Rich Dad Poor Dad - Summary and review

While the poor and middle-class work for money, the rich have money working for them.The poor only have expenses. While the middle class acquires liabilities, that they think are assets.Here are five incoming generating assets that the rich use:

1. Businesses that do not depend on you being present

2. Stocks and bonds

3. Mutual funds

4. Income-generating real estate

5. Royalties

The poor and middle class rely solely on income through salaries. They have proportional rather high expenses, that raise as they get higher salaries.For example, buying a home is something Kiyosaki classifies as a liability. Something that increases expenses and does not provide money, whereas a lot of people mistake it for an asset.

Kiyosaki paints the “rat race” picture of a young couple who increases their expenses without building income-generating assets. First, buying a way to an expensive apartment with a mortgage, having to fill the apartment with expensive things, then getting credit cards, maxing out their limits, getting a baby, buying an expensive car to deal with that, etc.

By increasing financial literacy, you will start to focus on acquiring assets instead of chasing a bigger salary. Then you can start living off of, and buying things with the cash flow from your assets, reinvesting any leftovers. Then you will be able to exit the rat race and become financially independent.

The most powerful asset is your mind, so make sure to invest in it. Successful people do the things they enjoy. Learn from them and find a job you enjoy doing.Also, “work to learn, don’t work to earn”. Find a job where you can learn about the essentials of starting a business on your own. Know a little about a lot - learn some accounting, investing, law, sales, marketing, leadership, writing, and speaking.Find mentors and people you look up to, who you can learn from and imitate.

✍️ My top 4 quotes These are, in my opinion, the top quotes from the book Rich Dad Poor Dad.

Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.

There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.

It is not the man who has too little, but the man who craves more, that is poor. - Seneca

If fear is too strong, the genius is suppressed