Rich dad Poor dad summary

Here is a man named Robert Kiyosaki, he wasn't raised in a wealthy background. His family was like most people who work didn't have the best financial education, and often times struggled with money. SO, THEN HOW DID HE BECOME RICH TODAY???

One day Robert asked his dad who had a Ph.D. with excellent degrees, "Dad can you tell me how to become rich? "

Unfortunately his dad didn't know the answer, but responded ...

" Use your head son, stay in school ,get good grades ,so you could find a safe and secured job ". 

His real dad, is referred as a poor dad. He wasn't poor at this time, in fact he was making lots of money, BUT in the end this man's financial life takes a turn for the worse.

Robert has a friend, Mike, here Mike's father is referred to as the rich dad.

Rich dad often said, School teaches us to work hard for money, but rich make the money work for them. It's financial literacy that's more important to master the power of money if not you will end up being a slave for it.

ASSET   VS   LIABILITY 

The first lesson is that you must know the difference between asset and liability and invest in assets.

The rich acquire assets, the middle class and the poor acquire liabilities thinking that it is an asset, believe it or not, a house is a liability.

The primary cause of financial struggle is simply not knowing the difference between an asset and liability.

Creating your asset must be similar to planting a tree, for a few years you must water it. Once the root is set deeper, it will provide you food and shade, no matter you water it or not.

Assets are something that puts money in your pocket, liability takes money from your pocket!!

DIFFERENCE BETWEEN RICH AND POOR MENTALITY.

Fear and desire have been poor in the trap of working, earning money, and hoping fear of not having money will go away, they react emotionally instead of using their brain. To handle the fear you need to know the power of money. 

Learn to use your emotions to think, not think with your emotions. 

man who has fallen into emotions like desire/greed would think like 

1. I deserve a raise.
2. I need to get another job.
3. I want this job because it is secure.

Where else a  man with a rich mentality would think like Is there something  I am missing here?

MIND YOUR OWN BUSINESS ...

Remember, the rich have both profession and Business. Focus on the asset column, not on the income statement. 

WHAT IS A REAL ASSET ??

1. The business that does not require your presence but you own them.
2. Income-generating real estate with ready market .etc...

• Poor and middle class buy luxuries first, rich buy luxuries last.
• Long-term rich build asset column first, from the income, generated they buy luxuries where else the poor and middle class buy luxuries out of their own blood and sweat. 
  

Remember, Rich doesn't play the game with the same set of rules as you, they play the game smartly. Be smart so you won't be pushed around.