In your twenties, you will be making the most crucial life decision that will set you up for the future. However, in schools there is almost no attention for financial literacy. Luckily there is this book written by Robert T. Kiyosaki! In this Rich Dad Poor Dad review you will find out why it is a must read and what the key findings are. Interested? Read on!
Why Rich Dad Poor Dad is a must read
Rich Dad Poor Dad is a must read for everybody in their twenties because of the lack of financial knowledge that is taught in schools. The consequence is that people make a lot of bad financial decisions that decide a big part of the rest of their lives.
According to the OECD/INFE 2020 international survey of adult financial literacy, about half of the EU adult population does not have a good enough understanding of basic financial concepts. It gets even worse when we take income classes into account, where lower income classes suffer even more.
The book of Robert T. Kiyosaki is the perfect book to start learning more about this crucial life skill. It makes you think about certain things and is a good starting point for more in depth financial books. I recommend it to everyone that is in their twenties.
Key Findings from Rich Dad Poor Dad
Robert T Kiyosaki states a lot of crucial insights and if I had to state them all below, I would just be copying the book. In my opinion these are the four most insightful key findings. As i stated above, to get all the knowledge, read the book!
1. The importance of financial literacy
The first and most important lesson in Rich Dad Poor Dad for me is the importance of financial literacy. For those that have never heard this term before: financial literacy is the knowledge and skills needed to make important financial decisions.
In your twenties you make tons of important financial decisions such as, mortgage, pension and investing. A lot of people find out too late and suffer the consequences. So it is of major importance to start educating yourself about finances because it is not taught in school!
2. The difference between assets and liabilities
One of the most crucial insights and one you can immediately act upon is the difference between assets and liabilities. Most of the people think they are buying assets but they are buying liabilities instead. The difference is actually quite easy, liabilities cost you money and assets get you money. So the next time your paycheck is coming in, think really good about what you are buying. Is it only costing you money or is it getting you money (in the long-term)?
3. Let money work FOR you
Most of the people work for money. You spend a certain amount of hours in a job just to get a pay-check at the end of the month to cover your expenses. Once you start making more money, you also start to spend more.
That is why broke people stay broke, they spend all their money. Middle-class people stay middle class by saving all their money. Rich people stay rich by laboring all their money.
If you work for money, you will run out of time to make enough money. The most common problem is people don’t want to learn about money. They study their subjects, go to work, get paychecks, and die. So it is crucial to start educating yourself as soon as possible.
4. The power of corporations
The harder your work, the more you pay the government. A corporation is the biggest secret of the rich. They use it to escape unnecessary taxes. But what many people don’t get is that the corporation is not really a thing. It’s merely a file folder with some legal documents in it.
A few quotes worth mentioning
Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.~ Robert T. Kiyosaki – Rich Dad Poor Dad
You’re only poor if you give up. The most important thing is that you did something. Most people only talk and dream of getting rich. You’ve done something.~ Robert T. Kiyosaki – Rich Dad Poor Dad
The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.~ Robert T. Kiyosaki – Rich Dad Poor Dad
Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.~ Robert T. Kiyosaki – Rich Dad Poor Dad
Learn to use your emotions to think, not think with your emotions.~ Robert T. Kiyosaki – Rich Dad Poor Dad
About Robert T. Kiyosaki
Robert Toru Kiyosaki is an American investor, businessman, author of self-help books and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad book series, a series of financial self-help and motivational books, and other resources released under the Rich Dad brand.
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