Rich dad Poor dad
This is my first try of writing a blog. I was reading a book so I decided to write a blog on it.
Rich Dad Poor Dad book written by Robert Kiyosaki and Sharon Lechter. It is all about the importance of financial literacy and mindset looking towards money. Robert Kiyosaki explains in very effective way because they written what they learn or experienced.
I'm Prajakt & I don't like reading books. Yes, I don't like reading books, I never read a complete book other than syllabus textbooks. I never had a excitement in reading books. But as we grow we know the importance of money.
And I'm very secure about money. So I take advices form friends on how to manage or invest money safely. So I came to know Rich Dad Poor Dad is one of the best book about finance literacy. So I made my mind to read it & I don't know how I completed it.
Rich Dad Poor Dad book written by Robert Kiyosaki and Sharon Lechter. It is published in 1997. It is available in more than 51 languages.
- He beautifully explains how we overprotective about money and no taking any risks about money. He explains about very common thought process of every middleclass and poor people.
He also mentions how to identify these very common thoughts and how to overcome them. He explains how these thoughts effect our financial condition.
Author had two dads one was his dad who is highly educated and intelligent. Second was his friend's dad. Both are successful in their profession. He wrote what he got form both of them and he used to in life.
n the book author explains difference between liabilities and assets. We work hard to get money and then spend it in expenses and in tax.
He explains all process with the diagrams that how liabilities and assets affect our balance sheet (Record of our Income & expenses).
Assets always pay back us in the extra income. Assets is thing which always pay back us more than we invested in it. We no need to maintain it.
Liabilities are like our expenses such as car we have maintain it regularly, it cuts our income.
What lessons I get from book :-
1.Poor : According to author poor people were those who don't know how to manage expenses and investments. If a wealthy man and he doesn't know how to invest his money and he only spends it on expenses and showing people how rich he is. Then obviously he will become poor in future.
2.Rich : According to author rich is who earns not much but he know finance or numbers. He invests in assets such as stocks, real estate, etc. and whose expenses are as low as they are manage from the income getting from assets. As the assets adds more numbers in his income column. Managing money make him rich.
2.The Rich don't Work for Money : His Rich dad teach him a lesson that how rich people don't work for money. And he also mentioned that how a poor work hard for money and after getting money spend it on expenses, loans, credit bills and pay government tax. Then after spending all money he work hard for getting money. This cycle of getting money of poor people author called it "The Rat Race".
3.Why Teach Financial Literacy? : Financial literacy is important to calculate your expense and spending's. Author said "It's not how much you earn, It's how much you keep". He explains how poor people's expenses increased as his income increased. There is no end of needs so learn to manage them.
4.Mind Your Own Business :Author need to said that we want to focus on how to manage our assets and liabilities. How to decreased expenses and increase assets. Because generally people focus on how to earn more income rather then managing what they have.
5.The History Of Taxes and the Power of Money : Author mentioned some information about how taxes are formed for rich people and actually poor people paid taxes.
6.Invest in learning : Author view is clear that everyone had to invest in learning. Because education is thing his both dad wants him to get. Investment in learning always pay backs more than you think. It is the best lesson I get from this book.
7.There are many ways of earning money via investments and one of them is pay people who knows more than you and who make your earnings double such as CA, real estate Agents, etc.