HOW I ESCAPED THE RAT RACE | RICH DAD POOR DAD BOOK SUMMARY
How I escaped the rat race | rich dad poor dad book summary
Everyone was convincing me to read this book by Robert Kiyosaki. Why is this book so viral, were the aliens writing it?
And since I have never encountered an entrepreneur who hasn’t read it, I read it and here we go. My honest review of the book.
Well before we start a quick disclaimer this is my own opinion.
Link to the book:
Paperback Rich dad poor dad
Digital Rich dad poor dad kindle
Audiobook Rich dad poor dad audio
I spent that last month reading this book & since it wasn’t fiction-themed as what a teenager used to read, I spent a decent time on it. After this whole month I turned into one of Robert’s big fans, and here is why.
The book starts in a simple setup that views Robert’s life as a child, won’t agree that part of the book was really interesting and I enjoyed it.
Main points in this part:
- Start learning early
- Don’t get satisfied with working a 9–5 and receiving a paycheck
- Let your ideas turn into a business
- Don’t work for money
- Let money work for you
Then the book talks about how important financial literacy is, & there are lots of rules you can follow to be financially literate. If you cannot start a business now, learn to learn. Try to read more and start your journey into financial literacy.
You can read the full book to get into details but these are the main points that are worth thinking of:
Know how does your cash flows
We are so fascinated by the newest iPhone released, we buy things just to brag, and we end up living paycheck to paycheck.
And this is not how millionaires started, they didn’t rely on paychecks or credit cards to buy liabilities.
That is not how you are supposed to live, this is not supposed to be the pattern of your life.
So from here, The desire to think should start. what happens if you invested your money instead of buying a bunch of new clothes that you will barely wear once.
The power of passive
When you are focusing on your assets, you can build multiple streams of income with just being financially literate.
Make money while you sleep whether from renting your real state properties, or running a business that doesn’t require you to be present.
Work on building your asset column
I started this blog this year and I am 19 years old, and I don’t have those big income streams so I ended up saving money for a couple of months to just open my blog.
I knew that it was a start for something big, I had a couple of hundred dollars. At that time Apple had just released their new iPhone 13, and just like any other teenager, I wanted this phone so bad.
But at the same time, I was reading rich dad poor dad, and I made up my mind to open my website and my own digital shop and know I am so happy with the decision I made cause now I treat my blog as an asset that makes me money.
I can not express how grateful I was that I discovered this Book. It gave me the opportunity to think about my decisions and plans.
Your house is not an asset
I was actually so amazed to have this concept entering my brain. Cause it doesn’t flow money to your income it adds to your expenses.
What adds to your income is an asset, and what buries you under expenses is a liability. Keep this concept in your mind cause you need it.
Pay yourself first
When you receive your paycheck, money goes to taxes, to pay your bills, then at the end, it goes into your hand.
But what this book states, is that you should pay yourself first. This will make you think about ways to generate income, and challenges your mind.
Ask how can I afford it
Stop asking whether you can afford it or not. Asking yourself this conveys how weak your financial literacy is.
I wanted that phone so bad, but the thing I have done was just trick my brain into finding ways to afford this liability after feeling satisfied with my assets.
You shouldn’t think about liabilities unless you have established your assets. Keep telling yourself that until you reach your goal.
And basically, this book walks you through the habits that make the rich richer and the poor poorer.
The rich:
- Look for assets
- Ask how they can afford
- Money works for them, this concept is an important fact that you should think about.
While the poor
- Work for money
- Keep convincing themselves that they can’t afford it
- Use money to buy everyday liabilities. They think liabilities are essential to fit in society. Keep in mind that working a 9–5 will never make any one wealthy.
Things I learnt
- limit liabilities, build my assets
- opportunities are everywhere you just need to choose right, again financial literacy
- pay yourself first
- work to learn
- money is a tool, learn to use it effectively
It’s now clear why I became a big fan of this book.
Reading this book is a must. It was fun in the beginning and so challenging at the end. If you want to start your financial literacy journey start here with this book.
I am 19 & while reading this book my mind was exploding. This book opened up my mind from a really young age and I wish that my dad had the opportunity to read this 20 years ago.
It’s the complete guide if you want to start with your journey to wealth. And I think this book is a true treasure every teenager should read before starting life in this world.
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