Rich Dad Poor Dad
This book has been around for a while, and I recently picked up the 20th anniversary addition. This is a book that I would have never read a few years ago, but recently I have been coming to some realizations about life, and I started looking into personal finance and money. I have read a lot of blogs and watched countless you-tube videos on finance and one book that kept coming up was Rich Dad Poor Dad. Many people recommended it, and said it really changed the way they think about money. There also is a lot of controversy about the author Robert Kiyosaki. There are some mixed reviews out there for sure, and I like to read the controversial stuff and make the decision for myself. A lot of people that criticized it think that the story is not true, and Rich Dad was not a real person and Poor Dad was not actually poor. To me , it doesn’t matter if its true or not, the book never says either way, but I was more interested in the philosophy and mindset towards money. I really liked the book, at the end of each chapter there was a section of questions and review, it made a good recap on the information and made you think about your own situation.
The book is pretty simple really, no complex investing or schemes. Here is a breakdown:
Rich Dad – has money work for him. Is an investor and or business owner. Pays himself first, and taxes second. Buys assets not liabilities.
Poor Dad – Works for money, is an employee, works for someone else or is a self employed person. Pays taxes first and himself second. Buys liabilities, not assets.
We probably have all heard about assets and liabilities before, but I had never really given it much thought. Here is another simple breakdown
Assets- make you money (passive income)
Examples – a rental property, mutual funds, ownership of a business, stocks, etc..
Liabilities- cost you money
Examples – a car, debt, (credit cards etc.) loans, anything you buy that doesn’t make money, like a big screen tv.
This book really shifted my beliefs toward money. You will never get rich working for someone else, you have to buy assets, not liabilities. It is full of examples and stories, and I would recommend anyone who is wanting to learn more about money and finance to check out this time tested classic !