Rich Dad Poor Dad is a parable presented by American businessman, author and investor Robert Kiyosaki. He talks about the two individuals who inspired and influenced Kiyosaki in his later life, first being his dad the ‘poor dad’ who was a government employee and had a steady flow of salary, while other was his friend Mike’s capitalist father, his ‘rich dad’. Throughout the book, Kiyosaki talks about the different perspectives towards finance, which the poor dad and the rich dad shed on their children in general. One talks in conventional manner and prefer playing safe the entire life time while other chooses to have a better control and more choices in life so opts for taking risks.
One of the main points, which the author echoes in the entire book and I completely agree with the notion, is the flaws in the educational system. The system across globe only targets to achieve academic grades, very less or no weightage is given to freethinking or thinking outside the box. Along with this, there is no room for financial literacy, may be because the teachers themselves are not aware of it.
Then he goes on to say about possessing a corporation. Owning a business makes a person self reliant no doubts about that but starting a business is not everyone’s cup of tea or maybe some might not like the idea of taking initiatives but would prefer working for someone else’s business and becoming their asset.
Very beautifully, he substantiates the reason behind housing bubble and the collapse. The event occurred in first world countries where people are more prone to take credit for meeting their lifestyles, hence he call their lifestyle, their house as liability. However, things are slightly different in second and third world countries where people are not so much saturated with bank loans to meet their daily requirements. Till some extent, the respective government is responsible for such an outcome, since, in countries like India, loan is not sanctioned until the person in question has enough asset at his disposal against which loan has to be approved. But yes, his definition of Asset or Liability fits neat in the whole scheme.
In next lesson, he talks about minding ones business. He surfaces an interesting idea of investing time in investments like stocks, funds, real estate especially after office hours when one is not working for others.
In the subsequent section when Kiyosaki talks about the ways how corporation deals with taxes and the like lifestyle when Porsches comes in, I started losing interest in the book. Avoiding tax by delaying tax is not a very good idea. I would personally not recommend this to anyone. I am not a businessperson but I think structuring business in a corporate way is done to minimize tax cuts. Rather not immediately buying Porsches or maybe I am missing something here?
Kiyosaki then claims to earn $40,000 in five hours in some real estate deal, I am not fully convinced here either.
In an insinuating manner, the writer was trying to look down on people who work for others or for money in the ensuing chapters. This concept too didn’t gel well with my line of thought. In fact, learning can be done while earning as well. There could be people who are happy and satisfied with their average salary. Starting a business is all about aptitude and interest, if one does not have it, one must not try it either. Feeling disparaged is out of question.
This book is ok to read for once, although there are good maxims sprinkled randomly but overall, I do not support his entire ideas and work of fiction.