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The library of essays of Proakatemia

Rich dad Poor Dad



Kirjoittanut: Sadman Shahid - tiimistä Ei tiimiä.

Esseen tyyppi: Blogiessee / 1 esseepistettä.
Esseen arvioitu lukuaika on 2 minuuttia.

After Reading Rich Dad, Poor Dad I perceived that this is an amazing investment of time. Anyone can get more returns than your investment the moment you start devouring page after page of this book. For beginners who desire to achieve economic prosperity, Robert T Kiyosaki sir offers workable insights based on real-life experiences.

The principal theme of this book is how to use money as a tool for wealth development. It destroys the myth that the rich are born rich, explains why your personal residence may not really be an asset, describes the real difference between an asset and a liability, and teaches us much more like education about money. No one gives anyone knowledge or teaches about assets/money from childhood,  that’s why Robert T Kiyosaki sir thought to teach everyone about asset/money through this book.

It teaches us ideas about applied economics that should have been taught to us in schools or at home. The principles of financial literacy- Accounting, Investing, Understanding markets, and relevant laws are explained in a way that even a layman can fully relate to them. The author emphasizes the importance of sound finances for a better meaningful life. He argues that while one may be an academic genius, a topper, or a gold medalist, there is every possibility of ending up as a failure without financial knowledge. The book teaches the difference between assets and liabilities in a way we never imagined. The author says that while the rich invest in assets and let money work for them, the middle class invests in liabilities naively considering them as assets and working for money. For example, an expensive house/car is a liability for the rich and an asset for the poor. The rich take risks, but the poor always play safe when it comes to investment and returns. The rich create assets to pay their expenses and the poor balance income and expenses without ever pondering about it. The difference, the author says lies in thinking. “If you have to invest in something, invest in financial literacy”, the author asserts. It is a lack of financial literacy that middle-class salaried people think of Mutual funds as a safe option for investment, reposing more faith in the fund manager than their own understanding of finances. All this, the author mentions, was taught to him by his rich dad, a man whom he met in childhood. The Poor Dad tells him “I can’t afford it”, while Rich Dad teaches him “How I can afford it.” This difference in mindset between the two Dads emerges from an understanding of finances. He expects his experiences will help others in arriving at better financial decisions.

 

However, I would like to add that after reading this book, I also read The Richest Man in Babylon by George S. Clason. First of all, Clason’s book is a masterpiece. I don’t know why people who suggest things like ‘five books you must read before you die’ never bother to mention Clason’s book. You can’t compare Clason with any other author on the same subject when it comes to language, expression, thought, and message. In fact, after reading Clason, I thought for a moment that Rich Dad Poor Dad is inspired to a great extent by the theme of the Clason classic.

To anyone who is interested in reading Rich Dad Poor Dad, which by the way every person must read, I would suggest reading The Richest Man in Babylon first.

 

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