It turns out the story was mostly fictional, but there is still a ton of valuable lessons to be found in Rich Dad, Poor Dad, by Robert Kiyosaki. A story about how Robert grew up with two dads. One, a business owner and entrepreneur, and the other (his "real" dad), a teacher who worked his entire life for someone else.
The book advocates the importance of financial literacy, financial independence, building wealth through investing in assets and starting and owning businesses. If you just recently started dabbling your feet in real estate or the stock market, this book is an entertaining way to learn the basic principles of successfully letting your money work for you.
Quotes & Notes
The difference between an asset and a liability
Most people struggle financially because they do not know the difference between an asset and a liability.
Rich people acquire assets (things that make them money; stocks, real estate, company shares, etc.). The poor and middle class acquire liabilities that they think are assets (expensive cars, a house that is too big, the newest phone every 12 months, etc.).
Framing is everything. "How" instead of "Can't"
Rich dad believed that the words "I can't afford it" shut down your brain. "How can I afford it?" opens up possibilities, excitement, and dreams.
Make money work for you.
Ordinary earned income is money you work for. Passive and portfolio income is money working for you. Knowing that little difference is a significant advantage in anyone's life.
It also doesn't matter how big or small your initial investment is. It will grow over time, if you make the right choices and don't drift into highly speculative territory. Compound interest is the magic word here.
It's not how much money you make. It's how much money you keep.
"We've all heard stories of lottery winners who are poor, then suddenly rich, and then poor again. They win millions, yet are soon back where they started. Or stories of professional athletes, who at the age of 24 are earning millions, but are sleeping under a bridge 10 years later."
Making money is only half of the story and in my opinion not even the important one. Learning how to spend (or not to spend!) money is a skill that needs to be taught from a young age. Too many people struggle later in life when all the shiny things are thrown at them by companies who want to sell their liabilities.
