Have you ever wondered why some people are always wealthy? Or, perhaps, what does it take to be classified as a rich individual? Then you should look into Robert T. Kiyosaki’s books, which are an excellent investment of your time.
Robert is one of those inspiring authors who, with each new publication, never fails to impress people with his puzzle-solving writing and incredible financial teachings.
Rich Dad Poor Dad is a 1997 book written by Robert T. Kiyosaki and Sharon Lechter. For years now, ‘Rich Dad, Poor Dad’ has been the number one personal finance book of all time. If you want to be prosperous financially, you have to read this book.
This book provides a unique and different perspective on money and guides readers through financial decisions. This book is far too easy and straightforward, and it teaches you how to make money work for you rather than against you.
The author strongly advises being financially literate in order to become wealthy, which is not taught in schools or colleges and using money as a means of wealth development. As a result, it reveals why the rich are rich and the poor remain poor despite putting in a lot of effort. However, the book includes several examples and simple theoretical situations to provide core understandings of difficult viewpoints.
Furthermore, Robert was taught about financial literacy as a child by his friend’s father, whom he refers to as his rich father. That is why, at the age of 47, he retired with a large fortune. His real father, whom the author describes as “well educated but poor,” was the man who said things like “I can’t afford it.” His wealthy father, on the other hand, taught him ‘how to afford it.’
He learned a new perspective on financial health from both of his fathers. He sought information and knowledge from wealthy people and attempted to put it into practice, whereas he had learned from poor and financially illiterate people to avoid what they did. According to the author of this book, a person with a high grade, a gold medal, and academic genius may fail if they lack financial acumen.
He distinguishes between the poor, the middle class, and the wealthy, and he also provides a fundamental concept of asset and liability. The rich make money to increase their asset column, whereas the poor and middle classes invest in liabilities and end up working for a living. The poor play it safe and thus gain less, whereas the rich get richer by taking high risks, knowing that the higher the risk, the higher the return.
Regardless of failure, wealthy people continue to pursue their dreams and eventually become wealthy.
Moreover, the book clears the mind not only through words but also through images. It emphasizes that knowledge, not money, is your most valuable asset, so invest in yourself and your mind. It makes no difference how much money you make; what matters is how much you can save. Simply put, how can one legally avoid taxes and add them to the asset column to make more money? This book provides one of the best explanations of cash flow and emphasizes the importance of assets.
Taking an unpaid or low-paying job can sometimes provide more experience than a high-paying dead-end job. In comparison to meaningless traditional or other useless expenses, gather as many assets as you can that will make you money while you sleep. Either that is in business kinds or either they are in properties, through which you grow financially.
This book is for those who are new to personal finance, wish to establish their own business or acquire real estate, and want to understand cash flow. As a result, rich dad poor dad aggressively advocates for financial literacy in order to become wealthy and to begin working smart rather than hard.
So, never stop investing in your most valuable asset: yourself.
By Shagufta Dilmurad