Review of “Rich Dad Poor Dad: What the Rich Teach Their Kids About Money – That the Poor and Middle Class Do Not!”
If you’re looking for a book that will give you a step-by-step guide on accumulating wealth, I’m sorry to say that this isn’t the right book. Instead of focusing solely on making money, this book aims to explore something deeper: mindset. While financial resources are certainly important in achieving success, this text encourages readers to shift their attention toward how they think.
By examining the thought patterns of those who have achieved financial abundance, this book offers valuable insights into developing a mindset that fosters abundance. It emphasizes the importance of cultivating a mentality that views money as a tool for achieving goals and aspirations rather than just a number in a bank account. Ultimately, this book aims to help readers understand that wealth is a result of their beliefs, attitudes, and perspectives.
The author, Robert Kiyosaki, shares his personal story of growing up with two dads: his biological father, who was highly educated but poor, and his best friend’s father, who was a high school dropout but wealthy. He compares the different lessons they taught him about money, work, and life.
The book explores a really interesting concept about income, looking at the difference between active and passive income. It explains that active income comes from more traditional sources like working for someone or running a business that requires constant involvement. On the other hand, passive income is generated through investments in assets that generate cash flow without needing ongoing personal involvement.
The book offers a clear and detailed explanation of the characteristics and benefits of each income type. Active income is closely tied to traditional employment relationships or the day-to-day responsibilities of running a business. It requires hands-on effort, consistent commitment, and direct participation.
The book emphasizes the importance of active income as the foundation for financial stability and livelihood. At the same time, the book highlights the allure of passive income and its transformative potential. It explains how investing in revenue-generating assets can free individuals from time-bound and labor-intensive endeavors.
With passive income, individuals can reap the rewards of their investments without actively devoting their time and energy to generating income. Throughout the book, readers are presented with enlightening examples of passive income streams, including real estate properties, dividend-paying stocks, royalties from creative works, and income from online businesses. By exploring these different avenues, readers can enhance their financial well-being.
The book aims to provide readers with a comprehensive analysis of both active and passive income. It equips them with the knowledge and tools necessary to build a resilient and diversified income portfolio. Ultimately, it empowers individuals to strike a balance between active and passive income, maximizing wealth accumulation and financial security and enjoying greater freedom and flexibility in their lives.
The author argues that the rich focus on building passive income, while the poor and middle class focus on working for active income. He says that the rich use money to make more money while the poor and middle class work hard to pay their bills and taxes.
The book also challenges some common beliefs about money, such as:
- The myth of job security. The author claims that having a job is not a safe way to secure your financial future because you depend on someone else’s decisions and have limited control over your income.
- The myth of saving. The author claims that saving money is not enough to become rich because inflation and taxes will consume your savings over time. He says that you need to invest your money in assets that appreciate in value and produce income.
- The myth of education. The author claims that formal education is not the key to financial success because it does not teach you how to manage money or how to create wealth. He says that you need to educate yourself on financial literacy and learn from successful people.
The book is not a step-by-step guide on becoming rich but rather a motivational and inspirational book that encourages you to change your mindset and attitude towards money. It is full of anecdotes, examples, and quotes from the author and other successful people.
Many readers have praised the book’s eye-opening and empowering message, but some have criticized it for its oversimplification, generalization, and lack of evidence. Some critics have also accused the author of promoting unethical and risky practices, such as tax evasion, debt leverage, and pyramid schemes.
Overall, this book is a good read for anyone who wants to learn more about the psychology of money and wealth creation. It may not give you specific advice on becoming rich, but it will inspire you to think differently and take action towards your financial goals.