Rich Dad Poor Dad is a financial literacy book written by Robert T. Kiyosaki. It talks about the two different views that rich dad and poor dad teaches their kid.
The advice Robert gives to his readers is to work to learn and not work for money. ‘When we work to learn the money will end up working for us’ is the idea entirely described in the book.
How education alone will not help us to become rich but the knowledge about financial literacy is really important. Even the basic difference of income, expenses, assets and liabilities is not known to many. He uses basic pictorial diagrams to showcase the cash flow system of rich people and poor people.
Rich dad speaks about ‘Money is Power’ where as the poor dad speaks about having good education, good grades and having a secure job without the need to take risks in life. No rich man has become rich without losing money.
Poor people do not lose money as they will not risk money. Financial freedom is not luck but well developed skill put in practice. The book explains about the owner of McDonald Ray who is a major real estate business man whereas the ordinary people think that he is into hamburger business.
The book also explains to have a disciplined life in order to reap the benefits of investments or it will go astray because of misuse. Most of the people who have good skills and good talents are just short to become millionaires and billionaires because of the lack of practical financial knowledge.
A couple of interesting and inspiring passages from the book are given below:
“Failure inspires winners. And failure defeats losers. It is the biggest secret of winners. It’s the secret that losers do not know. The greatest secret of winners is that failure inspires winning; thus, they’re not afraid of losing.”
“It’s more important to grow your income than cut your expenses. It’s more important to grow your spirit that cut your dreams”
It is one of the best books to read to gain grip on understanding the basic financial concepts and ideas. Why settle for the means when we have the potential to scale bigger and bigger financial growth.