The author of Rich Dad Poor Dad, Robert Kiyosaki, is half American and half Japanese. He has written twenty-nine books so far. RDPD is his bestselling book and has sold over 32 million copies till now.
The book is based on a true story. It is written in the first-person point of view. Moreover, it is a non-fictional book dealing with financial problems. This book completely changes the readers’ concept of financial terms. It helps the readers realize why most of the rich people get richer and the poor poorer.
Why Is Knowledge of Money Important?
The writer says that the most critical knowledge is of money. However, schools, colleges, and universities do not teach about money. Educational institutions focus on scholastic and professional skills but not on financial skills. We must learn about money from our parents.
So, as the poor parents do not know well how to deal with money, they cannot teach their children about money.
Robert Kiyosaki starts the first chapter of the book peculiarly, stating,
“I had two fathers, a rich one and a poor one.”Rich Dad Poor Dad, Robert Kiyosaki.
Robert clarifies his statement later. One is his biological father, and the other is his friend’s. He considers his father a ‘poor dad’ because he struggled to pay bills, had almost no money by the end of the month though he was highly educated with a Ph.D. and a high-paying job.
On the contrary, his friend’s dad is considered a ‘rich dad’ because he never had to struggle with bills though he ‘never finished the eighth grade.’ Kiyosaki thinks that it is better to learn about money from the person who has money. So, he goes to his ‘rich dad.’
Different Yet Individually Correct Statements on Money
Both fathers had very different views on money. Nevertheless, both were right. Their different views left a completely different impact on little Robert’s mind. For instance, if the son asked for money, the poor dad would reply, “I cannot afford it.” The rich dad would say, “How can I afford it?”
One is a statement, and the other is a question. One gives you no scope to think, and the other forces you to think big. The latter believed that automatically saying, I cannot afford it is a sign of mental laziness.
Learn Personal Finance without Studying It
The most exciting and important thing about the book is that the reader will discover financial terms in a new way without studying finance.
What is an asset? Most people think their house is their most significant asset, but Kiyosaki claims that it is their liability, not an asset.
How! To the author, an asset pays us money. Liability costs us money. As we have to pay bills for maintaining our house, it is a liability. To the author, income means the money we make, and expense means the money we spend.
Are You Buying Asset or Liability?
One of the views of the book is that the poor buy stuff, the middle class buy liabilities and the rich buy assets. By buying a big beautiful house or a car, the middle class thinks they have become rich. Nevertheless, they are trapped by buying liabilities. They have to spend money to maintain all these things.
By buying assets, the rich make money work for them. The assets make money for them without requiring their time. Education is also an asset. Both dads were very different in their views, although both insisted on education.
The Importance of Investment Knowledge
These days, education cannot bring much money. Only investment can, and knowledge is essential for investing profitably. As the supply of educated people was low in the past, they were highly paid. Now, most of the educated are unemployed.
In this book, Kiyosaki claims that the poor and the middle-class work for money; the rich have money to work for them. You do not become rich only when you have money. Although the poor dad earns money a lot, he has to pay off the dues. Assets pay you money and make you rich. Do not save money because inflation will reduce the value of your money; instead, invest your money.
This book is a wake-up call to all to become skilled at money matters. The rich dad says,
“The lack of money is the root of all evil.”Rich Dad Poor Dad, Robert Kiyosaki.
Besides, the writer claims that children learn about money from their parents. This book portrays an exciting story of two little boys. The conversation between the rich dad and one of the boys discloses the secret knowledge of money.
The writer of this review is an alumnus of the Institute of Modern Languages, University of Dhaka.