I’ve not long finished reading Robert Kiyosaki’s book ‘Rich Dad, Poor Dad’ (I’m years behind I know) and I must say i’m absolutely blown away. For those who don’t know about the book Robert discusses the principles the rich teach their children about money and how this differs from what the poor teach. It’s weird thinking back, as I’ve always felt like I was ‘missing something’ when it came to money. I find myself wondering ‘how do people get so rich? how do they know what to invest in? how do people make money!?’ My friends and I have had many discussions on the subject of why we’re not taught about money in school – you’d think since this commodity has such a big impact in society we’d at least learn the basics right? But as many things in life, understanding the workings money takes a more ‘learn as you go’ approach. Kiyosaki believes the education system only teaches us how to work for money – not how to make it work for us and being a long standing student of the educational system I have to agree.
So what makes this book so great? Well if you’re someone who is a novice when it comes down to anything stock market, investment, financial freedom related or you simply get lost in the terminology of it all – its perfect. Robert has a very intriguing writing style, he keeps everything simple and explains money making concepts in a way which is so easy to understand. He has also mastered the art of story telling. Let’s face it, we all love a good story, and if someone can explain something we would usually find incredibly boring (like taxes and corporate law) in the art of a good story – happy days. For me personally the book serves as a great starting point for anyone who wants to take control of their own life, make money and take that initial step to understanding asset acquisition.
For those who want to know the key points i’ll mention them briefly:
- Rich people teach their children to acquire assets (real estate, stocks, mutual funds, government bonds, peer 2 peer lending). Poor people acquire liabilities
- Rich people teach their children to become financially literate (have a basic knowledge of tax advantages, accounting, corporations and understanding the markets)
- You don’t need money to make money, you just need to understand money (sounds confusing right? but its true)
After reading this book I must admit I am feeling more positive and inspired to begin my journey in asset acquisition. It has changed my mindset and given me the kick up the bum I needed make those initial steps. One thing I will say though – if you’re looking for a fun read, it’s not for you. But if you’re going to take action, you’ll love it.