The other father didn’t even finish the eighth grade. and so intelligent he completed his undergraduate degree in only two years. Robert Kiyosaki had two fathers: a rich one and a poor one. When presidents promise to raise taxes on the rich, they typically mean the middle class. This statement is true because it’ll always be the person who works for money who gets taxed the most. The poor and middle class will always pay more taxes than the rich. Instead, they should focus on learning from the rich as they pay fewer taxes legally. Poor people often get angry when they learn rich people pay less in taxes.
Rich Dad Lesson: “Why the rich pay less in taxes.” Believe it or not, but that number has since exploded to $1.2 quadrillion in financial derivatives. Yet, somehow, the poor were blamed even though there were approximately $700 trillion in financial derivatives.
“The rich created financially-engineered products known as derivatives.” Even Warren Buffett hated these, calling them “weapons of mass financial destruction.” The derivatives were the cause of the housing market collapse. The real estate crash was caused by the rich, not the poor. However, it wasn’t until 2007 when “subprime borrowers began to default on their subprime mortgages,” that people realized that a house wasn’t an asset. Historically, people believed that your home was the biggest investment you can make. When Robert Kiyosaki first published Rich Dad, Poor Dad in 1997, every publisher who had rejected his book had criticized the lesson regarding a person’s house not being an asset. Rich Dad Lesson: “Your house is not an asset.” And the biggest savers are the poor and middle class. Today’s interest rates are relatively close to zero, which is what makes savers losers. Notably, after each stock market crash, the American government and the Federal Reserve Bank started “printing money.” When you look at the data visually, you can see how big of an impact the crashes were. The first three crashes of the 21st century pale in comparison to the great crash of 1929. However, the reason why savers are losers is that since 2000 there have been three massive stock market crashes. The emphasis on saving is only found in the poor and middle class. Thus, showing that the biggest increases in income go to entrepreneurs and investors– not employees. Some economists in California even noticed that about 95% of income gains between 2009-2012 went to the wealthiest people in the world– the one percent. In today’s world, there’s never been a more significant divide between the rich and all other income classes. Rich Dad’s Lesson 1: “The rich don’t work for money.” Hire yourself and start calling the shots. Termed as New York-Times bestseller, the book has been a boon for management and financial aspirants.Don’t wait for someone else to do it. Originally published in 1997, it was also selected commercially.
The book also talks of the importance of investment and free enterprise and urges the prospective investors and businessmen to learn from others, especially from rich people and generate new ideas to excel and succeed in life.
How to use power and prosper with the help of investment skills and why it is important to possess investment skills are also written in clear and crisp words in this book. It communicates the importance of intelligence and literacy in terms of finance and how financial and entrepreneurial skills play a vital role in the success. This path-breaking book also showcase how one must be prepared to take action and risk and communicates the idea of how one s primary residence is a liability and not an asset. It also provides impetus on doing work for learning and not for earning and teaches the importance of investing and building business. It also sheds light on the teachings given by rich to their kids, which is usually missed by poor as well as the middle class parents and why it is important to have financial literacy over and above all. The book talks about Kiyosaki s background, his business ventures and investments and variation between possessions and liabilities and what importance they both have in terms of starting and owning a business. Described as a personal finance book, it has not only challenged, but has also changed the way people think about money. Apart from the financial benefits, the book also describes and highlights the teachings he got from his poor dad, i.e., empathy and responsibility towards society. Framed around six main teachings and lessons, the book is mostly a self-reflection. Enriched by Kiyosaki s personal experience and the teachings he received from his rich dad and poor dad, the book highlights different attitudes towards money, work and life. Written by Robert Kiyosaki and Sharon Lechter in 1997, Rich Dad Poor Dad is based mostly on Kiyosaki's young days spent in Hawaii.