Review : Rich Dad Poor Dad

"Rich Dad Poor Dad" is a personal finance book written by Robert Kiyosaki, first published in 1997. The book is based on the author's own experience with his two dads – his biological father, who was a highly educated government official but struggled with money, and his best friend's father, who never finished eighth grade but became a wealthy businessman. In the book, Kiyosaki shares the financial lessons he learned from both of his "dads," which he believes are critical for financial success.

The book begins with Kiyosaki describing his upbringing, contrasting the financial attitudes and behaviors of his two fathers. His biological father, whom he calls his "poor dad," had a master's degree, worked hard, and struggled financially. His best friend's father, whom he calls his "rich dad," had little formal education but had become one of the wealthiest people in Hawaii through his own business ventures.

Kiyosaki then goes on to detail the financial lessons he learned from his "rich dad," which he says are key to building wealth. These lessons include the importance of financial education, the need to acquire assets that generate income, the importance of taking calculated risks, and the power of financial leverage.

One of the central themes of the book is the difference between assets and liabilities. Kiyosaki defines an asset as something that puts money in your pocket, such as rental real estate, stocks, and bonds. In contrast, a liability is something that takes money out of your pocket, such as a car or a home mortgage. He emphasizes the importance of acquiring assets that generate income, rather than liabilities that require ongoing expenses.

Kiyosaki also highlights the importance of financial education, arguing that traditional schooling often fails to teach people about money and investing. He encourages readers to seek out financial education through books, seminars, and other resources, and to take responsibility for their own financial future.

Another key lesson in the book is the power of taking calculated risks. Kiyosaki argues that too many people are afraid to take risks, and as a result, miss out on potentially lucrative opportunities. He emphasizes the importance of being willing to make mistakes and learn from them, and of taking calculated risks that have the potential for high rewards.

Finally, Kiyosaki discusses the power of financial leverage, which he defines as using other people's money to create wealth. He argues that using leverage can be a powerful tool for building wealth, but that it must be used wisely and with caution.

Overall, "Rich Dad Poor Dad" is an engaging and thought-provoking book that challenges traditional thinking about money and investing. Kiyosaki's emphasis on financial education, asset acquisition, risk-taking, and leverage offer a powerful framework for building wealth and achieving financial freedom.

However, the book has also been criticized for its simplistic and at times misleading advice. Some critics have argued that Kiyosaki's advice to focus solely on acquiring assets and avoiding liabilities oversimplifies the complexities of personal finance. Others have pointed out that his advice on risk-taking and leverage can be risky and lead to financial disaster if not used carefully.

Despite these criticisms, "Rich Dad Poor Dad" remains a popular and influential book in the world of personal finance. Its focus on financial education and asset acquisition has inspired many people to take control of their financial future and pursue their dreams of financial freedom.

In conclusion, "Rich Dad Poor Dad" is a highly recommended book for anyone looking to improve their financial knowledge and build wealth. While it should be read with a critical eye and a willingness to question some of its advice, the book's core lessons offer valuable insights and practical guidance for anyone looking to achieve financial independence.