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Book Review: Rich Dad Poor Dad by Robert Kiyosaki

Rich Dad Poor Dad can change the way you perceive money and set you on the path to financial freedom.

The Fortune Book Club Book Review: Rich Dad Poor Dad

Summary

Title: Rich Dad Poor Dad
Author: Robert Kiyosaki
Publisher: Plata Publishing (Second edition)
Publication date: 27 April 2017
Pages: 336
ISBN-10: 1612680194
Rating: 4/5

Synopsis

You don’t need a high income to become rich, you just need financial intelligence and Rich Dad Poor Dad teaches you how. Through real world examples, easy to understand anecdotes and end of chapter recap sessions Robert Kiyosaki’s best seller will open your eyes to the power of money making money. This 20th anniversary edition of the number one personal finance book of all time is also reworked for the modern day with updated examples, commentary and snippets.

Review

Robert Kiyosaki took the world by storm when he first released Rich Dad Poor Dad back in 1997 and its been an amazon and Audible best seller for countless years since. But is it really as good as advertised?

Job is an acronym for just over broke.

The purpose of the book is to take the reader on a journey of financial self-discovery in order to explain the differences in thinking between the rich and the poor. This is done through powerful simple stories that often lead to eye-opening revelations and personal reflections on a range of subjects including time management, personal finance and risk. For example, Kiyosaki explains how traditional thinking of job security and relying on pensions is outdated and risky given the current economical climate.

People are so afraid of losing that they lose.

Not only does Kiyosaki highlight the differences in perspective between the rich and poor, he also reveals the differences in how they act. By outlining the habits of the rich and poor, the reader can build an impression of the do’s and don’t’s of money management. For example, the comparison between the poor saving their money and the rich investing their’s is used to explain how playing it safe means you’re not really playing at all.

At times Rich Dad Poor Dad can be seen to be just an extension of the author’s ego and a display of their amassed wealth. However, once you realise the brags are used as tools to demonstrate knowledge and a proof of concept, you change your way of thinking from that of jealousy to curiosity, wondering how you too can mimic and implement the Rich Dad philosophy.

You become what you study.

At the heart of Rich Dad Poor Dad is self-improvement and continuous personal development. Intelligence is frequently referred to as the greatest asset and skill acquisition is emphasised as a requirement for generating wealth. While this can be seen as true, Kiyosaki fails to give a balanced stance on learning, pushing readers to his numerous other works rather than those of other more experienced authors.

Having no money should not be an excuse to not learn.

What really piques interest though, is the supported argument that potential investment opportunities are everywhere. Be that semi-known companies offering an IPO or property that is undervalued. Kiyosaki advocates the need for understanding money and basic business principles (marketing, sales, negotiation and communication) in order to see and capitalise on these opportunities that others would miss. I’ve noticed the same albeit on a much smaller scale through buying and selling on eBay. I can quite easily flip items that others are in a hurry to sell. You just need patience and market knowledge.

To conclude, Rich Dad Poor Dad is a must-read for anyone looking to grow their assets and start off down the road to financial freedom. While the concepts may not be applicable to all, the writing is both motivational and inspiring ultimately helping you to get started and I honestly believe the book can change people’s opinions towards money management and personal wealth. 4/5.

Take Action

Throughout Rich Dad Poor Dad, Kiyosaki stresses the need to take action. After all, without action you can’t start your journey towards financial freedom and will ultimately remain in the rat race…

  • Life doesn’t talk to you, it just pushes you around. Take notice when things are going your way, life is telling you there is a lesson you need to learn.
  • Don’t let the fear of losing surpass the excitement of winning. Understand the risk. Minimise it. Start winning.
  • Realise you’re the problem and set about changing yourself. It’s no one’s fault but yours that you don’t live the life you want.
  • A job is only a short-term solution to a long-term problem. Start thinking of other income sources you can capitalise from.
  • Money doesn’t solve problems, intelligence does. Money without financial intelligence is money soon gone. Start learning how to manage your money sooner rather than later.
  • Account is boring but paramount for a good financial IQ if you don’t know the basics then start studying.
  • Understand the difference between an asset and a liability and start buying assets.

Choose some of the above and start thinking about how you could incorporate those in your life – You’re only poor if you give up. Keep going. Don’t quit.

Mentioned Reading

  • Start Your Own Corporation – Garret Sutton
  • Build Your Own Corporation – Garret Sutton
  • If You Want To Be Rich And Happy, Don’t Go To School – Robert Kiyosaki
  • The Retirement Myth – Craig Karpel
  • The Richest Man In Babylon – George Clason
  • The 16 Percent Solution – Joel Moskowitz
  • Think And Grow Rich – Napolean Hill
  • Rich Dad’s Cashflow Quadrant – Robert Kiyosaki
  • Rich Dad’s Guide To Investing – Robert Kiyosaki
  • Unfair Advantage – Robert Kiyosaki
  • Midas Touch – Robert Kiyosaki
  • Why ‘A’ Students Work For ‘C’ Students – Robert Kiyosaki
  • 8 Lessons In Military Leadership For Entrepreneurs – Robert Kiyosaki
  • Second Chance – Robert Kiyosaki
  • More Important Than Money – Robert Kiyosaki
  • Why The Rich Are Getting Richer Robert Kiyosaki

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By Jake Doran

Masters in Advanced Computer Science student at Keele University, interested in all things tech and business, with aspirations to undertake an MBA in the future.

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