn to live on 75% of your paycheck. Invest the rest.
4. Pay yourself first.
5. Choose friends careful. Who you hang around – you are the avg of the top 5 people you spend most time with.
6. Always ask “How fast do I get my money back?”
7. Use a money tracker like mint.com
8. Track your progress in your journal: http://www.mybestjournal.com
9. Read the book “Money! Master the Game” by Tony Robbins
10. Teach this! Leave a comment with your insights down below or share this post with a friend.