Book Review, Books

Rich Dad, Poor Dad

Genre: Business, Personal Finance

I was first suggested this book by a friend about 3 years ago. I started reading it but got distracted midway. A couple of months ago I read it finally, probably because I am more interested in personal finance now than when I was a student. This is how I would summarise the book for you.

The title Rich Dad, Poor Dad refers to the two main male influences that Robert had as a child. His own father, the figurative “poor dad,” worked at a steady job for a living, while the “rich dad” (the father of a friend) ran a multitude of businesses. Most of this book is told from the perspective of Robert learning from his “rich dad” about how to make money — and seeing how his “poor dad” made huge money mistakes. The book explains the difference between working for money and having your money work for you. The book highlights the importance of using your mind and time to create your own wealth through investments.

The Good

  • If you want to start learning about personal finance, this is a great book, to begin with. Kiyosaki uses a lot of examples to establish sound concepts.
  • He makes you think from the perspective of an employer vs an employee. He glorifies the idea of making money from money.
  • It’s also rather inspirational, as it paints a way of life that fulfills the dreams that many of us have of being free and independent.

The Bad & Ugly

  • The book starts to fall apart when you start trying to use it for concrete guidelines.
  • Kiyosaki insults and demeans everyone who does not share his point of view, referring to them as stupid and as “hamsters”.
  • Some of his preachings are a little dated. For example his views on the real state.
  • After a simple online search, it is found that Kiyosaki was involved in several business deals, in the 1970s and 1980s which fell apart, leaving him bankrupt in the mid-1980s. He is known as someone who doesn’t follow what he preaches. This goes against the credibility of the author.

Favorite Quotes

  • Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.
  • The love of money is the root of all evil. The lack of money is the root of all evil.
  • Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.
  • The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.

Fun Fact

By the mid-1990s, Kiyosaki had self-printed Rich Dad, Poor Dad and it was starting to appear in wide distribution among members of the Amway/Quixtar organization, as individuals higher in the pyramid would recommend it to people further down the chain looking to get ahead.

Thank you for reading. Hope to see you in the next one. Till then, don’t forget that you’re amazing.

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