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This book is an inspirational book by Robert Kiyosaki and Sharon Letcher, which mainly talks of financial independence, principles, ideas, financial success, and financial intelligence.
It tells the story of two fathers, one who is poor and the other who is rich, showing their differences in terms of investment of their finances to ending up either rich or poor.
The two dads are Robert Kiyosaki’s fathers in Hawaii at his upbringing, where he is forced to follow in one of their footsteps.
Plot and Outline
Robert Kiyosaki makes a wise decision to follow the rich dad’s footsteps between the two options, where he and his best friend Mike, ask their father to teach them how to make money.
The rich dad, Mike’s father, started as a high school, 8th-grade drop-out, but ended up building a multi-million dollar empire to leave his son. In contrast, the poor dad is a government worker, a highly educated professor, but very poor.
The rich dad uses his imagination and financial wisdom to also teach Robert Kiyosaki and Mike by making them learn through experience.
Through financial intelligence and experience, he can grow financially to create and build the multi-million empire that his son later inherits. He shows them that the main secret of becoming wealthy is not only in education but also in being strategic and financially intelligent.
Robert Kiyosaki starts a job at the marine corps after college, where he learns to fly and even lead troops, an aspect of leadership training.
He later joins Xerox in selling photocopiers and achieved to overcome the fear of rejection. Here Robert grows to become the top five salespeople and eventually the number one. Being able to achieve his objective, he can begin his own business.
Meanwhile, the poor dad does not have investment knowledge or financial literacy, or intelligence and cannot grow his wealth.
This book teaches and reveals a lot about investments and strategies for financial literacy, allowing one to become rich. It shows investment plans that one can set up, such as real-estate firms, stocks, notes, or even intellectual property that can enable one to be financially independent and free.
It also teaches the things that are not taught in school or any educational system as the school teaches about becoming good employees rather than becoming good employers.
The book teaches about providing young people with the necessary financial skills used by rich people to grow their wealth.
This book shows that the rich do not focus only on accumulating money or their income, but rather on the assets to help get wealth in the future and exceed their expenses.
The rich dad worked hard to accumulate assets that made him rise to building a multi-million empire and becoming a millionaire from virtually nothing.
This book also encourages self-confidence as, together with high financial intelligence, you can earn more by just saving a little each day.
Readers can learn about intelligent ways of thinking and principles to apply in everyday life to unlock their potential and gain financial freedom to do or get what they have always wanted to get.
The main principles from the book for awakening the financial potential are:
1) Finding a reason greater than reality:
It enables a reader to think of freedom and lifestyle where he/she can control their own time and think of what they want or do not want to do with their time.
2) Using the power of choice:
The power of choice enables one to make the right decisions on investing your time and energy every day to bring financial success in the long run.
3) Choosing friends carefully:
The book instructs that it is essential to choose friends who focus on achieving or have already achieved their goals. It is important to get friends from which you can learn and that are inspiring.
4) Paying yourself first:
It is vital to keep expenses low to practice self-discipline. Savings are used to invest and create more money, rather than using them to pay bills.
5) Buy luxuries last:
You need to wait for the collection of your assets to grow first and buy a car or any other luxury later with the income that comes from the assets. Some people will focus on buying assets first, even on credit!
6) Finding yourself a hero:
One should find a hero or role model and ask yourself what a particular role model would have done in your shoes.
This book gives ideas and the knowledge that can help one expand the ways of thinking and self-potential to get out of the ‘Rat race’ and develop great wealth. It teaches that one should work to learn, not working on getting a paycheck or promotion in the workplace.
Despite all the advice and good ideas that this book offers, it can be discouraging to many people who want to go the academic path because it makes academic education seem like a waste of time and puts investment strategies on a pedestal.
It also seems to discriminate among the middle class and the poor as Kiyosaki terms at a point that the middle class is the one who will tend to buy luxurious things on credit.
Some of the strategies and lessons portrayed in this book are also quite difficult to follow because they are the last phases of the financial journey and don’t talk about starting as a complete beginner.
The book is an excellent book for people who need to learn investment strategies and understand the science of becoming rich quicker and financially stable. I would recommend it to anyone, but it is crucial to keep in mind that building wealth is not a sprint; it’s a marathon.
Check out the book by clicking the cover or the link below: