Rich dad poor dad.

Following the familiar path of my previous recommended reads, I picked up this treasure. Again, like many, I definitely did judge this book by its cover, or its title no less. After reading it, this is what I can tell you… In summary, the book is told from the perspective of Robert Kiyosaki. Robert tells the story of his “Rich dad” and his “Poor Dad”, comparing the two, highlighting the contrasts in each of their financial methods and teachings alongside their professions. His “Poor Dad” is his biological father, and his “Rich Dad” his childhood best friend’s father. By no means are their professions the reason for the “Rich Dad” and “Poor Dad” titles, it’s comparing the methods in which they view their income, financial statements, financial literacy and principles. There is also no quick fix, or fast track method to becoming rich. Furthermore, becoming rich is a matter of perspective. I consider myself, by no means rich, but financially I could always be a lot worse. In London especially, it’s a well-known fact that the majority of people living in the City are a single pay cheque away from becoming homeless. Now there’s food for thought. However, I digress… The “Poor Dad” has a government job, is very well educated, gets paid a good wage, holds a state pension etc. all the bells and whistles if you will. However, holds numerous “liabilities” opposed to “assets”. It is suggested throughout, that no matter how much his income increases, his outgoings increase simultaneously. This is primarily down to the “Poor Dad’s” lack of financial literacy. The “Poor Dad’s” liabilities are things such as his mortgage, car… things we would all associate as financial assets. But, the fact of the matter is, these assets are deductions to his overall income. And so, for us to properly gain an asset, it must exist as such and provide us with a financial gain not become a financial liability in disguise. Overall, the “Rich Dad” makes money work for him. How so? The “Rich Dad” in comparison, holds greater business acumen alongside being financially literate.
This is an extract from the book “Rich Dad, Poor Dad”- It is a crude sketch but showcases what many of us struggle with i.e. direction of money flow
Overall, the “Rich Dad” makes money work for him. How so? The “Rich Dad” in comparison, holds greater business acumen alongside being financially literate. The author, Robert, goes into detail about six main lessons he is taught by the “Rich Dad”;
  • The rich don’t work for money
  • The importance of financial literacy
  • Minding Your own business
  • Taxes and corporations
  • The rich invent money
  • The need to work to learn and not to work for money
The book delves into two core concepts: How to become a fearless entrepreneur and a drive, or unwillingness to give-up. Robert wanted to have financial freedom by the time he reached his 30’s, with this goal in sight, he became financially free by the time he was 34 (or mid-thirties). It’s an interesting read and has definitely made me think twice about working for someone else, providing the boss with a healthy wallet opposed to being financially free. Want to read it for yourself?

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