RICH DAD POOR DAD BY ROBERT KIYOSAKI | ANIMATED BOOK SUMMARY

RICH DAD POOR DAD BY ROBERT KIYOSAKI | ANIMATED BOOK SUMMARY


Rich Dad, Poor Dad by Robert Kiyosaki
The subtitle reads ‘What the rich teach their kids about money – that the poor and middle
class do not.’ If you’re like me, then your parents might come from a rather poor-to-average
background and their financial plan, if they even have one, is based on the common save-now-live-once-you-retire,
blame-the-rich mindset. So, it comes as no surprise they couldn’t teach you a whole lot
about making a substantial amount of money, because they didn’t know. And they didn’t
know, because their parents didn’t teach them. Robert makes a great point about our education
system not teaching us financial literacy and how to manage our wealth. We’re taught,
not to say, conditioned, by our parents. And so if your parents had a rather strong opinion
about money being the root of all evil and clipping coupons all day in order to save
a few dollars being a good time investment, you are more likely to associate money and
the ones making it with a negative sentiment and limit yourself to a mediocre financial
situation or even lifelong poverty. This is part of the reason why you can have doctors,
or lawyers who got all the right degrees and certificates and still live life always depending
on their next paycheck. Robert Kiyosaki offers us 6 profound lessons
that he has concluded out of 30 years of learning from both his friend’s rich dad and his biological
poor dad by contrasting their views and mindsets. “Lesson #1: The Rich Don’t Work for Money”
This is the concept of Fear and Desire. These two core emotions can prevent us from
reaching financial independence. The fear of a missing paycheck, which could
result in our inability to afford our monthly expenses. The fear of losing money keeps many
of us entrenched in the devil’s cycle that is the office cubicle. You work a lot of hours
for a certain paycheck in order to maybe reach a promotion, so that you could work even longer
hours, to receive more money, but what happens for most is, as our salary grows, our living
standards tend to adjust, thus growing our expenses. Now, going back to your former job
would feel like a huge loss, even though you’d have more time to spend with your family,
but they rarely ever see you and they’ve gotten used to their new pair of sneakers, smartphones
and whatever else you can now afford to spoil them with.
It’s a total mess and it can keep going forever, until you’re on your deathbed and your biggest
regret is that you’ve been working way too much. Your biggest regret would be that you
worked for money instead of having money work for you. This devil’s cycle is what’s preventing
them from evaluating investments and other sources of income and how could they even
find the energy to do so, if their job drains them of all their energy.
That’s the fear part. The desire part is just as bad, as I mentioned, our expenses give
us no other choice, but to keep at it. We want to continue our fake Facebook and Instagram
lifestyle, that makes people miserable for not having the pretentious awesome life that
we do. We have to stay “popular” and upload photos of us eating at expensive restaurants,
documenting our beach vacations and wearing that Louis Vitton bag. “We feel the need to
compete with eachother in order to have a false sense of importance.” Because believe
it or not we are not our bank account, we are not our job.
Lesson one lets us understand the importance of seeing through this nonsense, induced by
fear and desire. It’s hindering your success. Instead of living paycheck to pacheck like
a slowlaner, you want to create income sources for yourself that don’t require your presence,
meaning, income sources that grow and are profitable without you, once you’ve set it
up. Check out my summary on The Millionaire Fastlane by MJ DeMarco, where I clarify this.
“Lesson #2: Learning Financial Literacy” Financial Literacy equals financial independence.
You study how to manage your finances most effectively considering the differences in
cash flow for various income levels. The rich live well off of their investments’
returns. Their stocks and bonds cover any expenses they might have. Whereas the poor
use up most of their paycheck to keep themselves from drowning.
In order to become wealthy one must work on creating profitable assets instead of working
towards a higher salary. You realize you can’t depend on your paycheck alone and use any
time window you have to work on creating assets. “Lesson #3: Mind Your Own Business”
Little wordplay here, because it’s meant literally. Let me ask you this question “What if you
get fired tomorrow and the paycheck you and your family relies on doesn’t come?” Now some
of you are going to say “Oh I’m good, I know plenty of people who want me to work for them.”
And that’s great, but not all of us are that connected and so having those assets in place,
that you’ve built minding your own business, working after hours to create more wealth
for yourself, could not only dampen, but even prevent the fall of you losing your job.
Of course, you might be the best employee in the world, but if the 48 laws of power
have taught us anything, you cannot hope for mutual loyalty from any profit-above-all businessmen,
which are quite numerous at the top. They’ll saw you off the minute they think you may
interfere with their careers or the success of their business, even if you were quote
on quote doing the right thing. “Lesson #4: The History and The Power Of Corporation”
By creating a personal corporation, the rich avoid many of the personal taxes the poor
have to deal with through corporate exemption. They can pay taxes after they’ve paid for
the expenses of their business, whereas it’s the other way around for the regular employee.
And we’ll dive deeper into this and the concept of assets and liablities within Part II.
“Lesson #5: The Rich Invent Money” Saving at the bank might seem secure, but
often the savings rates are below the rate of inflation. So, it’s better to have our
money circulating, to invest it. In order to get rich you need both financial literacy
and boldness. I get pissed off when people talk to me about the risks of entrepreneurship.
You take calculated risks. You test and see if there’s a market or an audience for your
product or service. It’s not like you just order 20’000 boxes of a new product that you
created with capital you borrowed from friends and family, no one ends up buying it and you’re
stacking those boxes in the cellar. There’s always the smart way of doing things. Unfortuneately,
when talking about the subject of money with most people, they don’t see that, but what
else would you expect checking their bank account. I would rather a self-made millionaire
told me how to make money, than a highly opinionated, but “very qualified” co-worker who’s not only
been stuck at the same job for 20 years, but sees that as an attribute.
“Lesson #6: Work to Learn” Here’s why I think lots of young people are
currently making a mistake believing the way to riches is to have an idea, crowdfund it
with the right formula, raise a lot of money from unsuspecting people and then it just
happens for them. The thing is, it’s great to get that education first, then get into
a company that sees your potential, because you are working as hard as you can and really
using that time in order to learn. Ask questions, get into programs and language classes that
are offered for free. Some coprorations really do invest in you, if you’re doing a great
job. Guess what I did in my first two years in the office, I immediately befriended everyone
and had such a great co-worker relationship with the sales managers of all departments
that they loved to answer all my questions and teach me their most valuable insights.
Two of them became my mentors, because they saw me as an asset. Investing in me now would
pay dividends with time, as I’d become a very young Junior Sales Manager aquiring new clients
that they could take the praise for. That’s the game. I’d join them for lunch and ask
them questions, not like I was interviewing them, but merely talking as friends and occasionally
I’d feed their narcissism by acknowledging their success. I made that time count, especially
when I was an intern, when they have more patience with you.
You’re in this long-term. You might hate your job right now and work on getting out of there,
if so, I congratulate you for doing something about it, but on top of that, use that time
to learn as much as you can. Not only do I recommend you read this book
5 times this year, chances are you’ve got children, who depend on your teaching them
how the world works and a big part of that is understanding money. I wish I would’ve
had a father to teach me anything valuable, other than being a prime example for how not
to turn out. So, please do yourselves and your children a favor and buy a copy of this
book. You’ll be helping young, potential thought leaders develop such a strong mindset surrounding
money that they will be better off financially for their whole life.
As always thanks for watching and subscribe for my upcoming animated summaries of Think
& Grow Rich, Secrets of the Millionaire Mind and The Richest Man in Babylon. Talk to you
soon.

