Rich Dad Poor Dad - attitude to become rich


The above is the book title by Robert T. Kiyosaki. The book states the story of a person(the author) who has two fathers. The one was his biological father - the poor dad and the other is the father of his best friend Mike - the rich dad. Both fathers taught Robert different ways to get rich and become successful in life. Both have different approaches to achieve success in life. The poor dad was highly qualified as compared to the rich one. Throughout the book, the author defines the discrepancies in their approaches, mindset, ideas, principles. 

Poor dad principles

The poor dad is compared to the billions of fathers. 
  • Poor dad encouraged his son Robert to study well in school and get a higher degree. It will help him in getting a good job. According to him, a good job is the only aspiration. 
  • Education is the key to success.
  • He used to tell Robert that he shouldn't think about expensive things. They cannot afford expensive things in life.
  • Poor dad used to think that money is the only evil. For him, money is not the subject of interest.
  • The author compared his life with "Rat race." As he was occupied with the cycle of getting salary and payments throughout life.

Rich dad principles

The principles of rich dad were totally in contrast with the above ones mentioned. 
  • The rich dad encouraged Robert to make money. He should learn about investment and assets to earn wealth.
  • According to him, lack of money is evil rather than money.
  • He asked Robert to think about expensive things. Always think about how we can afford it?
    If you think big, then only your brain will do some action to achieve it.
  • He asked the author to manage risks in life rather than fearing them.

Rich don't work for money

The author states that poor people work for money, fear, and greed. Opportunities come and go. Rich people know how to grab those opportunities and get success. Poor people don't see these opportunities because they are very busy with their job and earning money. Poor people don't think big. That's the main reason for their condition throughout life. They are being trapped in the life cycle of income and expenses. How to save money, take insurance for life, looking for sale in the market, etc are their major areas of attention. On the other side, rich people don't invest time in making money. They buy assets which make money for them. Every difficult situation in life indicates only one thing "Wake up."

Financial literacy

The hard thing in life is to keep the money rather than earning it. The author is telling how much you can keep matters the most. Money without intelligence is waste. Rich people acquire assets whereas poor and middle-class people acquire liabilities, which they consider as their assets. For making wealth in life, one should understand the difference between assets and liabilities. Assets are something which puts money to your pocket, whereas liabilities takes money out from your pocket.
Assets are stocks, bonds, property, and website whereas liabilities are a car, clothes, gadgets, etc. The rich focus on their assets and invest in them. On the other hand, poor people think about managing their income. The author states that financial literacy begins with knowledge of accounting, investment, etc. We all should build assets which give us passive income. If we are sleeping or going on a vacation, then also our assets will generate money for us. Assets make wealth. That's why rich is getting richer and poor is getting poorer. Spend on making assets for your future.

The rich invent money

Everyone is born talented. According to the author, people suppressed their talent with fear and self-doubt. It's not educated smart people who earn wealth but the bold ones. Poor people fail to grab opportunities. Poor people wait for an opportunity for life long. Rich people grab opportunities to invest money. In the real world, you need not be smart or educated to earn money but bold. Sometimes, financial progress depends on taking risks. A person who knows how to make more money from existing sources will get success. An individual should work to gain knowledge rather than money. A knowledgeful mind can create enormous wealth. We just need to train it. "The choice is ours."

Learn to manage fear

The main difference between rich and poor is their way of managing fear. The poor people fear to lose their money. Rich knows how to manage fear and risks in life and earn wealth from the same. The poor people should work to control their fear, self-doubt, laziness, and arrogance. Arrogant people lose money for sure. They have a belief that whatever they don't know is not important. In this way, they lose money. Every individual should overcome these obstacles to begin their journey of success. 

True lines by Suze Orman related to the above summary:
The key to making money is to stay invested.

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