Is Rich Dad Poor Dad a good book to read?

Before I answer the question “Is Rich Dad Poor Dad a good book to read?” I would like to share the reason why I picked this book.

I’m working as an employee and getting a good salary but somewhere in my mind, I was not satisfied with my financial status.

Many questions popped up in my thoughts like what if I lose my job?

What if I’m physically disabled and not in a condition to work?

Who will feed my family?

How will I pay my bills when the inflation curve is going up, the year after year?

I desperately needed an answer to these questions.

And there is a saying, “When the student is ready the teacher appears”

From somewhere a person connected me on LinkedIn and we got to know each other. She suggested I read this book to change my mindset.

Trust me, when I read this book it opened my eyes to awareness and realization.

I loved this book so much that I read it a second time and a new person was born.

The person who is ready to change himself and unlearn all those orthodox teachings about money, business, investment.

I vowed to myself that I will make a better version out of myself and work in an ethical way to gain financial freedom.

Okay, so enough of my personal experience. I will share what I learned from this book and why you need to read it.

Let’s begin.

Book Summary: Rich Dad Poor Dad

Rich Dad Poor Dad book front cover
“Rich Dad Poor Dad is a starting point for anyone looking to gain control of their financial future.”
– USA TODAY

This book is about Robert the author’s personal experience, his journey of financial learnings from his Rich Dad.

As the name of the book is Rich Dad, Poor Dad, Robert believed he had two fathers.

One is a real dad whom he calls poor dad because he believed in going to school, getting good grades, and getting a high-paying job with all the company’s benefits and later a secure retirement plan.

The second person was his friend’s (Mike) dad whom he called a Rich dad. Mike’s dad was building several multiple businesses so that he can create assets and become wealthy.

He taught Robert to get financial education to become a business and an investor.

He told Robert about the cash flow quadrant which has 4 quadrants E(Employee), S(Self-Employed), B(Business Owner), I(Investor), and their reality when it comes to money.

Big question in the book Rich Dad Poor Dad: Why Teach Financial Literacy?

Today’s education system is about becoming only an employee and not an entrepreneur.

The school teaches about the subjects related to History, Geography, Science, Mathematics, and various languages but fails to teach about financial education.

The teachers teach us to work hard, get good marks and get a job in a reputed company so that we get a big paycheck and get all the benefits after retirement from the company.

If a child is not good in a particular subject, the teachers and parents feel that he is not a good student.

He will not get a good job if he doesn’t get good grades.

This is something which we need to look at, as it is a huge concern.

This affects the child’s mind for the rest of his life and a fear of failure, mistakes and rejection reside in his subconscious mind and becomes a lifelong weakness.

Rather than playing big, learn financial skills, and start a business, he is happy to play safe, secure, and work as an employee.

He will never think about taking a risk and learning to build his own business or becoming an investor.

What If tomorrow the company shuts down because of economic crises. As you know that history has a habit of repeating itself.

The main problem is when the teachers were kids, they were never taught about money and financial education in school.

They think money is not a subject to be taught at such an early age.

At school, if you are making mistakes then you are not a good student.

Don’t get me wrong. I’m not against the education system. We need to go to school to become a better version.

To become self-dependent, to become a lifelong learner and earner.

From the book: Which one sounds harder to you?

  • Work hard. Pay 50% in taxes. Save the remaining amount. Your savings will earn 5%, which is also taxed.

OR

  • Take the time to learn about financial intelligence. Harness the power of your brain and create assets.

There are two important words around which everything revolves when we learn about financial education. One is an asset and another is a liability.

In simple words asset means money coming into your pocket.

Whereas liability means money going out of your pocket.

I will explain with a simple example.

Your home is not your asset but a liability. Shocked!

You pay tax every year on your home, you live in that home so you have to maintain it with all the fancy stuff. For that, you have to spend money.

Ultimately money is going out of your pocket. Even the car that you buy is not an asset but a liability.

When you purchase a piece of land or rental property and allow people to use it on a rental basis or on a lease, you charge them every month, and money keeps coming into your pocket.

This is the power of financial education.

As early as you teach your children about financial education they will be able to manage their finance and earn money in a better way.

Financial literacy is very important at a very early stage of life.

