Rich Dad Poor Dad Summary (Animated)


If you were to stop working, imagine this
to yourself. How long can you survive on your remaining savings? What I just asked
you was a definition of wealth. Here is a man named Robert Kiyosaki, an American
investor, businessman, author, motivational speaker, and financial commentator who
became well-known in the recent years who has an estimated net worth of 80
million dollars! Want to know something interesting? “Oh?” He wasn’t raised in a
wealthy background. In fact his family was like most people who work but didn’t
have the best financial education and often times struggled with money. So then
how did Robert become rich today? Let’s take a look as he explains in one of
his bestsellers called Rich Dad Poor Dad Robert Kiyosaki was born in Hilo Hawaii
in April 1947 in 1957 at age nine years old, little Robert was attending the same
public school where the rich people sent their children for his town had lots of
doctors, business owners, and bankers Robert saw that the rich kids would
separate themselves from him for his family wasn’t able to afford the newest
collections of toys and bikes like them. So one day Robert asked his father who
had a PhD and completed multiple universities with excellent degrees, “Dad,
can you tell me how to get rich?” Unfortunately, his dad didn’t know the
right answer because he was a rich himself, so he responded with, “Well, use
your head, son.” “Stay in school, get good grades so you could find a safe and
secured job. His real dad is what he’ll be referred as poor dad. He wasn’t poor at
this time, in fact, he was making lots of money, but in the end, this man’s
financial life takes a turn for the worse. Now little Robert has a friend
named Mike and which Mike’s father would be referred as rich dad. Who started
mentoring Robert and his son Mike about how to really become rich. At this point
in time, rich dad wasn’t really rich yet but soon became to be one of the
wealthiest men in Hawaii. So then, what did rich dad teach Robert? Rich dad poured a strong financial foundation into these kids minds of many important
principles. To start off, the first lesson you need to know is you must know the
difference between an asset and a liability and that you need to buy
assets. If you want to be rich this is all you really need to know and
understand the most! You see, the rich acquire assets and the poor and middle
class acquire liabilities but sometimes they think they are assets. The primary
cause of financial struggle is simply not knowing the difference between an
asset and a liability. “?” OH! Right! You don’t even know what an asset or liability is don’t
you? An asset is something that puts money in my pocket.
A liability is something that takes money out of my pocket. For instance
let’s try cash flow pattern of a normal individual. This person right here
earns his income from a job and as expenses are things like food, clothes,
entertainment, and transportation Unfortunately he doesn’t have assets but
sure does have liabilities that constantly takes money out of his pocket
because things like mortgages, taxes credit cards, loans and believe it or not
the house. Now let’s take a look how to cash flow pattern really works for the
rich. Instead of looking to earn more money from their normal job as the only
source of income, they buy and own assets that brings money into their pockets as
a form of passive income. Passive income is something that earns money that
doesn’t require you to trade your time for it, so in other words you would be
earning money even as you’re sleeping. Examples of assets are businesses that
doesn’t require your presence such as stocks bonds, mutual funds, income generating
real estate, royalties, notes, and anything else that has value that produces income.
As mentioned before, poor dad was making quite a lot of money from his job but
his expenses seemed to always keep up with his income, never allowing him to
invest in assets. As a result his liabilities such as his mortgages and
credit card debts grew greater over time and this is the fault of having income
equals expense and assets is less than liabilities and sadly this is what drove
poor dad into debt even after he passed away. On the other hand, rich dad’s
personal financial statement reflects the result of a life dedicated to
investing and minimizing liabilities so he has income that is greater than the
expense because of assets is greater than liabilities. This is practically why
the rich are getting richer! Their assets generate more than enough income to
cover expenses with the balance reinvested into the asset column. The
asset column continues to grow and therefore the income grows with it. You
see, both dads worked hard, but they have opposing attitudes and thoughts. One dad
recommended study hard so you can find a good company to work for. The other
recommended study hard so you can find a good company to buy. One dad said the reason
I’m not rich is because I have kids. The other said the reason I must be rich is
because I have you kids. One said when it comes to money play it safe and don’t
take risk. The other said learn to manage your risk. One said I can’t afford that.
The other said how can I afford that? Although both men had tremendous respect
for education and learning they disagreed on what they thought was
important to learn. Robert learned from rich dad that the
truth about the general population, their lives are run forever by two emotions,
fear and greed, that keeps you stuck in a pattern of get up, go to work, pay bill.
Get up, go to work, and pay bills. Fear has them in this trap of working, earning
money, working, earning money and hoping fear will go away of not having money.
Instead of confronting the fear they react emotionally instead of using their
heads. The other emotion which is desire, some call it greed, is a second reason
why people also work for money. They desire money for the joy that they think
it could buy. But the joy that the money brings is often short-lived and
soon needs more money for more joy, more pleasure, more comfort, and more security.
You see that same fear and desire is what makes a lot of people be so
fanatical about going to school for a better chance of a high paying job, but
don’t be discouraged an education and a job are important, but it won’t exactly
handle that fear. To handle that fear, you need to learn the power of money, not be
afraid of it. Unfortunately most schools don’t teach
about this and if you don’t learn it, you’ll become a slave to money. Ignorance
of money can cause so much greed and so much fear that can lead you into life’s
biggest trap of constantly working. Rich Dad said learn to use your emotions to
think not think with your emotions. Examples of emotional thinking are like
I need to get another job! I deserve a raise! I want this job because
it is secured! Instead of clearly thinking like is there something I’m
missing here? This is our reality for most people your profession is your
income. The rich, your assets is your income. Apply these lessons to your life
for if I were to ask you about the definition of your wealth if you would
stop working today, how long can you survive? You might laugh at me and say I
no longer work for money, money works for me. Thank you guys for watching! Click
that like and that subscribe button if you want to see more helpful videos like
this! I’ll see you guys later! you

