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What is Rich Dad Poor Dad about? And why you NEED to care.

Do you want to get ahead in life?

But feel like you are caught in a cycle of living paycheck to paycheck?

Do you wonder how the heck some people get so &^%&* rich?

You wouldn’t say this out loud…but sometimes….you wish you were them?

Well, Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Notreveals the secret as to why some people are rich and why most never get ahead.

They just know something you don’t, so find out what it is and level the playing field!

But it’s not for the faint hearted…it might shake up old beliefs

I can’t remember how I came across Rich dad poor dad. It was probably my dad who picked up the book and slipped it into my room in my late teens.

As a teenage it would NOT have been my cup of tea but once I picked it up, I just could not stop and I devoured it from cover and cover.

Both my grandmothers actually lived through the horrors of the Second World War – they know what it’s like to ACTUALLY be starving. They never had the opportunity to go to school as girls, so when both their husbands passed away at a young age, they were left to find desperate ways to make ends meet and feed their children. A hard hard life.

So naturally, they wanted MORE and better for their children. They emphasized that it was VITAL to get a good education and a secure job. And that is what my uncle and dad did. This meant that the way I grew up was vastly different and much more comfortable than what the previous generation had experienced.

So this is what my grandmothers told me to do too – get a good education and get a secure job. And you will never be in want for the rest of your life.

This book, threw all of that out of the window and made me question everything I was ever taught. While my grandmothers gave the best advice they knew, this book opened my mind to the possibilities of a completely different way of thinking and doing things.

That day I decided. I wanted to be like Rich dad. I don’t want to be like Poor dad!

So what is Rich Dad, Poor Dad about – the quick version?

The Problem – Getting caught in the Rat Race

Robert Kiyosaki spends the first few chapters discussing the concept of the “Rat Race”.

This is where an employee works hard for an employer to receive a raise or a promotion and as their income increases, their expenses increase as well.

As the employee’s debt increases, he becomes further tied to their job and MORE reliant upon their pay check. This means they are forced to work harder and harder for the next promotion to pay their debts. The employee never seems to get ahead and the cycle goes on and on, like a rat running in a wheel going nowhere. Hence, the reference to a “rat” in a race.

Who is Rich Dad and Poor Dad?

His real dad a.k.a poor dad was a highly educated man and had a high ranking job in education for many years. Towards the end of his career, he lost his job, ended up with little to show for financially.

So Robert thought, I don’t want to end up like you. Maybe I should do something different. He contrasts what his poor dad taught him with what he learnt from his rich dad (his best friend’s dad).

His rich dad didn’t follow the convention path of education and a secure job but at the end of his life he was only of the wealthiest men in the state of Hawaii! So we all want to learn from HIM!

Some things rich people do differently from most people

  • Most people are in category E or S – their profession is the only source of their income. They trade hours for dollars.
  • Rich people are in category I or E – their assets produce income even when they are sleeping. This is called passive income!

Have I got your attention yet?

Rich Dad, Poor dad was my wakeup call to questions why had studied so hard just to run in a wheel of going to work, paying the bills and then doing it all again the next day, without ever feeling like I was getting ahead.

It made me sit up and decide to take action! I don’t want to trade my hours for dollars anymore. Today, I am absolutely committed to building streams of passive income which will allow me to escape the rat race and spend MORE time with the people I love, doing the things I love.

You can do the same too. Don’t know where to start?

Let me guide you, so you don’t have to spend time sorting through the pieces yourself which can be confusing and very overwhelming.

If you are ready to take the first step then I suggest you check out my no. 1 recommendation here. This is for those who are serious about building an additional stream of income online. If that’s you and you are willing to commit time and effort, then check it out.

 

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6 Comments

  • Reply Will July 8, 2017 at 4:06 am

    Wow. I remember reading about this book in an article that was about women choosing rich men over average men. This book is very powerful for the young people of today. That model of getting a good job and working til retirement worked in the old days but not anymore. My dad worked for the MTA for nearly thirty years, and thankfully, he is happily retired and is able to enjoy his life now without worry. I believe these days is about working smarter not harder. I definitely don’t want to spend the rest of my life trading hours for dollars

    • Reply Shan July 8, 2017 at 9:17 am

      Ouch, I hope women aren’t choosing men just based on their finances but perhaps its their “out of the box” mindset that they find attractive.

      That awesome for your dad! My dad is exactly the same too – loyalty worker and now happily retired. Happy that they didn’t have to experience what Robert Kiyosaki’s Poor Dad experienced but I know our generation won’t be able to rely on good pensions and superannuation that’s for sure. 

      That’s the spirit! My journey online all started when I personally decided I had enough of trading hours for dollars too. My biggest issue was I wasn’t sure where to get started. If you are interested, I wrote a post on my journey to finding my greatest resource to getting started online (after lots of heartache)

      I encourage you to keep exploring ways to build passive income, you won’t be sorry you tried 🙂

  • Reply Nick July 8, 2017 at 4:11 am

    Rich Dad, Poor Dad is such a classic book on financial education! I tried reading it once when I was in high school, but didn’t really understand it at the time. Then I re-read it after college and my mind was blown!

    I think that he really opens your eyes to the way that money really works in the real world, and how the rich people think and act in a different way than the poor and middle class.

    For me, the biggest takeaway was the need for people to run their own business, even if only part time, in order to help build their wealth. There are just so many advantages that business owners have that employees don’t get like tax advantages, and the potential of passive income.

    I haven’t read a lot of his other books. Does he have any other ones that are also really good?

    • Reply Shan July 8, 2017 at 8:35 am

      I think its awesome you even picked up the book in High School! 

      Yes, I feel the same way. Like my eyes were opened to the way rich people think vs the middle class. And I was blown away too that it was a mindset thing -something that was truely within our control. 

      I know! The tax advantages for businesses over employee is just crazy. That’s why I decided to go into business too!

      I personally love his other book, Rich Dad’s CASHFLOW Quadrant. It goes much more into depth into the advantages of being a business owner and investor over an employee. But my all time favourite is the CASHFLOW Board Game .

      That really helps you practice the mindset as you play the game and helps the “new” way of thinking really sink in. I would recommend playing this boardgames above any of Robert Kiyosaki’s other books (like the guide to investing and property investing) which are helpful but quite high level and lack in depth actionable information.

      We have had lots of friends found to play the game and its addictive and really shifts people’s way of thinking. We now all want to be investors and business owners! 🙂

  • Reply Minhaj July 8, 2017 at 4:27 am

    Hi Shan

    Thanks for the review, I really need to read this book, it seems to be on the books to read list of every famous internet entrepreneur.
    The part about being tied to your job through debt accumulation is something that I had never thought about and it is true.
    The first thing that needs to change if people want financial freedom is their mindset, we are programmed to always think like an employee, when that shift happens, that’s when you will see the true possibilities.
    Gonna definitely get this book.

    • Reply Shan July 8, 2017 at 8:30 am

      Hi Minhaj

      That’s great, so glad that you’ve decided to get the book! Its definitely the first step to changing your mindset and open your mind to the possibilities. Financial freedom is not something only an elusive entitled few can achieve. You can too 🙂 

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