This is the core responsibility of parents to teach their children not to work for money but to build a business and create assets that will make money and work for them.

This will reduce the problems such as unemployment, crime done at a younger age when someone is running out of money and need it in an emergency.

Rich Dad saysThe Rich Don’t Work for Money

If you work for money you have a mindset of an employee.

Only employees think of working for money when they join the company.

For business owners, money is a byproduct when there is growth and profit in their business.

They focus on how to improve the quality of the products and services rather than thinking about how to make more money.

The business will definitely grow 10x or 100x if they keep the customer in the first place. They treat the business as their little baby and develop a mentality of giving.

As there is a great saying “Giving begins the receiving processing”.

When the business evolves, the return on investment is going to skyrocket.

On the other hand, the people who work for money want to fulfill their needs in the first place. They worry about paying their monthly bills and how to clear their loans and debts.

Before applying they research whether it is a stable job or not? Is this company has a lot of benefits and perks? Do they provide medical benefits after retirement?

They have a mentality of dependency on the company where they are working and expect that the company should look after them when they retire.

Yes, the company should take of the people who are working for them.

But if all the human beings choose a path of becoming an employee this will not shape their individuality.

The will not encourage the next generation to start a business where you learn how to lead.

A ghost called unemployment will perish only if we create successful businesses and smart people.

Accoring to Rich Dad, Work to Learn—Don’t Work for Money

We all know very well that we never learn everything in schools and colleges.

After graduating, there is a different world waiting to welcome you, to challenge you, to put you down not to defeat you but to make you aware that you need to be a lifelong learner.

If you are looking for a job, join a company to learn how to serve the customers and clients.

Research and learn how various departments operate.

After getting a few years of experience in the corporate world, start a part-time business or a full-time business.

Start with a minimum investment so that you can grow it and eventually create your own pot of gold.

The rich don’t work for money but build businesses and buy assets with that business and then invest in other businesses which will ultimately make them wealthy.

This way the money works for them, they don’t work for money.

Do you know Steve Jobs used to take a $1 salary and still was a billionaire?

It is shocking to know and you may be wondering how is that possible?

Obviously, he is the co-founder, chairman, and CEO of Apple. This is the beauty of building a business.

Jeff Bezos, the richest man on the earth started with a job in a few companies and then decided to build a business with the idea of selling books online.

When you build a business you build products, services, and a team of talented people.

Overcoming Obstacles

You may be struggling with many problems in your life. To overcome your obstacles you need to change your mindset and unlearn all the things that were taught to you about money and rich people.

Be a student of life and focus on how to gain financial freedom.

Look at people like Bill Gates, Dhirubhai Ambani, Thomas Elva Edison, Richard Branson, Steve Jobs, and Mark Zuckerburg. These people are either college dropouts or never went to school.

They focused on building a business by learning from their failures, taking risks, and making mistakes.

Very important points from this book.

  • To inspire people to learn more.
  • Let people know it is easy if the foundation is strong.
  • To show that anyone can achieve great wealth.
  • To show that there are millions of ways to achieve your goals.
  • It’s not rocket science.

Pros and cons

Pros:

  • This book is the best when it comes to understanding the importance of financial freedom.
  • The author has written the book in a simple and easy to understand language.
  • It teaches us wealth can be achieved irrespective of gender, caste, creed, colour, if you are ready for it.
  • Real life examples of people who achieved great fortune with financial education.
  • It urges you to think and create a sense of concern to take actions before it is too late.

Cons:

  • The author is very clear about his message as this book is a motivational instrument which creates awareness about your personal finance and wealth creation. Its not a core finance book where you learn all the basics of finance.
  • To know how to manage your finance you need to get in touch with a CA or a financial advisor.
Rich Dad Poor Dad book available on Amazon

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3 thoughts on “Is Rich Dad Poor Dad a good book to read?”

  1. Very detailed description given by Mr .Amit Murkute.It gives a clear picture of what’s there in the book before u buy it.I liked his style of explaining the things,keep up the gud work

    Reply
  2. Very detailed description given by Mr .Amit Murkute.It gives a clear picture of what’s there in the book before u buy it.I liked his style of explaining the things,keep up the gud work..

    Reply

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