Rich Dad Poor Dad Summary

What the Rich Dad and Poor Dad taught  Robert Kiyosaki. 

Rich Dad taught the author to buy assets, while the Poor Dad who happened to be the most educated taught him to get more education which will eventually help him to earn more and reach the higher echelons of the employer. Oblivious to the dad was that the more he earns from his employer the higher tax deductions would be. Both dads had different ways of looking at money.

Robert Kiyosaki points out that being poor and being broke is different, in that, poor  eternal while broke is temporary and can be cured by financial education, which he said is powerful than money. He continues to say that money comes and goes,but with financial education, you can learn how money works and build wealth. If don’t get financial education you will work for money till death.

The author explains how fear and greed keeps people in a rat race (the lifestyle of waking up to go to work and pay bill year after year).Fear of lack of money motivates people to go to work, and work their fingers to the bone, but after all that, greed and desire comes in. When people have the money, they start seeing the things that they can buy with their hard-earned money. 

To be rich one has to overcome those emotions. Emotion means energy in motion. Those emotions according to the author accompanied by ignorance are true causes of poverty and financial struggle. Ignorance can be overcomed by financial education/intelligence. Money without intelligence is money soon gone. People win lotteries and they go broke due to financial intelligence deficiency. How much one keeps is more important than how much one earns.

To be successful you have to follow the rule that makes one rich as given by Robert Kiyosaki. 

Some rules includes;

Knowing the difference between an asset and a liability. An asset puts money in your pocket, while liability takes money out of the pocket. Know the difference and spend money buying assets if you want to be rich. 

In the Rich Dad Poor Dad the author gives different cash flow patterns of the poor, middle class, and wealthy people. A poor person is one who earns income from a job and spends it all on expenses, no asset, and no liability. This is how the poor person cash flow looks like.

A middle-class person is one who earns income from a job and spends some on expenses and liabilities and has no assets.