2 Dads: Rich vs Poor

Rich Dad Poor Dad is what I consider... a wake up call. The messages within these pages are very educational and it brings inspiration into my life.

Robert Kiyosaki explains how a majority of the people, the poor and middle class, struggle through life because they are stuck in, what he calls, the Rat Race.

What have you learned about seeking financial freedom? We are taught, growing up, to get a good education, a good job, and then work hard for our money.

The traditional schools don't educate about the real world out there, or about money. Education is about the basic fundamentals, and they teach and prepare us for job and career options. Sharon Lechter (Co Author) expresses that this is all important, but it is not enough.

The wisdom in this book, Rich Dad Poor Dad, will open your mind, and change your whole outlook and thought process. After reading it, I felt it made a whole lot of common sense.

Is there really such a thing as Job Security? Robert Kiyosaki voices the fact that we are taught to work hard for our money but not have money work for us.

An individual goes to school and works hard to achieve those good grades. He then continues to further his education, he attends college, maybe even a university. After all said and done... now he begins his independence with his first big debt... a student loan.

Next he lands himself a career with a great title. He finds himself a nice car and now has to make regular payments to pay it off. This person falls in love, gets married,  and the couple buy their first home.

Now they have a mortgage, all the bills that go along with it, and a debt due to an education he pursued years ago. Surprise!  A child comes along... and a family forms. Having a child requires more money. So, they apply for a couple of credit cards.... that's more debt added to their debt.

The family begins to grow due to more children... now it's time to move into a bigger home. To afford it... the family take out a loan. Yikes! More debt! The mother decides to get herself a job to help out with their climbing monthly payments. But now they have to pay for child care... Oops, there's more payments! And on and on it goes!

Both parents work so hard and try to manage their time only to keep afloat. This is a prime example of the Rat Race.

The message Robert Kiyosaki delivers is this... "Take responsibility for your finances or take orders all your life. You're either a master of money, or a slave to it."

Does that sound like a secure lifestyle? We should be working hard in life to make ourselves successful. Instead we work hard to make our employers rich.

Robert Kiyosaki shares the teachings from two different Dads. The poor dad, and the rich dad.

The Poor Dad believes in a good education with good grades, a good job and working for a good company. Working hard for your money is all you need to be successful.

The Rich Dad believes rather than working for a company... instead, own a company. He teaches the difference between an asset and a liability. Robert also explains the 3 different types of income: Earned Income, Passive Income, and Portfolio Income.

Earned income is the money you make through employers. It has a high tax rate. Passive Income is the money you profit when investing in Real Estate. It has a much lower tax rate. Portfolio Income is money made from assets, such as Stocks, Bonds, and Mutual Funds. It too, has a lower tax rate. The idea is to collect earned income and invest into passive and or portfolio

Robert says we should teach our children after having learned the skills. Warren Buffet says... "Risk comes from not knowing what you're doing."

 Mr. Kiyosaki explains that we need to  take responsibility and improve financial wealth. Learn the skills and then teach these lessons of money to our children.

"Awaken the financial genius that lies within you. Your genius is waiting to come out."