the author of the book Robert Kiyosaki says that he has two dads one his own biological dad and second his best friend's dad Robert's own dad was a PhD and was teaching at University his second dad from whom Robert learned how to become rich didn't even finish high school and learned everything in practice by himself at the beginning both of his dads earned enough money but when they died one died as a richest man in Hawaii and left millions of dollars to his family and the second one left debt and unpaid taxes to his family
Kiyosaki says earning money is a science which is not taught to us in schools schools teach us how to become an employee and build a career and because of that the majority of parents teach similar things to their children and direct them to the same direction which is becoming an employee if you are coming from a middle class family then there is a high probability that your parents taught you how to become poor and this is not because your parents don't love you or don't want you to be successful it is simply because they themselves
are not educated about this topic they consumed expired information and when you were born they passed the same expired information to you poverty is almost like genetics it passes on from one generation to another my parents always advised me to study very hard get a diploma and find a steady job however when I started to read books like this one I realized that I learned more from a few of these books compared to my entire University years if you are also coming from a middle class family and have not read Rich Dad Poor Dad then
I strongly recommend you to read it I wish somebody recommended it to me when I was 14 to 15 years old so many things could have been positively different in my life if I had read it earlier in my life in this video I'm going to talk about the seven main ideas from the book the first idea is about the importance of financial education and understanding the difference between an asset and a liability understanding this difference is the most important step for becoming rich simply put assets are something that puts money into your pocket and
a liability is something that takes money out of your pocket for example if you have a car and you rent it out and earn money every month then it is an asset but if you have a car and it takes money from your pocket every month for repairs maintenance Etc then it is a liability examples of assets can be rental properties company stocks precious metals Etc and liabilities are your home that you live in phone the car you drive Etc rich people focus on increasing their assets while poor people buy liabilities and focus on their
income poor people buy iPhone telephones rich people buy Apple stock which is an asset and increases in value over time but the telephone loses its value the moment you take it out of the store growing assets are like planting a tree you need to take care of it for years until its roots are deep enough to provide shade and bear fruits for your enjoyment unfortunately many people want to get rich quickly without learning about money that's like building a skyscraper with little or no foundation and that's why you see people who earn tons of money
but after a few years they lose all of it the second idea is this rich don't work for money their money works for them at a very young age Robert had his first business partner his schoolmate Mike they worked for the rich dad who taught them lessons on how to make money the first rule they learned was that the rich don't work hard for money their money works hard for them rich people use their brain and find ways so that their money works for them 24 7. from a rich person's perspective every dollar or peso
earned becomes a small employee and works hard to earn another one on the contrary the poor and middle class are Guided by fear or desire they fear of not being able to pay for their bills so they work even harder or when they earn more money their desire kicks in and they start spending it on liabilities such as nicer cars bigger houses Etc and because of these fears and desires they don't want to invest their money and time into New Opportunities they are afraid that they will lose their money if they risk it so they
go and buy a bigger screen TV while they already have one in comparison a rich person invests his money no matter what and even if he loses all the money he is still ahead because at least he learns something and this knowledge becomes a strong asset for his future Investments on the other side the TV loses most of its value after a few months and you end up losing your money anyway plus you lose the opportunity of learning something new the third idea is about understanding the taxes accounting and law according to Kiyosaki earning a
lot of money does not solve the problems learning how to keep that money after you earn it solves the problems if a rich person earns a hundred thousand dollars then he keeps all of it but if a poor or middle class person makes a hundred thousand dollars then he is heavily taxed and loses 30 to 40 percent of it Kiyosaki explains that in the beginning there were no taxes and the government created taxes to punish the rich and give it to the poor the government used the Robin Hood Mentality and people supported it but the
rich were smart and they found legal ways not to pay taxes one of the big differences is that the poor and middle class earn money pay taxes on that money and live with what is left the rich on the other hand earn money spend everything they can and pay taxes on whatever is left the fourth idea the rich invent money the author says that each person is born with talent but that Talent is suppressed because of self-doubt and fear he remarks that it's not necessarily the educated smart people who get ahead but the bold and
adventurous people never get ahead financially even if they have plenty of money because they have opportunities that they fail to catch because of fear and doubt most of them just sit around waiting for an opportunity to happen the author's idea is that people create luck they should not wait around for it he says it's the same with money it must be created the fifth idea work to learn don't work for money Kiyosaki says his Poor Dad was intelligent well educated and worked for money because job security meant everything to him rich dad became a millionaire
by working to learn the author recommends young people to seek work where they will learn more than they will earn especially in the areas of sales communication marketing accounting leading people Etc during an interview with the journalist Robert Kiyosaki learned that the journalist strived to become a best-selling author he realized she was a great writer and that she should pursue that she told him that she had tried but no one was interested he accidentally offended her when he told her to take a sales course so she could promote herself she became defensive she replied I
have a master's degree in English literature why would I go to school to learn to be a salesperson I am a professional I went to school to be trained in a profession so that I would not have to be a salesperson I hate salespeople all they want is money she packed her things Robert Kiyosaki gently pointed out that he was the best-selling author not the best writing author this statement only infuriated her more and the interview ended the world has many successful and talented people doctors lawyers dentists and still they struggle financially but as a
wise business consultant once said they are one skill away from great wealth if you took your skill set and paired it with financial intelligence accounting investing marketing or law you could achieve great wealth if that journalist had instead picked up a job at an ad agency to learn how to sell she could go on to create great wealth with her writing Rich Dad says you want to know a little about a lot in school and at work you're expected to specialize those who earn promotions tend to be specialists however Robert kiyosaki's Rich Dad always recommended
the opposite that's why throughout the years Robert would work in different areas of his Rich dad's company he was expected to attend meetings with lawyers Bankers accountants it was essential to the rich dad for Robert to know every aspect of creating an Empire idea number six people who avoid failure also avoid success most people never win because they're afraid of losing or failing if you look at the way humans are designed to learn we learn by making mistakes we learn to walk by falling down if we never fell down we would never walk the same
is true for learning to ride a bike the same is true for getting rich failure is part of the process of success Kiyosaki says I look at my money game much like my tennis game I play hard make mistakes correct make more mistakes correct and get better if I lose the game I reach across the net shake my opponent's hand smile and say see you next Saturday I personally know many people who have tried to create their own business but have failed and eventually gave up after three or four failures it always amazes me how
these people expected to be successful after a few trials giving up after three to four failures is like starting to go to the gym to get in shape but after a few days quitting because you didn't see any results you want to get in shape you need to be consistent you need to change your exercise routine if it's not effective you need to try a different diet you need to try a different trainer until you find what works for you unfortunately people do not apply the same mentality when it comes to getting financially fit idea
number seven don't focus on your income focus on your assets the long-term Rich build their asset column first and only then the income generated from the asset column buys their luxuries the poor and middle class buy luxuries with their own sweat and blood in other words if a rich person wants to buy a luxury car he doesn't buy it right away he first buys assets such as businesses or real estate and if the assets generate good income he uses it to buy the car they always focus on the asset first if you would like to
learn more and improve your financial IQ then I have two video recommendations for you on the left side of your screen you will see a summary of a book called increasing your financial IQ and on the right side you will see a summary of a book called Cash Flow quadrant both of them are written by Robert Kiyosaki thanks for watching and don't forget to subscribe for more book summaries
