Book Review

Rich Dad, Poor Dad

by Robert Kiyosaki and Sharon Lechter

August 24, 2022

 Introduction

The 1997 book Rich Dad, Poor Dad was authored by Robert T. Kiyosaki and Sharon

Lechter. This book is considered as of the most best-selling book as it offers a wide range of

perspective and significant ideas that can contribute to the knowledge of the people who might

read it. This book is actually serves as an eye opener and great ways of guidance on how to

sustain financial status. It will surely give people easy tips to comprehend the fundamentals of

money management. The book doesn't get into the specifics of money management, but it

establishes a framework that might change how you think about wealth and your finances. The

notion of Rich Dad Poor Dad is intriguing. The author, Robert Kiyosaki, contrasts and analyzes

the guidance he got as a youth from two significant figures. His "poor" dad is represented by one

and his "rich" dad by the other. For these valuable facts, I believed this book and the story it

offers are significantly correlated to the notion cooperative management. As we all know,

cooperative management is the utilization of more than one agency to manage one or more uses

while allowing each to use its own skills to a specific management objective; as closely

compared to the book that teaches the readers on how to manage business and have financial

literacy. It promotes the value of acquiring financial literacy, achieving financial independence,

and accumulating wealth via asset and real estate investment, company startup and ownership,

and financial intelligence enhancement.

These skills and perspective written in the book pave away for people to achieve their

main goal and to comprehensively discover the difference between the management of poor and

rich dad. Therefore, before unraveling bright ideas within this book, allow me to narrate it’s

summary.
 Summary

           The author's biological father is a teacher who advised him to put in a lot of effort,

pursue higher education, and save money. He thought of him as a terrible parent. One of his

boyhood buddies, Mike, is the son of the wealthy parent. He advised Robert and Mike to be

financially savvy, make wise investments, and work hard. The only thing in common between

the two parents is that the wealthy dad appreciates the value of the study despite not having a

college degree and being a successful businessman.

Robert once asked his father how to become wealthy, but his impoverished father had no

advice to provide. He scheduled a meeting with Mike's father and began working for him after

that. The wealthy father doesn't believe in lectures; instead, he emphasizes learning via

experience. Therefore, Mike and Robert learn about the power of money during the leisure time

that most nine-year-olds enjoy.

The wealthy father believes that long-term financial education should be taught in

schools. Instead, they instruct kids on how to get high-paying positions and contribute

significantly to the government. Poor dad did the same thing all of his life; he worked for money

without realizing that employment is a temporary fix for a permanent issue. Robert retired at the

age of 47 with assets that are well established, increasing, and providing high wages because to

the lessons his wealthy father taught him. He told him that in order to be wealthy; one must

possess sound financial knowledge. Most people believe their home to be an advantage, but the

wealthy father says it is really a problem. 

 In discovering the book, Rich dad Poor dad, I’ve therefore learned these important take

aways;

In order for the reader to comprehend assets and liabilities properly, the author highlights

the need of accounting knowledge while still taking a common sense approach to the topic of

money. He creates straightforward charts that illustrate the entrance and outflow of money as

well as how the wealthy add assets to the asset column while the underprivileged add liabilities

(expenses). Even though accounting is tedious, it is clear that the author values accounting

knowledge since he calls it "the most essential topic in your life. The author efficiently conveys

his points by using several instances and stories, demonstrating his support for capitalism. He

concludes that it is the middle class that truly foots the bill for the impoverished by

demonstrating his mastery of the procedures used by the government and the taxman. The

wealthy pay the least amount of taxes because they know how to take advantage of tax laws.

The author maintained his intellect sharp by working in numerous sectors and picking up

fresh knowledge. He developed his lucrative abilities and encouraged others to do the same. The

influence of both fathers is evident in his decisions. They turned him into a committed capitalist

who is also morally wrong. 

Major Themes in Rich Dad Poor Dad 

           One recurring subject in this book is the idea that in order to become rich, a person

must strive to be the owner of the means of production rather than be employed by someone else.

