Name of the Book: Rich Dad Poor Dad
Name of the Author: Robert Kiyosaki
Publisher: Plata Publishing; Second edition (11 April 2017)
Originally published: 1997
Genres: Personal finance, Economics, Non-fiction
About Robert Kiyosaki
Robert Kiyosaki is an American businessman who founded Rich Global LLC and the Rich Dad Company. The latter focuses on private financial education through the mediums of books, videos, and speeches. He is also the author of over 26 books, including this book.
Rich Dad Poor Dad has been called the number one personal finance book of all time. Robert Kiyosaki illustrates the mindsets and beliefs that define those who become wealthy. He contrasts these mindsets with those who are poor. In this book, Robert’s example of a poor man was his dad, while the rich man was Robert’s financial mentor. Robert’s father was a genius, while his mentor didn’t even finish eighth grade. The only meaningful difference was their mindset.
Education & two perspective
In this book Kiyosaki believes that an individuals attitude towards money and their tendency to be richer or poorer can be traced back to the education they receive at home. Parents are responsible for teaching the fundamentals of finances as it’s not something that schools focus on. Kiyosaki explains that this education at home is the driver behind the rich getting richer, the poor getting poorer and the middle class continues to struggle with constant debt. He believes that the considerable debt that countries face is a result of politicians and government officials having very little education on money, yet being in a position of power.
Robert Kiyosaki emphasizes six key points through out the book. These points — which differentiate between his “poor” dad (his real dad) and the “rich” dad that helped him understand business and become wealthy — are:
The rich don’t work for money
The importance of financial literacy
Minding your own business
Taxes and corporations
The rich invent money
The need to work to learn and not to work for money
Good Points in this Book
Flawed Educational System
As Robert mentions many times in the book, our traditional educational system is flawed. Our education system is designed primarily to create employees and could be a negative influence for an entrepreneur. As Kiyosaki mentions, he’s not suggesting that people skip higher education; he’s suggesting higher education does not assist with “street smarts.” Financial literacy is something that is rarely discussed in school, and if it is discussed, it is only at basic levels. Based upon my personal background, I’ve made this a personal focus and will make sure my children are well educated in this subject.
The original idea of the book Rich Dad,Poor Dad, and also the extremely effective presentation of educational financial concepts are not as simple as they seem.
An incredibly motivating book inspired by the personal experience of the author, who is himself a millionaire,
A certain lack of detail in some areas mentioned by the author is regrettable.
As he says himself, his books are motivational tools, not books by a financial expert.
Why I chose this book
This book teaches us many important lessons which apply in our daily life. In this book Robert describes how you can get started in your journey towards financial education and wealth which was not included in any bookbook in easy language.
My Learning from this book
I learned many important things from this book that is:
- Choose your friends carefully: Don’t choose your friends based on how much money they have. That said, you should be careful about being around cynics or people who don’t like talking about money. They will rub off on you. Do your best to learn from people who support you, teach you, and make you a better person.
- Pay yourself first: If you don’t do this, you’ll find nothing left to pay yourself. This is an essential shift in mentality.
- Assets buy luxuries: Don’t buy a luxury until you have created an asset that pays for it.
- Teach, and you shall receive: The more you teach people, the more you will learn.
- Look for new ideas: Read books on different subjects and learn from them.
- Be willing to learn: Learn every skill you can. Never assume you are already knowledgeable enough on a topic.
- Learn from history: Study successful people from the past and emulate them.
- Action always beats inaction: If you are not sure what to do, you should just do it. Imperfect action is better than perfect inaction
- Conclusion- Rich Dad, Poor Dad is an extraordinary book, in the literal sense. I cannot fully express how much this book transformed my vision of money and most especially my perception of wealth. Before I read this book part of me was convinced that all “rich people” were born that way. That you needed to have money to get rich and that the only solution was to join the rat race, although that is not what I called it at the time. Nowadays, I am firmly convinced that you can learn how to become rich and that financial freedom is a realistic goal if you move towards it methodically and patiently.
- The poor and the middle class work for money. The rich have money work for them.Fear is what keeps people in jobs that they don’t enjoy. Assets and liabilities are different. Assets generate money whereas liabilities suck up your money.A rich man’s perspective is that your income is a direct result of your assets, not your job. Therefore you need to commit to investing in the right assets.
In order to be rich, you need to have a decent financial IQ. This is made up of considerable knowledge in accounting, investing, understanding markets, and the law. Rich people “groom” their children so that they can have a complete understanding of business operations and how the family manage their finances. Management skills that should be taught include managing cash flow, managing systems and managing other people.
Rich Dad Poor Dad Book by Robert Kiyosaki
Categories: Book Review