The Starting Point To Gain Financial Freedom.
This was the first book I ever read. Robert Kiyosaki illustrates what the rich teach their kids about money that the poor and middle class do not.
Anyone who reads Rich Dad Poor Dad, a top personal finance book of all time, will come away with similar clarity. It’s important to keep in mind that Kiyosaki wrote Rich Dad Poor Dad as a motivational book; not to provide expert financial or tax advice. I wish I could say acquiring wealth was easy, but it is not. Therefore, in response to the question “How do I begin?” I offer this relentless story of how Robert Kiyosaki, the main character in the book, had two father figures who offered him the choice of contrasting points of view: one of a rich man and one of a poor man as the answer to your concern.
This book, in the form of a fascinating story, covers how both of his fathers shaped his thoughts about money/investing and how he applied these learnings in his career and financial life. The book highlights and illustrates several topics on finance including the difference between assets and liabilities, cash flow, the value of financial intelligence and financial literacy, as well as describing what the middle class is not able to understand.
One of the most essential factors illustrated in this book is Financial IQ and how it is measured. Having a high financial IQ doesn't mean your investments outperform the market all the time or you'll be a millionaire in no time. Rather it means you understand a grasp of accounting, investing, understanding of markets and the law will propel you to levels of financial freedom not attainable to those who have a low Financial IQ. You make decisions to spend and save money according to a plan, and there’s great value in that—most people do not have a plan with money.
The most fascinating aspect of this book is that it offers a perspective on money and investing that often contradicts conventional wisdom. You are often told to go to school and acquire a degree to then work hard for money. Sadly, money is not taught in schools. This book explains how smart bankers, doctors, engineers, and even accountants who earned spectacular grades in school and earn humongous salaries may struggle financially throughout their lives.
Kiyosaki elaborates on the concept of “rich people have money working for them” and how financially free individuals go about executing this fabulous plan. I’ve noticed people almost vilify the knowledge of handling and acquiring money. After reading this book, you can’t help but feel empathy towards those individuals who view money as some sort of evil doer. The truth is that the majority of rich people do work very hard, but they go about it differently than most people do and Kiyosaki elaborates these methods in the very first 6 chapters.
Before I recommend you to read this book, I should warn you. Rich Dad Poor Dad is so rich in knowledge about money, you may not want to put it down; it’s that good!
Throughout the years, after fascinating conversations with diverse individuals on numerous subjects, I am always asked which book “started it all” for me—and this is the first one that comes to mind.
Robert Kiyosaki provides personal finance and business education to people through other books and videos. There are more books of his I’ll recommend in later posts. There’s great value in this particular one as Kiyosaki describes the subject of money with a wide aperture in Rich Dad Poor Dad.
Wish to buy the book? Click below.
Photo by Adeolu Eletu on Unsplash