Rich Dad Poor Dad book summary

Rich Dad Poor Dad book summary 

The key of being and staying wealthy is financial education.

Financial knowledge is all about having multiple resources of income without working, or by working less, or by working hard temporarily but getting the reward passively. Having only one source of income, like job or even asset is risky, specially when you are working hard in it.

Having multiple source of income without working hard isn't enough, you also have to know to manage them.

The basic way of managing money is to investing it on assets more than spending it on liabilities.

Asset means something that take your money and increase it in return, either passively or just once, without needing you to work hard regularly.

Liability means something that take money from you but doesn't return anything in return, infact it takes money from you passively.

Investing is the only way to increase your money, it can be investment in your own businesses or investment in others' businesses.

Investment on your own businesses includes the expenses of your corporation and making products or providing services. 

Investment on others' businesses includes investing in stock markets.

There are also other types of investment on others' businesses, like index fund, mutual fund, etc. Those are less risky but less profitable.

Real estate investment means buying a land where has pre-built building/s. Even if nobody buys it, they might rent it, so you will get passive income from this property.

Real estate investor doesn't get profit when they sell it, they get profit when they buy it, it means that real estate investors always buy a property in less price and sell them in their real price. So it is confirmed that if you sell it, you will get profit. 

It is also possible that the price of the property gets higher, and the vise versa is also possible, but as they buy it in low price, they still don't loose money.

About starting a corporation, having knowledge about marketing and sales are important.

The way of dealing with tax is another main difference between poor, middle class and rich. Instead of doing illegal things to save your money from tax, take leverage of law of tax, by which rich people infact spend less money on tax than poor and middle class people.

Author also mentions to donate money to get money, he says that you get what you give.

That were the basics of money management, corporation, stock market investment, real estate investment and tax. 

Reading other books for the fundamentals of each topic is required.