Rich Dad Poor Dad| book review| honest book review|money mindset| personal finance| change your money mindset| finance| money| earning money| financial education| fresh perspective on how to get rich| how to get rich| financial education for kids| investing | saving| retirement planning| security 


Rich Dad Poor Dad is undoubtedly the most  reviewed  book on the internet and social media platforms. You will come across a plethora of  people giving their advice on personal finance based on this book. 
So, why am I reviewing Rich Dad Poor Dad?
What is so special or different about my take on this book that has already not been said before?
When I bought this book 10 years back, believe me, I had no idea this book will become so popular. 
Frankly, on reading it for the first time, it did not blow my mind, as every one claims. This was due to the fact that I did not understand the concepts mentioned and debated in the book so clearly. 
Recently, I re-read Rich Dad Poor Dad not at one go but one chapter at a time and took my own time to think and digest the concepts mentioned in the book.
Definitely, the book is an eye opener and gives a different and fresh perspective on planning your finances.
Here, my main focus will be on  important points as I have understood about the book. 
My main aim is to explain the crux  points of the book in simple, easy to grasp manner and to relate it to the post corona world scenario about academics, jobs, employment, savings, investing personal finance and wealth building. 
Also, I would be sharing my growing up experiences and give a balanced view about the book.
Another point I want to add is, though this book examines the situation in United States of America  and their lifestyle, there are a few concepts that are applicable all around the world. 
In the post corona world, we all are facing common issues of job losses, unemployment, job insecurity, homelessness, hyperinflation and lack of retirement benefits. 
● Robert T. Kiyosaki is the author of Rich Dad Poor Dad.
He is an Investor, Entrepreneur, Educator.
● Sharon L. Lechter, C.P.A. has co- authored Rich Dad Poor Dad.
She is a businesswoman. 

Sharon was faced by a dilemma when questioned by her high school kid who was not interested in continuing his education. 
According to Sharon, she gave the same advice to her son what her parents had given her. 
Study hard and get good grades and you will find a high paying job with great benefits. A good college education that will provide the greatest chance for success in life. 
But her son had this to say,” I don’t want to work as hard as you and dad do. I will wind up like you,working harder and harder only to pay more taxes and wind up in debt. There is no job security and college graduates earn less than you did when you graduated. “
This led Sharon to wonder 
● Does school prepare children for the real world?
● There is no job security in today’s changed world scenario. 
● There are no pension guarantees and retirement funds are growing only through individual contributions. 
● She was giving her son the same old advice her parents had given her. This made her wonder if it was relevant as the world around us has changed, but the advice hasn’t. 
● Sharon understood that she had to look for new ways to guide her children. Lack of financial education in school is a huge concern. 
● A chance meeting with Robert changed everything. Sharon and her daughter participated in a programme, testing an educational tool of which Robert was applying for a patent. Sharon was so impressed by the idea, she fixed a meeting with Robert to talk about his concepts regarding personal finance in the modern world. There he mentioned about his book being scattered in his computer. Sharon decided to compile his notes and publish it in the form of a book, to take his ideas to the masses. Thus, the book Rich Dad Poor Dad saw the light of day and become a bestseller overnight. 

● Here Robert talks about how he was influenced by two fathers, his biological father and his friend’s  father. 
● He calls his highly educated, qualified biological father Poor Dad as inspite of being the head of Education, he was in debt and had no savings. 
● On the other hand, his friend’s father was a school drop-out, but was rich, whom he refers as Rich Dad. 
● Robert examines the approach towards money  by these two Dads and what he learnt from them.
 Here, I am going to examine the various approaches and simplify them for you. This is my personal understanding of the concepts and their relevance to today’s lifestyle choices. 

● Poor Dad’s approach towards money was conservative. 
● Poor Dad believed in studying hard, getting good grades and finding a suitable job with security. So basically he wanted to work for money, whereas Rich Dad also believed in studying hard and get a good education, but get the skill and financial education to make money work hard for you. 
● According to Poor Dad, the love of money was the root cause of all evil. On the other hand Rich Dad associated evil with lack of money.
● Poor Dad had a PhD degree, struggled with finances throughout his life and left the world in debt. Rich Dad had dropped out of school, but became the richest man in Hawaii and left millions for his family and community. 
● Poor Dad was more focused on scholastic learning and not financial learning. Rich Dad focused on acquiring additional skills along with scholastic and professional  like selling and marketing. 
● Poor Dad did not discuss money related issues with his children or family. Rich Dad encouraged money discussion at the dinner table.
● Poor Dad was in the habit of saying “I can’t afford it”, whereas Rich Dad said ” how can I afford it”. Basically, choose your words carefully as they influence your mind.
● Poor Dad believed in the Government taking care of his needs, the Rich Dad was self reliant. 
● Poor Dad said ” I will never be rich”, Rich Dad said” I am rich”.
● Poor Dad said ” I am not interested in money “, whereas Rich Dad said ” money is power”.
After deliberating on both approaches, Robert choose to listen to the approach of Rich Dad and made a lot of money. 

