The number one book that can help you start your financial education journey is Rich Dad Poor Dad.
This book was written by Robert T. Kiyosaki and was first published in 1997. It has now become the best-selling Personal Finance book of all time and a must-read for anyone interested in money, investments, and the global economy.
The book advocates the importance of financial knowledge and freedom, as well as the different ways to use money as a tool for generating wealth.
Rich Dad Poor Dad Book Summary
Rich Dad Poor Dad is a book about Robert Kiyosaki and his two dads – one poor and another rich – and how both helped shape his views on money. Poor Dad was his birth father, while Rich Dad was his best friend’s father.
He says that Poor Dad attended Stanford University, but Rich Dad never completed the eighth grade. Poor Dad believed in studying hard and getting a well-paying job. Still, Rich Dad believed in financial education and understanding how money works.
The book is centered around Kiyosaki’s perspective of how Rich Dad was able to make money and the financial mistakes that Poor Dad made. It consists of 8 chapters carrying crucial lessons that everyone must learn.
Here are some of the main lessons learned from Rich Dad Poor Dad.
Most people work for money – the rich have money to work for them
This lesson has become so cliché that many consider it a myth. But it’s true. Talk to any financial expert about making money, and the discussion will inevitably gravitate toward employment.
The truth is that rich people do work extremely hard, but they go about it differently than other people do. The rich work and learn about new ways to put money to work for them every day. They don’t stay in the employment phase for a very long time but strive to become the people who hire others, not the job holders.
It’s not about how much money you make; it’s about how much you keep
One behavior that separates the rich from the poor or middle class emphasizes saving money. Most lower-income earners face a fundamental obstacle: their budgetary priority goes to spending and expenses.
The situation is not the same among wealthy people. They tend to save more than they spend and invest the rest of the money.
The rich acquire assets
Rich Dad Poor Dad real estate is one of the examples of assets that Kiyosaki discussed in his book. He emphasizes that people should spend their money acquiring assets rather than liabilities. Assets typically generate cash and increase in value over time, while weaknesses take money out of your pocket every month.
Rich Dad Poor Dad Review
By now, you might be wondering, is the book worth reading? Well, if you want to learn about financial literacy, financial independence, and building wealth through investments, then yes. Rich Dad Poor Dad aims to motivate people to develop their unique path to financial freedom.
While the book doesn’t qualify as a one-size-fits-all with ready-made solutions. It provides an excellent approach for creating one’s objectives to generate wealth through investments.
The following are some of the strengths and weaknesses of the book.
Firstly, the book contains a contrarian perspective unique from the “common knowledge” found in most finance books.
Secondly, it focuses on turning the income you generate into assets that will produce even more revenue in the future.
Thirdly, the book encourages people to regulate their spending and expenses to save money.
Lastly, the book talks about taking action and pushing yourself rather than just thinking about ideas.
One downside about this book is that it’s written from Kiyosaki’s point of view and the specific situation at that time. This makes it hard to replicate since everyone’s success path is different. In addition, some parts of the book lack detail, making the concept discussed more challenging to apply.
Another weakness is that the book demeans individuals who are okay with doing what the majority are doing. This makes a person feel belittled and unmotivated to continue reading.
Finally, Rich Dad Poor Dad is just a motivational book, not a book written by a financial expert.
The lessons from Rich Dad Poor Dad aren’t meant to make you feel hopeless. Instead, it’s to provide you with an insight as to how people become rich. Embrace them as part of your financial routine and change your entire monetary dynamic for the better.