6 Things About Money Every Middle Class Person Must Know │"Rich Dad Poor Dad" │Book Review

I hope my friends, you have enjoyed the last two book reviews The man who sells everything- Jeff Bezos and Amazon and The Six-Vein Sprit Sward of Alibaba. Today we will see a short summary of a book which changed the perspective about the money around the globe. The book which tells us about the 6 things about money every middle-class person must know. The book name is 'Rich Dad Poor Dad' by Robert Kiyosaki. I am sure after reading these 6 things, your perspective will also be changed. So, let’s get started.

Rich Dad Poor Dad By Robert Kiyosaki

 

Table of Content
Sr. No.	Description
	Author's Introduction
	Key Points
1	The Rich Don't Work for Money
2	Why Teach Financial Literacy
3	Mind Your Own Business
4	The History of Taxes and the Power of Corporations
5	The Rich Invent Money
6	Work to Learn, Don't Work for Money

Author's Introduction:

 

The writer Robert Kiyosaki had two fathers (he considers his best friend's father as his second father, financial father). His biological father was highly qualified to have Ph.D., completed his study at Stanford University and having a job with a high paycheck. On the other hand, his second father (Financial father) did not even complete school education. But this point itself proves that college education will not lead you to a luxurious life but the financial education will.

The writer had freedom to choose any career (lucky guy) that is why he choose real estate as his profession later in his life. The journey is interesting as well as very active. It is highly advisable for you to read this book if you want to achieve financial freedom. 

The writer gets confused many times in his childhood due to two opposite opinions from his fathers but also, he got a broad perspective about the money.

A book by a Robert Kiyosaki not only teaches the difference between assets and liabilities (We will see the difference in later part) but also educate how to maintain the cash flow. the book and his thoughts challenge the thinking of the world about the money.


In this book, he tells something which we never learned before.

Key Points:

• This book challenges the thought "To be rich,  you need to work more".

•  Vanishes the traditional though "Your house is your asset". 

• Parents must know that 'kids do not need to depend on school for financial education'.

• Asset and liabilities are described in very simple words that even a 6-year-old kid can easily understand.

• This book will teach us what we need to teach our next generation about the money to get financial freedom.

This book is basically divided into 6 chapters as follows:

   

    1. The Rich Don't Work for Money: 

 

   As it says, rich people, getting rich not because they are working more and more. They are getting rich because they do not work for money, they make money work for them. "Games are won by players who focus on the field, not the ones the looking at the scoreboard.", said Warren Buffet. Same way, Rich people focus on learning when their mind is clear about what they want, what is their goal and what they need to do for that. Whereas poor people run after money even before setting the goals and 'To Do' in their mind. Click here to know 7 Easy Steps to Set Goals and Achieve Them.

  

    2. Why Teach Financial Literacy: 

 

  Government has various taxes on the money we earn. So, we must know how to reduce the taxes and how we can multiply the money. For that financial literacy is must and this book is the end of your search for the financial literacy. Following are the two points everyone must learn:

    A. Understand accounting.

  B. Understand the science the making and investing the money

When you are doing a job, you earn, you pay taxes and then you spent the remaining. But when you mind your own business then you earn, you spend and then you pay the taxes.

Other terms are assets and liabilities. If something puts money in your pocket then it is called as 'an asset' and if something takes away money from your pocket then it is called as 'liability'.  

Also, knowing your income and tracking your expenses is also important thing to get rich, specially if you are doing a job at outside your home town where your have to pay rent, money for food, washing, etc. For employees of any company, it is must to know whether their income is absolute or relative. Click here to know whether your income is absolute or relative so that you can plan your expenses, saving and investment accordingly.

Assets Vs Liabilities

   3. Mind Your own Business: 

 

  Typical, isn't it? There is an old saying "If you choose to do what you love, you won't get tired after that moment". This book supports this statement. We go to school, high school and learn skills and finally work for someone else and get paid. We are working to complete company's else's dream. Someone said that "Salary is a bribe given by the company to make us forget our dream and complete theirs". This book is an eye opening for the 9-5 jobbers. If we can work 8+ hours per day to complete someone else's dream then definitely we can work couple of hours for our dream too. 

   4. The History of Taxes and the Power of Corporations:  

 

  This section is totally about the history of taxes. There are two classes of tax paying community, as have and have not. Those who are in have not are like ‘Take from rich and give to poor’ and those who are in have category they believe in tax benefits for them. This book explains how did it come into existence and how did it make the rich people rich and poor people poor.

   5. The Rich Invent Money: 

 

  Rich people get rich because they have multiple income source whereas common people like us have only one which is 9-5 job. In today’s world, information is money. We are living in 21s century, you have android phone, internet connection and in my opinion, these two things are enough to make you rich. This is just a hint but still how to develop multiple source of income and what are those like these things are covered in this book.

Try to purchase assets first and then spent leftover on liabilities. Poor people or middle-class people buy liabilities first and then starve for money to buy assets. Rich plays different game. Rich people buy assets first, convert them into alternate income source and then they buy liabilities form the profit made by their assets.

Cash flow of all classes

   6. Work to Learn, Don't Work for Money:   

 

   As per a business consultant “You are always one skill away to get rich”. Work to learn, not to earn. Invest in education because money can be stolen but the learning and education cannot be. Your skills are more important than money. Skills are something that money can't buy. Doesn't matter if you're thief or police or an engineer, be the best in your field and money will follow you ;-). 

Very simple language, self-explanatory diagrams and his own experience make the book 'Bible for the personal finance'. Again, let me tell you my friends, if you are looking for a book having tips for making quick money then this book is not for you. In fact, this book teaches you how to maintain the cash flow, how to control your cash flow, how to save the taxes, how to multiply your money and at last how to generate multiple income source.

If you want this book in English, then click the link: 

https://amzn.to/3e4MQ1e

It is available in Marathi language also. For Marathi version, click the below link:

https://amzn.to/3E1xSDG

It is available in Hindi language also. For Hindi version, click the below link:
https://amzn.to/3GOzQJe 

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