Table of Contents
People struggle with financial problems because they spend several years in school but learn nothing about money and investing. People know to work in the service of money. However, they never learn to put money to work for them. Keep reading the Rich Dad Poor Dad book review. You’ll find straightforward advice to help you understand the fundamentals of money management throughout the book.
About the book
The premise of Rich Dad Poor Dad is intriguing. The author, Robert Kiyosaki, compares and contrasts the advice he received as a child from two prominent figures. One represents his ‘rich’ father, while the other represents his ‘poor’ father.
Rich Dad Poor Dad is divided into lessons that serve as a road map to financial literacy. Most chapters include examples of how Kiyosaki applied the lessons he learned in his own life. Toward the end of the book, you’ll find constructive advice on how to use what you’ve learned.
Kiyosaki’s demeanor is approachable. He dispels money myths you may hold dear to illuminate a better path. If you approach the book with an open mind, it is a great way to learn about the foundations of financial stability.
The rich do not work for money
The first chapter begins with Kiyosaki’s early relationship with money and how he started to learn a new way of thinking.
Understanding how you get money and why it matters is an important lesson emphasized throughout the chapter. Kiyosaki believes that those who consistently ‘put their money to work’ will become wealthy. It represents a substantial departure from the traditional employee mindset.
Why teach financial literacy?
One cannot build wealth without a solid foundation of financial literacy. However, as Kiyosaki notes, financial literacy is rarely taught in schools. So it’s up to you to improve your financial literacy, and Rich Dad Poor Dad is a great place to start! Kiyosaki delves into the fundamentals of personal finance, beginning with an examination of assets and liabilities. It includes straightforward definitions to build your wealth.
Mind your own business
When Kiyosaki talks about ‘minding your business,’ he’s encouraging you to add to your asset column. Emphasizing asset growth can be difficult but will pay off in the long run.
He provides examples of potential assets to purchase and rewards earned by prioritizing assets in his life.
History of taxes and power of corporations
Taxes are an unavoidable part of life, and Kiyosaki provides an interesting historical perspective on income taxes.
Regarding paying taxes, Kiyosaki recommends working smarter rather than harder. A significant portion of the chapter explains corporations and how this legal structure can drastically enhance your financial situation.
The rich invent money
Kiyosaki advises broadening your horizons to look for income opportunities outside your current job. Instead of sticking to the traditional savings and borrowing strategy, look for possibilities to increase your funds through wise investing. This chapter looks at how Kiyosaki has found good investment opportunities in the past.
Work to learn; don’t work for money
The dangers of over-specialization find emphasis in this chapter. You are more vulnerable to unexpected career changes due to market conditions if you only have one finely tuned skill. However, with a diverse set of skills, you can take control of your earning potential.
Kiyosaki shares opposing viewpoints from his rich and poor fathers and advice on which skills he believes are most important.
Overcoming your obstacles
Even if you have a solid financial foundation, common roadblocks stand in your way of financial independence. Kiyosaki walks through the most common roadblocks and advises how to overcome them. The advice ranges from overcoming guilt to overcoming fear.
Putting the book’s advice into practice is frequently easier said than done. If you need some motivation to get started, here are ten action items to get you started.
The steps are straightforward and can help you move forward confidently. As you implement these suggestions, Kiyosaki’s advice should help you on your way to financial success.
Things you need to do
The final chapter contains additional advice to assist you on your journey. With an open mind, these final suggestions may be the spark that sparks you into action.
Kiyosaki concludes the book with parting thoughts emphasizing crucial financial literacy aspects. The pages, like the rest of the book, are filled with real-life stories that make lofty financial goals feel easily achievable and realistic.
Here are a few steps to guide your financial journey
- Find something above and beyond your current reality, your wildest fantasy.
- Every day, put your free will to the test.
- Choose your friends with caution.
- Learn a lesson in personal finance.
- First and foremost, pay yourself.
- Pay the people who work for your money well.
- Try behaving like venture capitalists.
- Take care of yourself.
- Find a mentor for yourself.
- First, learn to give. Things will come back to you with time.
- This book will alter your perception of money and how to make it. It will challenge your beliefs and understanding of money and explain why some people become wealthy while others remain impoverished their entire lives.
- The author also criticizes the education system for teaching us the old way and developing an employee rather than a business mindset.
- Overall, Kiyosaki provides a solid financial foundation. If you can see the world through this lens, you won’t waste money on liabilities masquerading as assets.
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Q1. What is the message of the book Rich Dad Poor Dad?
Answer- Rich Dad Poor Dad’s underlying theme is how to use money as a tool for capital development.
Q2. What is the Rich Dad Poor Dad book review summary?
Answer- Rich Dad Poor Dad tells the story of a boy with two fathers, one rich and one poor, to help him develop the mind frame and financial knowledge required to build a life of capital and freedom.
Q3. Why do people want to be rich?
Answer- People want to be wealthy because they have seen how the current economic climate will affect the middle class.