36 Comments

  1. Zachary Jackson says:

    This is amazing, keep up the great work! Love all the frequent uploads!

  2. illacertus says:

    Dear Kiyosakis in training (just kidding),

    When I finished reading this book a month ago, working on this animation ever since, eager to share what is possibly my best video to date(!) I lend Rich Dad, Poor Dad (among others, always one at a time) to my neighbour's kid. He's a 14 years old polyglot, who's so far beyond his years I'm remarkably impressed. I know people in their 40's who are less accomplished & well-read. I've built up quite the library over the past 4 years & I love to share it with people who like to read. I must say, they're hard to find offline.

    Either way this kid consumes books for adults in his 4th language within a week or two, takes notes, thinks about what he's learned & seeks to discuss the content with me. I don't pressure him, I don't force this on him. He wants to learn & he has taught me a thing or two as well. I'm only happy to assist him in his journey. I have no doubt he will be very successful on the money side of things one day, but more importantly he's happy.

    But what's the point of me saying this, you might ask. I wish I would've had someone who did the same for me & if I may, please let me suggest that, not if, but when you see someone who needs a helping hand, offer it to them.

    I'm not trying to sound preachy, but please understand, there's no "millennials", there's only individuals. I'm flabbergasted by how older generations have the audacity to fail miserably at parenting, do close-to-zero to improve the education system & then mouth their judgement as to how things used to be better & how these kids today are x, y & z, but let me stop here. Lots of children today, not to say, most of them aren't educated, nor raised nearly as well as they could be. There's no greater joy than teaching someone, who's willing to learn (you may have to open them up to the idea, by making it more accessible, perhaps with a cartoonish animated summary of a book on personal finance ✌) & seeing them progress along the way.

