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What the Rich teach their kids about Money that the Poor and Middle Class do Not !!!
How I came across this book
This book was recommended to me by one of my friend who had read this book.
Background about the Author Robert Kiyosaki is a self made multi millionaire. He made his millions in the property market in the USA. He has gone through tough times in his life where he had to struggle for meals. But with his strong attitude and having seen his Poor Father struggle, he had made up his mind that business is the way to grow and be prosperous.
He had his Poor father and his thinking and thanks to his friend's dad who was rich and he got the chance to learn how to think like a Rich Man and how a rich man thinks.
Why read this book ? This book throws light into things which you don't know and things which you don't learn in School. If you are an employee you need to read this book. If you are a self employed, you need to read this book. If you are in the rat race of getting up in the morning travelling for more than an hour to your job or place of work and then back again in the evening and you are feeling tired, you need to read this Book !!!!
YOU DON'T KNOW WHAT YOU DON'T KNOW !!!
What's in the book for me/you/all
Robert starts off with the beautiful poem of Robert Frost… The Road Not Taken. This is so true in our life. The road you take and travel makes a loads of difference. Come to think of it, you are what you wanted to be.
Some of the points which you will get out of the book.
1. The Rich don't work for Money, Money works for the Rich. 2. Its only the Poor and the Middle Class who work for the Money. 3. What's the difference between an Expenditure and an Investment 4. Cash Flow Pattern of an Asset vs Liability 5. Why the rich get richer and why the middle class struggle 6. The Rich with Corporations a. Earn b. Spend and then c. Pay Taxes Whereas the People who work for the Corporations a. Earn b. Pay Taxes c. Spend
7. Work to Learn - Don't Work for Money 8.
What you get out of the book a. To inspire people to learn more b. To let the people know it is easy if the foundation is strong c. To show that anyone can achieve great wealth d. To show that there are millions of ways to achieve your goals e. To show that its not rocket science.
Financial Literacy is very important, It will show you how to create an Asset which could free you and live the life you dream of, instead of working full time just to pay bills.
I have read this book several times and each time I read this book, I keep getting new points. I heave learnt one thing after reading this book, we all have 24 hours and some people become rich by using those 24 hours whereas others struggle. The only difference is that some people think differently and put them in action. So to get into the mindset of these millionaires we have to start thinking like them and putting our ideas into Action.
This book talks about how people make money honestly and legally around the world. Robert has classified them into 4 quadrants
1. Job (Just Over Broke !!!) (I am also in that category, but soon will be a Big businessman) 2. Self Employed like Doctors, Lawyers, Contarctors etc., 3. Big business like Richard Branson etc., 4. Investment like stocks, shares, properties etc.,
He calls the 1 and 2 people as left quadrant and how people are exchanging their time for Money. Whereas for 3, the business people, there are people working for them. For 4. Money is working for them.
For Category 1 and 2. There is a limit of how much money we can earn in this category, we can increase time to a certain extent only (within 24 hours) and there is a limit to the rate which we can earn, depending on our qualifications etc., Whereas there is no such limits on Category 3 and 4.
80% of the population are in 1 and 2 category. Whereas only 20% are in 3 and 4. The people in Category 1 and 2 control only 20% of the income in the Economy. Funny thing as Robert points out is that the people in 3 and 4 control 80% of the wealth in the Economy !!!!
Obviously everyone now would like to be in the Category 3 and 4 right !!!
Conclusion I nor the author is trying to put anyone or anyjob down, but the author is trying to highlight our potential and what we are capable of doing in our life.
Hope this has given motivation enough to go and read the book if you have not read this book so far. But one thing I can promise, you will definitely learn new things and new ideas and this book has definitely helped me, I know it will help you too in your life !!!!