Rich Dad’s Retire Young Retire Rich summary

How you see the world shapes how you act in the world. In other words, reality is partly constructed within your own mind, arming you with a unique perspective. 

Think of a concept like risk. The perceived risk of a certain behavior often determines whether you engage in that behavior or not. Investing, for example, is often seen as risky – so some people don’t invest. After all, the best way to avoid getting burned is to avoid playing with fire, right?

It’s the poor worker who blames her tools, but a person who uses poor tools also achieves poor results. Kiyosaki discovered this Rich Dad wisdom when he was a young man. It has stayed with him ever since. 

You see, concepts are the tools of the brain. When you use them correctly, they can help you see things your eyes can’t. In the previous blink, we assessed the risk-reward ratio. Here, we’ll discover the concepts that can help you track your wealth, which is the key to your financial leverage.

Dozens of books about how to get rich are published every year. But it’s often hard to say which authors get it right and which don’t. A lot of times, readers are told to take steps that are difficult to put into practice, and so they never get around to testing these ideas.

Rich Dad has a more viable approach: rather than starting with complex models and strategies, concentrate on low-hanging fruit by adopting simple, good habits.

Wait a minute – debt is a form of leverage? This claim might sound counterintuitive. After all, most people spend a great deal of time and energy trying to get out of debt. But, used in the right way, debt is a useful tool that can make you richer. It all depends on whether you’re getting into good or bad debt. So, what’s the difference? 

In a nutshell, good debt generates income, while bad debt eats away at existing income. In the first case, debt is working for you; in the second, you’re working for it. 

How do you find a great deal for a real estate investment? It’s simple: train yourself to spot what others miss! Don’t worry, that’s not as daunting a task as it might sound. 

Although it has its quirks and unique bureaucratic hurdles, real estate isn’t all that different from other things you buy. Just like finding the best possible deal on a holiday, an appliance, or a pair of sneakers, you have to look around and compare offers before taking the plunge. 

Every fisherman has a story about the “one that got away.” Real estate investors, on the other hand, have a story about nabbing the perfect property that everyone else overlooked. Robert Kiyosaki and his wife, Kim, are no different. For them, it was a small mountain cabin they found while on vacation in Pennsylvania. 

The Kiyosakis are no strangers to putting the 100:10:3:1 method into action while on holiday. You never know where opportunity will hit, and why not see what’s up for sale in other towns?