Book Review of Rich Dad Poor Dad - What the Rich teach their kids about money – that the poor and middle class do not!
I do sometimes tend to read non-fiction but have rarely read anything that deals with finance and money management. So it was a bit of a surprise for me as well, when I found myself ordering a copy of Rich Dad Poor Dad from Flipkart last weekend! I guess it was the tagline of the book which said, “What the Rich teach their kids about money – that the poor and middle class do not!” that caught my eye or maybe it was just the thought of saving my ever-disappearing bank balance from extinction.
What Rich Dad Poor Dad is All About!
“Rich Dad Poor Dad” has been written by Robert T. Kiyosaki, a fourth generation Japanese American. Robert’s biological father, Ralph H. Kiyosaki, was the former Superintendent of Education for the state of Hawaii and a highly educated man with a Ph.D. from Stanford University. The irony, though, is that he is referred to as “Poor Dad” in the book.
In Rich Dad Poor Dad, the author compares his poor dad to all those people who are always running the Rat Race, helplessly trapped in a vicious cycle of needing more but never able to satisfy their dreams all because of one glaring lack: financial literacy. They spend so much time otherwise in school learning about the problems of the world, but have not acquired any valuable lessons about money, simply because it is never taught in school.
The man referred to as “Rich Dad” is a neighbor who had never finished eight grade yet owned warehouses, a construction company, a chain of stores and three restaurants. While “Poor Dad” urged Robert to study hard so that he could earn money, his “Rich Dad”, by contrast, represents the independently wealthy core of society who consciously and deliberately takes advantage of the power of corporations and their personal knowledge of tax and accounting and manipulate to their advantage.
The theme in Rich Dad Poor Dad boils down to two fundamental concepts: a can-do attitude and fearless entrepreneurship. The author highlights these two concepts by providing multiple examples for each and focusing on the need for financial literacy and independence. “Rich Dad Poor Dad” illustrates how the power of corporations contribute to making the wealthy even wealthier; the need to overcoming obstacles by not fostering laziness, fear, cynicism and other negative attitudes, and recognizing the fact that it is the preconceived notions of humans which hampers their financial freedom.
The Good Bit About Rich Dad Poor Dad
Having been on the bestseller list for a long, long time, Rich Dad Poor Dad is an absolute juggernaut of a book – one with its highs and lows. It has some really great points, like how rich people know how to make money work for them and how everyone else works for money. The first chapter is pure magic and class and also has one of my favorite quotes from Rich Dad Poor Dad is one which says:
“Most people never study the subject [money]. They go to work, get their paycheck, balance their checkbooks, and that’s it. On top of that, they wonder why they have money problems. Few realize that it’s their lack of financial education that is the problem.”
The Not So Good Bit About Rich Dad Poor Dad
Critics of the book say that the financial advice offered in this book is way too general and not very accurate. Even I felt at time that, Rich Dad Poor Dad doesn’t have many actionable suggestions.
Many people love Rich Dad Poor Dad for teaching them how they they’re supposed to think about money–but if you ask them what they’ve done to get there; then the very people who rave about this book won’t be able to tell you anything.
Final Verdict on Rich Dad Poor Dad
The book, Rich Dad Poor Dad, does a fantastic job teaching people how to think about work and money. One theme that’s apparent in this book is that for an individual to be wealthy, he must aim to own the system or means of production, rather than work for another individual. The author stresses that there is obviously something confining about being an employee; it blocks the mind to other possibilities and it inhibits initiative.
All in all it’s a definitive must read for everyone. The best part is that although the MRP of this book is INR 275, one can get it an awesome price of INR 165 over at Flipkart! That’s an amazing Discount of 40% and it’s something that Rich Dad Poor Dad would recommend!