Rich Dad Poor Dad is a Huge SCAM But You Should Read It – MyReadingWorld (2023)

FAQs

Why is Rich Dad, Poor Dad not a good book? ›

Rich Dad Poor Dad isn't a well written book. In fact it's very repetitive and most people will have the core concepts down after reading less than half the pages on offer. Once you feel like you've got to grips with the message don't feel like you have to read on.

The overarching theme of Rich Dad Poor Dad is how to use money as a tool for wealth development. It destroys the myth that the rich are born rich, explains why your personal residence may not really be an asset, describes the real difference between an asset and a liability, and much more.

There are many reports that Robert's “Rich Dad” does not exist and was made up. This is more than likely true, but there have been many personal finance books that are works of fiction. (The book Wealthy Barber comes to mind.)

The rich make their money work for them

You must have heard the phrase "live to work or work to live". This is one of the basic concepts addressed in the book. Most work to survive. If they have money problems, they ride them out or ask for a raise.

The result is that the majority of people get trapped in work to pay their bills and are chasing paychecks all their life. This is the sad conclusion Robert Kiyosaki draws in his bestselling book Rich Dad, Poor Dad.

Money solves many problems

Whereas rich people teach the kids that even if money cannot buy happiness, it is far better than being poor. Having no money adds to the difficulties. According to the rich dad Robert Kiyosaki, the mindset that you can't afford something, is a poor mindset.

In a simple explanation: The Rich operates in Abundance mode, while the Poor operates in scarcity mode. Abundance – You give more because you are already in a better position, which in return attracts more returns. And the Rich habit effect is passed on.

Saving money does not protect you from market conditions such as inflation and economic downturns. In essence, saving money creates opportunity, but investing is the way to capitalise on the chance to create more wealth. The value of money decreases over time.

'The Psychology of Money' is an essential read for anyone interested in being better with money. Fast-paced and engaging, this book will help you refine your thoughts towards money. You can finish this book in a week, unlike other books that are too lengthy.

Who wrote Rich Dad Poor Dad? ›

Rich Dad Poor Dad

Rich Dad's Lesson 1: “The rich don't work for money.” In today's world, there's never been a more significant divide between the rich and all other income classes.

But the “rich dad” says that the most important goal is to learn how money works so you can make it work for you. To be financially smart, Kiyosaki says you must master accounting, investing, markets and the law. The more you broaden your skills, the more successful you'll be.

Fertility rates for the wealthy in the US have increased

Money has always given wealthy people the option to pay for things that make it easier to have large families: childcare, a bigger house, help with chores at home.

This might seem like a no-brainer: Without a job or a livelihood, people will face poverty. Dwindling access to productive land (often due to conflict, overpopulation, or climate change) and overexploitation of resources like fish or minerals puts increasing pressure on many traditional livelihoods.

What are the 10 causes of poverty? ›

Families in poverty, particularly those who make their living through agriculture, may have more kids as a way of supporting the family's livelihood. Children are often tasked with chores like walking to collect water, gardening, field work and animal care, even when they're very young.

Here's how much cash they say you should have stashed away at every age: Savings by age 30: the equivalent of your annual salary saved; if you earn $55,000 per year, by your 30th birthday you should have $55,000 saved. Savings by age 40: three times your income. Savings by age 50: six times your income.

By the time you are 35, you should have at least 4X your annual expenses saved up. Alternatively, you should have at least 4X your annual expenses as your net worth. In other words, if you spend $60,000 a year to live at age 35, you should have at least $240,000 in savings or have at least a $240,000 net worth.

Before we continue, let me be clear that this book is not a self-help guide to investment or the stock market. Instead, it is about the money - now the title says The Psychology of Money - being a reader, it grabs my attention, and I thought I was going for something exciting and new to read.

How is the psychology of money? ›

1-Sentence-Summary: The Psychology of Money explores how money moves around in an economy and how personal biases and the emotional factor play an important role in our financial decisions, as well as how to think more rationally and make better decisions when it comes to money.

Why do rich people earn high returns? Conventional wisdom suggests that richer individuals put more of their assets toward high risk investments, which can result in higher returns. But our research finds that wealthy people often earn a higher return even on more conservative investments.

