What are some of the investing ideas in the book Rich Dad, Poor Dad and how does it relate to buying real estate? Here's our summary and review of the book, "Rich Dad, Poor Dad", by Robert Kiyosaki. We've also tried to pull out some of the best quotes and key investing ideas from Kiyosaki's book. One of the main investment methods revealed in Rich Dad Poor book by Kiyosaki is to work smarter not harder and to invest in yourself. So let's look at some of the investing strategies and investment ideas that Kiyosaki outlines in his book Rich Dad Poor Dad.
In his bestselling book, Rich Dad, Poor Dad, Robert Kiyosaki reveals the differences between his father and his friend’s father, who took radically different approaches to living life and building wealth.
While his own father, “Poor Dad,” had an established career and struggled for his entire life to support his house, his car and his family, Kiyosaki’s “Rich Dad” quietly laid the foundation for businesses and investments that would eventually do all of the work for him.
In reading his story, you come to see knowledge as the key aspect of gaining wealth. The contrast between the two fathers demonstrates that at the basis of a life of true financial stability is the way you think about money.
Quote:“It’s not how much money you make, but how much money you keep, how hard it works for you and how many generations you keep it for.” - Robert Kiyosaki
Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
If you see it as something to be received (through a salary, for example) and to be spent (on sustaining a comfortable standard of living), you’ll always be looking for ways to make more money so that you can buy more stuff. But if you’re like “Rich Dad” and you see every dollar bill as a potential investment that you can convert into a low-maintenance, wealth-building machine, your focus is shifted to looking for opportunities that you would’ve otherwise overlooked.
For Poor Dad, his job was a means to make money. For Rich Dad, every job was an opportunity to learn. Both sought to contribute to society, and both did, in their own ways. But Poor Dad struggled because he clung to his career as an income source, whereas Kiyosaki, upon following Rich Dad’s advice, went from job to job, picking up the skills that he needed to become an intelligent investor, and was eventually able to achieve financial success that allowed him to give back to society in ways that his Poor Dad never could.
Still, there's nothing wrong with a long career at one company doing something you love to do. And there's nothing wrong with a secure and stable job - going out on your own, starting a company of your own or buying real estate has a number of risks, so you have to be prepared for that.
The advice that Rich Dad had given him was to learn a number of skills rather than just one. If you know all the aspects of how a business operates, you can run your own company.
If you know all the levels of how the real estate market works, from foreclosures, to conversions, to apartment complexes versus single family homes, you’ll know when there’s a good opportunity to make money on a property.
IN OTHER WORDS: I am always doing that which I can not do, in order that I may learn how to do it. - Pablo Picasso
At the same time though, know when it makes more sense and it will save you money to hire an expert to take on a project or say remodel your house.
Take Latin Dad for instance, and his advice on coming to the United States with nothing and then buying an apartment complex in San Francisco. Here's someone who had the skills and knowledge to maintain and repair apartments, from painting to cleaning to fixing any problem that arose. If he didn't have that knowledge, it would have been tough to earn the cash flow to keep the property, at least in the beginning.
Read more - Work Smarter Not Harder