● Financial education is very important. 
● Rich Dad taught 6 financial lessons to Robert.
● Robert calls them guideposts. These will assist you and your children to grow wealthier no matter what happens in a world of increasing change and uncertainty. 

1● The Rich don’t work for money. 
Rich Dad explained this concept by example to Robert and Mike as kids.
He explained how fear and desire limit our capacity to use our imagination to make money work for us. He further explained that the concept of Poor Dad was also correct which expounded studying hard to get good grades and securing a job with benefits. According to Rich Dad, this worked well with the majority of people, but they could never be wealthy. Most would live paycheck to paycheck. 
The trick was to get a good education or skill and figure out ways to build real wealth by making money work for you. This lesson learnt in childhood was remembered by Robert throughout his life.
2● Why teach financial literary?
Here, Rich Dad emphasized the importance of financial literacy.
According to him  people become rich by buying assets and having less liability. 
Also he emphasized about reducing expenses, saving, investing and not keeping up with the Jonneses. 
It is important to teach this in school but schools only teach about spending, so most people are in debt. Even parents don’t know much about assets and liabilities as they themselves were never taught about them.
3● Mind Your Own Business 
Here, Robert explains how he learnt about getting rich by building assets. In school one is taught scholastic and professional skills to work for a wage. According to Rich Dad it is important to own assets that can generate revenue for you.
If you want to be wealthy, apart from a job you need income generating assets like real estate, mutual funds, stocks, bonds, royalties from intellectual property such as music, scripts, patents etc.
4● The History Of Taxes And The Power Of Corporations 
According to Rich Dad, the rich are not taxed. It’s the middle class who pays for the poor, especially the educated upper-income middle class. 
It is important to save on taxes in a legitimate way and the rich have learnt the game well. Again, he emphasized the idea of owning assets to reduce taxes.
5● The Rich Invent Money. 
According to Robert,excessive fear and self-doubt were the greatest detractors of personal genius. 
In the real world, it’s not the smart that get ahead but the bold. It is very important to develop financial IQ for more options in life.
The poor and middle class work for money, the rich make money. 
There is always risk, so learn to manage it instead of avoiding it. He urges people to act upon their dreams and be bold.
6● Work To Learn-Don’t Work For Money. 

Basically in this lesson, Robert explains why it is important to learn multidisciplinary skills. He emphasizes that every one should learn the skill of selling and marketing even if you have to take a course or go to school for that. 
He talks of very talented people he meets regularly who are not good at selling and marketing their talents and skills, so they remain average and don’t become rich. The basic fear is the fear of rejection. So, Robert urges to face the fear of communication and rejection. 
Learning to sell and market your talents, goods and services is the key to becoming rich. Here, Robert says that you can take up a variety of jobs, even if they don’t pay you much, just to get the experience and learn various skills. Though, this can be done at any stage in life, depending on your capacity to take risks, the best time is before you turn 30 years old so if things don’t work out, you still have enough time to bounce back. 

Just having financial literary will not make you wealthy. 
People have a lot of hesitation and roadblocks when it comes to money. 
Most important impediment is the fear of loosing money. Everyone is fearful of loosing money, be it rich or poor. So, we have to train ourselves to overcome this fear. 
He has suggested a few more fears and their solutions. 

● My Dad worked for the Government and later as an educationist. He was a PhD and believed in studying hard, getting good grades and getting a safe job.
● He lived below his means, built a beautiful bungalow debt free, bought his cars  in cash, paid for our education ( we are 3 siblings), we got the best university education,  he paid for our marriage( in India this is generally the norm), retired from his full time job with a comfortable pension and a decent bank balance. 
● I am very greatful to my father for what he has done for us. Without his job and careful financial decisions, we would not have had a headstart in life.
● Me and my spouse have retired with a similar story, without any debt and a comfortable retirement after years in a safe job.
● Now, our next generation is keen on exploring  different job avenues and ready to take risks. According to them, gone are the days when safe jobs with benefits were easily available. 
● The current scenario demands taking risks and thinking out of the box as unemployment soar, jobs are far and few, retirement depends on individual contributions and everything is changing fast.
● Today’s generation will have to think about self employment and take calculated risks to survive. 

● Rich Dad Poor Dad is an interesting book that gives some good tips to becoming wealthy. 
● Both Rich and Poor Dad have their strengths and weaknesses. Both are right in their own ways. But you can take the advice of Rich Dad to take risks and become wealthy. 
● Not everyone is in a position to build a company like Rich Dad. Most people will be job holders.
● Getting a good education is important, don’t drop out of school to build a company. It is not everyone’s cup of tea. 
● Do not get into debt like Poor Dad and you can still live comfortably. 
● For today’s generation to survive comfortably, building assets is very important to generate passive income, this book has some good advice on assets and liabilities. 
● For me personally, a house is an asset. My house is completely debt free and it gives me comfort and security. Idea is to purchase the right size home that can be easily maintained and will not be a drain on your finances. 
● Rich Dad Poor Dad gives interesting perspectives on wealth building and I recommend reading it to gain financial literary and a fresh perspective. 
Rich Dad Poor Dad is available on Amazon and Flipkart. 

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