A book that will make you rethink the concept of money and how to create wealth. You will be inspired by simple stories of acquiring assets and paying yourself first. The moment you’ll understand that you are responsible for creating wealth for yourself, you’ll never be the same.
Biggest lesson: you must know the difference between an asset and a liability, and buy assets.
My rating: 10/10
Rich Dad Poor Dad Summary
- Rule #1: You must know the difference between an asset and a liability, and buy assets.
- Today, wealth is in information.
- Rich people are often creative and take calculated risks.
- People who avoid failure also avoid success.
- Poor people simply have poor spending habits.
Rich Dad Poor Dad Notes
If you learn this lesson, you will grow into a wise, wealthy, and happy young man. If you don’t, you will spend your life blaming a job, low pay, or your boss for your problems. You’ll live life always hoping for that big break that will solve all your money problems.
You really wanted to win, but the fear of losing was greater than the excitement of winning.
If you realize that you’re the problem, then you can change yourself, learn something, and grow wiser.
Rich dad said this point of view over and over, which I call lesson number one: The poor and the middle-class work for money. The rich have money work for them.
He understood that every person has a weak and needy part of their soul that can be bought, and he knew that every individual also had a part of their soul that was resilient and could never be bought.
Most people have a price. And they have a price because of human emotions named fear and greed.
So people also work for money because of desire. They desire money for the joy they think it can buy. But the joy that money brings is often short-lived, and they soon need more money for more joy, more pleasure, more comfort, and more security.
Emotions are what make us human. The word ‘emotion’ stands for ‘energy in motion.’ Be truthful about your emotions and use your mind and emotions in your favor, not against yourself.
Most people live their lives chasing paychecks, pay raises and job security because of the emotions of desire and fear, not really questioning where those emotion-driven thoughts are leading them.
To wake up in the middle of the night terrified about paying bills is a horrible way to live.
Money is really made up. It is only because of the illusion of confidence and the ignorance of the masses that this house of cards stands.
The moment you see one opportunity, you’ll see them for the rest of your life.
Intelligence solves problems and produces money.
Rule #1: You must know the difference between an asset and a liability, and buy assets.
If your pattern is to spend everything you get, most likely an increase in cash will just result in an increase in spending.
According to psychiatrists, the fear of public speaking is caused by the fear of ostracism, the fear of standing out, the fear of criticism, the fear of ridicule, and the fear of being an outcast.
An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.
Without this financial knowledge, which I call financial intelligence or financial IQ, my road to financial independence would have been much more difficult.
I remind people that financial IQ is made up of knowledge from four broad areas of expertise:
- Understanding markets
- The law
Often in the real world, it’s not the smart who get ahead, but the bold.
Today, wealth is in information.
I know people who are losing their jobs or their houses, and they blame technology or the economy or their boss. Sadly, they fail to realize that they might be the problem.
Rich people are often creative and take calculated risks.
Sometimes you win and sometimes you learn. But have fun.
People who avoid failure also avoid success.
It is what you know that is your greatest wealth. It is what you do not know that is your greatest risk.
New inventions are made because we desire something better.
Poor people simply have poor spending habits.
Arrogant or critical people are often people with low self-esteem who are afraid of taking risks.
I would say that one of the hardest things about wealth-building is to be true to yourself and to be willing to not go along with the crowd.
You become what you study.
Keep your expenses low. Build up assets first.
Always remember: Profits are made in the buying, not in the selling.
Look for people who want to buy first. Then look for someone who wants to sell.
Action always beats inaction.
Money is only an idea. If you want more money, simply change your thinking.