Book Review: Rich Dad Poor Dad
Book Information
Title: Rich Dad Poor Dad
Author(s): Robert T. Kiyosaki, Sharon L. Lechter
Genre(s): Business, Personal Finance, Nonfiction
Published On: April 11, 2017
Publisher: Plata Publishing
Pages: 354
"April 2017 marks 20 years since Robert Kiyosaki’s Rich Dad Poor Dad first made waves in the Personal Finance arena.
It has since become the #1 Personal Finance book of all time... translated into dozens of languages and sold around the world.
Rich Dad Poor Dad is Robert's story of growing up with two dads — his real father and the father of his best friend, his rich dad — and the ways in which both men shaped his thoughts about money and investing. The book explodes the myth that you need to earn a high income to be rich and explains the difference between working for money and having your money work for you.
20 Years... 20/20 Hindsight
In the 20th Anniversary Edition of this classic, Robert offers an update on what we’ve seen over the past 20 years related to money, investing, and the global economy. Sidebars throughout the book will take readers “fast forward” — from 1997 to today — as Robert assesses how the principles taught by his rich dad have stood the test of time.
In many ways, the messages of Rich Dad Poor Dad, messages that were criticized and challenged two decades ago, are more meaningful, relevant and important today than they were 20 years ago.
As always, readers can expect that Robert will be candid, insightful... and continue to rock more than a few boats in his retrospective.
Will there be a few surprises? Count on it.
Rich Dad Poor Dad...
• Explodes the myth that you need to earn a high income to become rich
• Challenges the belief that your house is an asset
• Shows parents why they can't rely on the school system to teach their kids
about money
• Defines once and for all an asset and a liability
• Teaches you what to teach your kids about money for their future financial
success"
This is not a sponsored post, all opinions are my own!
The Book In 3 Sentences
- Becoming financially literate should be a top priority for anyone looking to build and sustain wealth.
- Shift your perspective on acquiring money by understanding that the wealthy make money work for them.
- Focus on acquiring income-generating assets rather than accumulating draining liabilities.
How The Book Changed Me
Robert Kiyosaki's book ignited my financial journey. As I immersed myself in his revolutionary ideas and attitudes towards money, I developed a passion for learning more about finances. I found myself captivated by the concept of financial independence and questioning why such essential knowledge wasn't part of standard education. This book prompted me to ask the right questions and seek answers that transformed my approach to money. I began to view my savings and expenditures through a strategic lens, constantly evaluating whether my purchases were assets or liabilities and how they impacted my future wealth.
How I Came Across The Book/Who Should Read It
I stumbled upon this book while exploring a rabbit hole of YouTube videos. As I pursued a career in finance, it became evident that "personal finance" was rarely covered in formal education. My graduate finance course at Penn State University, for instance, focused on corporate valuation rather than practical personal finance skills. This led me to question the shortcomings of our educational system. Why isn't personal finance, taxes, and credit building taught in high school or college?
This book is an excellent starting point for anyone looking to enhance their financial literacy. It provides valuable insights into real estate financing and offers a fresh perspective on money management. You'll gain a clear understanding of assets and liabilities and learn to build a portfolio of income-generating assets.
My 3 Favorite Quotes
"The poor and the middle class work for money. The rich have money work for them."
"If you want to be rich, you need to be financially literate."
"Keep expenses low, reduce liabilities, and diligently build a base of solid assets."
Summary/Thoughts
Rich Dad Poor Dad is a standout personal finance book that contrasts the experiences of growing up with a "rich dad" and a "poor dad," each imparting their own valuable lessons. The book illustrates that the rich don’t merely work for money; they make their money work for them through investments in assets that generate income, such as stocks, real estate, and trading cards. Kiyosaki emphasizes investing in areas you're passionate about—there's no single path to financial success.
The author also highlights the power of corporations and the complexities of taxes, offering insights on avoiding pitfalls. He critiques the educational system for failing to teach financial basics, instead preparing students to be good employees. Kiyosaki encourages readers to pursue ongoing financial education and remain proactive in improving their financial situation.
While some of Kiyosaki's viewpoints may seem outdated or debatable, Rich Dad Poor Dad excels at provoking thought. It challenges readers to think beyond traditional employment and re-evaluate their financial strategies. Although this book alone won't revolutionize your life, it will spark a journey towards financial literacy and motivate you to keep learning, taking risks, and striving to enhance your financial well-being.
