Rich Dad, Poor Dad is a book that educates readers about financial literacy. Robert Kiyosaki, the author, has two dads – one rich and one poor, although the rich dad is not his, but his friend’s dad. Both dads have different views about earning money, and Robert had the choice of contrasting both views while growing up. His rich dad’s views were more powerful and useful to Robert. The author guides the reader through six main lessons his rich dad taught him on how to let money work for you, instead of working for money.
Lesson 1 – The Rich don’t Work for Money
“The poor and the middle class work for money. The rich have money work for them.”
The first lesson focuses on the two reasons behind poverty and unhappiness in the middle and lower class.
• of being without money
• people react emotionally instead of using their brain and thinking about their fears
• to have materialistic riches
• drives people and makes decisions for them
• once achieved, people fear losing the riches
These two are the reasons why people in the middle and lower class get stuck in the “Rat Race”, which is the continuous cycle of earning money and spending it on expenses. You should ignore these emotions of fear and desire, which control you and your thoughts.
Lesson 2 – Why teach Financial Literacy?
“In order to understand financial literacy, you need to know the difference between an asset and a liability.”
The second lesson concentrates on the importance of financial literacy. There is one rule to follow so as to understand financial literacy – “Know the difference between an asset and a liability, and buy more assets.” In order to do this, you need to be able to understand and comprehend numbers instead of jus...
... middle of paper ...
...job to earn, you should be able to manage the following through your management skills:
1. Cash flow
This chapter shows the readers five reasons why financially literate people may still have trouble increasing their assets.
1. Fear – of losing money
2. Cynicism – overcoming pessimism
3. Laziness – by staying “busy”
4. Habits – of paying others first
5. Arrogance – ego + ignorance
This chapter teaches ten steps to develop powers and have control over yourself:
1. Have a reason greater than reality.
2. Choose daily.
3. Choose friends carefully.
4. Master a formula and then learn a new one.
5. Pay yourself first.
6. Pay your brokers well.
7. Be an “Indian Giver”.
8. Assets buy luxuries.
9. The need for heroes.
10. Teach and you shall receive.
Rich Dad, Poor Dad by Robert Kiyosaki
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Rich Dad Poor Dad is a self-help motivational narrative novel written to teach others financial independence. Written by Robert T. Kayosaki with Sharon Lechter, the book has been titled the #1 personal finance book of all time. Rich Dad Poor Dad is the first book of the Rich Dad series. The 207page book purpose is to teach people importance of financial literacy and how taking risk can lead to having wealth. In the book the author tells his personal story of growing up in Hawaii in a middle class family with the teachings of two dads.... [tags: finance, wealth, risk, lessons, success]
662 words (1.9 pages)
- Analysis of Charles Dickens' A Christmas Carol It is hard to believe that there is anyone on the planet that hasn't heard of the story "A Christmas Carol". Although it isn't hard to believe that people do not realize that there are differences between movies and novels. In this case, that fits right into that subject. Here are some of the differences between the movie and the novel. One minor difference in the movie was that the Ghost of Christmas yet to come has a hand of skin. Not a hand without skin that was wrote in the book.... [tags: Dickens Christmas Carol Analysis]
1041 words (3 pages)
- In the book Rich Dad, Poor Dad the writers stresses the importance of financial literacy. Before reading this book, I will be honest and say I had no urgency to learn about money and how it operated. Personally, I figured this was something you learned as you receive wealth, not beforehand. After reading Rich Dad, Poor Dad and learning about the success he has had after learning about wealth, I would agree that by learning how money operates is key to obtaining it. This book did not change my mind about the subject, but it broaden my outlook on what it take to gain wealth and how to keep it not just for myself, but for my family also.... [tags: Learning, Knowledge, Economics]
707 words (2 pages)
