Rich Dad Poor Dad is a wonderful book written by Robert Kiyosaki and Sharon Lechter. It was released in the year 2000.This 207-page book gives us valuable lessons in maintaining ones finances and achieving independence financially. The main lessons are in real estate and investing with the onus on owning of businesses.
Most of the book is told in anecdotes and encourages the common man to take a greater interest in finance and manage his money better. This book encourages the common man to quit being employed by someone and own a part of a system. This is a theme that rings true throughout the book.
The book is mainly based on the author Kiyosaki’s upbringing in Hawaii. It mainly shows the differences between the attitudes of two men towards life money and work. In this book wealth is measured in an interesting way. It is measured by the number of days the income from all the assets owned by you can sustain you. This book tries to teach us financial intelligence. It shows us that large corporations and enterprises pay taxes after expenditure whereas the common man has to pay the taxes up front. They also show that corporations are similar to tools. They can be made use of by anybody but few know how and the ones who know are usually the rich.
Rich Dad Poor Dad teaches how to make money work for you. One example is when two young boys are offered a job in a store, they go and work but they also see opportunities there. They notice unused comic books and asked if they could have them. They slowly started to make a collection and turned it into a library. They charged an admission fee and thus made money work for them.
The book advocates taking calculated risks and not blindly going with the flow. It says one should one learn the difference between an asset and a liability. The rich dad believes in K.I.S.S principle. He explains assets simply as things that put money in your pocket and liability as things that take it out. Once this distinction is made, one should focus on income generating and assets and try to reduce of liabilities and expenses.
This book gives an immortal lesson; it distinguishes between a job and a business and it shows us that the rich have assets that generate income and that should be our end goal.
This is a very useful book that has some of the most basic and important lessons in financial management. One of the most important ant aspects is to take action today and put you heart and soul into becoming successful. Don’t expect wealth to fall into your lap. Most of the lessons are available for free if you have a look about. This site is a great place to start