Personal finance author and lecturer Robert T. Kiyosaki developed his unique economic perspective from two very different influences on two fathers. One father (Robert’s real father) was a highly educated man but fiscally poor. The other was the father of Robert’s best friend that dad was a college drop-out who became a self-made multi-millionaire.
In this follow-up to the bestselling Rich Dad, Poor Dad, he reveals the secret of how the wealthiest people become wealthier by presenting some simple investing secrets and explaining how anyone can enjoy cash benefits merely by knowing where and how best to invest their money.
Rich Dad’s Guide to Investing – PDF
This is a book that aims to change our way of thinking about obtaining money. Robert Kiyosaki starts out by asking why 90% of the world’s fortune lies in the hands of only 10% of the people. What makes this 10% so different that they can dominate the world’s wealth?
The main difference, he says, lies in the way we think. The poorer 90% believe in financial security through getting a stable job, working hard, and squirreling the money in the bank. Or if they do invest, they invest without the necessary knowledge and experience, merely relying on gut instinct or hearsay. Of course, they rarely succeed.
At this age, those who work the most physically are paid the least and taxed the most. We all need to learn to make money mentally. Robert Kiyosaki’s real dad (poor dad), was his real-life example of someone stuck in the “old” way of thinking.
As a teacher, he believed in working hard and avoiding mistakes. He rose to a high position, but then he lost his job. His whole life was spent teaching, but now he had to start searching for another job and start from scratch.
Robert’s friend’s dad (rich dad), on the other hand, started from nothing, made a lot of mistakes, but eventually build a financial empire. Rich dad then used his wealth to quietly help others, giving it back to society.
So how do we become like rich dads?
Firstly, you have to ask yourself whether you are prepared to be rich. Some people just want to be secure. Some want to be comfortable. To be secure or comfortable, Robert recommended relying on good financial advisors to help you come up with a financial plan.
Talk to different financial advisors, and be clear on your goals, so they can help you better. Robert took a month to come back with a plan for financial security – a mechanical, automatic, and boring plan.
The plan for financial comfort was trickier – it took 4 months and Robert had to really think about what he wanted in a comfortable life. The really exciting part is to come up with a plan to be RICH.
Yet, Robert recommends that a person had to have a plan for financial security and a plan for financial comfort in place, before pursuing a plan to be rich. Simply because pursuing a plan to be rich HAS risk, and so you’ll need to know you have something to fall back on if you do fail.
To be rich requires a lot of work. Although Robert briefly covers investment in real estate (passive income) and stocks/ bonds (portfolio income), in this book, Robert focuses on building a business. With a business, you can enjoy tax advantages, and eventually, people will pay YOU for stock, not the other way round.
Building a business may seem like a lot of work, but so is being able to invest well in real estate or stocks. Robert teaches a lot of tips on how to reduce risk, but there is always going to be risk involved and a steep learning curve. Robert himself failed his first… and second businesses. But he kept learning and got the hang of it.
For those who are just starting out, Robert suggests getting a job that can teach you useful skills eg. sales techniques/ communication skills, and then start a part-time business. Part of your income can serve as the capital for your business, and if your business fails, you can still fall back on your job.
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|Book Title||Rich Dad’s Guide to Investing|