Rich dad and poor dad book summary in English

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Rich dad and poor dad book summary in English   Rich Dad Poor Dad is about Robert Kiyosaki (author) and his two dads—his real father (poor dad) and the father of his best friend (rich dad)—and the ways in which both men shaped his thoughts about money and investing. The book explodes the myth that you do not need to earn a high income to become rich.

Transcript

00:00if you were to stop working imagine this to yourself how long can you survive on

00:09your remaining savings what I just asked you was the definition of wealth here is

00:17a man named Robert Kiyosaki an American investor businessman author motivational

00:23speaker and financial commentator who became well known in the recent years who

00:28has an estimated net worth of 80 million dollars want to know something

00:33interesting oh he wasn't raised in a wealthy background in fact his family was

00:39like most people who work but didn't have the best financial education and

00:44oftentimes struggled with money so then how did Robert become rich today let's

00:51take a look as he explains in one of his bestsellers called rich dad poor dad

00:58Robert Kiyosaki was born in Hilo Hawaii in April 1947 in 1957 at age 9 years old

01:13little Robert was attending the same public school where the rich people sent

01:17their children for his town had lots of doctors business owners and bankers Robert

01:22saw that the rich kids would separate themselves from him for his family wasn't

01:27able to afford the newest collections of toys and bikes like them so one day

01:32Robert asked his father who had a PhD and completed multiple universities with

01:37excellent degrees dad can you tell me how to get rich unfortunately his dad didn't

01:42know the right answer because he was a rich himself so he responded with well use

01:47your head son stay in school get good grades so you could find a safe and secure job his

01:53real dad is what he'll be referred to as poor dad he wasn't poor during this time

01:58in fact he was making lots of money but in the end this man's financial life takes a

02:03turn for the worst now little Robert has a friend named Mike in which Mike's father

02:09would be referred as rich dad who started mentoring Robert and his son Mike

02:14about how to really become rich at this point in time rich dad wasn't really rich

02:19yet but soon became to be one of the wealthiest men in Hawaii so then what did

02:24rich dad teach Robert rich dad poured a strong financial foundation into these

02:29kids minds of many important principles to start off the first lesson you need to

02:34know is you must know the difference between an asset and a liability and that

02:39you need to buy assets if you want to be rich this is all you really need to know

02:44and understand the most you see the rich acquire assets and the poor and middle

02:49class acquire liabilities but sometimes they think they are assets the primary

02:54cause of financial struggle is simply not knowing the difference between an

02:58asset and a liability oh oh right you even know what an asset and a liability is

03:05don't you an asset is something that puts money in my pocket a liability is

03:13something that takes money out of my pocket for instance let's draw a cash flow

03:18pattern of a normal individual this person right here earns his income from a job

03:27and his expenses are things like food clothes entertainment and transportation

03:32unfortunately he doesn't have assets but sure does have liabilities that

03:38constantly takes money out of his pocket because things like mortgages taxes

03:42credit cards loans and believe it or not the house now let's take a look how to

03:51cash flow pattern really works for the rich instead of looking to earn more money

03:55from their normal job as the only source of income they buy and own assets that

04:01brings money into their pockets as a form of passive income passive income is

04:05something that earns money that doesn't require you to trade your time for it so in

04:10other words you would be earning money even as you're sleeping examples of assets are

04:15businesses that doesn't require your presence stocks bonds mutual funds income

04:22generating real estate royalties notes and anything else that has value that

04:29produces income as mentioned before poor dad was making quite a lot of money from

04:35his job but his expenses seem to always keep up with his income never allowing him

04:40to invest in assets as a result his liability such as his mortgages and credit

04:45card debts grew greater over time and this is the fault of having income equals

04:51expense and assets is less than liabilities and sadly this is what drove poor

04:56dad into debt even after he passed away on the other hand rich dad's personal

05:01financial statement reflects the result of a life dedicated to investing and

05:06minimizing liabilities so he has income that is greater than expense because of

05:12assets is greater than liabilities this is practically why the rich are getting

05:18richer

05:19their assets generate more than enough income to cover expenses with the balance

05:27reinvested into the asset column the asset column continues to grow and therefore the

05:33income grows with it you see both that's worked hard but they have opposing

05:38attitudes and thoughts one dad recommended study hard so you can find a

05:43good company to work for the other recommended study hard so you can find a

05:48good job to buy one dad said the reason I'm not rich is because I have kids the

05:53other said the reason I must be rich is because I have you kids one said when it

05:58comes to money played safe and don't take risk the other said learn to manage

06:04your risk one said I can't afford that the other said how can I afford that

06:10although both men had tremendous respect for education and learning they

06:15disagreed and what they thought was important to learn Robert learned from

06:18rich dad that the truth about the general population their lives are run

06:23forever by two emotions fear and greed that keeps them stuck in a pattern of

06:29get up go to work pay bills get up go to work and pay bills fear has them in this

06:36trap of working earning money working earning money and hoping fear will go

06:42away of not having money instead of confronting the fear the react

06:46emotionally instead of using their heads the other emotion which is desire

06:51some call it greed is a second reason why people also work for money they

06:56desire money for the joy that they think it could buy but the joy that the

07:01money brings is often short-lived and soon needs more money for more joy more

07:06pleasure more comfort and more security you see that same fear and desire is

07:12what makes a lot of people be so fanatical about going to school for

07:17better chance of a high-paying job but don't be discouraged an education and a

07:22job are important but it won't exactly handle that fear to handle that fear you

07:27need to learn the power of money not be afraid of it

07:31unfortunately most schools don't teach about this and if you don't learn it

07:38you'll become a slave to money ignorance of money can cause so much

07:42greed and so much fear that can lead you into life's biggest trap of

07:47constantly working rich dad said learn to use your emotions to think not think

07:53with your emotions examples of emotional thinking are like I need to get

07:58another job I deserve a race I want this job because it is secured instead of

08:04clearly thinking like is there something I'm missing here this is our

08:08reality for most people your profession is your income the rich your assets is

08:14your income apply these lessons to your life for if I were to ask you about the

08:18definition of your wealth if you would stop working today how long can you

08:23survive you might laugh at me and say I no longer work for money money works for me

08:28thank you guys for watching click that like and that subscribe button if you

08:37want to see more helpful videos like this I'll see you guys later

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