Rich Dad Poor Dad Review

Rich Dad Poor Dad is a story about the author's two fathers, one biological father and one father of his friend Mike. Both fathers have differing outlooks on wealth and success.

The author compares both father's approach, his poor dad a highly educated man, but is stuck in the endless cycle of the "rat race" while mike's father (rich dad) has developed his financial and business literacy and invests in assets over liabilities.

The poor dad encourages him to go to school to get a good job with a good company. He views his education and career as a pathway to success and job security should be valued over financial freedom.

The rich dad values working for oneself and not others and educates himself continuously about money and investing.

The book emphasises that financial literacy is not taught in school, taxes hinder producers and financial freedom cannot be obtained without breaking out of the rat race. The differences of assets and liablilities are a major theme in the book. Rich Dad Poor Dad can be a perspective changer if some of the main points allow you to see that working smart instead of hard is the path to finantial independence.

Key Lessons

  • Reduce liabliities as much as possible.
  • Work to build income generating assets instead of working to simply consume.
  • Continue to develop your financial literacy, it is your most valuable asset.
  • Do not say "I can't afford that". Instead allow your mind to find ways to generate enough money with your assets for purchases.
  • Use faliures as learning experiences and not as an excuse to not try.

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