You will be surprised to know that 1% of people own almost 50% of the world’s wealth. Why has this happened? Why do most of us remain poor? Is it just fate? Or is there another reason? You need to know “Rich Dad Poor Dad” summary in short!
This is what we will discuss today from the best-selling book “Rich Dad Poor Dad”. The book was written by Robert T. Kiyosaki. The author argues that our education system is largely responsible for this situation.
Because only 10% of what we learn through the education system is useful to us. So, to live a practical life, we learn from our mothers or the surrounding environment. In this case, if our father is not among the 1% wealthy people, then they cannot teach us how to become rich.
Rather, they teach us how to be poor. Because they have also received this wrong education since childhood.If a child asks his father, why do I have to study? In response, the father says that one has to study to get a higher degree. Then one has to do a job with a large salary.
The author’s father himself used to tell the author these things. The author’s father was also highly educated. He has a PhD degree. But still, he suffered from financial problems. But the author’s rich father, that is, his friend’s father, who had only passed 8th grade. He was a successful business person.
He used to say, you have to study so that you can start your own company when you grow up. And you can give people good jobs. The poor father used to tell him, you work for money. And the rich father used to say, you have to find a way so that money works for you. What happens in our case?
Since we don’t have a rich father around us, we start chasing money according to the advice of the poor father. As a result, we have to live with the lesson of being poor all our lives. But it is the age of information technology now.
So, we can learn a lot from rich fathers if we want. Jeff Bezos, Elon Musk, Warren Buffett, Kiyosaki and others, we can learn the lessons of all of them.
Therefore, Idea Number 1 Is To Get The Right Education From The Right Person!
What do we do after getting a job? Maybe we should buy a hobby bike or car. We can divide assets into two parts. The first is assets and the second is liabilities. An asset is anything that produces income or increases your wealth over time.
For example: rented cars, rented houses, business establishments, etc. That is, things from which we earn a regular income.If there is a second thing, it’s liabilities. That is, the things or objects that cause us to spend money from our pockets.
For example: your hobby bike or car. Which takes fuel costs out of your pocket. Or an expensive smartphone, which is more than you need. Or any broken parts. These do not earn us money.
Therefore, these are liabilities. The main obstacle to becoming rich is your liabilities. So, should expensive or hobby items not be purchased? This is also a misconception. Whatever you buy, you just have to keep one thing in mind.
Most of your income should be spent on assets and a minimum portion should be spent on liabilities. That is, the money you earn should not be spent on unnecessary things. You have to spend on things that will make you richer.
Also, no matter how much money you earn, if most of the money is spent on liabilities, your situation will remain the same.
So, Idea Number 2 Is, Increase The Number Of Assets And Reduce The Number Of Liabilities!
Generally, there are two types of income methods. 1. Active 2. Passive. If you get money as long as you work, then it is called active income. For example: food stalls, medicine shops, etc. Because you earn as long as you keep the shop open and sell products.
But if you keep the shop closed, you don’t earn.But if you do something for which you get paid 24 hours a day, it’s called passive income. You can earn money through passive income even while you sleep. For example: YouTube, websites, etc.
Even if a YouTuber or blogger sleeps at night, viewers visit their platform. As a result, their platform always earns income. Now, if you only work for active income, then you are working for money.
This is what poor fathers do. And if you earn passive income, then money is working for you. This is what rich fathers do. So, if you only depend on active income, there is a possibility that you will have to spend your whole life in the same condition.
