Book Review Rich Dad Poor Dad

Robert Kiyosaki’s best-selling book Rich Dad Poor Dad has been read by millions of people around the world. If you haven’t read this book, you’re missing out. Robert Kiyosaki had a rich father and a poor father, the poor father had a stable job but he did not manage money well and therefore he was poor, the rich father built an empire and managed his money like a rich person even though he was poor at first . He teaches about financial intelligence. What is financial intelligence? Financial intelligence is knowing how to make money, how money can make money. Here are some of the book’s key points:

Acquire assets, reduce liabilities

One of the main points of the book that makes a lot of sense to me is to acquire assets and reduce liabilities. This seems like a simple idea that a lot of people try to do, but Kiyosaki explains that there are millions of people who get it wrong. Your house and car are not an asset, if you have a mortgage it eats up your money. Assets are things that make you money, like stocks, real estate you buy to sell for a profit, or a business you own.

Cash flow

Robert Kiyosaki designed a simple cash flow diagram for a poor person, a middle class person, and a rich person. The money of the poor and the middle class goes in and out. The rich circulate their money to make more money.

Can

Some of the “middle class” consider themselves wealthy due to the fact that they have a nice car, a house, and enjoy the luxuries of life. But Robert Kiyosaki thinks differently, he measures true wealth by how long you can survive if you lose your job or retire. Robert Kiyosaki retired in his mid-30s, because he felt he had enough wealth and could continue his lifestyle with what his assets gave him, and he decided to only work when he needed more money or felt like it, when he said work, that’s just it really meant doing something to earn money, not getting a job and working for someone else. Wealth is measured by the ability to be financially independent without doing a lot of work, he explains how this is possible through his asset/liability ideas.

This book is not a get rich quick scam, this book is just a guide on the basics of how to think about money.