Book Review : Rich Dad Poor Dad by Robert T.Kiyosaki

This book was written so well that I managed to finish reading it in a couple of days. The author kept me on toes waiting for the next revelation. The details he has shared in his book is something that the school didn’t teach me. University didn’t teach me. What the current education taught me was get a loan and pay loan. School didn’t teach me how to manage my finance so that one day I wouldn’t ended up on the street. My salary has increased from my first job and I only ended up accumulating debts to pay but not an asset that can help me in case I lose my job, if my health deteriorates and I ended up not able to work. Yes, there are a lot of insurance agents going around teaching the public of the importance of insurance. But there are not many people out there who help you to gain wealth and ensure you achieve financial stability. There are wealth planners who makes the decision for you and help you to grow your wealth. But do you know how to develop your own wealth? This book is all about you learning the secrets and putting into practice. We keep hearing the rich getting richer and the poor getting poorer. But why is it they are getting richer? Did we ever find out why? Most of the time we blame the rich isn’t it?

I followed a lot of influencers who are teaching the exact thing on Instagram. Make me wonder are they copying what they learn from this book because I can’t remember seeing the author’s name on those posts. Anyway, I would like to share with you some of the important lessons that I learned from this author. Best if you could buy and read it for yourself. These are some of my favourite lessons / quote :

  1. The lack of money is the root of all evil.
  2. Your house is a liability. If your house is your largest investment, then you’re in trouble.
  3. Reading and lecture are the least effective ways to learn. (Learning through action is the best)
  4. College education does not guarantee a job.
  5. The poor work for money. The rich have money work for them.
  6. The higher your salary is, the higher tax you are paying to the government. But rich people are paying less tax. Why? You have to generate income not from a paycheck.
  7. You are taxed when you earn, spend, save and die.
  8. Learning how to have money work for you is a lifetime study.
  9. Control your fear and greed.
  10. Those with imagination thrive while those without it still looking for a job…a job that will be soon replaced by robots and technology.
  11. Most people, given more money, only get into more debt.
  12. It’s not how much money you make but how much you keep.
  13. Rich people acquire asset. Poor people acquire liabilities that they think are assets. e.g house
  14. A person can be highly educated, professionally successful and financially ILLITERATE.
  15. Surround yourself with a great team of advisors whom you pay well.
  16. When you work for a salary, you are working for your company, government and bank.
  17. Money without financial intelligence is money soon gone.
  18. Financial struggle is often the result of people working all their lives for someone else.
  19. Your profession can be a banker but you still need your own business because you don’t own the bank. You are only working there.
  20. Financial literacy is the ability to read and understand financial statements which allows you to identify the strengths and weaknesses of any business.
  21. Learn how to buy a house without going to the bank.
  22. You can’t avoid risk. Learn how to manage it.
  23. School teach us to read and memorize. Most teachers have not done what they teach. E.g teaching about business but have no business on their own. They are only teaching theory.
  24. Try to learn a little about everything.
  25. Drug manufacturers are charging more and insurance companies are paying less.
  26. Communication skills such as writing, speaking and negotiation are crucial to a life of success. SALES = INCOME
  27. The greatest secret of winners is that failure inspires winning, thus they are not afraid of losing.
  28. If you have any desire to be rich, you must focus.
  29. Mistakes are opportunity to learn. School conditioned us not to avoid mistakes and punish those who make them.
  30. Take classes, read and attend seminars.

Do share with your friends and leave a comment if you find this useful. 😉

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