What The Rich Teach Their Kids About Money… And What The Poor Do Not!

Rich Dad, Poor Dad may be a classic finance book that was published in 1997 during an era where millionaires were being formed a day thanks to the web boom, not all of them kept their wealth after the bubble burst but this book has weathered the storm into the fashionable era because it holds some very real truths about money and the way you'll make it work for you.

The title and therefore the main story comes from author Robert Kiyosaki’s experience with two different fathers (his own dad is Poor Dad, his friend’s dad is Rich Dad) and therefore the lessons he learned observing their behavior.
Society’s Biggest Lie

Most parents tell their children that their path in life is to urge good grades in order that they can attend college and after they get a diploma they will get an honest job where they work there until they will retire.

Once the child is on this path it's very hard to urge off because the system is about up during thanks to keeping people in line. Let me explain, once you attend college, if you don’t have absolutely the most perfect grades then you want to remove college loans to be ready to afford to travel, once you finally get your job, you've got to shop for a house and obtain a mortgage (literally means death pledge) loan, more debt, then you marry and your spouse wants a pleasant wedding, MORE DEBT, here come the credit cards, MORE DEBT, then you've got children and every one the financial burden that comes with.

All of this is often to stay you hooked into your employer, they provide you money so you aren’t scared of this big looming ball of debt and reciprocally, you hire out your body for about 1/3 of your day. You can’t leave because your debtors will repossess everything you owe and you are feeling pressure from the responsibility of getting a family to avoid any risks.
To conform to society’s plan for you, rather than trying something new for yourself only leaves you trapped during a J.O.B. (Just Over Broke).
But hey if you are doing manage to urge by, you'll enjoy retirement when you’re in your 60’s (but who knows, they keep making the retirement age older and older). this is often considered a success to the typical person.

How to Avoid This
You need to understand what assets and liabilities are, an asset is some things that generate income, a liability is a few things that cost you your income.
Here are a couple of samples of Assets:
A Business where the revenue is quite the prices
A Rental Property where the rent is bigger than what it costs to take care of it.
A Creative Work that earns royalties
A Stock that gains value over time
Here are a couple of samples of Liabilities:
A Car
Expensive Clothes
A House
Fancy Accessories
The Latest Phone
If you specialize in acquiring assets and minimizing liabilities, you're putting money directly into your pocket and therefore the assets add up over time, you employ the income from your initial assets to shop for even more assets and if you retain doing this, you basically have an enormous snowball of wealth.

Just remember to not chase money, chase things that make money. Money chasers just find yourself with jobs where they need tons of cash but no assets. It’s like someone supplying you with a particular amount of water bottles for your house rather than you having a faucet.
Financial Literacy

Can you read and write? most would say “duh,” but most of the people don’t skills to read a record or do accounting, Rich Dad tells Robert that accounting may be a “story in numbers” and whoever can read these stories has a plus.

Educating yourself in finance is that the foundation for fulfillment because if you don’t skills money works or what subsequent move for your business should be, then it's such as you try to create a skyscraper on a foundation of sand.
Learn everything you'll about business and finance, don’t specialize. Specialization is merely useful to employers.

Growing As an individual And Growing Your Business
If you'll control your emotions, you'll control your money. most people don’t realize that cash is an emotional thing but if you check out lottery winners or beneficiaries who are left large sums of cash, they break down all very quickly because they can’t control their feelings of want, envy, or need for validation.

When you have poor emotional control then all of your short-comings when it involves financial knowledge or discipline are magnified.
In order to become rich, you would like to separate your emotional biases from your business decisions. Greed can cause you to pick bad choices, revenge can cause you to pick bad choices. it's important to resist the pull of strong emotions and think objectively about your options moving forward.

When he was young, Kiyosaki got employment in sales which came as a shock to Poor Dad because consistent with him educated people didn’t enter sales, but Robert knew that if he wanted to try to well in business he had to find out the way to not be shy and he needed to understand the way to sell.
Kiyosaki has taken numerous courses and seminars, he says if he doesn't stimulate his mind with learning, he and his businesses would stand still which might basically be a death sentence. New ideas provide new opportunities so education is usually an honest investment.
In Conclusion

This book will flip a switch in your mind which will change how you view business and therefore the world, generally, will make more sense to you. The stock exchange is driven by fear and greed but Kiyosaki shows that it's an equivalent in our personal lives. Our lives are shaped by our thoughts and attitudes towards money and people are shaped by fear. If you would like to vary your life and become rich you would like to vary your mindset and attitude to be more just like the rich.
I’ve described a number of the ideas from the book here but just some of them, if you're serious about improving your financial situation and are willing to be humble enough to admit you don’t know much, you would like to shop for this book.