Personal Thoughts on Rich Dad Poor Dad
Rich Dad Poor Dad by Robert Kiyosaki is a very inspiring book indeed! Within the book, Kiyosaki is talking about the difference in his “Rich Dad,” which is actually his best friends father, vs. his own father, his “Poor Dad.” In the book, Kiyosaki explains how his “Rich Dad” was successful and why his own father is not. Yet, even though Kiyosaki talks of his own experiences, they could easily be applied to you and I. Here are a few key thoughts I personally took away from the book.
The Poor Say “I Can’t” Where the Rich Say “How Can I…?”
Excuses. We all give excuses on why we never become successful. Here are just a few off the top of my head:
- I’ll never be able to save anything with all these bills.
- I’d have/been able to do *insert thing* if it wasn’t for you kids
- That cost too much
Any of these sound familiar? It’s so easy for us to give excuses for literally EVERYTHING! Why is that? Well, Kiyosaki has an idea from his “Rich Dad.” Basically, when you give excuses like “I can’t,” i gives your brain the go-ahead to not have to think. Let’s all be honest with ourselves: sometimes we have a long day, and near the end of that day, we don’t want to use more brainpower to solve even the simplest of problems, let alone how to better ourselves financially.
Yet, the rich know how to avoid excuses and say “HOW can I?“
- How can I afford for extra fun money this month?
- How can I accomplish my goals today?
- How can I, How can I, HOW CAN I?
Of course, it’s easy to say ‘how can I’ when someone is used to always thinking wisely about their situations. Which brings me to my next thought:
What exactly is financial literacy? Well, financial literacy is knowing about important things regarding your finances. For example:
- 401K and how it works
- Budgeting 101
- Residual Income Taxes Etc.
Financial literacy is not generally taught to us in school. Of course, we can learn such things in college, but even then, that’s only if you were to take courses in accounting or business anything. Society has done a poor job of preparing young adults for the real world. That’s a very big reason why so many of us only live paycheck to paycheck and are barely getting by!
Although the system has failed us in this regard, we do ourselves a disservice when we don’t do absolutely anything to expand our mind and learn on the subject. Which brings me to my final thought on the book…
Liabilities Vs. Assets: Making Money Work for You
Ok, ok, hear me out. In general, we know the difference between a liability and an asset. An asset is something that holds value over time, whereas a liability causes trouble over time. Let’s use this example:
Car vs. House
Now, as normal individuals, we would see a house as an asset whereas a car can be seen as a liability. Why is that? Well, a house is something where we can live and build families, whereas a car loses value as soon as it comes off the lot, and then there are the repairs that will need to be made over time. Pretty simple to understand, right?
But how does the rich see this same scenario?
Let’s look mainly at the house: The house would be considered a liability instead of an asset we all assume it should be! Why? In the case of the rich, just buying a home alone is useless. How is that house going to roll money in for them?
This is where ‘making money work for you’ comes to play. Let’s say the rich person buys a house– they would rent out individual rooms, the entire home, or even renovate the home and resale it at a higher price. Eventually, they would break even and create residual income on renting out the rooms/house or double their money by selling it. That, my friends, is one way to make money work for you.
There are many great books out there that aim towards helping us achieve the success we desire. Rich Dad Poor Dad was one that was very informative indeed. But what are your thoughts? Did you read the book? What would you have added? I’d love to hear your feedback!
Don’t forget to leave comments below. Thanks for reading!
Ebook reffered to:
Kiyosaki, Robert T. Rich Dad Poor Dad. 1997. Rich Dad Poor Dad. Scottsdale AZ, Plata Publishing.