Want to get Rich and Prosperous? Well, then I’ve got a book for you.

Robert Kiyosaki, in his book Rich Dad, Poor Dad, has significantly changed the way people think about money. This book teaches that you do not need to have a high income to become rich.
Ironic? So let’s dive into the ocean of thoughts the author shares through this book.

The author, initially, narrates a story of his childhood where he and his friend Mike aspire to earn money and end up meeting Mike’s dad who offers them a job as laborers. Apparently, they are too small to fit in the job, besides, the labor laws too did not permit minors to work as laborers. Despite, Mike’s dad makes them work very hard and pays relatively less remuneration. The world would’ve definitely called this as exploitation. But the boys kept working day after day, week after week. One day, the author’s father, who is a government official, comes to know about this. It was obvious that he would get furious. He suggested the author to quit ASAP and also went to the height of saying that the man should be criminally charged for child labor.

Later the author goes to his employer (Mike’s dad) and was about to file his informal, oral resignation. But Mike’s dad said something. Explained something. Taught something. That moment was trailblazing and revolutionary for him. Those words proved to be life-changing. Those preaching made the author as well as his friend Mike very rich. I would suggest you to read the book to end your curiosity of knowing as what was it that the man told these boys.

On becoming rich, the author shares, with us, the key aspects of making, sustaining, and making more money. The author has presented a rather unconventional idea that your house might not be an asset. On the contrary, for most people, their house is an asset. But the author says that anything that drains money out of your pocket is a liability. And anything that makes money to get into your pocket is an asset. Many people find loans as the best option for buying a house. Hence, every month a large part of your saving is paid out as EMI. Besides, the bank charges hefty interest as well. Then how is your house an asset?

The author materially emphasizes and criticizes the habit of spending your own money extravagantly on frivolous desires. The author doesn’t say that do not buy luxury. But he, instead, suggests that do not buy them on your salary. According to him, ‘you should not work hard for the money but money should work hard for you.’ Your salary and other incomes should be invested somewhere so that your investments make more for you. And only this extra money should be spent on buying whatever you wish.

Further, the author talks about the need of working for yourself. Many people hunt jobs, work there and think that they are working in order to make themselves rich. This is an illusion. When you work at a job, you work for the owner of the company. You work hard day and night to make him rich. Secondly, you work for the government. The rich also pay taxes, but they have numerous ways of escaping from taxes. But in the case of a job-going person, tax is already cut from the salary even before it reaches his hand. Thirdly, a person doing a job works to make the banks rich. Every luxury you buy, mostly can’t be afforded out of your savings. So you choose to take loans. A loan for a car, a loan for a house, etc. The banks enjoy sitting and watching you working hard and making them rich by paying heavy interest. A solution to this is mentioned in detail, in the book.
The author, further quotes the need to become a ‘jack of all trades’. Having said that, you need not be excellent at everything but you should definitely know a lot in many fields. This will make you self-reliant and capable of taking better decisions in your business or any other venture.

This is an amazing book and I would highly suggest you read his one to get insights into healthy money habits and start your journey to becoming a rich person.

Categories: Book Review