Book Review: Rich Dad Poor Dad

I don’t know anything about money and I don’t want to be poor. When I told this to my friends and family several suggested reading Rich Dad Poor Dad. So I did.

Written by Robert T. Kiyoskai (who has made a career out of being rich) the book is more bible than manual. What I mean by that is it teaches you the mindset you must create if you want to become rich, not the x’s and o’s of making money.

The book compares Kiyosaki’s “two dads”. His biological father is his poor dad because he never figured out how to keep all the money he made in his life and died relatively broke (kinda harsh to refer to your dead father as “poor dad”). His rich father is his friends dad who is basically financial Gandolf and teaches young Kiyosaki numerous valuable financial lessons helping make Kiyoskai what he is today.

My two biggest takeaways from the book are this: Learn to be financially literate so you can see a great opportunity when it presents itself and grow your assets. By financial literacy Kiyosaki means learn accounting, investing, and financial markets and law. By assets Kiyosaki means investments in things that make you money like real-estate, small businesses, stocks, etc. Kiyosaki says the biggest difference between rich people and poor people is that the rich invest their money in assets while the poor invest in liabilities like their home or car which in turn cost them more money. The rich only spend money on luxury once they have the money to do so where as the poor will buy a home and take out a mortgage and pay all their income back to the government each month.

The book may make you feel uncomfortable at times if Kiyosaki starts pointing out poor people habits that you are guilty of. He is also critical of formal education and says it prepares people for the rat race (getting a job and using all your money to pay back debts). It is ultimately an important book to read for anybody who wants to feel secure about their financial future. I for one don’t know anything about how to make money so I found the book particularly helpful. It also makes me feel good that I picked up this book before I fell into the rat race (because you can’t be in the rat race if you don’t have any money to begin with).

But like I said this book is more bible than manual and is most likely the first book you pick up in a long list of books on financial education. It is a good motivator and you will learn a thing or two from it. For young people I would say it is an important read because unless you were an accounting major then what Kiyosaki is saying will be new to you.

Overall: B+

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