The author emphasizes that working for someone else has apparent limitations; it closes one's

mind to alternative options and stifles initiative.

 The most potent resource is financial insight. The author thinks that people may learn to

distinguish between an asset and a liability by studying the fundamentals of accounting and

investing; in reality, this is a more practical application of distinguishing right from wrong.

Building assets is the proper course of action, not creating a series of costs. Contrary to people,

who earn money and then pay taxes on it, companies make money, spend it whatever they

choose, and then pay taxes on the remaining amount. Therefore, corporations have some

authority. The impoverished are unaware of how to exploit this power; the wealthy are.

My Major Takeaways 

I’ve realized that there is always a fear of losing money when it is involved. Even the

wealthiest don't want to lose money. The only difference is overcoming cynicism, bad habits,

fear, sloth, and arrogance. Rich views failure as a chance to develop and get a deeper

understanding of things. They get stronger and smarter as a result. A lesson that individuals from

all income levels should learn.

Furthermore, the essence of the book may be distilled down to two basic ideas: bold

entrepreneurship and a can-do mentality. The author emphasizes the need of financial literacy,

how corporate power helps the affluent become even richer, keeping your own business,

overcoming hurdles by not encouraging sloth, fear, skepticism, and other bad attitudes, and

acknowledging the attributes of individuals and how their predetermined conceptions and

background obstruct their pursuit of financial independence. The author illustrates these two

principles by giving several instances for each and concentrating on the necessity for each.
 We are all taught to work hard, but this book will help you realize that by working hard,

you are doing what the other 80% of people are doing. To succeed and obtain valuable things,

one has to be free of the rat race.

This saying is true: "Rich individuals purchase luxury items last, whereas the poor and

middle class buy luxury items first." Impulsive purchases are common, and after using one item

for a while, people start to want for another. They ultimately accumulate debt. A wealthy

individual uses the interest money from their assets to make purchases. This is why the wealthy

prosper while the underprivileged suffer.

Overall, Kiyosaki provides a strong financial foundation. By adopting this perspective,

you'll probably avoid wasting money on liabilities presented as assets. It's wise to take some of

the courses with a grain of salt since some of the concepts are excellent in theory. In actual use,

you can have difficulties. For instance, the book spends a lot of time on how to become affluent,

and according to his definition, one of the examples mentions a posh sports vehicle. Not

everyone equates wealth with owning a sports vehicle. Choose your definition of what is

"wealthy" as a result. Finally, the core book Rich Dad Poor Dad focuses on a financial

framework. Instead than giving you concrete advice on how to improve your finances, it focuses

more on how to rebuild your relationship with money and open your mind to a new way of

thinking about money. You may develop your investments to support total financial

independence by using the book to understand how to identify a genuine asset. Even if you are

an expert at budgeting, reading Rich Dad Poor Dad may cause you to rethink your perspective,

which might have a significant impact on your financial future. This book is still a terrific read

and a motivating review even if you are well aware of what it takes to achieve financial

independence.
 References

IvyPanda (2019) Rich Dad Poor Dad Essay https://ivypanda.com/essays/rich-dad-poor-dad/

Kiyosaki (2012) Rich Dad Poor Dad

http://www.lequydonhanoi.edu.vn/upload_images/S%C3%A1ch%20ngo%E1%BA%A1i

%20ng%E1%BB%AF/Rich%20Dad%20Poor%20Dad.pdf

Rose (2020) 4 crucial lessons from 'Rich Dad, Poor Dad' that changed the way I think about

wealth https://www.businessinsider.com/personal-finance/rich-dad-poor-dad-lessons-

wealth

Wikisummaries (2021) Rich Dad, Poor Dad Summary

https://wikisummaries.org/rich-dad-poor dad/#:~:text=Rich

%20Dad%2C%20Poor%20Dad%20revolves,grade)%2C%20tons%20of%20street%20smarts