This book is a modern personal finance classic and our favorite finance book of all time. Although the book is controversial and often criticized, people still find it worth reading. Otherwise, over 32 million copies would not have been sold.
Robert Kiyosaki tells the story of his two fathers as children. His own father and the father of his best friend. Although he speaks fondly of both, they were very different when it came to finances.
The summary on Blinkist starts with the idea that many of us are too afraid of being branded as weirdos to get out of the rat race. We let the two primary emotions that everyone feels about money dominate our decisions: fear and greed. That's why we still stick to the outdated mantra: "Go to school, go to college, get a job, be careful." when in fact no job is safe anymore.
For example, when you get a promotion at work, it's smart to invest the extra money. Invest in something that creates wealth, like stocks or bonds, which is risky but has great potential. Maybe you will find a good fund with a 60 percent chance of doubling your money within a year, but a 40 percent chance of losing everything. However, it is likely that your fear of losing money in the first place will keep you from doing so.
But when your greed gets the better of you, you can spend the extra money on lifestyle improvements. For example, you can buy a fancy new car and the payments will eat up the money. So you will almost certainly lose 100%. This already gives you an idea of how important self-education is financially. Since we do not receive financial education in school or college, unfortunately this is entirely up to you.
Take a look around and you will see many financially clueless people in your life. Look at local politicians. Is their city in debt? Your mayor may be great, but unfortunately he probably doesn't know how to handle money.
Robert Kiyosaki tells the story of his two fathers as children. His own father and the father of his best friend. Although he speaks fondly of both, they were very different when it came to finances.
The summary on Blinkist starts with the idea that many of us are too afraid of being branded as weirdos to get out of the rat race. We let the two primary emotions that everyone feels about money dominate our decisions: fear and greed. That's why we still stick to the outdated mantra: "Go to school, go to college, get a job, be careful." when in fact no job is safe anymore.
For example, when you get a promotion at work, it's smart to invest the extra money. Invest in something that creates wealth, like stocks or bonds, which is risky but has great potential. Maybe you will find a good fund with a 60 percent chance of doubling your money within a year, but a 40 percent chance of losing everything. However, it is likely that your fear of losing money in the first place will keep you from doing so.
But when your greed gets the better of you, you can spend the extra money on lifestyle improvements. For example, you can buy a fancy new car and the payments will eat up the money. So you will almost certainly lose 100%. This already gives you an idea of how important self-education is financially. Since we do not receive financial education in school or college, unfortunately this is entirely up to you.
Take a look around and you will see many financially clueless people in your life. Look at local politicians. Is their city in debt? Your mayor may be great, but unfortunately he probably doesn't know how to handle money.
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