The Smart Spin

# 81 Summary. of Rich Dad and Poor Dad by Robert Kiyosaki

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In this episode, we are discussing Robert Kiyosaki's "Rich Dad Poor Dad" audiobook summarizes Kiyosaki's six core lessons on financial literacy. These lessons emphasize the importance of acquiring assets rather than liabilities, understanding the difference between assets and liabilities, and developing financial intelligence through knowledge of accounting, investing, markets, and the law. The text highlights the need to master emotions like fear and greed, build a strong financial foundation early in life, and mind one's own business by creating income-generating assets, ultimately achieving financial freedom and independence. The author encourages readers to learn continuously, take calculated risks, and actively seek opportunities rather than passively working for money.


Core Themes:

  • The Power of Mindset: Kiyosaki emphasizes the importance of thoughts and beliefs in shaping financial outcomes. His rich dad believed in constantly challenging limiting beliefs, epitomized by the question "How can I afford it?" versus the statement "I can't afford it." This proactive mindset encourages problem-solving and fosters financial growth.
  • "He did not mean that you should buy everything you want. He was fanatical about exercising your mind... My brain gets stronger every day because I exercise it. The stronger it gets, the more money I can make."
  • Financial Literacy: Understanding money and how it works is crucial for building wealth. This includes grasping the difference between assets (things that put money in your pocket) and liabilities (things that take money out).
  • "The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets."
  • Minding Your Own Business: Kiyosaki advocates for focusing on building your own asset column, rather than solely relying on a job. This means acquiring income-generating assets like businesses, stocks, real estate, and intellectual property.
  • "Keep your day job, be a great hard-working employee, but keep building that asset column."
  • Learning from Failure: Kiyosaki sees failure as a stepping stone to success. He encourages learning from mistakes, adapting, and using them as motivation to improve.
  • "Texans don't bury their failures, they get inspired by them. They take their failures and turn them into rallying cries."
  • Overcoming Fear and Doubt: Fear and self-doubt are significant obstacles to financial success. Kiyosaki urges readers to confront these emotions, analyze opportunities critically, and take calculated risks.
  • "Most people are poor because when it comes to investing, the world is filled with chicken littles running around yelling the sky is falling, the sky is falling."

    • Important Ideas/Facts:

    • Rich Dad's Definition of Wealth: Wealth is measured by how long you could survive financially if you stopped working today. It’s about building a sustainable cash flow from your assets.
    • "Wealth is a person's ability to survive so many number of days forward—or, if I stopped working today, how long could I survive?"
    • Working to Learn, Not Just for Money: Seek jobs that offer valuable skills and knowledge, even if they don't pay the highest wages. These skills can be used to build your own business or invest wisely.
    • "Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the rat race."
    • The Importance of Financial Mentors: Learning from experienced individuals can accelerate your financial journey. Kiyosaki credits his rich dad for providing valuable guidance and insights.
    • "Find someone who has done what you want to do. Take them to lunch and ask them for tips and tricks of the trade."
    • Pay Yourself First: Prioritize saving and investing before paying bills. This instills financial discipline and emphasizes the importance of building your asset column.
    • "The reason I minimize my income is because I don’t want to pay it to the government. That is why my income comes from my asset column through a Nevada corporation."
    • Generosity Attracts Wealth: Kiyosaki advocates for the principle of reciprocity - giving what you want to receive. He believes that generosity with money, knowledge, and time ultimately attracts abundance.
    • "Whenever you feel short or in need of something, give what you want first and it will come back in buckets. That is true for money, a smile, love, or friendship."

      • Conclusion:

      Kiyosaki's "Rich Dad Poor Dad" offers a unique perspective on wealth building, emphasizing the importance of mindset, financial literacy, and taking control of your finances. The book encourages readers to challenge conventional wisdom, develop their financial intelligence, and build a life of financial freedom.


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      The Smart SpinBy lazybutt