Rich Dad, Poor Dad, is an award-winning bestseller written by Robert Kiyosaki & Sharon Lechter in 1997.This 336 page book has left an unimaginable and long-lasting impression on me. I’m unable to count the number of times I’ve read it. Reading this book is tantamount to taking a dip in an alluring ocean of wisdom.
Rich Dad, Poor Dad emphasizes the following: building wealth via investing in assets, real estate investing, starting and owning businesses, increasing your financial intelligence and most importantly, gaining financial literacy.
Robert Kiyosaki has in the last three decades gallantly established himself as a foremost authority in the field of multi-level marketing, financial literacy and investments. The 14 life lessons I’ve gained from this book are enumerated below.
1. Our educational system is the number one cause of why too many people struggle financially. Schools simply teach people how to work for money without teaching them how money can work for them. This anomaly has created a scenario of a rat race where you just work to pay the bills or live from pay check to pay check.
2. The need to reduce your liabilities and increase your assets. The rule of thumb here is to keep your expenses low while exponentially growing your assets.
3. The rich get richer because their assets generate more than enough income to cover their expenses and part of the income is reinvested into new assets. Thereby increasing the generated income further.
4. That you emerged from a poverty-stricken background is not the issue. The onus lies on you to rewrite your story by creating wealth.
5. The need to invest in business that do not require your presence e.g. MLM, stocks, bonds, mutual funds, real estate, royalties etc.
6. Pay yourself first. Each month, first invest a certain amount of money into an income generating asset before you pay your bills.
7. Surround yourself with people who are smarter than you and learn from them. If they are your employees, pay them well. It’s a win-win for your business.
8. When something does not work out the way you planned, don’t get overly worried. Learn and move on. At least you made an attempt.
9. Every rich person has lost money at some point in time in their lives. But many poor people have never lost a kobo? Why? They fear to take risks.
10. Get more financial knowledge. You become what you constantly study.
11. A job can never make you rich, no matter how well-paying it is.
12. Saying ‘’I can’t afford it, shuts down your brain. Asking ‘’how can I afford it?’’ opens your brain and enables your creative juices to come up with solutions.
My Recommendation: If you haven’t read this book, go read it and if you have read it before, read it again, this time diligently taking notes .
My Verdict: 5 Stars *****