Sunday, March 27, 2011
Rich dad, Poor dad is a book on financial literacy by multimillionaire Robert T. Kiyosaki. The book contrasts the thinking style of the Rich and the poor (this term is used throughout the book to actually refer to the middle class). The middle class tell their kids to study, get good grades and get a good job but even after having well-paying, secure jobs, they are stuck in a web of debts, taxes, mortgages and other liabilities. The rich, on the other hand, accumulate assets which will continue to produce income.
The author describes his own childhood expreience in the first few chapters where his father (a PhD) wanted him to study, get good grades etc. However, his father was always short of money and struggled financially. He contrasts this with his friend's father, who dropped out in eighth grade and died a billionaire.
The book is about all the lessons he learnt from this man.
It first criticizes the education system for teaching kids nothing about money or how to manage it (which is very true). Then he explains what assets and liabilities are and how to accumulate assets.
The book is on the whole, very useful in learning about money and how to accumulate wealth. I would anyone struggling with financial difficulties to read it.
It is very easy to understand
The author uses personal examples which make things clearer
Not too many technical words.
The concept of assets and liabilities is repeated in virtually every single chapter.
Towards the end, it gets a bit boring.