Book Review: Rich Dad Poor Dad – Secrets to Teaching Children Wealth

Rich Dad Poor Dad is a timeless masterpiece beloved by millions worldwide. The author, Robert T. Kiyosaki, shares secrets to financial success in life and becoming truly wealthy. In this book, Kiyosaki uses two different scenarios to explain how rich and poor fathers educate their children about money and success. The book review from Mytour Blog below will help you understand the message that the book wants to convey.

Introduction to Rich Dad Poor Dad

About the Author, Robert T. Kiyosaki

Before diving into the book review of Rich Dad Poor Dad, let's explore some basic information about the author Robert T. Kiyosaki. Robert T. Kiyosaki is a renowned American entrepreneur, investor, and speaker with over 30 years of experience in finance. He is known as one of the leading authors on the subject of business finance, with a series of best-selling books translated into multiple languages worldwide.

Born in Hawaii in 1947, Robert T. Kiyosaki was once a young pilot in the United States Navy before embarking on his business career. He has founded several companies and achieved significant success in real estate, stocks, and online business.

However, Robert T. Kiyosaki is remembered as an author. Some of his books such as Rich Dad Poor Dad, Teach Your Child to Be Rich, and Awaken Your Financial Potential have become seminal works in the field of business finance. These works have helped millions of people worldwide understand more about how money works and how to achieve the desired success.

In addition to writing books, Robert T. Kiyosaki is also a renowned speaker and frequently appears on television and radio programs to share his knowledge and experience. He is also the founder of Rich Dad Company - a financial education company, established with the aim of helping people worldwide improve their financial literacy and quickly achieve financial freedom.

Summary of the book Rich Dad, Poor Dad

Let's take a brief look at the summary of the work before reviewing the book Rich Dad, Poor Dad in detail. Robert T. Kiyosaki's book Rich Dad, Poor Dad is an important resource on finance, especially for parents who want to teach their children how to become wealthy and for college students seeking direction for the future. The book tells the story of two fathers of the character 'I' - one rich, who didn't finish eighth grade, and one 'poor dad' who holds a prestigious master's degree.

The two fathers have contrasting views on money, with the rich father believing that financial scarcity makes people more likely to lose their way, while the poor father believes that money is the root of all evil. The character 'I' has learned many financial lessons from the rich father, including not working for money, distinguishing between assets and liabilities, and always thinking about business to become wealthy. The book provides readers with basic financial knowledge and helps them avoid common mistakes in using money in daily life.

What highlights does the book Rich Dad, Poor Dad's content review offer?

For this review of the book Rich Dad, Poor Dad, Mytour will delve into the details of each lesson that anyone can see and apply in their daily lives.

Lesson 1

The first lesson from this book is that the rich don't work for money, they make money work for them. The story of two 9-year-old boys seeking to learn how to get rich from the rich father is vividly recounted by the author. The father gave the boy a low-paying extra job, but the boy was not satisfied and returned to ask for a raise. Instead of meeting that demand, the father only taught the boy not to work just for money, leading him into the 'Rat Race' trap - an endless race in life.

Working for money can turn people into slaves of money, dealing with financial troubles, taxes, and unable to truly enjoy life. Therefore, the rich know how to make money work for them. At the same time, they never let money control their lives.

Lesson 2

The next lesson is about teaching children about finance and distinguishing between the two concepts of 'Assets' and 'Liabilities'. Assets are investments that protect value and increase profits, while liabilities are expenses that do not bring investment value or increase profits. The rich buy assets, while the middle class buy liabilities and think they are assets.

The rich father wants to teach his children basic financial knowledge, to understand the value of investments and know how to buy reasonable assets. The secret to becoming wealthy is to increase assets and decrease liabilities, not to spend too much on consumer goods such as cars, houses, as that could lead to debt and hard work to repay debts to financial institutions.

Lesson 3

In the book Rich Dad Poor Dad, the third lesson is that if you want to become wealthy, always think about business. Financial trouble often stems from working hard to enrich others. Therefore, the rich and successful always choose to do business for themselves by establishing companies. Compared to wage earners, business owners can spend first and pay taxes later. This helps them avoid high personal income taxes and take advantage of tax benefits.

However, to succeed in business, owners need solid financial knowledge, including accounting, investment, market understanding, supply and demand laws, and legal matters. Among them, the rich father emphasizes the issue of 'Investing'. The rich always seek ways to increase the value of their assets through investment and see opportunities before everyone else does. A successful investor must always be savvy and have their own strategy, willing to give up popular opinions to seek better investment opportunities.

Lesson 4

The lesson 'Work to learn and acquire knowledge, not for money' reminds us that if we want to become wealthy, we must always strive to learn and expand our knowledge. When we have a stable job, we often easily forget about learning. However, to avoid falling into routine and diversify our skills, we need to work in various fields to learn new things.

The author gives an example of a story when he was interviewed in Singapore and advised the journalist to attend a sales skills course. This shows that learning is very important and knowledge will never be enough. Additionally, to achieve financial freedom, we need to overcome barriers such as fear, doubt, laziness, bad habits, and arrogance. Winners will calmly analyze and find opportunities to get rich by going against the crowd, while the weak will only complain and criticize.

Lessons from the book Rich Dad, Poor Dad

According to Rich Dad Poor Dad, each of us has latent financial potentials deep inside. However, during the process of growing up and 'struggling' with life, your talents may have gradually withered away. And with this review of Rich Dad Poor Dad, Mytour wants to send you the most prominent messages of the book, to help you awaken your financial potential. Specifically:

• Answering the 'want' and 'don't want' questions: You need to define your goals by answering the 'want' and 'don't want' questions. That answer is also the goal for you to aim for!
• Using time and knowledge efficiently: You need to know how to control time and use knowledge optimally to serve your goals. If you choose to become wealthy, you must strive for that choice.
• Be cautious in choosing friends: You need to be careful in choosing friends and learn from them. Whether they are rich or poor is not important, the most important thing is what you learn from them.

• Master the money-making formula: You need to master the money-making formula and always update your knowledge. The common money-making formula governs the world: Sleep - Work - Earn money - Pay debt - Shop - Work. If you feel tired of your job and your income is too meager, it's time for you to change your money-making formula. Naturally, that formula must be built by yourself through your own learning process.
• Pay yourself first: You need to learn how to spend on yourself, invest in yourself first to accumulate assets and seek new opportunities.
• Generously reward the broker: Giving a deserving amount to the broker will help you receive many useful investment advice.
• Become a 'gifting Indian': We will always find ways to recover capital and acquire more assets without spending money.
• Use assets to buy luxury items: You need to focus on investing instead of spending, turning spending desires into investment inspirations, to earn more money rather than borrow money.
• Admire the hero: Learning from the experiences of those who came before, 'sitting on the shoulders of giants' will help you learn valuable experiences for your journey.
• Give before receive: When you want to receive something, you need to learn to give first.

Frequently Asked Questions

Mytour hopes that the review of Rich Dad Poor Dad will provide you with the most comprehensive overview of this book. At the same time, Mytour also hopes that this book will bring you many useful pieces of advice for the upcoming journey. Don't forget to follow Mytour Blog to update more great books!