Rich Dad, Poor Dad by Robert Kiyosaki is a financial literacy classic that has inspired millions of readers worldwide. Through the contrasting financial philosophies of his own father (Poor Dad) and his friend’s father (Rich Dad), Kiyosaki offers invaluable insights into building wealth and achieving financial independence.
Video of Rich Dad, Poor Dad by Robert Kiyosaki
About the author, Robert Kiyosaki
Robert Kiyosaki, the author of the international bestseller “Rich Dad, Poor Dad,” was born in Hilo, Hawaii, in 1947. His father, who was a schoolteacher and government employee, often struggled to make ends meet. This experience significantly influenced Kiyosaki’s perspective on money and financial education. His father, whom he referred to as “Poor Dad,” represented the conventional approach to finance, emphasizing the importance of education and a secure job. However, Kiyosaki’s father’s financial struggles led him to question the effectiveness of traditional financial advice.
Kiyosaki’s Poor Dad’s financial challenges had a profound impact on his life. Witnessing his father’s struggles firsthand, Kiyosaki developed a strong desire to achieve financial independence and security. He realized that the traditional path of education, job security, and saving money was not enough to build significant wealth. This early exposure to his father’s financial difficulties instilled in Kiyosaki a determination to find alternative ways to create wealth and financial freedom.
Reviewing the book, Rich Dad, Poor Dad
The book’s central theme revolves around the distinction between income and assets. While many people focus on increasing their income, Kiyosaki emphasizes the importance of acquiring assets that generate income. These assets, such as real estate, businesses, and stocks, can provide passive income and build wealth over time. In contrast, liabilities, such as credit card debt and car loans, consume income and can hinder financial progress.
The significance of financial education
One of the most powerful concepts introduced in Rich Dad, Poor Dad is the idea of financial education. Kiyosaki argues that schools often fail to teach essential financial skills, leaving many people unprepared to manage their money effectively. He emphasizes the importance of learning about investing, entrepreneurship, and financial planning to achieve long-term financial success.
Adopting a growth mindset
Another key theme explored in the book is the importance of mindset. Kiyosaki asserts that our beliefs and attitudes towards money significantly impact our financial outcomes. He encourages readers to adopt a growth mindset, believing that they can overcome challenges and achieve their financial goals.
Criticizing the book
While Rich Dad, Poor Dad offers valuable advice, it’s important to note that it’s not a one-size-fits-all solution. The book’s strategies may not be suitable for everyone, and it’s essential to consider individual circumstances and risk tolerance. Additionally, some critics argue that the book oversimplifies complex financial concepts and may not provide adequate guidance for those with limited financial knowledge.
Despite these limitations, Rich Dad, Poor Dad remains a highly influential and thought-provoking book. Its emphasis on financial education, asset acquisition, and mindset has helped countless individuals improve their financial wellbeing. By challenging conventional wisdom and offering practical advice, Kiyosaki has made a significant contribution to the field of personal finance.
Discussion Questions
- What are the key differences between the financial philosophies of Kiyosaki’s Poor Dad and Rich Dad? How do these contrasting perspectives influence their approach to money and wealth?
- How does the concept of financial education play a crucial role in achieving financial independence? What specific skills and knowledge should individuals acquire to improve their financial literacy?
- What are the potential risks and limitations of the investment strategies advocated in Rich Dad, Poor Dad? How can readers assess the suitability of these strategies for their own financial situation?
I believe that financial education is something that we never truly learn at schools or universities.
Even some people with university degrees are having trouble finding a proper job and having a sustainable income.
So it would be nice if we could gain some advice from other sources such as books or get counsels from elder people.
Therefore, to become financially independent, we need to rely on additional sources or learn how to think outside the box and be creative in order to open new channels of income and prosperity.
I do not totally agree with all items mentioned in the book as a way to build significant wealth e.g. making money by being just the dealer. But the concept of making a distinction between income and assets and also the stress that the writer puts on the importance of financial planning to achieve long-term financial success and financial independence are interesting and deserve reading and thinking about. ( Dr. Houshmand)
Overall, I believe the book, Rich Dad, Poor Dad, is overstated. As I said in the class, there are a great deal of other excellent books in the field of business and financial freedom that have received less credit and acclaim.