While I’ve already read Kiyosaki’s Cashflow Quadrant and Fake my brother and I have decided to do a future episode, in the not so distant future on The Brothers on Books Podcast, on Kiyosaki and I thought it would be fun to read Rich Dad Poor Dad. For the next few days I will be typing my notes as a way for people to take in the essence of the book.
Robert Kiyosaki had two men in his life that he loved very much, his “rich” dad and his “poor” dad. By being around both of them and hearing both of them talk about various topics Robert was forced to discern ways of acting in the world, as their advice was often contradictory. Should he go with his rich dad’s perspective or with his poor dad’s perspective? I think the main takeaway here is that it’s important to actively avoid being in an echo chamber. Surround yourself with many different types of people with vast points of view before making decisions or having thoughts on any matter.
I think the greatest contrast and illustration in the difference of mindset between the rich dad and poor dad can be seen in the following statement and question:
Poor dad: I can’t afford this.
Rich dad: How can I afford this?
The point here is not to say that one needs to buy everything they think about or see on the street. He does, however, allude that when you say you can’t afford something your brain shuts off. No mental math happens. Your brain doesn’t have to do any work. But if you think that an idea could create a lot of money and value then maybe one should think how they could acquire it.
I will say, unrelated to the Rich Dad Poor Dad book specifically, that after I read Cashflow Quadrant I definitely had a mindset shift. I started cold calling landlords and property managers looking to find a distressed seller. When I found a deal, now my Michigan properties, that I thought would cashflow nicely I did all I could to attain them. At first I couldn’t get a bank to give me an investment loan, as I had no track record. I kept asking myself how could I afford this? And then, like Kiyosaki is saying, my brain continued to work. I discovered the concept of seller financing where the seller would act as your bank. That continued pursuit ended up landing me the properties, for very little money.
Until next time.