📖 Rich Dad's Guide to Investing by Robert Kiyosaki

Topic: Investing | Medium: Kindle | Rating: 4/5

Rich Dad Poor Dad has been one of my top-rated books, so I've decided to go deeper into the Rich Dad Poor Dad book series.

Three keynotes

1. Time is money

“Well, to most people, it looks like the price is measured in terms of money. But if you look closer, you’ll see that the price is not measured in money. It is really measured in time. And of the assets of time and money, time is really the more precious asset.”

"The moment you begin to think of time as precious and that it has a price, the richer you will become.”

“You see, almost anyone in the Western world can easily become a millionaire if he or she simply follows a long-term plan. But again, most people aren’t willing to invest the time. They want to get rich now.”

2. The risks and rewards lie with the investor

"For most people, investing is risky, but always remember that it is not necessarily investing that is risky. It is the investor who is risky. Many people who think they are investors are not really investors. In reality, they are speculators, traders, or—even worse—gamblers."

"Millions of people faithfully place their retirement savings and other monies into the market. However, the decision makers of the underlying investments actually make the large sums of money, not the individual investor or retiree."

Think of your superannuation. Fund managers use your money to make lots of money and give you a small cut in return. If you take control of your super, you can reap all the rewards. This has been a catalyst for me setting up an SMSF.

‘Thinking is the hardest work there is. That is why so few people engage in it.”

“Rule number one in becoming an entrepreneur is to never take a job for money. Take a job only for the long-term skills you will learn.”

"Great products are a dime a dozen. But great businesspeople are rare and rich.”

“Many entrepreneurs don’t really become businesspeople until after they lose their first business.” In other words, I learned more by losing the business and rebuilding it than I did by being successful."

3. Control the numbers

“If you want to be a rich private citizen, you need to be as poor and penniless as possible on paper.”

“The rich do not want to own anything, but want to control everything. And they control via corporations and limited partnerships.”

"It takes at least two financial statements to see the entire picture."

To control the numbers you need to control more than one entity. And each entity is summarised by a set of financial statements.