Rich Dad

Poor Dad

Written by Robert T. Kiyosaki
Rich dad believed that the words ‘I can’t afford it’ shut down your brain. ‘How can I afford it?’ opens up possibilities, excitement, and dreams. A person can be highly educated, professionally successful, and financially illiterate.

Rich Dad Poor Dad is about Robert Kiyosaki and his two dads - his real father (poor dad) and the father of his best friend (rich dad) and the ways in which both men shaped his thoughts about money and investing. You don’t need to earn a high income to be rich. Rich people make money work for them.

The world is always handing you opportunities of a lifetime, every day of your life, but all too often we fail to see them. Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them. Great opportunities are not seen with your eyes. They are seen with your mind. The primary difference between a rich person and a poor person is how they manage fear. Most people simply buy investments rather than first investing in learning about investing. The rich know that savings are only used to create more money, not to pay bills. The best thing about money is that it works 24 hours a day and can work for generations. An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first. A true luxury is a reward for investing in and developing a real asset.

“You must know the difference between an asset and a liability, and buy assets.”

Once you understand the difference between assets and liabilities, concentrate your efforts on buying income-generating assets. An asset puts money in your pocket. A liability takes money out of your pocket. So many people say, ‘Oh, I’m not interested in money.’ Yet they’ll work at a job for eight hours a day. Thinking that a job makes you secure is lying to yourself. Wealth is a person’s ability to survive so many number of days forward or, if I stopped working today, how long could I survive? The rich focus on their asset columns while everyone else focuses on their income statements. If you work for money, you give the power to your employer. If money works for you, you keep the power and control it. Each dollar in my asset column was a great employee, working hard to make more employees and buy the boss a new Porsche.