Summary of the novel Rich Dad Poor Dad authored by Robert T.Kiyosaki(Part 1 of 3)

Here's what I learnt from the novel.
P.S - These are solely my views and plagiarism isn't done from the net (except for the pic :P) as source for the below.

• The 2 important causes of financial struggle of a person are fear and ignorance.
  
• What history repeatedly tells is that great civilizations collapse when the gap between the haves and have-nots is too great.
  
• Schools everywhere focus only on teaching people to work for money,not how to harness money's power.This is important as for majority of the people,unfortunately school is the end for them - not a beginning in their lives.
  
• Work to learn but do not solely work for money.As you will see that in order to make the taxes regimen work for you,an average person needs at least 5 years of learning in that field.
  
• People need to realize that Education(practical,not entirely theoretical) will always be their greatest wealth.
  
• It's not how much money you make,it's how much you keep" - my personal favorite.
  
• Intelligence solves problems and produces money.
  
• Accounting is one subject which may look damn boring at first instance but it's the most important one if anyone wants to become rich.
  
• Rule#1 : Know the difference between an asset and a liability,the Rich(in the real sense) buy assets.
  
• KISS principle - Keep it simple,stupid.
  
• It is important to be financially literate in words as well as in numbers meaning to understand what the numbers are trying to reveal.
  
• The following come under assets -
  Real estate,Stocks,Bonds,Notes,Intellectual property.
  
• The following are liabilities -
  Mortgage,Consumer loans,Credit cards.
  
• Income statement - consists of income and expenses.
  
• Balance Sheet - Assets and liabilities need to balance themselves for a person aspiring to live a non-debt ridden life.
  
• Rental Income,Dividend,Interest and Royalties are some of the few which come under the category of  "Income" .
  
• Taxes (levied by the Govt.),Mortgage payment come under expenses.
  
• Definition of financial aptitude - What you do with money once you make it. How to keep people from taking it from you,how to keep it longer and how to make that money work hard for you.
  
• Prefer smart work( let money work for you) over hard work (you working for money).
  
• Many people think their #1 tax is income tax but contrary to that,in reality for most Americans it's Social security tax.
  

Fun fact : Donald Trump,the present POTUS when alleged by his opposition during the elections that he didn't pay a single buck as tax during his 25 years stint as a businessman for the Govt,he famously replied that it makes him even more smarter.

Do click on the subscribe button on the top to get notifications when new articles are posted on the blog.

If you have reached this far,thanks for reading.
Have a great day,will see you the next time.