100 thoughts on “Rich Dad Poor Dad Summary (Animated)”

  1. Thanks for watching! Please feel free to contribute subtitling this video in your language using this link: http://www.youtube.com/timedtext_video?ref=share&v=TcNpoc-lF0M

    Edit: Thank you to those for letting me know Kiyosaki and Hilo were pronounced wrong in the video. It’s pronounced “KEE-yosaki” and “HEE-low”

  2. If Every one start business who will be worker who will be doctor care the business
    No good Ida
    Also business most big risk and need money to ran proper business
    Sorry not agree!

  3. Even tho some people quote "money don't buy happiness".
    In this world, Money makes you life much easier.
    With money a person can have a lot of freedom, choices of how to live.
    Without money, the life are obviously miserable when the person have no choices but to work in a workplace whether a person like it or not. Without money, a person get a lot of stress from paying bills, taxes, expenses etc.
    Without money, in case if one of the love ones got sick and you cannot afford to pay for surgery or treatment to save for example your family. Man, that won't end up very well.

  4. It's not people to blame it the such a plane exist by the government and policies who is the ones that convence us that we cannot live without jobs which is totally wrong ….f them😡

  5. Considering all the negativity I see in these comments, getting rich should be real easy, next no competition.

  6. Finally, I knew who was robert's rich dad because I was so confused thinking who was robert talking about. Thanks

  7. So if everyone thinks like this every one can just sit on their ass and the country would shut down. Nobody works!At that point even flippin burgers would be lucrative! It’s a crock.

  8. This concept worked up until 10 years ago when property and houses could be purchased at a reasonable price those days are done. Even buying a small rental wouldn’t be worth it. So yes you need to have money to make money.

  9. Oh, ok.. I think I get it..
    Buy property and rent it out.
    Buy stocks and buy a business. Easy!!
    I guess having a “rich dad” helps if you can freeload at his house while investing “your extra money”.

  10. The life is just like the right and the Left… Many people have read a lot of books in other to make income they just find themselves doing nothing after reading a lot of them…just try this close your eyes inside you discovered what grows inside you its called potential.. The reason why many people are not growing it because they don't want the giant inside them to come outside that is what takes them to where they are today

  11. So life is always about money which gonna make you get rich. However it is kind of sad to see rich people dont take anything to their grave, even after they worked hard for it in their lives.

  12. For most people your profession is your income, for rich your business is the income. From the book "Rich Dad, Poor Dad".

  13. Happiness is the core driving force for humanity. Money can buy security and gratification, two attributes of happiness. Concordant with LDMR, reliance on money-brought happiness will result in ever-increasing insensitivity to it. That is, the more money one has, the less hapiness one could buy with each dollar. If using money is the main way, if not the only way, a person knows to gain happiness, then this person would better be able to make money at a rate porportionate to the growth of the said insensitivity. Otherwise, the person would find out that with all the wealth s/he has, life becomes more miserable. Therefore, a diversified portfolio for happiness is much recommended. Income is absolutely a major factor, but it's far from the dominant one. One would still need health, positive social bonds, knowledge, meaningful life expeirences and vision to approach happiness. Statistics have not been studied to demonstrate the correlation among these factors, but common sense would suggest if a person focuses on any TWO OR MORE of the said factors, others would soon follow.

