Are you struggling with your finances? Are you confused why certain salary classes are taxed higher than others and vice versa? Then the book Rich Dad Poor Dad is the book that can answer your financial questions. The book is a great resource for anyone looking to improve their financial literacy and gain a better understanding of how to create wealth.
In this blog, we will provide you a review of Rich Dad Poor Dad's book and explain why it is a must to read. Before we start our blog, remember on this blog there will be advertisements that come from third parties. If you should click or purchase something from an ad, I will receive a small commission which comes at no extra cost to you. If something should go wrong with your purchase, please read our terms and conditions to enable you what steps you should take next.
Who is the Author of the book?
Rich Dad Poor Dad is a personal finance book written by Robert Kiyosaki. Robert Kiyosaki is an American businessman, investor and author. He is the founder of the Rich Dad Company, which provides financial education through books, seminars and games. Kiyosaki is best known for his book "Rich Dad Poor Dad," which has sold millions of copies worldwide and is considered one of the most influential personal finance books ever written.
He is also the author of many other books on personal finance, investing and entrepreneurship. Kiyosaki is a strong advocate of financial literacy and believes that anyone can achieve financial freedom by acquiring the right knowledge and skills.
What is the book all about?
The book tells the story of Kiyosaki's two fathers, his biological father (Poor Dad) and the father of his best friend (Rich Dad). Through this story, Kiyosaki explains the differences in their mindsets and financial habits, and shows how these differences ultimately lead to very different financial outcomes.
The book is very understandable and a big eye opener about the real world in terms of finances. You will definitely change your view how finances work in the real world. Maybe even cause your mindset to change how to spend your money.
Key points out of the book?
All of us is in one of these cashflow quadrants based on our current financial situation. When I saw this drawing, I immediately understand why some of us are struggling in life to make a living and why others are living their lives with complete happiness.
In cashflow quadrants E & S, those two areas experience the most tax charges from the government. No matter how hard you work in these two cashflow quadrants, your tax charges will always be high. Even if your salary increases, the tax charge will dramatically increase as well.
That is where the term "Rat Race" come up. As many people will work hard in the hope of reaching financial freedom in cashflow quadrants E & S. But in exchange, they get taxed harder by the government as their salaries increases. This happens, because the people in the cashflow quadrant E & S do not have any leverage.
Leverage means the ability to influence a system or environment in a way that benefits you. Now in cashflow quadrant E & S you do not have any leverage as your only income you have come from your current job or your self employed job. That income you receive, is mostly used to make sure you and your family can live. People in cashflow quadrant E & S hardly, invest any of their money to help the government. Thus, the government tax these two quadrants hard.
While in people in cashflow quadrant B & I, experience less tax charges from the government. The rich is usually between these two cashflow quadrants. Reason people in quadrant B & I are paying less taxes, is because they have leverage how much money they will make and how much they will be taxed at by the government.
The leverage the cashflow quadrant B has with the government, is by providing more jobs for people. The government wants to increase their employment rate in their countries. Thus, when a big business create more employment opportunities in their companies, the government notices that and charges the owner of the business less tax as a reward.
The same happens in cashflow quadrant I, the investor invests their money in a project that the government really needs help with to make their country status better. Then the government repays the investor with the assistance by charging the investor with less tax. That is why the cashflow quadrants B & I have leverage when it comes to their cashflows.
Now in the Rich Dad Poor Dad, they explain these types of scenarios in more basic terms to help people understand how the financial world works. Plus the Rich Dad Poor Dad book will give you a awakening how to handle your cashflow correctly or help you how to change your cashflow quadrant status currently.
Overall
Rich Dad Poor Dad is a well-written and insightful book that provides valuable lessons and actionable advice for anyone looking to improve their financial situation. I would highly recommend this book to anyone who wants to take control of their finances and start building wealth.
One of the key takeaways from the book is the importance of financial education and the role it plays in creating wealth. Kiyosaki emphasizes the value of learning about money and investing, and encourages readers to take control of their financial future.
If you want to purchase Rich Dad Poor Dad book, you can gladly purchase from this link. There is also a audible version for the Rich Dad Poor Dad book, in case you prefer listening rather than reading. Click this link for the audible. Also if you want to learn more from Robert Kiyosaki teachings, you can go to his website by visiting this link here.
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