- In the excerpt “Rich and Poor,” from Peter Singer’s book “Practical Ethics,” Singer critiques how he portrays the way we respond to both absolute poverty and absolute affluence. Before coming to this class, I have always believed that donating or giving something of your own to help someone else is a moral decision. After reading Peter Singer’s argument that we are obligated to assist extreme poverty, I remain with the same beliefs I previously had. I will argue that Singer’s argument is not convincing.... [tags: Poverty, Wealth, Ethics, Morality]
1164 words (3.3 pages)
- In American society, there is a large disparity of wealth between the rich and the poor. This wealth disparity has far reaching effects into the areas of politics, education, culture, and more. By using their wealth to dominate politics, education, and culture, the rich perpetuate the exclusion of the poor into the substandard position of poverty. The rich have made popular culture a staple of modern society while at the same time placing it out of the financial reach of the poor. Watkins exemplifies this fact by telling a story using himself and his poor friends.... [tags: Poverty, Wealth, Cycle of poverty, Culture]
1078 words (3.1 pages)
- The Gap Between Rich and Poor As Christmas time approaches, many Americans start to get excited about returning home to all of the familiar festivities. They imagine the smell of the Christmas tree mixed with the aroma of apple cider or think about all of the Christmas specials on television that they will watch. They can not wait to relax in front of the fireplace with their families and to open all of the Christmas gifts piled under the tree. On the other hand, more than half of the rest of the world will not be having the kind of holiday with presents, fireplaces, and television specials that most Americans are used to.... [tags: Poverty Poor Essays]
1248 words (3.6 pages)
- Rhetorical Analysis of Capitalism: A Love Story Throughout the movie, Michael Moore wants the audience to feel the emotion that he, as the director, has put into the film. Michael Moore puts his life work into this movie because this, for him, was not just a new movie subject, this affected his family directly. His father lost his job at an assembly line after thirty-seven loyal years of service because the company thought they could make more money cutting the workers. He has spent countless hours and years on the film because he was able to see that the economy was self destructing with greed.... [tags: Capitalism, Middle class, Michael Moore, Rhetoric]
1172 words (3.3 pages)
- With the poverty rate at a 15.0 percent in the 2012 Census Bureau, Americans who signify this disturbing figure should fight to demand tax increase of the upper class. According to DeNavas et al., “there were 46.5 million Americans living in poverty (DeNavas et al.).” In affects to the Bush tax cuts, numerical data proves poverty rate besides measure of poverty are immobile; contrast to former estimates reckoned in earlier years. As rich people carry on clasping extreme salaries, the poverty rate remains simultaneously impacted.... [tags: rich people, poverty, social classes, taxes]
1184 words (3.4 pages)
- A true tale of two dads, one dad is a highly educated professor, the other, an eighth grade dropout. The educated dad left his family with nothing, except a few unpaid bills. The dropout later became one of Hawaii’s richest men and left his son a fortune. The educated dad would say, “I can’t afford it” while the other, asked, “How can I afford it?” Rich dad teaches the boys priceless lessons on money, by making them learn through experience. The most important lesson he teaches is to free yourself from the “rat race” of life and learn to make money work for you, and not be its slave.... [tags: essays research papers]
639 words (1.8 pages)
- Analysis of The Rich Brother by Tobias Wolff Tobias Wolff’s “The Rich Brother” is a story of two brothers, Donald and Pete. These brothers have very contrasting lifestyles; Pete is a successful businessman with a wife and kids. Donald, on the other hand, is an outcast. He’s unemployed and irresponsible. He lives his life as a vagabond. Despite these facts, the successful brother, Pete, still lacks the self-esteem he desperately craves. Therefore he tries to make his brother, Donald, feel foolish with every chance he gets.... [tags: The Rich Brother Tobias Wolff Essays]
501 words (1.4 pages)
- Chaucer’s Canterbury Tales Proves How Historical Changes To The English Langue Can Cause Middle English Works Impossible To Read.
- Taiwan Must Eliminate the Dependence on Nuclear Power
- Tyrrhenian Sea: Can the back arc rifting nature of the Tyrrhenian Sea be deduced from its geochemistry?
- Definition of burglary
- Family Violence in Thailand
- The Assembly and Maintenance of Heterochromatin