We’re Not Getting Financially Smarter by Reading Rich Dad Poor Dad (2024)

FAQs

We’re Not Getting Financially Smarter by Reading Rich Dad Poor Dad? ›

The goal of Rich Dad Poor Dad is to motivate you to develop your own unique path to financial freedom. While the book doesn't take a one-size-fits-all approach with ready-made answers, it does provide an excellent framework for creating your own objectives to build wealth by investing in real estate.

The goal of Rich Dad Poor Dad is to motivate you to develop your own unique path to financial freedom. While the book doesn't take a one-size-fits-all approach with ready-made answers, it does provide an excellent framework for creating your own objectives to build wealth by investing in real estate.

Why is it Controversial? The book became wildly controversial because some of the advice given in the book goes directly against what is preached by most personal finance gurus. Hence, they thought that this book will confuse the people and give them bad advice on a massive scale.

Short answer is Yes, you can definitely become rich by reading “Rich Dad Poor Dad” book.

The book 'Rich Dad Poor Dad' focuses on how important it is to be financially self-sufficient and aware of aspects of the global economy, as well as how to create wealth for yourself.

The most important goal, according to the “rich dad”, is to understand how money works so that you can make it work for you. To be financially wise, according to Kiyosaki, you must master accounting, investment, markets, and the law. You will be more successful if you learn more talents.

This concept is the heartbeat of the philosophy laid out in Robert Kiyosaki's renowned book Rich Dad Poor Dad. The idea of passive income - of making your money make more money for you - is what sets real estate investing apart as arguably the most powerful wealth building tool in existence.

How do rich people use debt to their advantage? Rich people use debt to multiply returns on their capital through low interest loans and expanding their control of assets. With a big enough credit line their capital and assets are just securing loans to be used in investing and business.

What is a famous quote about waste of money? ›

“It is foolish to waste time in order to save money.” “Buying something you do not need is a waste of money, even if it is a bargain.” “We usually save money to waste it.” “It is way less foolish to throw your money away than it is to use it to buy and then consume things such as cigarettes.”

The first rule of finance is to know the difference between assets and liabilities. Assets are things you own that generate income for you. Liabilities, on the other hand, takes money from you. So being rich requires you to buy assets, not liabilities.

“Money is a reward for solving problems.” –

One's priorities should not be money at the expense of other important things that make life worth living.

The BRRRR method is a real estate investing strategy that involves buying properties, renting them out, and then selling them. The BRRRR method was created by Robert Kiyosaki in his book “Rich Dad Poor Dad” and is used by many real estate investors today.

Rich Dad, Poor Dad Summary & Review (2023) Rich Dad, Poor Dad is one of the most famous books in all of personal finance. Though it came out in 1997, it's still a #1 Best Seller on Amazon in 2023. Many of today's most popular finance gurus cite it as the inspiration for their success.

It advocates the importance of financial literacy (financial education), financial independence and building wealth through investing in assets, real estate investing, starting and owning businesses, as well as increasing one's financial intelligence (financial IQ).

Most parents stop reading to their child by the age of eight, with just 19% of eight to 10-year-olds read to daily by an adult, across all socio-economic groups, down 3% on last year. Boys were less likely to be read to daily than girls at 14%, compared with 24%.

It's always important to remember that kids develop at different rates, and you'll know best when to teach your child to count money. However, as a rough guideline, children can start learning to count money shortly after they start learning to count in general. This could be around age 4.

Finley, professor of psychology emeritus at Florida International University, says the optimal time for fathering is unique and not etched in stone, and can range from ages 25 to 39, depending on where a man is emotionally and financially.

There are many reports that Robert's “Rich Dad” does not exist and was made up. This is more than likely true, but there have been many personal finance books that are works of fiction.

Why is Rich Dad Poor Dad such a good book? ›

Key points. Rich Dad, Poor Dad has some good advice about investing in income-generating assets and avoiding unnecessary spending. The book is dismissive of investors who play it safe and build wealth through mutual funds and 401(k)s. You don't have to take huge risks to become financially independent.

While rich dad poor dad tells you on how to escape 'rat race', to build wealth and to become truly rich. Think & grow rich gives you series of principles to follow to attain ultimate financial success in life. Read both the books in any order and it'll definitely help you out.

“You're only poor if you give up. The most important thing is that you did something. Most people only talk and dream of getting rich. You've done something.”

Robert Kiyosaki, author of the best-selling personal finance book 'Rich Dad Poor Dad,' has issued a stark warning regarding the effects of inflation on the American middle class and the impact of the government's decision on oil.

