Book Club 2: Rich Dad Poor Dad by Robert Kiyosaki
We had a great evening yesterday discussing Robert Kiyosaki’s book: Rich Dad Poor Dad.
This book - initially published in 1997 - advocates the importance of financial education, financial independence and building wealth. While this book has been called the number one personal finance book of all time - with over 32 million copies sold - we rated it ★★★ (out of 5 ★). An easy read with sensible lessons but at times not relatable.
6 lessons from the book
Robert basically has 2 dads: his biological father (or the poor dad) who is the number one position in the state of Hawaii’s educational system. While his rich dad - who never even finished eighth grade - became the richest man in the state, leaving tens of millions to his family and charity.
Lesson 1 - The Rich Don’t Work for Money: they work to create assets that generate money and make they “money works for them”
Lesson 2 - Why Teach Financial Literacy? Know the difference between an asset and liability, and buy assets. Only buy another liability if you first buy or create an asset that generates enough cash to pay for it.
Lesson 3 - Mind Your own Business: Make putting things in your asset column your first priority and pay yourself first - before what your employer, government, and bank want.
Lesson 4 - The History of Taxes and the Power of Corporations: Study accounting, investing, economics, and law. This will allow you to recognize opportunities and methods to successfully build wealth.
Lesson 5 - The Rich Invent Money: This is about opportunity and self-doubt. If you don’t think big and take risks, you will spend your entire life waiting for something. The rich create investments by assembling a deal themselves – finding an opportunity, raising money, and organizing people.
Lesson 6 - Work to Learn Don’t Work for Money: Rich people have a different perspective on money. The author advises to take a job only for the skills it will teach you, never for the money it pays you.
What we actually discussed during the book club:
Changing our mindsets from “I can’t afford it” to “How can I afford it”
We developed financial habits very young and are still
It’s ok to want more money and to earn more
Great importance of giving back when you can
How to manage money when you are in a relationship and start the conversation
How to talk about money with friends and partners. Have you ever discussed your salary with anyone?
What are the simple steps we can take to start making our money grow (“work for us”) and build additional streams of income
Perception of wealth: people who have less tend to show off more, especially on social media. How can we stop judging
When should we start investing, how and how much?
Thank you all for coming!