Rich dad and poor dad summary in english

About book

Rich dad and poor dad is a self-help and personal financial management book written by Robert Kiyosaki. In this book Robert explains that the rich people do not teach their children what the poor and the middle-class parents teach about money, by reading this book, you know how money is used properly. In this book, you Learn that rich people do not work for money, but money works for them. This book is written as a mythical novel in which the story of Rich Dad Poor Dad is written.

About Robert Kiyosaki

Robert Kiyosaki grew up in Hawaii city of America . his father was head of education in Hawaii state Robert's education took place in new york and after u.u. joins s. marine corps and reached Vietnam as an officer and helicopter gunship pilot. Robert's business career began when he came back. in 1977, he established a company in which he made a worldwide product of millions of dollars. In 1985 he set up an international educational company, leaving the business world, people who have learned the merchandise and investment properties rich dad poor dad published the book, New York Times's Best Seller. Today many books are available in the market of business and investment but among all book, his book comes in top.

summary of rich dad and poor dad book 

Robert Kiyosaki says that how much money a person will earn in life and how successful, all this depends on his expenses and investment habits. People learn to spend money by their parents. This is the reason why poor people can not change their spending habits and never become rich.

After reading this book, I divide the summary into 5 points. So let's begin

Point 1 - Rich People Do Not Work For Money

Rich people do not work for money - All people in the world want to be rich but do not get it because they do not take risks that do not take the necessary risks for doing business. To make business and to become rich, it is important to take risks. Middle-class people are always afraid to take risks, so they do not do business or are ever rich. Rich people are never afraid to take risks and they take the risk to earn money. Friends, it is not that wealthy people never find it difficult in life. Many times rich people also do not have good business, but even under such circumstances, they do not lose courage and learn from their mistakes. Most people lose courage in opposite conditions and close the business.

Robert Kiyosaki says that we must take a decision without thinking and thinking to succeed in business. The writer had a childhood friend whose father was called Rich Dad. Rich Dad taught to the author how ordinary people keep doing such jobs all the time, which they do not like at all, and such people never dare to start their own business. Rich Dad explained to him that not the formal education but the person responsible for the work is the best teacher of the person. There are very few people who dream of becoming rich and start their own business by planning for start from the end. Such people do not do business just to earn money, they provide a good product for a long time to people, in return for which they get money.

Point 2 - The poor and middle class work for money, but the rich make money work for them
Poor and middle-class people work to earn money, but their money works for rich people. Poor and middle-class people do not know how to manage their wealth so they can not become rich in life. They want the results of any work at the same time, if they do any work then they can not wait to make money, whereas most do not happen in business. Most of the money they make spend on them at the same time. If he only takes a few bucks, then he invests in schemes like mutual funds in which he is afraid of the loss of money. If a poor or middle-class person gets a little more than his salary then he will soon buy something for him. Most of them buy their home furnishings and if they get a bigger amount than they buy a car or a new home. To do this, their living standard increases but their expenses are increased as well. As the expenditure increases, they do not have the money to invest, and author Robert Kiyosaki says that no one without investing can become wealthy. The poor and middle-class people keep working for the rest of their life and they also recommend taking care of their children by studying. Robert Kiyosaki has named such people as Rat Race

To become rich, one has to learn a lot, especially about business and wealth. Rich people always work actively and are not afraid to take risks in business. They invest their money in such a business, in which they are expected to have good profits in the coming time. After investing money in business, he earns money from the same business. Some people invest in many types of investment schemes and thus their money works for them. Rich people know how to make money by money, so their money works for them.

Point 3 - Why Is Economic Education Important?

In order to be rich, it is important to mold yourself according to the changing economic conditions. We should seek financial education to earn money because it is never taught in schools. Accounting is a very important topic in economic education. To become rich, you must know the difference between property and liability. You should use your sources to obtain the property and not the liability. Poor and middle-class people do not know the difference in property and liability and they consider buying debt as property. Rich people do not make such a mistake because they know the difference between property and liability. Property is that which is your own and which you can use to earn money. Liability means something that is the responsibility of giving money to us after buying it. There are two important things in economic education that every person should know who wants to be rich.