The book is a bestselling classic. “Rich Dad, Poor Dad” has been a bestselling book since its publication in 1997, and it has inspired millions of readers to take control of their finances and build a brighter and more secure financial future.

The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Method is a real estate investment approach that involves flipping a distressed property, renting it out and then getting a cash-out refinance on it to fund further rental property investments.

He introduces the Cashflow Quadrant, which, as the name indicates, has four sections: Employees, Self-employees, Business Owners, and Investors. Each quadrant has advantages and disadvantages, and as the author explained, they're not created equally.

"Once government got a taste of money, the appetite grew," said rich dad. "Your dad and I are exactly opposite. He's a government bureaucrat, and I am a capitalist.

Most have paid off their mortgages. In 2020, 58% of the state's equity millionaires owned their homes free and clear. Statewide, there has been a dramatic rise in the number of Californians who have paid off their mortgages, from 1.6 million households in 2000 to 2.4 million in 2020.

When rich people borrow, they do so because they want to improve their overall financial situation, and they can do that by leveraging the money lenders provide. You can do the same. For example, a wealthy person might take out a loan to buy an investment property that produces consistent income and goes up in price.

Are rich people debt free? ›

In fact, data from the Federal Reserve shows that wealthy people actually end up borrowing a lot more money than the country's lowest earners. And the top 1% of the population actually holds a whopping 4.6% of all debt, while the bottom 50% of the country only has 36% of outstanding debt.

Origin: This saying is a misquotation from the Bible (Timothy 6:10): "For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows."

Spendthrift is a noun that means "a person who spends money in a careless or wasteful way."

Rule #1: You must know the difference between an asset and a liability– and buy assets. “Rich people acquire assets. The poor and middle class acquire liabilities they think are assets,” rich dad says. The biggest challenge poor people have is knowing the difference between an asset and a liability.

Rule #1 - You Have To Earn It (Your Money, Your Wealth) If you want to get rich and grow wealth, you have to earn it. There's no way you're going to get to what you want and where you want to be if you're not trying to get there. With money, this is pretty darn straightforward.

Rich people don't work for money, their money works for them. The key concept Robert uses to explain the finances is that the rich people generate money from the money they already have. This differentiates them from the average people who have to work for the money.

Elon Musk Quote: For me it was never about money, but solving problems for the future of humanity.

“Price is what you pay, value is what you get.” This famous Buffett quote strikes at the heart of the “value investor” approach and reveals the secret of how Buffett made his fortune.

As the name suggests, there are four quadrants to The Investment Quadrant – Business, Management, Financials and Valuation.

What are the three types of income rich dad? ›

Robert Kiyosaki #robertkiyosaki #money #income.

You can't get rich from a paycheck, he argues. You get rich from owning assets that pull in passive income – and scaling up. Specifically, he recommends real estate assets. At least he did during the housing boom.

Why is it Controversial? The book became wildly controversial because some of the advice given in the book goes directly against what is preached by most personal finance gurus. Hence, they thought that this book will confuse the people and give them bad advice on a massive scale.

While there are many ways to gain exposure to gold and silver, Kiyosaki prefers to just buy the metal directly. Earlier in 2022, he tweeted that he only wants “real gold or silver coins” and not ETFs. The author also called silver “a bargain” recently.

Put simply, "paying yourself first" means prioritizing saving and investing for your own financial goals before paying for your expenses and bills. It's a budgeting strategy where a portion of your income is automatically saved or invested before you spend it on other things.

According to Robert Kiyosaki, assets put money in your pockets, while liabilities take money from your pockets. In his book, he mentioned that cashflow is key. And based on these definitions, something is only considered an asset if it provides you with positive cashflow and puts money in your pocket.

For many people, the fear of losing money is much more terrifying than the joy of having money. Playing not to lose money means you will never make money. Note: Winning means being unafraid to lose. Kiyosaki teaches us not to be afraid of losing and to be bold enough to admit and learn from our failures.

Robert says you should never stop working on your mind. You should exercise it daily by giving it tough challenges and problems to solve, and learning constantly. If you work on your greatest asset daily and make it strong, it will help you achieve what your biggest investments could never achieve.

Rule #1: You must know the difference between an asset and a liability– and buy assets. “Rich people acquire assets. The poor and middle class acquire liabilities they think are assets,” rich dad says. The biggest challenge poor people have is knowing the difference between an asset and a liability.

and meet your next favorite book!

Rule #1: You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know. It is rule number one. It is the only rule. This may sound absurdly simple, but most people have no idea how profound this rule is.