Book Review: Rich Dad Poor Dad by Robert T. Kiyosaki

Image source: Rich Dad World

Rich Dad, Poor Dad was an interesting read.

Slight intro on this book

It tells reader on his experience of choosing his lessons taught by his rich dad and by his poor dad on how to be financially successful. Here, he had to make a discretion whether which dad's teaching will help him to achieve his financial freedom which I believe is a great lesson for especially children to understand. There will be many people who tell us what is right and what is wrong but it shouldn't be taken at face value. We need to find out which way would best suit us to achieve what we want.

Same goes with this book.

Controversies about the author

Image source: Rich Dad's Hypocrisy

Certainly, there are controversies behind this book whereby rich dad was not real and a figment of the author's imagination. There are also skeptics on his methods whether its truly works or not. But despite that, I believe the book may still have valuable insights on the thoughts on money. Hence, I would recommend to pick up this book but not to literally emulate everything it speaks. More understanding and research should be done before taking up any methods.


Short summary of the book

Image source; Rebloggy

What I enjoyed about this book is that you see another perspective on how to view money and making good financial decisions. The author outlines the importance of financial literacy (ability to read numbers), financial strategy (the science of money making money), knowing the market (supply and demand) and understanding the law (the awareness of accounting, corporate, state and national rules and regulations). He encourages to "mind your own business" which focuses on income generating assets.

What the author tries to reach out was a continuous learning in finances which I too believe is very important not just in business but also in life. He preaches that money should work for us and not we work for money.

I think a great lesson he teaches is to invest in assets that can work for us. He outlines how middle income earners will not reach financial freedom from just a raise or a job promotion. As more money comes in, it does not always mean our debts would decrease. At times, it might just be the opposite. As our earning grows, so will our expenses. Since we have more money, we might think why not spend on more luxurious items like better clothes, better cars or a bigger house? And so the rat race cycle for more money continues.

Instead on indulging on luxuries, he promotes that investing in assets that brings in money. So that one day those assets will assist us in covering our expenses instead of us seeing our salary goes out and leaves nothing left but spare change to survive.

FightMediocrity gives a short review on this book as well as outlines this idea on investing on assets in his video below (totally recommend watching :D)

That's my thoughts on it. (Even he may not be real..) I love the way rich dad approaches thing like instead of working for someone, why not own it. His words are inspiring.

The book is still a thumbs up for me.


Image source: fastcodesign

Some other reviews I would recommend if you'd like to find out more.
Book Review: Rich Dad, Poor Dad (this books irks me)
Rich Dad, Poor Dad Review – Revisited Ten Years Later

Tata!