Rich Dad, Poor Dad by Robert Kiyosaki

WORK & MONEY

“Just know that it’s fear that keeps most people working at a job. The fear of not paying their bills. The fear of being fired. The fear of not having enough money. The fear of starting over.” – Robert Kiyosaki
These things will always be a part of life (if you decide to live that type of life – but that’s not the point of this book), so unless you enjoy that fear, start coming up with ways to get over it. For me, this is where the concept of passive income comes in. Although I’m still new to it, my goal is to be able to have this passive income take care of my basic necessities so I don’t have to live in this “fear”.

MONEY PSYCHOSIS

“The avoidance of money is just as psychotic as being attached to money.” – Robert Kiyosaki
Money has made life a lot easier – there is no need to barter for items anymore, it allows you the freedom and flexibility to buy what you want. Understand and accept that you are a part of the circulation of money. What role you play is up to you.

CHOOSE YOUR THOUGHTS

“Going into our fear and confronting our greed, our weaknesses, our neediness is the way out. And the way out is through the mind, by choosing our thoughts.” – Robert Kiyosaki
In other words, are you choosing what to think or are you reacting to your emotions?

FINANCIAL LITERACY

“If they think money will solve the problems, I am afraid those people will have a rough ride. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.” – Robert Kiyosaki
The greatest asset to you is yourself. The more you know, the more you can help people tackle their challenges and the more variety you have when it comes to making money.

RULE #1: BUY ASSETS

“Rich people acquire assets. Poor and middle class acquire liabilities, but they think they are assets.” – Robert Kiyosaki
Quite simple: assets put money in your pocket, liabilities takes money out of your pockets

OPPORTUNITY COSTS

“The greatest losses of all are those from missed opportunities. If all your money is tied up in your house, you may be forced to work harder because your money continues blowing out of the expense column, instead of adding to the asset column, the classic middle class cash flow problem.” – Robert Kiyosaki
Opportunity cost is a very important concept. For those who are not familiar with it, it’s the concept that by choosing one thing, you forgo the other. Sometimes the second opportunity is not as easy to see because it might pop up later in time.

WEALTH

“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?” – Robert Kiyosaki
Not exactly how I would describe wealth, but if we focus on just the financial aspect of life, I guess that’s one way to look at it. Now using that wealth, how are you going to create even more assets? (the first step should be training your mind)

OVERCOMING OBSTACLES

“There are five main reasons why financially literate people may still not develop abundant asset columns: 1. Fear. 2. Cynicism. 3. Laziness. 4. Bad habits. 5. Arrogance.”- Robert Kiyosaki
I agree with all of that and I recommend you look at that list and be true to yourself – where do you sit?

FEAR

“Life is much like going to the gym. The most painful part is deciding to go. Once you get past that, it’s easy.” – Robert Kiyosaki
“The primary difference between a rich person and a poor person is how they handle that fear.” – Robert Kiyosaki
That’s about it.

FOCUS

“Concentrate all your thoughts on the task at hand. The sun’s rays do not burn until brought to a focus.” – Alexander Graham Bell
If you are serious about changing, you need to stay focused on the plan that you’ve set out for yourself.

GIVE, GIVE, GIVE!!

“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, friendship. I know it is often the last thing a person may want to do, but it has always worked for me.” – Robert Kiyosaki

My Take Aways

This has been a book that I’ve heard so much about – particularly when it comes to real estate investment – so it was weird to see this PN talk about how homes are not considered assets (though I think they meant just a house that wasn’t being rented out). I ended up getting this book at a second hand shop and from what I’ve read thus far in the book, it seems to have some really good concepts, so I think he has a few books.

That said, I’m committed to read this book and if you are interested in asset investment, it should be a good read. I don’t believe this PN is reviewing the same book as I picked up by Kiyosaki. I’ll keep you updated! If you’re still interested in the book that this PN covered, you can get it here (please note that I will be getting a small amount from Amazon, though it does not affect how much you pay – Amazon just makes less money than if you were to go onto the website yourself). I also suggest you check out the actual Philosopher’s Notes (note they even have courses that consolidate many of the concepts in the books that Brian Joshnson covers and puts them into videos that are really easy to digest). This is the first program that I’ve signed up for and am definitely getting my money’s worth!

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