Skip to main content

Rich Dad, Poor Dad (summary)

Many people work very hard, but they never seem to earn enough. In Rich Dad, Poor Dad, Robert Kiyosaki explains how to escape this "rat race" and achieve financial independence.

"Know what an asset is, acquire them and become rich."
That's it! Easy, huh? The trouble is that people are not properly taught how to spend their money. Many do not know the difference between an asset, something which puts money in your pocket, and a liability, something which takes money out of your pocket. Kiyosaki's main point is that the only way to become financially independent is to accumulate income generating assets which can pay for your expenses. However, many people rather buy a new car or an iPad (liabilities) instead of investing that money in stocks or real estate (assets). I recently posted an infographic which shows the difference in returns if you would have bought Apple stocks instead of one of their products.
The fear of straying from the generally accepted life path plays a big role in the financial decision making process. However, if you do not want money to control you like it does most people, then you will have to do things differently from the crowd. Investing legend John Templeton seems to agree on this point.
But you already own income generating assets, because you own a house. The best investment you can make, right? Not really. The book lists several reasons:
  1. Most people work all their lives paying for a home they never own
  2. Despite a tax deduction for interest on mortgage payments, all expenses are paid with after-tax dollars
  3. Property taxes can suddenly be increased without notice
  4. Houses do not always go up in value
  5. Opportunity costs are tremendous, because when all your money is tied up in your house, there will be no money left to invest in income generating assets
Location: Kolkata, West Bengal, India

Comments

Post a Comment

Popular posts from this blog

Growing your business through the power of Videos!

Let me share with you an interesting statistic shared by Hubspot: **62% of customers have made their buying decision after watching a video. This takes me to ask you the following question: Are you using videos as a marketing tool to promote your business online? Then your potential customers might be deciding to buy from your competitors instead of buying from you! Digali Opc Is Best Company For Digital Marketing In India,,,
4 comments
Read more

Digital marketing vs. internet marketing

Now that you understand digital marketing, it raises a bigger question. What’s the difference between internet marketing and digital marketing? If all these activities happen online, why use so many different words to describe them? Internet marketing involves building a web presence and turning the resulting traffic into sales. When the internet was younger, the four major marketing activities involved: Creating websites Buying pay-per-click-ads Setting up web storefronts Using keyword groups to capture search engine traffic online marketing has grown to include many activities that don’t involve internet search engines, paid ads, or websites. People are using a wide range of digital devices to get online and interact with content. By reaching customers through online channels they frequently use, you can influence their buying choices offline.
1 comment
Read more

What is Brand Engagement?

When you use a product or service of the brand, they become known devils to you. If your experience was good, you are much more likely to remember the brand, use them again and recommend it to your peers. Instead of learning about the brand from ads, you are experiencing the products of the brand. This is  brand engagement .  The more you engage with the brand, deeper the connection between you and the brand. This connection can never be created using ads. And this connection is necessary for a brand to become truly successful. Brand engagement is a good way build a brand in the digital age because engagement doesn’t cost anything on the digital platform. “Brand engagement is the process of forming an emotional or rational attachment between a person and a brand.” 
1 comment
Read more