I'm not the bookworm type, but when something grabs my attention, I make sure to source it, get the full details, and make my review before getting to a conclusion, most books I read these days are mostly due to recommendations or when I see a whole lot of people hyping same read, and one of the books I couldn't look passed is the personal finance book 'Rich Dad, Poor Dad' by Robert Kiyosaki, starting with its title, that has already got you thinking how a person could have two dads with different financials capabilities, it was first published in 1997, and has become one of the best selling books of all time, with over 32 million copies sold. When it comes to finance-related topics, count me in, as I'm always interested in new ideas that could spark a beneficial purpose to my financial life, so I allowed myself dive into this book, and this post will be highlighting the reason why it's a good book and you should give it a try if you haven't, trust me, it's worth every single page, though old, its ideas have a refreshing perspective to it.
The book highlights the importance of financial literacy, teaching concepts and mindsets that everyone should learn. I highly recommend Rich Dad, Poor Dad because it challenges conventional wisdom about money, explains critical financial concepts in the simplest of ways, and there is no how you won't get inspired to take charge of your financial life while reading this book, and if that interest you, you are sure in for a good read.
At its core, Rich Dad, Poor Dad examines the different mindsets between those who are financially secure and those who struggle. It shares author Robert Kiyosaki’s personal story of growing up with two father figures, his own highly educated but financially unstable dad, and his best friend’s self-made millionaire dad. Through this tale, the book argues that what separates the wealthy from everyone else is their different mental approach to handling money.
The “poor dad” mindset, his dad obviously, focuses on the idea that you should work hard for money and save a portion of your wages. The "rich dad” mindset is that you need to make your money work for you, through investing, business ownership, and leveraging debt and other financial tools to create cash flow and long-term wealth. Rich Dad, Poor Dad makes the case that mainstream advice pushes middle-class employees to the “poor dad” mindset, resulting in saving money slowly over time. To become truly financially secure, Kiyosaki argues you must break from conventional wisdom and move towards the “rich dad” strategy instead.
And I totally agree with this concept, look around you, and check out civil servants who have devoted years to working, and saving, did any of them make the top richest people in the world? Not at all, not even within their country, you will observe that the richest people are mostly, entrepreneurs, and investors, thinking out of the box kind of people, rather than slaving their years hoping for financial freedom, they create a solution to the world which in turn make them the richest, they are the real businessmen and women, the employer of labors, not employee.
Continuing, he then moves on to demystify concepts core to executing this financial philosophy. It covers the differences between Assets that help us earn money and liabilities, which take money away from us. You will find more interesting concepts like cash flow and tax advantages. It aims to reeducate readers on why going to school and getting a secure job with a steady paycheck does not directly correlate to getting rich. Are we not experiencing that today? Though the book has received some criticism over the years for oversimplifying complex financial topics, but what we experience in today's world has proven and even succeeded in exposing readers to critical money principles in a way anyone can understand.
Finally, Rich Dad, Poor Dad inspire readers to take control over their financial lives. It pushes people to challenge themselves, think bigger about money, and proactively make changes to improve their financial position, everyone has the capability to change their own story if they change the set of rules the world has been used to. While the book does not give direct instructions on what exact steps a reader should take, obviously, it should be unique for everyone, it motivates people to educate themselves, set ambitious goals, and delay gratification by saving money to invest. The book strives to empower anyone to believe they have the capability to achieve financial freedom through property ownership and conscious entrepreneurship.
While the concepts in Rich Dad, Poor Dad may provoke debate or require additional research, the core message aims to wake us all to encourage a new way of thinking and spur us to better our financial futures. By questioning conventional middle-class money mindsets and introducing an entrepreneurial and investment focused state of mind instead, Rich Dad, Poor Dad starts readers on a path to building their own wealth and financial security over time. Anyone looking to challenge norms, stimulate discussion, and take more control over their financial life will gain value from picking up this bestselling personal finance book.
I hope at this junction, you already have enough justifiable reasons why you should add 'Rich Dad, Poor Dad' to your reading list.
Thank you for reading.❤❤
This is my entry for the #februaryinleo monthly prompt.