This book, "Rich Dad, Poor Dad" by Robert T. Kiyosaki, was one of the first books I read on financial literacy. I could hear the young me shouting yes to every chapter, and that's because in every detail it was breaking the mental dependence on traditional 9-to-5 employment and placing more emphasis on entrepreneurship. It was a mindset shift from wanting to depend on traditional 9-to-5 employment to creating businesses that promote cash flow.
The book is written by Robert T. Kiyosaki, and in this book he contrasts the mindset of his two fathers: one who was poor (biological father) and the other rich (his dad's best friend). The central premise challenges traditional ideas about working for a paycheck and portrays that financial freedom comes from understanding cash flow and having assets that generate income.
It was from this book that I first heard the idea of making money work for us, and by this, he referred to creating income-generating assets. While the poor and middle class work for money, he stated that the rich make money work for them, and that's what makes the difference. In his book, he explained the rat race, a situation where the poor and average are driven by fear and desire and are trapped working for the rich forever if they don't gain financial literacy to pull out of it. He learned this through the lives of his two dads.
The core lesson in this book is that financial literacy is crucial. Wealth isn't measured by how much money we make but by how much money we keep. One needs to understand basic accounting and cash flow. Secondly, the rich don't work for money; instead, money works for them, and that's what creates the gap. Thirdly, working to learn is more important than working to make money. So Kiyosaki advised that people seek jobs that guarantee important skills useful for day-to-day activities.
According to Kiyosaki, assets are things that put money in our pocket, and liabilities are anything that takes money out of our pocket. This offers a simple concept for beginners in the financial world. He used several diagrams and plain language in his book, making even novices grasp the details of what he's saying, and that's one of the strengths of this book. If you need a mindset shift, then this book would help greatly in that regard. Finally, the book offers a thought-provoking perspective on common financial beliefs.
However, there are drawbacks in this book. Although it influenced a mindset shift, the book didn't provide step-by-step strategies for executing investments or starting a business, and it heavily promoted real estate and entrepreneurship while downplaying the risks, skills, and capital required to start a business.
"Rich Dad, Poor Dad" is a starting point for everyone who needs to reevaluate their relationship with money, and its power lies heavily in shattering traditional beliefs and igniting a mindset toward financial independence.
Rating: 75/100
Originally posted through scrobble.life/books.