Most “A” students are people who excelled at specific subjects. “C” students on the other hand became generalists who can see the big picture. They are more likely to end up on the path to financial freedom in the “B” and “I” quadrants. That's why “A” students work for “C” students.

Robert Kiyosaki

Rich people believe money is earned through thinking …

“The wealthy know big money requires thinking about it in non-linear terms,” he writes. “The rich know that creative thinking is the highest paid skill in the world. … Training your mind to find solutions to difficult problems is the real secret to making money.”

Kiyosaki defines an asset as anything that puts money in your pocket. A liability is anything that takes money out of your pocket. The big mistake that poor and middle class people make, according to Kiyosaki, is spending their lives buying liabilities instead of assets.

Living paycheck to paycheck is the most common financial lifestyle in the United States, with increasing numbers of high-income consumers now living paycheck to paycheck. In June 2022, 61% of Americans were living paycheck to paycheck, up from a low of 52% in April 2021 and 55% in June 2021.

Yes, saving $500 per month is good. Given an average 7% return per year, saving five hundred dollars per month for 37 years will end up being $1,000,000. However, with other strategies, you might reach 1 Million USD in 21 years by saving only $500 per month.

It's far better to keep your funds tucked away in an Federal Deposit Insurance Corporation-insured bank or credit union where it will earn interest and have the full protection of the FDIC. 2. You may not be protected if it is stolen or destroyed in the event of a robbery or fire.

What lesson is learned from the story? ›

A theme is the message, or lesson, that the reader learns by reading the story. Sometimes a story has a particular kind of message, known as a moral.

This chapter encourages the reader to consider the motivation behind the desire to increase one's financial intelligence. Mr. Kiyosaki provides his reasons for pursuing a higher financial IQ and the power of examples to impart wisdom.

A decline in 2018 lasted about a year, and there were drops of 50% or more in 2021 and again in 2022. Anyone investing in Bitcoin will hope for the best, but they should be prepared for big downturns, too. » Prices have been down in 2022. Will they go back up?

Rich Dad, Poor Dad is one of the most famous books in all of personal finance. Though it came out in 1997, it's still a #1 Best Seller on Amazon in 2022. Many of today's most popular finance gurus cite it as the inspiration for their success.

His most famous work, Think and Grow Rich (1937), is one of the best-selling books of all time (at the time of Hill's death in 1970, Think and Grow Rich had sold 20 million copies). Hill's works examined the power of personal beliefs, and the role they play in personal success.

'The Psychology of Money' is an essential read for anyone interested in being better with money. Fast-paced and engaging, this book will help you refine your thoughts towards money. You can finish this book in a week, unlike other books that are too lengthy.

There are 14 books in this series. Select the number of items you want to purchase.

The Psychology of Money By Morgan Housel.

Who wrote the book Rich Dad, Poor Dad? ›

Rich Dad Poor Dad

Rich people believe money is earned through thinking …

“The wealthy know big money requires thinking about it in non-linear terms,” he writes. “The rich know that creative thinking is the highest paid skill in the world. … Training your mind to find solutions to difficult problems is the real secret to making money.”

This allows you to set an intention to achieve goals related to your definite purpose. By pursuing meaningful purpose, visualizing, and reprogramming your subconscious mind to expect the success you desire, you can think and grow rich through your life's work.

The “secret” of Think and Grow Rich is to place yourself within the overall scheme of creation, obeying natural laws that inevitably and invariably beget growth, expansion, renewal, and generativity.

Before we continue, let me be clear that this book is not a self-help guide to investment or the stock market. Instead, it is about the money - now the title says The Psychology of Money - being a reader, it grabs my attention, and I thought I was going for something exciting and new to read.

1-Sentence-Summary: The Psychology of Money explores how money moves around in an economy and how personal biases and the emotional factor play an important role in our financial decisions, as well as how to think more rationally and make better decisions when it comes to money.

Why do rich people earn high returns? Conventional wisdom suggests that richer individuals put more of their assets toward high risk investments, which can result in higher returns. But our research finds that wealthy people often earn a higher return even on more conservative investments.

Robert Kiyosaki