In this blog post, I’ll provide the rich dad poor dad Chapter 8 Summary titled: “Getting Started”. This classic personal finance book from Robert Kiyosaki in this chapter provides practical steps for beginning your journey to financial freedom.
I’ll discuss Kiyosaki’s key points about starting small, taking action, overcoming limiting beliefs, finding mentorship, and having faith in yourself.
This chapter provides an inspiring roadmap for starting your own path to wealth creation through entrepreneurship and investing. My hope is this summary will motivate you to take that critical first step.
So, let’s dive into the Chapter 8 rich dad poor dad summary:
Table of Contents
Rich dad poor dad chapter 8 summary
Rich dad poor dad summary chapter 8 lesson 8 – “Getting Started.”
The chapter 8 starts by stating that wealth is everywhere if people are trained to see it.
The author Rober Kiyosaki notes that acquiring wealth was not easy for him, but it was also not too difficult.
He offers the thought process he goes through daily to find great investment deals, comparing it to learning to ride a bike – wobbly at first but easy once you get the hang of it.
The author then provides investment tips and 10 steps to awaken your financial genius:
1. Find a reason greater than reality:
Having strong emotional reasons behind your financial goals helps overcome obstacles.
The author lists his “don’t wants” – not wanting a job or suburban home like his parents, and “wants” – freedom to travel and control his time and life. Identify your own deep motivations.
2. Make daily choices:
We become what we study and focus on. The author chose to study investing and money from a young age.
He advocates studying money and investing even if you don’t have much, via books, seminars, and professional advice. Financial intelligence allows you to make more money.
3. Choose friends carefully:
You become most like the people you associate with, so choose financially savvy friends.
The author learns from both wealthy and poor friends – gaining knowledge from the wealthy and learning what not to do from the poor. Avoid naysayers who give fear-based financial advice.
4. Master a formula then learn a new one:
You need a money-making recipe and discipline to put it into action.
The author mastered real estate investing by studying and acting on what he learned. He advises learning faster formulas continuously to increase income.
5. Pay yourself first:
Save a portion of your income before paying expenses.
This self-discipline beats temptations to overspend and builds your assets. Let bills pile up if needed to defend your savings and force financial creativity. Limit liabilities.
6. Pay your brokers well:
Quality financial guidance should make you money, so pay professionals well and gain from their expertise. The author only keeps brokers who invest themselves and help him profit.
7. Be an Indian giver:
Recoup your capital quickly then profit from assets purchased with it.
This lets you reuse funds and acquire assets. The author gets money back quickly, keeps assets that deliver ongoing returns, and limits risk.
8. Use assets to buy luxuries:
Link buying luxuries to asset profits, not debt.
The author buys luxury items after assets earn enough, not by borrowing. This builds habits of using money intelligently.
9. Choose heroes:
Model yourself after people you admire.
The author copies investing strategies from Warren Buffet, Donald Trump and others who make wealth creation look easy.
10. Teach and you shall receive:
Giving money, time, knowledge or smiles returns to you multiplied.
The author gives money to family, church and causes he believes in. Teaching others keeps your mind fresh with new ideas.
Investment tips: How to get started with investing?
The next section explains that most people follow the basic formula of working for money, but you need to make money work for you by having it flow into assets. The author reviews sample financial statements showing this concept.
Individuals who “pay themselves first” allocate money to assets before expenses. Those who “pay everyone else first” don’t do this, leaving little for investing.
Poor money habits lead people into living paycheck to paycheck. The author occasionally pays himself first even when facing financial shortfalls, letting the pressure push him to earn more while defending his savings.
This forced him to boost his financial IQ.
The author advocates:
1) Avoiding high-interest consumer debt
2) Letting financial pressures build instead of tapping savings
3) Using pressures to improve income
4) Staunchly defending your asset savings
He notes that giving into pressures by liquidating assets or borrowing for liabilities is not financially intelligent.
The next section explains that your mind determines how money flows to you. Of 100 people given $10,000:
– 80 would have nothing left or greater debt in a year
– 16 would increase it 5-10%
– 4 would increase it significantly
Average people work diligently for earned income but don’t focus on having passive income from assets. The author chooses assets over luxuries.
He doesn’t borrow to buy luxuries but uses his desire for luxuries to motivate assets that can fund buying them. This builds intelligence to generate money vs. merely working for it.
The author advocates making wealth creation look easy to overcome doubts. Find heroes who simplify investing and model yourself after them.
Copy investing greats by reading about them and imaginatively acting like them as you analyze your own financial moves.
In the next section, the author reviews how many American Indians shared assets freely within their tribes.
