Rich Dad Poor Dad.. Both Daddy Greatest!

Before I start reading this book I heard so much about it. “Its must read.” “It’s so nicely written.” So again I changed the order of my “To Read” list. And indeed it was worth it! ‘Rich Dad Poor dad’ is book which tells you about the cruel reality of today’s world. How money works, rather how peoples mind work with regards to living their life & managing money. Rich Dad Poor Dad by Robert T. Kiyosaki with Sharon L. Lechter is not just a book to read but its a learning book. Its a text book on basic of Financial Management.

The book start with group of people playing game called Cashflow. Its game where people are in rat race and all they have to do is get out of Rat race & come in the Fast track. Rat Race defines the majority set of people who are good kid, good student, who get graduated, get a secure job or career. They make money but soon they start spending it by using credit card, buying home, furnishing it etc which leads to vicious circle of spending money, earning money, paying debt and earning money to spend more and pay more debt. Whereas fast tract defines rich people, who are not in debt & earning more money is not leading to paying more debt.

In this book Robert talks about his 2 dad. Robert’s real dad was well educated & intelligent but he was struggling to manage his financial state making him Poor Dad, whereas his best friend Mike’s Dad is uneducated still good in managing his finance making him Rich Dad. So while growing up Robert had 2 different opinions on everything. It was best of both worlds. Mike & Robert wanted to be rich & they tried making money. And they asked Rich Dad for the advice. Rich dad instead of giving advice offered Job in his store with hourly salary.

The idea behind Job offer was to see the curiosity of both Robert & Mike towards learning to be rich. Being Rich is not about just making money. It’s about knowing and handling your money. Rich dad talks about 6 lessons which will give you to a wealthier life, a life out of rat race. A life where everyone not just has the money to spend but also has the knowledge on how to grow the money.

Those 6 lessons are as follow:

·         Lesson #1 The Rich Don’t Work for Money
The difference in the two dads is that the poor dad works for Money and the Rich dad makes money work for him..

·         Lesson #2 Why Teach Financial Literacy?
Books & schools tells us about studying, getting good grades & secure job, but what about financial literacy? School doesn’t teach us how to increase our money/

·         Lesson #3 Mind Your own Business
We need to know what our business is. Working for a firm as lawyer still you can have your own business. It can be to increase the real estate, or increase the assets.

·         Lesson #4 The History of Taxes and the Power of Corporations
Rich dad talks about paying money first to yourself, then government. Even if money is less, pay yourself first. So that you are motivated enough to pay back taxes anyhow.  

·         Lesson #5 The Rich Invent Money
We all have potential, we all are gifted still we hold our self back because of Self-doubt. Many of us like to play safe, we are happy to get 5% secure dividend rather than 16% risky investment. To be rich, we need to learn to take risk & believe in our self.

·         Lesson #6 Work to Learn Don’t Work for Money
Talent is not enough. There is no harm in knowing little bit more. Rich person is one who knows everything, from people management to money management. Different course & class will help you horn the skills.