”Rich Dad Poor Dad” is a mindblowing book composed by prominent American writer Robert Toru Kiyosaki which was published in year 1997. This book is about finance and explains how people look at money and what are their approaches towards financial life.
Kiyosaki has created two fathers in his book to make readers understand how to stabilize an individual’s financial life. He calls ”Poor Dad” who is his biological father and on the other hand, there is ”Rich Dad” who is the father of his childhood friend as explained in the book.
Kiyosaki explains different series of lessons in his book to tell how people can build wealth in their lives, how can they get financial education and tells how to set the mind for a successful wealthy life.
Explains Liabilities and Assets:
The most important thing that the book explains is the difference between liabilities and assets which is a really important discussion of the book. Assert is money that you earn by investing in your business and putting it in your pocket on the other hand liability is money that you take out of your pocket and buy things and you do expenses, like building the house, buying a car, and different other expenses.
The point he makes in the book is that if anyone wants to make the best career in the business for earning money he or she must follow the technique of assertiveness and not follow the technique of liability because assertiveness will increase your money and liabilities will decrease your net worth.
Taking-Risk & Setting Mind:
The writer of the book clearly mentions that one must set his mind that failures will be part of the business process and taking risks is an important part of it so always should be ready for failures because they will give you the chance to learn and new experiences in your life. The book says that fear that people carry in their hearts like taking risks, making mistakes, and losing money, stops them to not to going towards their successful financial career.
Investing in personal Education:
According to the book a man has most powerful asset in his or her life is his mind. Further, it clarifies that for better financial stability it is really important to get an education, it can be formal education or particularly directed.
Kiyosaki emphasizes in his book that through education you will be able to understand which business will be more profitable for you and you can understand the power of investing money in the right way. Education gives you the strength to make perfect financial decisions in your life.
Rat-Race Concept:
This is the most important concept given by the writer in the book Rat-Race. He introduces this concept when he says that most people work very hard day and night to earn money as much as possible but ultimately they remain trapped in debt and find themselves in a big chain of expenses.
He gives the idea that people can come out of this chain and from debts if they focus more on passive income through investing money properly and making the right financial decisions in their lives.
The book explains and suggests the importance of doing personal business, investing, and understanding financial techniques rather than doing a job that gives you just a small paycheck nothing else!
Financial Independence:
The writer says in the book that the entire goal of writing this book becomes achieved when your income is more than your daily expenses. If you earn ten rupees per day and your expenses are five rupees, it means your goal is achieved. Everyone has the independence to think about how one can start their business.
This idea challenges the traditional approach of working for a monthly paycheck salary and highlights the importance of developing assets that generate the best ongoing income for the perfect bright future.
Entrepreneurship:
The most important concept that revolves around the entire book and of course the major theme of the book is ‘Promotion of Enterpnuership’. This book gives the reader a task that how to get freedom financially. Robert Toru Kiyosaki says that if one person owns something and does business for their expenses it is a great thing because it gives a entire control over their financial destiny.
As compared the traditional employment like doing the job for a monthly salary, self-business is far superior and beneficial for the career. The concept that was introduced in this book challenges the traditional way of earning money by doing the job and encourages readers to do personal business to create smart wealth through entrepreneurship.
Importance of Financial Literacy:
Kiyasoki strongly criticizes the traditional system of education applied in the majority of countries where things are not done practically. The most important part of his criticism is that this educational system doesn’t give us financial education which is the ultimate goal of every man.
He forces that these educational systems are responsible for giving education to everyone about business, money, investment, profit, and financial strategies so that everyone can earn better in their practical lives. Kiyasoki says that it is really important to understand the language of money because it gives you tips for the right decision-making and wealth-building.
Importance of Book:
This book has gained a lot of popularity and attention from readers across the world. It has a vital positive legacy and impact on readers but along with that, it has faced controversial statements and a bunch of critics.
Controversies & Criticism:
Criticism is a natural thing, whenever there is something special there there criticism, this is the same case with this book. It has faced a lot of criticism. Some people argue that the writer himself is a successful person so he is advising what he has done, but it is not easy for everyone to follow and get success as he did.
Further critics have given statements that investment and taking risks will not be suitable for everyone, some people tolerate the burden of risks but not everyone can tolerate the loss in the business. Everyone should read this book very carefully, and then analyze it whether they are aligned with the techniques described in the book or not! If they think that they will not be able do to what the book says they must avoid it.
Legal & Impact:
The publication of this book ”Rich Dad Poor Dad” has significantly impacted and inspired countless people around the world. Millions of people have thought carefully and have chosen their career in the right path for their future endeavors.
This book later got brilliant titles from the readers because of its impact and legacy. Kiyasoki’s masterpiece has given light to people to take control over their future financial destinies through entrepreneurship.
Conclusion:
In conclusion, we find that this book Rich Dad Poor Dad is not only about personal finance rather it has a wide range of learning new things for making lives better especially becoming wealthy. This book’s goal and aim is to challenge the traditional beliefs that people have made socially.
This book promotes self-business, financial independence, proper mindset, entrepreneurship, financial education, and assets for creating a perfect roadmap for getting. Although the book has been criticized by many people millions of people still read it for financial transformation in their careers to make their future brighter and wealthier.