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May 19, 2020

Rich Dad and Poor Dad by Robert Kyosaki!







Looking for a great book, check out the link  https://amzn.to/3gE1i0

business, money,entrepreneur, books, financial freedom, finance
                   
Do you know Books have the power to change lives? We live in a time when books are more affordable and accessible. Yet, fewer entrepreneurs read books, using the excuse of a lack of time. If you can't find time to read, you as an entrepreneur will not grow, which will have an effect on your business

This is the reason the American business magnate, software developer, investor, and philanthropist Bill Gates says he reads about 50 books a year, but how does he make sure he's getting value from all that reading.

Also, American investor, business tycoon, and philanthropist, who is the chairman and CEO of Berkshire Hathaway Warren Buffett, when asked how to get smarter, Buffett once held up stacks of paper and said, “Read 500 pages like this every week

That's how knowledge builds up, like compound interest.” All of us can build our knowledge, but most of us won't put in the effort.

In fact more of his wealth came from his habit of reading books on stocks and investments.

All this Business Magnets know the formula of getting smarter is knowing the importance of reading good books and how to acquire and apply them. 

Mark Zuckerberg aimed to read at least one book every two weeks. 
Elon Musk grew up reading two books a day, according to his brother.
Many of these leaders, despite being extremely busy, set aside at least an hour a day (or five hours a week) over their entire career for activities that could be classified as deliberate practice or learning. 



Please check the below link to get more information on it:




Discover the hidden secret to millionaires mind and the art of multiplying money!


asset, business, money, income source, passive income, financial freedom, entrepreneur


Have you ever wondered the way we are programmed to work for money is to go to school and get a good job is different from the millionaires mind set about how they think of earning money.   

We are programmed to become an Engineer, Doctor, Banker, IPS Offcer, CA, Army and other Government service, however in all this jobs we are directly or indirectly working for others which may be the Government, Private Companies, Public Institutions etc.
The difference is the way that the 98% people thing and those 2% think decides your destiny to become one of them, however the good news is this millionaires have shared there wisdom, there journey from rags to riches, knowledge and experience with us in the form of books, so that we get benefited, become financially literate and become one of them if we have the same dedication, motivation and apply the strategies.

So let's unlock the key to millionaire's mind with the help of the list of top books:
1. Robert Kyosaki book" Rich Dad Poor Dad"
2. T Hary Eker book " Secrets to Millionaires Mind"
3. Ray Dalio book on " Principles of Success"
4. George S Clason book on " The Richest Man in Babylon"
5. John G Bogle book on " Common Sense While Investing"
6. J Paul Gatty book on " How to be rich"
7. Poor Charles book "Almanack"
8. The Simple path to wealth by J L Collins.

9. Think and grow rich by Napoleon hill

Book No 1: Robert Kyosaki book" Rich Dad Poor Dad"




Robert Kyosaki








About the Author: 

Robert Kiyosak is an Japanese American self-made businessman, investor, author and motivational speaker with a net worth of $80 Millions.

Robert Kiyosaki is also the founder of the Cash flow board, a management tool that help people organise their personal finance and most of his income or cash flow comes from the real states that he acquire and bossiness.


The book is the story of the book revolves around the 3 characters, the author Robert Kosaki and his two fathers, the first was his biological father – the poor dad  and the Rich Dad was the father of his childhood best friend, Mike – the rich dad.

Both fathers taught the author how to achieve success but with very disparate approaches and also how they think about money. It became evident to the author which father's approach made more financial sense. 


The author presents six major lessons which he discusses throughout the book:
·         The importance of financial literacy
·         The rich don’t work for money
·         Minding Your own business
·         Taxes and corporations
·         The rich invent money
·         The need to work to learn and not to work for money

According to the author, a liability is anything that takes money out of your pocket. The big mistake that poor and middle class people make, according to Kiyosaki, is spending their lives buying liabilities instead of Assets. 

For example if you put your house on rent then it pays you every month and generate a cashflow, So  it become an asset which puts money in your pocket, however if you buy a house and every month pay your EMI to bank then it becomes a liability.


This are the few important points highlighted by the Author in the book
Poor Dad
Poor dad believed in the traditional principles of working hard, saving money, and not buying material things that one cannot afford. Poor dad was more interested in a good education and job than the subject of money and think “money doesn’t matter" and is the root of all evil.

Rich Dad
It was from rich dad that the author learned not to say, “I can’t afford it”, but instead to ask, “how can I afford it?” His rich dad says that when someone says, “I can’t afford it”, his brain stops working. It therefore kills initiative and promotes passivity.


