In this post, I would like to discuss the book that has altered my life the greatest: Rich Dad Poor Dad by Robert Kiyosaki.
This book opened my eyes to the reality of making money and how there are multiple ways of doing so. I had recently graduated as a mechanical engineer and had been working at my company for about six months at the time. This book was recommended to me by a friend with whom I had discussed many times over drinks how we would one day be wealthy. I was planning on beginning a part time MBA program while working so that I could demand a pay raise from my employer. Climbing the corporate ladder was the goal. This would have taken 3-4 years of working 40-hour weeks while still commuting to a college campus to attend courses. I would have been miserable. Rich Dad Poor Dad changed my mentality completely.
In this book, Kiyosaki discusses the difference between the income types of his two "fathers" (one was his biological father, and the other was one was the father of his best friend growing up). His real father, the poor dad, was a school teacher who spent his entire life climbing the professional ladder until he was on the Hawaiian board of education. Each time he got a raise, his new position demanded more time. By understanding this, I learned that if I were to climb the corporate ladder, like I had planned, I would end up working as the director of operations or a similar position, which would require 50-60+ hour work weeks. Not only would I be working long hours, I would also be making my company richer, not myself.
Kiyosaki's rich dad was a high school dropout who ended up being a multi-millionaire. The rich dad, unlike the poor dad, did not care about degrees or titles, he cared about results. He was the person who taught Kiyosaki to alter his perspective on earning money. He taught him to learn how to make his money make money, instead of his labor and time. This is done through the creation of systems and investments. The creation of system means designing a process which generates passive income. Passive income is income which one does not have to physically work for.
I have learned that if I want to become financially free, I should focus my free time on investing in myself and on acquiring knowledge as to how I can generate my own systems and make wise investments that have large growth potential. Currently, I have not created any systems so far, but I have begun to cut my expenses by living below my means. I also began investing my money in cryptocurrencies and precious metals. One investment has high potential and high risk and the other has lesser potential with extremely low risk.
This book teaches one that climbing the corporate ladder will not make you as financially free as making yourself money and using that money to invest and turn into more money. Your money multiplies itself over time if invested wisely.
Another point driven home in this book is the "Keeping up with the Joneses". This term refers to, as one climbs to a higher social tier one is expected to act the part. CEOs are meant to dress like CEOs and drive cars that CEOs would drive. This means, as your income rises, so do your expenses. By having higher income and higher expenses one's accumulation of wealth does not increase, it remains flat. If you own a company or become a full time investor, you can drive a sedan, and wear jeans and T-shirts. In this situation, there is no need to prove to anyone that you are worthy of your position.
I recommend this book to any and everyone. This book has turned me from a person who hates reading to a person who loves reading. I went from skipping reading assignments in college to becoming a sponge for knowledge that will become financially beneficial to me. The investments I have made so far have made me hundreds of % in returns and I plan on learning more so that I can become a proficient cryptocurrency and stocks trader, and a capable investor in real estate and precious metals.
This book was a fun read and was not too heavy. I have read books in the recent past which are much harder to get through in comparison.
I rate this book:
10/10 for the message
8/10 for the story
8/10 for ease of reading
I hope this review inspires some of the Steemit-ers to read Rich Dad Poor Dad. I promise, you will not regret it!
I will provide more book reviews soon on other books that I consider a MUST READ for becoming financially free.
Yours Truly,
Lucas Hohl-Marchetta.