Father Ricco Padre Povero (book review)- Robert Kiyosaki

andi87 (44)in #book • 6 years ago (edited)

A rich father, a poor father, is probably Kiyosaki's best-known book, the book that changed the way of life of millions of people. A true MUST for those who approach the topics related to financial freedom.
The title of the book derives from the two paternal figures of the author:
the poor father (biological): a hard worker who for the whole life has been a teacher in Hawaii;
the rich father: an entrepreneur who was a friend of his father who instead carried out an independent job).
The two had totally different visions of thinking: the first was convinced that Kiyosaki had to study hard to work in a company, he was not a lover of risk and that the house was the most important asset.
The second one, on the contrary, claimed that he had to study a lot to buy his own company, he was a lover of risk and he was convinced that the house was a bad investment, it does not generate income but only outputs, that money is a symbol of power and that financial education be the best weapon. the money is earned and spent, but if you know the model of operation, you can build wealth by making money work.
At nine, little Kiyosaki decided to listen to the advice of the rich parent and to follow his teachings. He then learned 6 lessons that changed his life.
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Lesson 1: The rich man does not work for money, he makes money work for him
The author's career begins when he and his friend Mike (the son of the rich father) decide to print money by melting the lead.
When the two are discovered they decide to work for 10 cents an hour for Mike's father. Here they realize that the pay is low and they learn that working for money is tied to time, freedom is instead when the gains are untied by time (see commandment of time).

Lesson 2: Know the basics of the economy
Knowing the basics of the economy is the initial step that leads to wealth, it is necessary to know the difference between assets and liabilities.
The rich buy activities.
The poor and the middle class passivity.
The assets produce revenue, the liabilities exits of money.
When revenue increases, the "poor" buy passivity, houses, cars, big TVs, this leads to more work to have
more money and at the same time to borrow, forcing to work even more.
The rich get richer and richer because they spend on business, which in turn generates profits.
The poor and the middle class on the contrary, to generate money, are forced to spend their time working to get money. In fact, they sell their time in exchange for money.

Lesson 3: Take care of your interests
With this lesson the rich father teaches the two boys to build and maintain their financial situation.
First you need to earn enough money to allow money to work independently.
Only when you have a financial situation of a certain level can you spend money to buy luxury goods (liabilities), so that these outputs never exceed revenue. This is the secret of wealth.

Lesson 4: Taxes and the power of companies
In this chapter Kiyosaki analyzes accounting, investment, market understanding, and laws in such a way as to have advantages on taxation, and protection in the event of legal disputes.
In short, the rich first EARN then SPEND and finally PAY THE TAXES.
The poor and the middle class first GUADAGNANO then PAY THE TAXES and finally SPEND.
Although the clichés support the idea of "paying everyone to pay less", the classes that pay the most taxes are the middle class and the poor class.

Lesson 5: The rich invent money
There are two types of investors: those who buy investment packages by calling a professional to carry out the practices and those who create their investments by developing three financial capacities:

Find opportunities that are beyond the reach of others.
Knowing how to get money.
Working with smarter (financially) people of
their.
Kiyosaki in this chapter describes his business of buying and selling real estate auctioned at a price much lower than the real value that allowed him to generate big profits in a short time despite not having large amounts of money available.

Lesson 6: Work to learn, not work for money
Considering that the employees work the bare minimum in order not to be dismissed and owners pay the bare minimum so that employees do not fire workers, they find themselves in a stationary position.
The rich father advises instead to look for a job only after acquiring certain skills that will allow you not to be trapped in the hamster's wheel, or not having to work for money.
The most important skills are: cash flow management, management of the system, management of people, specializations in sales and marketing.
5 tips from the rich father

Even the rich are afraid of losing money
Everyone is afraid of losing it even the richest, the difference between successful people and those who are not the management of fear.
Bankruptcy is part of the trade, who has never failed is
because he never got involved.
Losing allows you to learn and provide the experience that you carry on then
in the future. Failure inspires the winners and destroys the losers.
The rich have an open mind
When you see a profitable investment opportunity, you should not waste time.
Having an open mind allows us to seize the right opportunities, a closed mind on the contrary will make us lose so many opportunities.
The rich "stand on the piece"
Do not be lazy, you will lose opportunities.
Face the difficulties, you will become better.
Take your responsibility, wrong you learn. Do not procrastinate, build your future.
Entrepreneurs never stop
The road to success is made up of small steps that must be tackled every day until the finish line is reached.
Once reached, we must not stop to avoid losing what has been achieved with great sacrifices.
The rich are humble
Arrogance is the ego added to ignorance. What you know allows you to make money, what you do not know makes you lose money.
When you know you are ignorant informed or with books, courses or attending a field expert.
Your knowledge is your true value.

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Money or wealth? Poor father or rich father?
According to Kiyosaki, the difference between money and wealth is due to the fact that money is the result of wealth or real value, and sometimes they are simply the symbol.
Only what generates money is real: an activity with higher revenue than costs, a real estate that generates a greater rent than the mortgage and maintenance costs, a creative or intellectual work (book, film, piece of music) that allows to perceive copyright.
The poor and the middle class are convinced that money (the paycheck) is the only important thing; this is equivalent to "security".
The rich, on the other hand, do not focus on the salary they earn with a job, they are more interested in something that produces, money, and will continue to do so even when they are gone. Instead of a job, they always look for activities that are a source of additional income.
As the rich father said: "if you look for money and security, what you will get will be only this". In other words, you could earn "money", but without achieving financial freedom.
The fundamental difference between the rich and the poor and the middle class is that the rich know the difference between an activity and a passivity.
Anything that generates money is an activity.
Anything else in your possession, even if you think it is an activity, the house, the car or your expensive set of golf clubs, is most likely a liability: it takes away money from your pockets by being continuously subject to management fees : IMU, tax stamp, petrol, insurance or maintenance.
Who does not understand money is easily recognizable: he boasts of his paycheck.
For the rich, what is gained through the salary is almost irrelevant, the more revenue that derives from goods that do not even have to be followed directly to generate money. We must learn how to make money work, not work for it.
A poor man can not even control the money. 95% of the people who win the lottery or get a large inheritance, lose (or should I say end) the money within five years at most.
In situations of this kind, any shortage in terms of financial knowledge or self-discipline is accentuated.
This is why it is easy to understand that giving money to a poor person is useless, he will come back poor.
In order to become rich, it is also essential to eliminate fear and greed in the moments when we make decisions. We must not conclude a business driven by fear or greed, the result could be catastrophic.
Self-knowledge is vital to our future.
Wealth goes hand in hand with personal growth.
The skills are at the base of the success of any sector.
Father rich poor father: conclusion
This book literally opens the mind. It allows you to reflect not only on investments, assets and liabilities, but also on our attitude towards work and life.
Kiyosaki argues that fear exerts a primary influence in people's economic and personal life. We are influenced by our attitude towards money, and our attitude towards money is shaped by our fear. When you can change your attitude to risk and wealth, you can start thinking, acting and living like a real rich text. for those who want to improve their financial situation in the long term, open your mind to the concepts of activity and passivity that each of us should know. Remember: rich is a way of life, not the definition given by a bank account! a few reviews or buy the book, click here: The book garden - Amazon Every day you will receive a free brief pill, 2/3 minutes of reading, with the advice you learned in the field and successfully applied by the world's greatest business experts ! "The change of reality starts from your mind"