Robert Kiyosaki, Sharon Lecter "Rich Dad Poor Dad" - Summary

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The authors of the book “Rich Dad Poor Dad. What rich parents teach their children - and the poor do not ”are of the opinion that schools do not provide children with the necessary knowledge about money, as a result of which they devote their future lives to work for the sake of money, without being able to make money work for them.

There are rules for money in the world that are followed by rich people, and there are rules that the other 95% of people follow. And that 95% of people learn their rules at home and at school. That is why today you cannot just tell your child to study more and look for work. Children today should receive such an education that the modern educational system is not able to provide. School cannot teach how to become rich, because just can't do it. Poor dad will never teach his child what rich dad will. In order to improve the situation, Robert Kiyosaki and Sharon Lecter wrote their unique book that can turn thinking - to make people financially literate.

Authors​

Robert Kiyosakiis an American entrepreneur of Japanese descent, an internationally renowned investor, teacher and writer. He has more than two dozen books on his account, which have sold over 26 million copies in total. The book “Rich Dad Poor Dad. What rich parents teach their children, and what the poor do not teach children ”is his most famous work.

In addition, Robert Kiyosaki has developed unique board games: Cash Flow 101, which teaches financial literacy, and Cash Flow 202, designed for those who have mastered the first part. Today, these games can also be found specifically for the PC.
Currently, the entrepreneur is actively involved in real estate and the development of small companies. However, his true passion is teaching people, which is why he conducts numerous trainings, seminars and master classes in different countries of the world.
Sharon Lechter - businesswoman, professional auditor, world-class speaker, investor, consultant in the field of book publishing and production of games, co-founder and co-director of the company « CashFlow® Technologies', Inc.». In addition to this, Sharon Lecter is a teacher, co-author with Robert Kiyosaki and a mother of three.
We invite you to get acquainted with the content of their amazing joint work.

A summary of the book “Rich Dad Poor Dad. What do rich parents teach their children - and the poor do not?​

The book consists of an introduction, ten chapters, an epilogue, a section promoting Robert Kiyosaki's educational products, and a separate section on the authors.

Next, we're pleased to offer you a summary of the key ideas from Rich Dad Poor Dad. What rich parents teach their children - and the poor do not.

Introduction​

Parents instruct their children to study hard and graduate. But, wishing their children happiness, and also believing that their instructions are very powerful in real life, they do not think that these instructions do not work in many cases. For a long time, the school has not been given the knowledge that a person needs in the modern world to become successful and independent. Parents are also often unable to prepare their children for adulthood. they themselves do not know the principles on which financial well-being is based.

Rich dad, poor dad​

Despite the fact that Robert Kiyosaki is a successful and prosperous person, he was born into a poor family, but he had two dads at once. The first was his own father, who was an educated and respected person who worked all his life and achieved great success in the service, but failed to achieve financial independence. And the second was the father of Kiyosaki's best friend - the owner of his own empire, financially educated, savvy and very wise man. The reason for the financial failure and prosperity of these two people was in their way of thinking.

If you want to get rich, don't work for money​

The first lesson for Robert was that poor or middle-class people do this: if they lack their wages, they start demanding a raise or quit to find better-paying jobs. Others stay to work where they worked, fearful of losing what they have.

It is greed and fear that drives millions of people into the trap called "rat race" - endless work for money. But the secret is that you need to have the mindset of a rich person, otherwise money will always be in short supply, no matter what job a person works. Rich people do not work for money - their potential is free from greed and fear, and this is much more important than a high salary, because it allows them to find other ways to earn money.

Why financial education is important​

Financial literacy should be instilled from an early age, so that a person comes to an understanding of the competent use of money. To increase your Financial IQ, you can do the following:

• Study accounting to understand the intricacies of any business
• Learn to invest while developing your creative business potential
• Study the market to understand the specifics of supply and demand
• Study the law in order to always act according to it

Improving financial intelligence helps to get rid of fears and increase financial literacy, which, in turn, allows a person to be in control of the situation and benefit from even the most difficult economic situations. In addition, financial intelligence is the basis for future actions and helps to understand risks.

Study the movement of financial flows and purchase assets​

The basic rule of prosperity is this: if you want to become rich, you must acquire assets - that which makes you money. Most people cannot get rich because confuse assets with liabilities. An asset can be a business that operates independently of you, royalties for intellectual property, real estate, securities, etc.

Interestingly, as incomes increase, poor people have higher expenses, and all these expenses go to liabilities - clothes, cars, furniture, and so on. Rich people always strive to reduce expenses and liabilities, and their income is the assets with which they provide themselves first of all, and not wages - this is the basis of their financial independence.

Start working for yourself​

Middle-class people almost always work for an employer, banks or government. If you want to break out of the rat race, you need to start working for yourself.

At the very beginning of working for yourself, you need to choose the area (or areas) that are really interesting to you. You also need to learn how to separate your profession and your business if you have not yet decided to leave your job. Do everything to improve your financial literacy and learn how to optimize tax payments.

Who pays taxes and how​

Rich people are smart people who have power and know how to get out of any situation with minimal loss. They pay less and less taxes, and the poor and middle-class, for whom the tax system was actually introduced, pay more and more taxes.

You simply have to connect your financial intelligence and, being within the law, reduce tax payments, i.e. start doing what rich people do. If you do not have enough knowledge, you should resort to the help of specialists - tax consultants and lawyers.

Experience is more important than stability​

One of rich dad’s advice is that a person needs to change jobs as often as possible, to broaden their horizons and specialization. Even a creative person, for example, a writer or an artist, must master related professions and acquire skills that will allow him to successfully advertise and sell his creativity.

In addition to your main profession, which you are interested in and to which you are ready to devote your life, you must master the skills of managing all kinds of processes and systems that take place in your life. You should also master the skill of managing cash flows, people, yourself and your time.

Finally​

We have considered only the very minimum of what can be gleaned from the book by Robert Kiyosaki and Sharon Lecter “Rich Dad Poor Dad. What rich parents teach their children - and the poor do not. And we strongly recommend that you study this book cover to cover. There is no doubt that if you put the principles outlined in this work into practice, you will become much more financially literate and get the opportunity to break out of the rat race.

By the way, here you can find interesting material about Robert Kiyosaki's cash flow quadrant, and here you can watch his video seminar on the topic of financial literacy.