  14. the whole thing is stupid though, the rich teach like the poor dad so that they can keep being rich because everyone cant think like the rich dad or he wouldnt be rich himself. leaders need followers and followers need leaders or society wouldnt function at all. there is no shame in being the poor dad.

  15. So basically, in a nutshell, use money to invest in assets that give money back to you. Then, minimize expenses from things you don't need, because they are considered liabities. Buying a new car with a loan is a liability. Having cable on your TV is a liability. Bills from your houses are a liability.

    By learning how to increase your money through obtaining assets and decreasing liabilities, it allows you to grow your wealth faster. Minimize your fear of failure because by being fearful of it, you will always be stuck in life. Be open to learning and connecting with new mentors. And find the paths that are most fit for you.

  16. If anyone actually believes this, I hope you make your dreams come true but investigate before you do so that if you don't become rich, you won't be mad at the world.

  17. The question that should be ask what sort of life do you want and how are you going to achieve it and what it will take to make it happen
    For me it has taken alot of sacrifice and doing what ever i had to do to and a lot of hard work and a lot if years
    And the most important thing is to always live below your means and never get jealous of what other people have better then you , be happy for them .
    Just keep saying to your self if he or she can do so can i .
    And there is no quick way of doing it unless you win the lotto or someone leaves you alot of money when they die .
    Everyone has this sure fired way of getting rich quick.
    And 99% of the time it does not work , because anything that is that easy to get rich quick is always to good to be true and always never work.

    In my life there was a lots of ups and downs to get me here where iam today ,from a young boy who left school and and home at 15years old and started to work.
    To a man who lost everthing at the age of 34 years old.
    My marriage my job my home my children my freinds.

    But i never ever gave up on my self i just keep getting back up no matter what life through at me because the only person who can keep you down is YOU
    Now iam 58years old remarried at 39 years old to a great women ,we both have good jobs and only one year left on our home loan mortgage.
    So please take it from me the only person who can change your life is you only you have the power to do it.

  18. This was awesome thank you I am a visual leaner this helped me alot please do more. Better Late then never to change my mind set

  19. what ppl don't get you can get everything u ever wanted rich, wealth and it still wont satisfy or make you happy, I would be the poor dad anyday if was happy and complete

  20. Its not Poor dad being skillful… They are average dad that they dont need to strunggle having money…. Some rich man came from nothing being rich by skipping hardwork cause they cant be skill type person , they want easy to have money… The reality being skill type person is not boring, they are famous as people appreaciate their work even the owner of company, skill type person can never be poor cause rich man need them for thier company, EXAMPLE Albert Einstein every country appreaciate his work even they want him as president but he insist cause eintiens want the knowledge not money, This vedio is telling you to be Greedy for money… If u tell people being skill type is poor dad??? You will be Rich by now but u will be poor if u dont have them ..

  21. 3:48 the house is an asset if paying mortgage instead of rent. The asset value is offset by the mortgage liability.

  22. So basically need to buy asset. Like business, real estate, stock. etc. the question is how to buy with what money. Here is the risk you have to not spend money on liability item like big house, expensive car, and just suppress your urge to enjoy pleasure. save that money and put it into investments. If still not enough then get loans. It will be hard and 90% chance will fail. Because those who are already rich will try to monopolize and stop you from getting rich. But there is 10% chance it will work if you do it more often. So go for it. Yay

  23. My friend, ND and I discussed this extensively ystda. We discovered that in Nigeria, in the community where we grew, a poor community at that, people are actually getting poorer and only few of our peers have been able to break off the chains of poverty

    Its no joke at all..upbringing has a lifelong effect on how kids turn out. In the knowledge economy of today, however, it becomes our responsibility to seek better education than all our parents told us

    Thanks for this video

  24. Assets cost money you can’t invest in assets when you cant even afford to eat every day your either born rich or get lucky

  25. as a car guy I'm just gonna say:
    whoever said money doesn't buy happiness obviously bought the wrong car
    .
    .
    .
    true fact

  26. All type of Assets that u have mentioned are useless because any type of business will require ur presence and stocks or bonds or mutual funds are FAKE

  27. Money is like oxygen. If you don’t have oxygen, then getting it is the only thing you can think of. Your not thinking of partying when you’re drowning. But once you have plenty of oxygen you stop thinking about it. You dont worry everyday that you might run out of oxygen. But just because you have plenty, doesn’t mean you’ll live a happy life. Money works the same way. Just like having plenty of oxygen doesn’t bring happiness, having plenty of money doesn’t do the same. However, once you have plenty of money, it won’t be the only thing you think of, which allows you to focus on the things that does make you happy.

    Having plenty of money, is like having plenty of oxygen, being poor is like drowning.

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