The first Profit / Loss sheet - Profit / Loss sheet is a list of your income and expenses, and it calculates the total earnings you save after your expenses.

Second Balance Sheet - Balance Sheet is the list of your property and liabilities and the total value is calculated in it.

The biggest problem of poor and middle-class people is that their expenses and liabilities are more than their income and property. More money cannot solve their financial circumstances. As the income of a person increases, then the tax that fills up increases, poor and middle-class people ignore this. Friend, now I will tell you some important things about home and property.
  • Most people buy a house with a loan, which is a great liability. If a person takes a loan of 30 years to buy a house, he will buy a new house even before the loan expires. Now, this new home loan has to be repaid for 30 years. The new house that people consider to be their property is actually their debt as a loan.
  • You have to always fill out the property tax whether you have bought it on your home loan or without a loan. You have to pay a property tax even after paying a home loan.
  • The value of the property can also be lower and the cost of your property also decreases with it.
  • Money invested in home or property and no more profitable plans can be invested.
Author Robert Kiyosaki has made a lot of money by investing in Rental Real Estate. Rental Real Estate means to rent a property and earn money from it as a rental. A house may be your property if it gives you more money than the cost of its maintenance and tax expense, or if it increases its value over time.

Point 4 - Mind your own business

Your business, which you call your job is very different from your business. You should never rely on the job for your financial security. You should do business and make as many assets as possible. The financial problems of any person are the result of working for others throughout his life. Therefore, poor and middle-class people do not have anything in the last days of their life. Poor people have no property, only liabilities happen. Middle-class people have little property and many liabilities, which they consider as property such as home and household goods bought on the loan. We should buy as much property as possible in our life, such as property and home which we can use to earn money. The author's Rich Dad explained to him that the real estate is the one you can make money such as stocks, bonds, mutual funds, real estate property, copyright, books, music, etc. You can buy any of these properties which you like, such as author Robert Kiyosaki, who liked to buy real estate properties, so he bought a lot of properties and made a lot of money by leasing them.

A good businessman is the one who does not swerve in emotions and thinks it through thinking. Writer Robert Kiyosaki did not have any emotional thoughts in his heart for any of his property. He always kept looking for new properties and selling old properties to buy new ones, which could earn more money. Any business has to take risks and also have to work hard to succeed. Most people fail in business in the first year because they do some mistakes at the beginning of the business and they do not have the determination to run their business for a long time. We should plan to run long hours before starting any business such as author Robert Kiyosaki in his real estate business. That is why we should not be scared of taking risks while doing business, and to make it successful, we have to get all the information and plan a long time. Friends, if you want to do any business and you do not know about it then you should seek help from those people who have been successfully doing that business for a long time. Doing this reduces risk and increases the chances of successful business.

Point 5 - The history of taxes and the power of corporations

Taxes started when people were taught that rich people should pay a penalty for making more money. The tax was initially used to mean that the person who earns more money will pay a part of the fine to the government. Taxes were made for rich people, but later it was also implemented for middle-class people too. Initially, poor people and middle-class people supported the tax system. Today, middle-class people pay the highest tax and rich people pay the lowest tax because rich people know many ways to save tax. Corporation tax is always less than income tax, therefore, rich people invest their wealth in the corporation. The corporation gets a number of exemptions for tax. The author's Rich Dad says that rich people are more talented and work harder than the poor and middle-class people, so they do business and earn more money from them. Therefore, Rich Dad says it is wrong to impose more income tax on rich people. Whatever changes are made in the economy of the country, rich people adopt themselves according to them. He earns money by working hard, so he finds new ways of saving tax from the government. The authors say that if you want to be rich, then you have to understand your country's tax system and find new ways to save tax.

                        Why you should read this book?

Rich Dad and Poor Dad is a world-famous book written by Robert Kiyosaki he has changed the thinking of people around the world parents send their children to school but for many years in a school financial literacy is not given they are doubt only for job security lesson but money is not out to get work done for them and to develop the investment properties you must read this book this will give you a practical understanding of the market and the money which can change your financial life.

Rich dad and poor dad summary in english Rich dad and poor dad summary in english Reviewed by Shivam kumar on 11:12 AM Rating: 5

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