They did not see this as gifting since the expectation was items would circulate back. Europeans who did not share back offended Indians.
In the asset column, recovering your capital quickly and profiting from assets matters more than the rate of return.
This recycles your capital to buy more assets and generates income streams. The author gets his invested money back quickly, keeps the assets, and limits risk of loss.
The next section advocates linking luxuries to asset profits, not debt. Steadily acquiring assets and letting them fund your later luxuries requires self-discipline but is more intelligent financially.
Next, the author explains how having strong personal heroes motivates you to improve and makes achievement feel more attainable.
As a child, he pretended to be famous athletes while playing sports, copying their moves. Find investing heroes and model your financial actions after them.
Reading about them helps you learn vicariously from their experience and wisdom.
The final section focuses on the power of giving. The author’s rich dad gave money, time and knowledge freely.
His educated dad did not. When you feel needy, give what you want first and it will return multiplied. This applies to money, smiles, sales contacts, etc.
The more the author teaches others, the more he learns. He gives money and ends up with more. The act of thinking how to give provides solutions for improving your own situation.
In summary, awaken your financial genius by:
- Focusing on your deepest motivations,
- Choosing wise financial habits and company,
- Continuously educating yourself,
- Firmly saving and defending assets,
- Getting consultative help,
- Quickly recouping invested capital,
- Linking luxuries to asset income,
- Having heroes, and
- Generously giving knowledge, money and time.
Master these principles, teach others what you learn, and great wealth will flow to you.
Rich dad poor dad lesson 8: (Review)
Here is a Rich dad poor dad lesson 8 Summary with the key notes, main points and analysis:
In Chapter 8 of Rich Dad Poor Dad, Robert Kiyosaki outlines the mindsets and actions required to build wealth and achieve financial independence. The main purpose is to provide practical strategic advice for developing an asset column and escaping the rat race.
Rich dad poor dad lesson 8 is:
“It’s not how, the question is ‘Why?’”
Kiyosaki argues self-discipline and a compelling ‘why’ are more important than specific tactics when it comes to getting started in investing and personal finance.
The 10 main ideas and investment tips covered in Chapter 8 Rich dad poor dad are:
1. Awaken your financial genius – Believe in your ability to find opportunities. Wealth is available to trained eyes.
2. Make money choices daily – Decide to be rich and reject limited thinking. Small choices compound.
3. Choose wealthy friends – Learn from those playing to win, not the fearful avoiding loss.
4. Learn investment formulas – Master a niche, then keep learning. Information is convertible to money.
5. Pay yourself first – Make savings a priority. Let pressure force creative money-making.
6. Hire talented brokers – Professionals should make you money. Pay for expertise, not discounts.
7. Get your money back fast – Seek high ROI and assets for free. Avoid long-term ties up of capital.
8. Buy luxuries with cash flow – Assets buy things, not debt. Consumption inspires your financial genius.
9. Have heroes – Model those succeeding. Believe it’s possible for you too.
10. Teach to receive – Generosity brings magic. Giving money or knowledge returns more of the same.
Key Supporting Evidence
Compelling examples Kiyosaki provides include:
– His realization as a 9 year old that playing Monopoly developed financial intelligence. This early lesson shaped his mindset.
– Stories of friends giving into fear or self-doubt show how psychology derails wealth-building as much as tactics.
– By making his son invest $3,000 to buy a car, the focus became learning not the car. Pressure forces action.
– The way Kiyosaki bought real estate with built-in income proves why getting your money back fast matters.
These anecdotes back up how mindset and discipline around money compound results.
Kiyosaki concludes that while knowledge is crucial, inner will determines wealth. He believes any middle class person can leverage self-discipline to escape the rat race.
While simple, the advice is powerful in focusing energy on building assets. I agree that psychology outweighs technical knowledge early on. Trading time for money alone remains limiting.
The chapter contributes excellent personal insights on mentally transitioning from employee to investor. By outlining his own failures and lessons, Kiyosaki inspires readers to stay motivated.
The advice remains high-level. He does not provide step-by-step investment guides here. But inspiring the proper mindset is a major value before later technical details.
While market conditions evolve, human psychology remains constant. The chapter is timeless in illuminating how self-limiting beliefs handicap wealth-building. Mastering your own mind around money is always relevant.
Summary of rich dad poor dad chapter 8:
Rich Dad Poor Dad Chapter 8 lays the mental groundwork for building assets by highlighting key habits like paying yourself first.
More than tactical advice, Kiyosaki focuses on the self-discipline and right mindset required to escape the rat race.
By teaching his hard-won lessons, he equips readers to overcome obstacles and take control of their financial futures. The chapter delivers universal wisdom on becoming your own financial master.