Jack "Straight Talk" Sarlo

"Rich Dad Poor Dad (Book Review And Summary)"

rich dad poor dad - book

Rich Dad Poor Dad is a book to help you make more money by improving your financial intelligence (the way you think about and use your money).

If you’re thinking about starting a business this book will tell you why that’s a good move if you want to make a lot of money.

Some Key Lessons
From This Book

Think Differently About Money

rich dad poor dad - book reviewDo not allow the emotion of fear for money (e.g. of losing money, not having enough) control you and force you to work harder at a job. Instead use your brain, think and imagine and you will find opportunities to make money other than working for someone else.

If you want to buy something but you say to yourself “I can’t afford it” your brain stops working. Don’t say I can’t.

Instead say “How can I afford it ?” and your brain is put to work, you exercise it about financial matters and it gets stronger and you get wealthier. It does not get shut off but instead it is forced to think and search for answers.

Force yourself to think how you can make extra money. In this way you are training your mental money muscle just like training weights in the gym and improve your financial intelligence (financial IQ).

Financial IQ is how creative you are at solving financial problems. E.g. how many different solutions can you think of to turn a lemon into millions?

The greater your financial intelligence the more opportunities are presented to you and the easier it is to tell if a deal is good. You will be able to spot a bad deal or make a bad deal good.

The fear of being different (e.g. not having a normal, job like pretty much everyone else) prevents most people from seeking new ways to solve their financial problems and make more money. Trust your inner wisdom instead of following the crowd. Don’t do just like everybody else.

Do not be a cynic – a negative person filled with doubts and fear who criticizes everything. Instead analyze.

Learn to analyze any opportunity to make money instead of automatically criticizing and closing your mind to what could be a great opportunity. Learn to take risks. Be bold.

The cure for laziness is to be a little greedy. That way you work hard to get what you want. If you find yourself avoiding something you think you should be doing ask yourself: ‘what’s in it for me?’

Find heroes to follow and “imitate”. They make things look easy. For example if you choose real estate as one of your assets find a real estate expert you really love, and imitate him. 

This works for whatever skill you want to improve or result you want to achieve. For example if you’re playing golf, find a hero you really like, maybe Tiger Woods and play, think and act as if you’re him!

Be self-disciplined. Do not blow money away on expenses. Keep expenses low.

Give first if you want to receive something, this applies to anything not just money. But give for the joy of giving not to expect to receive something in return.

Give money if you want money. Help someone else get contacts if you want contacts. Smile to people if you want people to smile back at you. Your world is a mirror of you.

The Rich Buy Assets Not Liabilities

Assets are anything that provides income other then from your physical labour i.e wages.

  • Stocks
  • Bonds
  • Notes (IOUs)
  • Businesses that do not require your presence. They are run by other people. If you work there it becomes a job.
  • Income generating real estate
  • Royalties from intellectual property such as music, scripts and patents.
  • Anything else that has value, produces income or appreciates and has a ready market.

Buy the assets you love. For example if you really love houses and buildings consider real estate investing as one of your assets. If you’re not the least interesting in real estate choose another asset.

The benefit is that If you love an asset then you won’t give up easily if you’re faced with some problem or challenge.

Whichever asset you choose master one thing, e.g. real estate and then learn another one. Don’t do too many things at once.

Saving some money every month is a good idea but not the best option if you want to have a lot of money.

Improve Your Financial Intelligence

Your financial IQ which is made up of 4 parts:

  • Accounting - this is financial literacy or the abilitity to read and understand financial statments. It is about numbers.
  • Investing - this is the science of money making money. You need to learn how to have money work for you. In investing,  it is what you know your greatest wealth and what you do not know your greatest risk.
  • Understanding Markets - this is the science of supply and demand. E.g. does an investment make sense or does it not based on current market conditions.
  • The Law - understand tax advantage and protection from a corporation. Learn about and form a corporation for tax advantages.

Wealth is a person’s ability to survive for so many number of days if they stopped working. If you stopped working today how long could you survive? One month? Three months? One Year?

Overall I think this was a good book because it shows you there are plenty of opportunities to make money, other than working at a job.

If you seek, find and act upon these opportunities you will make more money!

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About Jack
Jack Sarlo

More than 7 years ago Jack made his first few sales online as an affiliate marketer. His site ranked on Google for dozens of keywords, so later on, he built courses and software to teach his SEO "secrets". He also won a Flip Camera in an affiliate contest.

Now he reveals all the insights he's discovered throughout the years about Internet marketing, in his free guides and products!

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