Critical assessment of the book- Rich Dad poor Dad by Robert Kiyosaki
Rich Dad Poor Dad - the international bestselling book authored by Robert Kiyosaki is a financial and wealth creation book that single-handedly motivated, challenged and changed the way tens of millions, around the world, think about money and why the 'Rich get Richer and the Poor get poorer.'
This is a story of a young lad who was in college and got
Sponsored by his father; a government worker with high academic qualification.His father spent all his time at younger age to be highly educated as well as acquiring certificates that will earn him a job at any government parastatal.And he eventually toed that path and ended up becoming a public servant and advised his son to toe same path by encouraging him to study hard to making good grades and graduate with good result to enable him become relevant and more successful in life.
One day he visited his friend's house and met with the father who was an illiterate, but very wealthy and his encounter with his friend's father negated the training at home and changed his perception towards the true definition of success.
He nicknamed his real father as poor Dad while his friend's father becomes the rich Dad based on their different views and the ways in which both men define true success.To him, poor Dad believes that good education attracts employment to earn a living.On the other hand ,he refers to his friend's father who is not educated as Rich Dad because he believes in investment and sees Education as a waste of time and resources ( money),, rather raise some funds and invest to create more wealth by ' employing experts and professionals ( the educated) to work for you and and get paid.'
After the assessment of the two views on true success,The young lad nodded his head in affirmation that the quickest way to get rich and become successful is through investment; "letting your resources (Time and money) work for you".
What the Rich Dads Teach Their Kids About Money That the Poor Dads and Middle Class Do Not are:
- Rich Dads teach the need to manage resources (Time and money) properly for success.
-The rich Dads teach their children the benefits of investment in assets for wealth creation . - Rich Dads teach their children the need to save more to invest and spend less on liabilities.
- Rich Dads teach their children on the benefits of taking risks in venturing into multiple businesses to having multiple sources of income.
SALIENT POINTS IN THIS BOOK
FINANCIAL INTELLIGENCE
Many people are able to make money, but not everyone learns how to manage it properly.
Financial intelligence starts with learning the difference between assets and liabilities.
Ensure that you have more money coming in than going out, which is what will make you richer.
Intelligence solves problems and produces money.
Money without financial intelligence is money soon gone.INVEST IN ASSETS
Most people earn and spend their salary paying bills.
A rich person always pays himself.
Invest in
- Courses
- Books
- Experiences
SAVE MORE TO INVEST
Saving weaken the purchasing power while investment will increase the value of your money.FINANCIAL LITERACY
The rich have their investments often in learning, so they have to pay fewer taxes.
Everyone needs to be a financially literate.The sad part about the education system around the world is that it teaches to work for money.
The system never teaches how to make, manage, and keep the money.MULTIPLE SOURCES OF INCOME:
A single source of income can never make someone make someone become rich and financially secure.
You will be in better position even if you face some financial crisis if you have have multiple income sources.TAKING RISKS
Unless you take a risk, you cannot grow, grow as in grow really big.You become smarter when you take risk.Do not be afraid to invest ,the rich most times takes the lion's heart;heart of bravery.
You should take a risk because some opportunities in life have the potential to change the course of your life.
If you like reading books on the principles of success and wealth creation- this book is just perfect and a must read.you like reading books on the principles of success and wealth creation- this book is just perfect and a must read.