Rich Dad, Poor Dad is a book written by Robert Kiyosaki that addresses the difference in attitudes between people who are rich to the people who are not as financially independent. It is all about why rich people do things differently than other people and what makes these types of people tick.

The book offers an insightful story of the lessons that need to be mastered in order to become financially independent. Robert Kiyosaki’s father was an educator and public administrator and when Robert asked his father what it took to become rich his father didn’t really know the answer to that. His father continued to say that although many people receive a good education and become employees they never really become well educated in how to handle their finances.

Robert and his friend Mike decided to set out to figure out how to become rich and they began by making counterfeit money. Robert’s father advised them that counterfeit money is illegal and to ask Mike’s father, an independent business person on advice on how to become rich. Mike’s father inevitably ended up being a mentor to Robert Kiyosaki and the inspiration for writing Rich Dad/Poor Dad.

The rich dad represents his mentor while the poor dad represents his real father. The book describes a story of how Robert’s rich dad put him to work for a meager salary of $.30 an hour and told him he must be dedicated. Eventually Robert becomes frustrated when rich dad denies him a raise and views him as a cheapskate. The rich dad tells Robert that he has taught him a valuable lesson which was that most people despise being employed and live their life chasing after a paycheck and job security out of fear.

The rich dad teaches Robert a lot of valuable lessons about being financially independent which he outlines in Rich Dad/Poor Dad. Some of the issues are controversial such as the idea of paying yourself before you pay your taxes or your bills nonetheless, the book has some great advice to offer about becoming financially independent.

Some of the ideas that the Robert Kiyosaki discusses in Rich Dad/Poor Dad is the idea of distinguishing an asset from a liability. Successful investors primarily focus on assets that are capable of producing income where liabilities are what eat up the cash flow. He goes on to explain that liabilities can be dressed up to look like assets such as items that actually depreciate in value. He also stresses the importance of learning how to build assets and create tax shelters by running your own business.

The author also discusses how to become financially intelligent despite the fact that you may have gotten started late in life. He acknowledges that it is never too late to accumulate wealth and accelerate your financial growth by diversifying your assets and developing multiple streams of income. He also explains in detail what the rich teach their children that other people of limited financial means do not.

One of the drawbacks of the Rich Dad/Poor Dad is that the author writes a lot about finding that one magic financial deal that will make you lots of money and then duplicating that success over and over again. For a lot of people this can make it difficult to achieve success since most people become financially successful by diversifying their portfolio of income.

Regardless, Rich Dad/Poor Dad is still a worthwhile read for $16.95 if only to encourage some of your own thought processes about changing the way you think when it comes to finances.

Respectfully Dedicated To Your Success!!

Derek Bayer

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