Thursday, 18 March 2010

Rich Dad Poor Dad by Robert T Kiyosaki is a must read for life...

I started reading this book on Feb 13 2010 when I was going to Bengaluru to attend an alumni meet. The book was so interesting that I was engrossed in reading it. I could complete about 40% of it in my journey in the train. After that, I could not make much time but I kept reading whenever possible. And today, on 18 March 2010, I am happy to say that I have completed reading this one wonderful book which has given a totally different insight to life

I loved the book mainly because it discussed those ideas which were running in my brain. While I read, I felt as if the book was written for me. Its one fantastic treasure that Robert T Kiyosaki & Sharon Lechter have provided to the mankind. No doubt, it has been the #1 New York Times Bestseller

The principles taught in the book are very helpful to everyone who wishes to achieve financial freedom. If not financial freedom, it shall at least help you getting out of financial struggles

I had a thought of reading this book from quite a long time. While most thoughts given in the book are that I had learnt as a part of my life, there were many other which I had to learn and look with a different angle. One difficult point that I found was that the book spoke a lot about investing into real estate when values go down. But I never see real estate values going down. It also speaks about finding bargain deals. But finding bargain deals itself can not become a regular business as bargain deals are not found always. Yet, the book says that we have to keep our eyes open to find them. This is something that I felt a little impractical

The comparision between the way the rich think and the way poor think is illustrated beautifuly by referring to Rich Dad & Poor Dad, the 2 fathers of the author. One gave birth to him and one made him what he is
It illustrates all the excuses the poor give to stay poor like I am not interested, I don't work for money, I am very busy, etc. Every penny that you earn can be used in different ways. Spending it on a party will make you poor, using it as a down payment for a loan or an EMI for a loan makes you middle class and investing it for income makes you rich. He shows why the rich get richer and the poor get poorer

It speaks strongly about building assets. Assets are those that generate income. He also says that our house may not be an asset but a liability. Poor and middle class feel that homes, vehicles, consumer goods, etc are assets while they actually are liabilities. The rich do not pay for such things from their incomes. They pay for such items through the income generated from their assets

There are 3 kinds of income. One is earned income. It is the actual salary/commission/profit made by a person from his work. Second is a passive income which may be rental income, income from a network marketing company, etc. Third one is a portfolio income which comes in form of interests, dividends, etc from investments. The rich has high levels of income no. 2 and 3 while the poor spend all life trying to earn income no. 1

One must always go for a job but that is not sufficient. One must also run a small business of his own. It may be something that can earn him some income. Once this business becomes large enough, he may retire

There are a lot of points that we can learn from the book and I recommend it as a must read for everyone

For those who wish to are ready to dare, he gives 10 steps to get started
  1. The power of spirit- I need a reason greater than reality
  2. The power of choice- I choose daily
  3. The power of association- I choose friends carefully
  4. The power of learning quickly- I master a formula and then learn a new one
  5. The power of self discipline- I pay myself first
  6. The power of good advice- I pay my brokers well
  7. The power of getting something for nothing- I am an Indian Giver
  8. The power of focus- I buy luxuries using my assets
  9. The power of myth- I feel like a hero
  10. The power of giving- I teach and I receive

Its one power recommendation to everyone to get ahead, get a copy of the book and read & digest the content

Learn all that you never learnt in 15-20 years of life at school & colleges. We learn so much in life but we never learn money. Thats how we feel money as such a complicated subject

So, learn about money and how it works and soon

You shall stop working for money and let your money work for you

1 comment:

  1. Yes, it's really a good one. I have just began reading the book & found it very interesting. Thank you :-)