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Sunday, September 19, 2010

Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and Middle Class Do Not!

In this third book, Robert Kiyosaki continues from where he left off in Cashflow Quadrant.

In his 1st book Rich Dad Poor Dad, Kiyosaki addressed the differences in mindsets between the Rich and the Poor. Then, in his 2nd book Cashflow Quadrant, he spoke of the 4 quadrants from which one can generate income.

To be wealthy, Kiyosaki recommended that we learn to generate our incomes from the "B" (Business-owner) and "I" (Investor) quadrant as opposed to the "E" (Employee) and "S" (Self-employed) quadrant.



In Rich Dad's Guide to Investing, Kiyosaki tells about his long and eventually very fruitful investment journey. He started with nothing, and in fact at one stage, had built up a negative net worth. Still, he became a multi millionaire and was able to retire at age 47.

Most of us would wonder if we could embark on our journey to become financially independent without much resource at hand. In this book, Kiyosaki shows how anyone can get started and elaborates on one of his recurring themes, that it does not take money to make money.

Kiyosaki explains that:
. time is more important than money;
. investing in one's self and getting an education and experience precedes excessive cash;
. having a plan is more important than being in a hurry to make money.

Much space in this book is reserved for the BI-triangle, the structure that every small business needs to become successful.

Among other things, the basis of every business is a misson. The product comes last.

This is not a book for people who want hot tips and quick fixes. The book is about mindset. Kiyosaki plants ideas in your mind on how to become a full fledged investor. The reader must take the first step and learn to navigate on his own journey.

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