For anyone who wants to start investing Rich Dad, Poor Dad is the first and the must read. This book basically differentiates between how a rich man thinks about money whereas a poor man do not. Robert T.Kiyosaki believes that the subject of money is taught at the home. This is not often taught in school. So often we turn out to be financially illiterate. This is the reason we remain financially challenged .Even doctors and other qualified people remain financially challenged because they are financially illiterate.
Much of the stress is given on studying hard in schools to get a good job. In schools, it is often taught that we have to work for money. Robert believes that ‘the poor and the middle-class work for money. The rich have money work for them’. He is strongly against turning a slave of money. Too often we work hard to earn more money. He believes that we should work to learn something but not to make money. We should use our money to work for us.
He beautifully differentiates the difference between an asset and a liability. He in a simple manner tells us that to collect assets not liabilities to get rich. He made some simple diagrams to make us understand the cash flow of a rich and a poor person. He tells us to keep our expenses low and start collecting assets. He beautifully defines a wealthy and a rich person.
He also tells us how the rich saves taxes with the help of corporation whereas the middle class gives most of the taxes. He also teaches us to pay for ourselves first then to pay for others. In simple words he wants us to spend our money first to purchase some assets then spend the rest for expenses. What we generally do is we spend all the money for our daily expenses and we are often left with no money for purchasing assets. By paying for yourself first (that is by purchasing asset first) we are forced to think of other sources of income to generate more money to meet our expenses.
So Rich Dad Poor Dad is an ideal book for those who want to start investing and want to retire early. This book is also a book about the philosophy of money. For those who want to get inspired to do something about their financial future, this book is the first and the must read.