Rich Dad, Poor Dad is a fantastic leisure investment. As soon as you start reading this novel cover to cover, you earn more money than you invested. For those who are just starting out and want to prosper financially, Kiyosaki provides practical advice based on first-hand experience. It teaches us practical economics concepts that ought to have been covered in class or at home. Even a layperson can understand and completely apply the accounting, investing, market understanding, and applicable legal principles of financial literacy.
The author stresses the significance of sound financial management for a better, more fulfilling existence. He contends that even if one is a scholastic prodigy, a topper, or a gold medalist, they could still fail if they lack financial know-how. In a manner we never anticipated, the book teaches the distinction between assets and liabilities. According to the author, while the wealthy engage in assets and let money work for them, the middle class, mistakenly thinking that liabilities are assets, invests in liabilities and makes money work for them. For instance, a pricey home or vehicle is an asset to the poor and a liability to the rich.
The wealthy take risks, whereas the underprivileged always play it safe in terms of investments and profits. The wealthy build up assets to cover their expenditures, while the poor simply balance their income and outgoing costs. According to the author, pondering makes a difference. The author advises, "If you have to invest in something, invest in financial literacy." Middle class salaried people who engage in mutual funds do so because they lack financial literacy and place more trust in the fund manager than in their own financial knowledge. According to the author, his wealthy father, a man he first encountered when he was young, taught him all of this.While the Rich Dad teaches him "How I can afford it," the Poor Dad informs him, "I can't afford it." An knowledge of finances explains the two Dads' divergent perspectives. He hopes that by sharing his experiences, others will be able to make wiser financial choices.
I should note, though, that I also read George S. Clason's The Richest Man in Babylon after finishing this one. The work by Clason is a masterpiece, to start. Why Clason's work is never mentioned in lists like "five books you must read before you die" is beyond me. When it comes to language, expression, thought, and message, Clason cannot be compared to any other author on the same topic. In fact, after finishing Clason, I briefly believed that the subject of the Clason classic had been heavily influenced by Rich Dad Poor Dad.
I would recommend reading The Richest Man in Babylon before reading Rich Dad Poor Dad, which, by the way, everyone must read.