    1:21 – Lesson #1: The Rich Don’t Work for Money
    – The concept of fear & desire.
    3:15 – Lesson #2: Learning Financial Literacy
    3:48 – Lesson #3: Mind Your Own Business
    4:35 – Lesson #4: The History and The Power Of Corporation
    – The concept of assets & liabilities (see Part II)
    4:56 – Lesson #5: The Rich Invent Money
    5:50 – Lesson #6: Work to Learn

    Thank you all & don't forget to check out Part II on assets & liabilities coming soon!
    – Nenad (illacertus)

  3. kanker oetz123 says:

    Lesson #4: The history and power of corporations. I do think you need to watch out to put all your assets under your company and cover it as company expenses. It's a double edged sword because what-if you register your house and all related expenses to your company and your company fails or even worse needs to pay a huge amount of money to somebody like Gawker vs Hulk. You should be able to put your lunch expenses under your company name. But don't do it with important things like house mortgage.

  4. AdamF072 says:

    Thank you

  5. heinrich dhyanarealms says:

    Cute drawings but these 'change your mentality to get rich books' aren't really going to help you. At the end of the day, even if everybody tomorrow acquired the drive to get rich, very few of them would manage. You need to have brains and use it, and think really hard for yourself about what to do in your life. Even young very intelligent people who work at goldman sachs don't have the cunning mind required to leave and start their own businesses. Some things in life you have to figure out alone.

  6. courageous saif says:

    This book changed my perception of money!!
    thnx for the summary

  7. DanyHeatley says:

    When you say "I" were you talking from the POV of Kiyosaki or were you actually offering us insight into your own life?

  8. Robert Rainey says:

    Your videos are very inspiring I will probably watch them all. My next book to read is definitely "Rich Dad Poor Dad"

  9. Fiveminded says:

    Great review, really liked the presentation.

  10. illacertus says:

    Feel intrigued to read this book yourself?
    Buy "Rich Dad Poor Dad" in the USA – http://amzn.to/1NlLdM3
    Buy "Rich Dad Poor Dad" in CA – http://amzn.to/1SS20Xq
    Buy "Rich Dad Poor Dad" in the UK – http://amzn.to/1TvNP6w

  11. DHomecare Auto Garage says:

    great Job. please summarise Sun Tzu's Art of War

  12. Humane 20 says:

    Hey there , I really am very much desperate about best ideas from the book"The Little Book Of Retorts" and almost no one on the internet has till date made a video on this concept of retorts…So please I request u to go ahead & make a video on this book

  13. Rue Ryuzaki says:

    Just going to say a quote because you sounded like you were going to reference this quote: "You're not your job. You're not how much money you have in the bank. You're not the car you drive. You're not the contents of your wallet. You're not your fucking khakis. You're the all-singing, all-dancing crap of the world."

  14. Moonlight Relax & Yoga says:

    where is think and grow rich summary?

  15. YoungBlaze says:

    i love you! can i have you

  16. Robbin Navar says:

    I'll be just found your series by accident just started binge watching then saw this part since I don't work in a office thought none this applies to had to restart life very nasty divorce lost it all so I took up tuck driving. I'm local L.A. route then you got to the parts getting building your $$ now ur #$$ working u part don' t like just I'm wasting my life started saving be own boss owning my own semi like the channel a lot thank you

  17. king wanlam says:

    Thanks. Keep up the good work.

  18. Simon M says:

    This is great.

  19. DoglinsShadow says:

    4 hour work week very well compliments this!

  20. Affddgh Fcggf says:

    best channel

  21. G Prince says:

    🔥🔥🔥🔥🔥yessir! I need this in my library!

  22. Shehryar Ali says:

    I got a Richard kiyoskai ad before the vid. 😀

  23. tremaineKR says:

    thank you

  24. jshoover2199 says:

    you're videos are well articulated and passionate. thank you for your effort. you have made my life exponentially better.

  25. Mdu Tha God says:

    Man I'm even starting to like your vids before they finish or even right before I watch it – look at what you're doing to me

  26. Thomynator 600 says:

    I get my reading list from your videos. I love it! This outlines books to me before I read them.

  27. Maxime Beaulieu says:

    Love your channel ! Thanks for the content

  28. Anahata Ashra-El says:

    So glad I've found your channel🖤✨🙏🏼

  29. Jeome Washington says:

    This is better then reading books, this could get big. Keep them coming! Thanks

  30. u2bvur2 says:

    awesome video here! you really packed in a lot of info, wish the pace was slower so it could be assimilated more easily

  31. Amitesh asdfghjkl says:

    AMAZING

  32. Moustache says:

    But in contrast to what Kiyosaki say, doesn't the richest man in babylon say that you should choose "small but certain" instead of "much but risky"?

  33. bobsuper2 says:

    The guy who wrote this book is just a scam artist lmao.

  34. Nine Eye says:

    We share papa's ideas. Same with my fiancé.

  35. Peter Vongsa says:

    Thanks Man!! Real talk!🙏

  36. Grey Bear says:

    Can't believe people believe this bullcrap

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