The lowdown: Learn how the rich invest their money and why it is different from how the poor invest theirs with this Rich Dad’s Guide To Investing Summary.
Deep down, I believe we all want to be wealthy. Or, at least financially free.
However, you may feel as though there is a ceiling on what you can earn.
In Rich Dad’s Guide To Investing, Robert Kiyosaki puts forward the thought that you are in control of how wealthy you can become.
You can forget the get-rich-quick schemes though, as you’ll have to invest wisely and play the long game to be a ‘rich dad’.
- Audible Audiobook
- Robert T. Kiyosaki (Author) – Tim Wheeler (Narrator)
- English (Publication Language)
- 01/01/2012 (Publication Date) – Brilliance Audio (Publisher)
The three main takeaways from the book are:
- Work on your financial literacy
- Become an inside investor first
- Once you’ve got your business down, look to invest outside
Lesson One: Work on your financial literacy
The first step to becoming wealthy one day is to actually become financially literate.
Many of the poor blur the lines between a liability and an asset. This misunderstanding leads to a lot of terrible financial decisions.
At the end of the day, a liability is something that costs you money and an asset is something that makes you money.
The author uses the example of a home.
You’ve probably heard people say that their house “is a great asset”.
I know I have said that before!
But think about it, if you have a massive home loan, where is that money going? Out, through your mortgage, insurance and all of the other payments.
You may sell it for a profit one day, but there is no guarantee, so your home is a liability until then.
Lesson Two: Become an inside investor first
So, if you’re like me and sitting at the desk in your liability, you probably want to know what you should be doing…
Well, rather than jump straight out and invest in stocks, try being an inside investor first.
An inside investor is someone who creates their own asset and builds it.
Starting a business like this is a low barrier of entry, and gives you the financial literacy (and bank balance) over time to become a wealthy investor.
Starting a business part-time is a great way to fund your business projects with your day job.
The skills you learn in communication and selling through owning a business will set you up for long-term investment success.
Lesson Three: Once you’ve got your business down, look to invest outside
Once you have mastered (well, at least become really good at) your business, you’ll start to make better financial decisions.
For example, say you own a restaurant with your partner.
Instead of putting all your eggs in the one basket, invest wisely.
Perhaps one partner owns the business, and the other owns the building it is in.
This way, you’re not at the mercy of a lawsuit and risk losing everything.
You’ll also start to make better outside investments, as you’ll have the financial literacy and experience to see opportunities.
My Personal Takeaway
Well, I now see my apartment as a big old liability… So that’s not fun.
However, I have taken so much from this book in regards to the role business plays in building your wealth.
Put it into action
To start working toward your financial goals, you have to know what your goals are.
Not everybody wants to have a silly amount of money. Some people just want to be comfortable and not have to worry about paying their next set of bills.
No matter what your goals are, you need to make some before starting your journey.
You should consider buying this book if…
People looking to invest for the first time should read this book. Also, as a side-hustler, I found this helpful and a great way to view my business.
a Swedish university student, marketing professional, and life-long learner. Here at BookSummaryClub I summarize my favorite non-fiction books into easily digested posts. Hope you like what you’re reading!
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