1. Why Teach Financial Literacy

This is how the income generated for the middle class from salary and how the money goes out of your pocket in the form of expenses like rent paid on house or EMI on house, Cars, miscellaneous expenses etc. 

Where as for the Rich the the income that is generated from business is re invested in assets such as home, commercial properties, hotels given on rent which in turn generate more income, which then reinvested.


He explained this with the help of below image: 



He explained him the difference between an Asset and a Liabilities, To him an Asset as anything that puts money in your pocket. 
2. The rich don’t work for money:
The author also stresses that opportunities in life come and go; the rich recognise them instantly and turn them into gold. Others do not see these opportunities because they’re too busy seeking money and security. So bottom line the Author is saying to start a business using which you can be produce money in future and forever.

3. Mind Your Own Business:
The author continues his discussion on building assets. To him, real assets are anything with value – stocks, bonds, mutual funds, income-producing real estate, notes, royalties from intellectual property, etc. This chapter also reveals the author’s investment preferences: real estate and stocks. For real estate, he says he starts small, and trades his properties for bigger ones and then delays paying taxes on capital gains through one IRS mechanism. 

4. The History of Taxes and the Power of Corporations: 
The advantage of a corporation versus that of the individual lies in how corporations pay taxes, according to the author. He makes this point clearly: individuals earn money, pay taxes on that money, and live with what’s left. The corporation, on the other hand, earns money, spends everything it can, and is taxed on anything that’s left. 
5. The Rich Invent Money: 
Robert explains that People never get ahead financially even if they have plenty of money because they have opportunities that they does not grab in time and wait for the opportunity to happen. The author’s idea is that people create luck; they should not wait around for it. He says it’s the same with money. It has to be created.


6. Work to Learn, instead of working for Money:
The opinion of the author is that five personality traits hamper human beings: fear, cynicism, laziness, bad habits, arrogance. He explains that while it’s normal to have fear, what matters is how one handles it. 
  
8. Getting Started: 
This Author explains the importance of creating and building personal wealth. He says that people must have a strong /purpose for living, i.e they should be able to find there why?
Why they need to be financially independent and make there own money and make it work for them instead to work for money.



SUMMARY & KEY LESSONS
Now that you are aware of the fundamental problems of working for money, I will try to sum up a few of the key points from the book which can help us achieve a financial freedom and money.
1.     For most people, their profession is their income. For rich people, their assets are their income.
2.     If I want to buy something, I must first generate enough cash flow from my assets to cover these expenses. Buy luxuries last, not first.
3.     Excess cash flow generated by my assets should be reinvested into other assets.
4.     Do not simply aim for more income, aim for more assets.
5.     Keep your expenses low and reduce your liabilities.
6.     Create a business that protect your assets and reduce tax expenses. 
7.     Know a little about a lot. Learn something about accounting, investing, markets, the law, sales, marketing, leadership, writing, speaking, and negotiating. An investment in knowledge pays the best interest.
8.     Work to learn, don't work to earn. Find a job where you can learn one or more of the above mentioned skills.
9.     Do not simply buy investments. First invest in learning about investing. For examples like stocks and shares.
10. You become the average of the persons you spent your most time with. So choose your friends and gurus wisely. So surround yourself with people who are smarter than you, and pay them well!
11. Saying "I can't afford it" shuts down your brain. Asking "How can I afford it?" opens up your brain and triggers your financial genius to come up with a creative solution.
12. Pay yourself first. Each month, first invest a certain amount of money into income generating assets before you pay your bills. 
13. Have a clear your WHY to have a financial freedom in life because it will keep you motivated.
14.  Do not follow the crowd, and do not try to time the market. Profits are made when you buy, not when you sell

Do provide your comments and support... Feedback from you will help us improve my site and will understand what you are looking for... Also do let me know what kind of books you would like to get summary or suggestions on any book is most welcome.

For the review on the rest of the books will update you soon. 





10 comments:

  1. Hi, this is a great blog post, found it very helpful! Hope to read more similar articles here!

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  2. Nice way start with. Keep going. Best wishes.

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  3. The list of books to read is quite enriching however u can add one more into that list that's a book written by Guru of Warren Buffet. .Titled as "The Intelligent Investor " by Benjamin Graham

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    Replies
    1. Actually Warren Buffet never published any book written by him but books were written on him and he read lots many books on stock market investing.. In future when i make a block for books on stock market definitely consider that... Thank you for the suggestion and support....

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  4. Good to have info thanks sangeeta 👍

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  5. Good going beta...keep up the work!!����

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  6. Nice work, Sangita. Can you contribute in http://books4review.com

    ReplyDelete
  7. Thank you everyone for the encouragement!

    ReplyDelete

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