This Review Will Convince You To Buy Robert Kiyosaki's Rich Dad Poor Dad

This Review Will Convince You To Buy Robert Kiyosaki's Rich Dad Poor Dad

I recently finished reading “Rich Dad Poor Dad,” and I already want to read it again. Robert Kiyosaki’s New York Times #1 bestseller is loaded with great financial advice and is an easy read. It covers many topics, from defining assets and liabilities, to paying less tax through incorporating, to overcoming obstacles that are holding you back financially.

One of the topics covered early in the book is financial literacy. Kiyosaki describes it as the ability to know the difference between an asset and a liability. Simply put, assets make you money, and liabilities cost you money. By this logic, your house, which you have likely been told is your greatest asset or investment, is actually a liability. Why? Because you make a payment on your mortgage every month. On the other hand, if you owned a rental property, it would be considered an asset. You still have to pay to own that property, but it rewards you in the form of the tenant’s rent each month. Assets create income, liabilities create expenses. Financial literacy is a surprisingly simple concept, but few people are aware it exists. Once you understand the difference between an asset and a liability, you can begin to grow your wealth.

Kiyosaki explains that your wealth can be measured using only your assets and expenses. He says that when your assets provide enough cash flow to cover all of your expenses over any given period of time, you have become wealthy. Building your wealth is as simple as buying more assets and minimizing your liabilities and expenses.

If you are not currently rich, that is okay. Most people aren’t. The reason might surprise you though. It’s not the lack of education, there are many highly-educated people who are living pay check to pay check, just the same as everyone else. It’s not the lack of income either; there are many well-paid individuals who are struggling to make ends meet. What is it then? Well, we’ve all heard the story of the millionaire who lost everything and then rebuilt his or her wealth. How do they do it? The difference is in the way they think and act. The millionaire became broke, not poor. Broke is a financial state of being. Poor is a mentality, but that’s a topic for another article. You can recover from being broke, and the Kiyosaki give steps for overcoming the poor mentality.

Robert states that there are five obstacles holding people back from financial freedom. These obstacles are fear, laziness, cynicism, bad habits, and arrogance. He also outlines actions that you can take to counter these stumbling blocks. As an example, to counter cynicism, he explains that you can’t listen to people who know little or nothing about a subject sway your opinion on it. If a friend or family member has never invested any money in the stock market, how can you let them tell you that it’s too risky? Do your own research and learn from experts who have experience in the field you want to enter.

Learning is another topic covered in the book. Kiyosaki recommends that you never stop learning. He believes that you should continue acquiring new skills and knowledge over the course of your life. The more you know, the more you are capable of doing. He mentions one example in particular several times, where he paid $385 for a real estate course that has made him over $2 million. Investing in learning has the potential to grow your knowledge, abilities, and assets to levels you may have never imagined. Some of his suggested forms of learning include classes, courses, seminars, audios, and books.

The greatest investment you can make is in yourself, because the most valuable assets you will ever possess are your mind and your time. Anything that strengthens your mind or allows you to use more of your time for the things you want to do is worth its weight in gold. Financial freedom frees up more of your time to do the things you love, but it requires a certain level of creativity and knowledge, which requires learning that generally isn’t found through the education system. Kiyosaki is pro-education, but believes there is need for an educational reform. If you want to become financially independent, you must take it upon yourself to further your learning through other methods, and put into practice what you learn.

I can honestly say this book changed the way I view my personal finances and the topic of finance in general. It opened my eyes to new opportunities and a world full of knowledge. I’ve only recently begun my journey toward financial independence and freedom, and I’m glad this was the book I chose to help me start. I can’t recommend this book enough, and I hope you will learn as much from it as I have. 

Author: David Blayney
Posted By: Andres Tovar

Andres is the Owner and Administrator at Noetic Mindset as well as the Co-Founder and Chief Commercial Officer for the digital marketing agency Noetic Marketer. Andres is a marketing strategist and visionary who helps businesses grow.