HOW TO MAKE MONEY WORK FOR YOU

"Rich Dad, Poor Dad" is a personal finance book written by Robert Kiyosaki, first published in 1997. The book has since become a bestseller and has been translated into multiple languages, inspiring millions of people to think differently about money and financial literacy.

The book is based on Kiyosaki's own life experiences growing up with two father figures: his biological father, who was a well-educated but financially struggling employee, and his best friend's father, who was a successful entrepreneur and real estate investor. Through these two contrasting perspectives, Kiyosaki shares valuable lessons on how to build wealth and achieve financial freedom.

THEME

One of the main themes in the book is the difference between "working for money" and "having money work for you." Kiyosaki argues that most people, including his poor dad, are taught to work hard for a paycheck, save money and invest in traditional assets like stocks and bonds. But this approach is not enough to achieve true financial freedom. Instead, Kiyosaki advocates for building multiple streams of passive income through investments in assets like real estate, businesses, and paper assets (such as stocks and bonds).

Another key concept in the book is the importance of financial education. Kiyosaki argues that traditional education systems do not teach people how to manage money or create wealth. He encourages readers to educate themselves on personal finance and investing and to seek out mentors and role models who can teach them the skills they need to succeed financially.

In addition to these key concepts, "Rich Dad, Poor Dad" also covers topics such as the difference between assets and liabilities, the importance of cash flow, and the power of leverage.

Kiyosaki also shares some of his own experiences as an entrepreneur, including his successes and failures. He talks about how he started a number of businesses, some of which failed and others that were successful. Through these experiences, he learnt the importance of taking calculated risks and being comfortable with failure.One example of "having money work for you" as discussed in "Rich Dad, Poor Dad" is investing in rental property. By purchasing a property and renting it out to tenants, the property generates a steady stream of passive income in the form of rent payments. The property also has the potential to appreciate in value over time, providing the investor with additional income through capital gains when the property is sold.

Additionally, by properly structuring the rental property as a business, the investor can also take advantage of various tax deductions, making the passive income generated even more profitable.

HOW MONEY WORKS FOR YOU

Example of "having money work for you" is investing in stocks, bonds, or mutual funds. By investing in these types of assets, the investor can earn a return on their money through dividends, interest payments, and capital gains. These types of investments can be purchased through a broker or financial advisor and managed passively, allowing the investor to earn a return on their money without actively managing the investment.

Another example is starting a business that generates a recurring income. For example, an e-commerce store that sells products or a software as a service(SAAS) business that charges a subscription fee. This type of business can be run with minimal time and effort from the owner, as it generates a steady stream of income without the need for the owner to be actively involved in the day-to-day operations.

In all these examples, the money is working for the investor, rather than the investor working for the money. By investing in assets that generate passive income, the investor is able to build wealth and achieve financial freedom over time.

OVERALL REVIEW

"Rich Dad, Poor Dad" is a classic personal finance book that has inspired millions of readers to think differently about money and financial literacy. The book is based on the author's own life experiences growing up with two father figures and shares valuable lessons on how to build wealth and achieve financial freedom. The main themes of the book include the difference between "working for money" and "having money work for you" ,the importance of financial education and the power of taking calculated risks. The book also provides numerous real-life examples and case studies to help illustrate the concepts discussed and provide practical advice for achieving financial success. Overall, "Rich Dad, Poor Dad" is a must-read for anyone looking to improve their financial literacy and create wealth for themselves and their families.