The famous book ‘Rich Dad Poor Dad’ written by Robert T. Kiyosaki was first published in 1997. Promoting the significance of financial education, this enlightening book encourages people towards financial independence, investing in assets/real estate, building businesses, etc.
The title Rich Dad, Poor Dad refers to the two dads who influenced Robert T. Kiyosaki in his childhood. One dad was his own father, whom he figuratively called “poor dad.” The figurative “rich dad” was his best friend Mike’s father who mentored Robert to build his financial IQ.
Though the poor dad owned degrees from top-class universities, he took a steady job to earn his living and struggled throughout life to pay his bills. On the contrary, the rich dad ran a multitude of businesses without going to college. Outwinning traditional classroom education, he utilized ‘street smart’ knowledge to be an entrepreneur.
In the style of storytelling, Robert explains the perspective of some contrasting thoughts, ideas and ways learned from these two fathers who shaped his thinking about money, wealth, financial competency, investment, business, etc. The first two-thirds of the book covers six lessons taught to Robert by the rich dad.
- Lesson 1: The Rich Don’t Work For Money
- Lesson 2: Why Teach Financial Literacy?
- Lesson 3: Mind Your Own Business
- Lesson 4: The History of Taxes and the Power of Corporations
- Lesson 5: The Rich Invent Money
- Lesson 6: Work to Learn – Don’t Work For Money.
The rich dad blew up the myth that one needs to earn a lot of money to be rich. He clarified the distinction between two ideas: ‘working for money’ and ‘making your money work for you’. Unlike the poor dad, he encouraged the boys (Robert and Mike) not to run after money. The universities offer specialized education but teach little about money. That is why most doctors and engineers work for their whole life for money, still can’t be rich. He taught that it is much more effective to learn how money works, rather than being satisfied with the illusion of a stable job or high Paycheck. He advised the boys to work even for free if there is a chance to learn about some effective ways about money-making.
Furthermore, the rich dad (Mike’s dad) tried to explain the emotion behind money-making tendencies. According to his notion, the desire of making ‘more’ money tends to push people in a rat race. Most people work for fear of not having enough money to pay their bills. They work for desire. And, people who earn more tend to spend more. And the next morning those people wake up with the same fear of not having enough money to fulfill their needs. Some people blame their employer, partner, or the job itself, instead of upgrading themselves. In most cases, these people end up being poor. Rich dad showed that it is more helpful to change own-self than to blame the world.
The rich dad describes the complex theories about finances in a simple language. For instance, how the rich people build corporations to play the ‘money game’ utilizing their wealth; or how they exploit their resources to change the laws, and political environment; or how the rich can overcome the imposed tax burden with greater investments and smarter visions.
From the rich dad, Robert also learned, why it is necessary to take investment risk and achieve financial independence rather than being satisfied with a safe, secured, fixed-salary job. Without financial aptitude, an individual has to work hard throughout life only to earn his/her living and pay the taxes/bills. And this evil circle never ends. Robert also learned that if a person works for money, he gives the power to the employer. Instead, if that individual learns how the money is generated, then he keeps the power to himself.
What makes this book outperform other financial books is how Robert T. Kiyosaki has challenged and transformed the views of people worldwide about money and investment. On the whole, this book would help in improving an individual’s financial intelligence to improve his/her business, asset, and financial competency. This book has been translated into several languages around the world. If you are looking for a personal finance book to enhance your financial literacy don’t miss ‘Rich Dad Poor Dad’.
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