Rich Dad Poor Dad

The sub-title of this book sums up what it’s all about - “What the rich teach their kids about money - that the poor and middle class do not!”

If you are into personal development, wealth creation ideas, or looking for a less than conventional slant on our current thinking about getting rich, then this is the book for you!

The title of the book comes from Robert Kiyoskai’s background and experiences on how he learned the difference between the rich and poor. The book follows the lessons he learned from his ‘rich dad’. He explains that he had two dads - his real dad was the ‘poor dad’. Stuck in a job working for local government, his philosophy was ‘get good grades; get a safe secure job with great benefits’.

Robert’s other dad, his ‘rich dad’ was actually his best friend’s father. He was a self made man who had firm views on the ways to get rich and get out of the rat race. At the age of nine, Robert and his friend asked their ‘rich dad’ to teach them the secrets of getting rich. And so the lessons started and continued until his ‘rich dad’s’ death.

The book breaks the myth about getting good grades in school and then finding a safe secure job. Robert points out that our current method of schooling prepares our children to follow this route and become wage slaves, instead of allowing them to explore the other path - being independent.

There are 6 lessons on how to become financially free.

In the first lesson, Robert shows how the rich have money work for them, instead of working for money. He says we need to get away from the idea of working for others! Break the habit of accepting a regular salary.

Our schooling does not teach us to be financially literate. We are brought up to believe for example that our house is our best asset. But Robert says that for most people it’s a liability - they have a mortgage going out, swallowing up cash each month. An asset, by his definition, is something that creates positive cash flow for you.

When you work for someone else you end up minding their business. Keep your day job but start looking for assets that will create cash flow for you.

The key thought in this lesson is that the employed earn their cash, have taxes deducted and spend what’s left. The self-employed or companies earn the cash, spend it, and then pay taxes on what’s left! Which makes more sense?

Robert shows that ideas can create wealth - look at what happened during the tech-boom. He explores how you can generate ideas to create wealth.

Most people are just one skill away from real wealth. The trick is to realise this and find your missing skill. His point is that we should initially find work from which we can learn and then move on to learn the next skill. In the end, you are ready to branch out on your own!

The book is full of great examples and stories, mostly based on the conversations he had with his ‘rich dad’. This makes the book both easy to read and to understand the lessons. It provides answers to questions which are very different from that of our parents.

The message is clear: re-think your approach to wealth and your finances - prepare for getting rich!

Rob Warlow

Review copyright by Small Business Success©

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Rich Dad, Poor Dad

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