Rich Dad Poor Dad by Robert T. Kiyosaki
Published by Plata publishing, LLC
Genre: Self Growth, Financial Literacy
Rich Dad Poor Dad is an extremely recommended book for the millennials, mostly for those who are ambitious enough to achieve financial freedom. In this book, Robert describes his experiences and point of views when it comes to financial literacy.
It all began when he was nine-years-old. Mike, his friend and He was intrigued to make money themselves in order to buy their wants as what other rich classmates can afford. Mike and He then learnt from Mike’s father (Rich Dad), who was a successful entrepreneur in that era. In comparison, Robert’s father (Poor Dad) is a highly educated person that worked for government. Being in such a complicated situation, Robert still chose to learn from his Rich Dad instead of his Poor Dad because he understands the importance of mastering the power of money.
A person can be highly educated, professionally and successfully and financially illiterate. This happens because people are scared and do not know how to manage/master the power of money, which will never be taught in school. To master the power of money, you have to understand the cash-flow and its terms; Income, expenses, assets and liabilities. Rich Dad Poor Dad teaches people how the cash flow runs from income, expenses, assets and liabilities for poor, middle-class and rich people.
The most common mistake people make is when they categorise their loaned house as their asset instead of liabilities. Hereby, Rich Dad Poor Dad describes in the easiest way to understand the difference; asset is something that makes money into your pocket and liabilities is something that takes money out of your pocket. Therefore, to be rich and financially literate, you will understand that loaned house is a liability because you need to pay for the loan and it takes money out from your pocket. In order to be rich, you have to grow your asset because it puts money in.
The single most powerful asset we have is our mind, if it is trained well, it can create enormous wealth. By mastering the power of money and by educating yourself financially, your mind is your biggest asset in creating financial freedom. Robert also explains that working for money makes you a slave for money, while working to learn will make you rich. It all comes down to your mind and how financially literate you are.
This book provides lessons that school will never teach you and also encourage the millennials to master their minds to understand the power of money and lastly to become financially literate. Besides, this book is very descriptive and easy to understand as there are explanatory-terms available at the end of each chapter. There are some questions and study guide after each lesson which encourage people on how to apply what they have learnt into their life if they are agreeable with Robert to take his Rich Dad lesson. It also explains and helps building people’s mindset and confidence to be successful.
If you have not read this book yet and you are willing to spend some time, you will find out that this book is very interesting and presentable and easy to understand, and of course, it is worthy of your time.