Search

Rich Dad Poor Dad: Book Review


If you've been following me on Tiktok or Youtube, you know how much I love this book. Rich Dad Poor Dad is one of the top selling personal finance books of all time. For 20 years in a row it has been rated as the number one selling personal finance book. And there is a very good reason for that. After reading Rich Dad Poor Dad for the first time, I knew I found something that would be a game changer in how I would structure my life around money.


Robert Kiyosaki basically turns everything you know about money on its head. Your parents taught you to buy a house because it is the best, safest asset and we just assume they were right. Well they weren't. Reading this book was the first time I had ever heard that the house you live in is NOT an asset. Now, I know many people would disagree with that statement and the debate can go on and on, but it got me thinking. If a house is not an asset, then what is? Well, Mr. Kiyosaki goes on to explain exactly that, not through complicated technical jargon, but with pictures. Simple pictures that even a child could understand.


The simplicity through which an overwhelming topic like personal finance is explained in this book really makes it a great tool in anyone's journey to becoming financially literate. In fact, the first time I had heard that term--Financialy Literacy--was in this book! And that's when I realized I had found another passion. I would do my part in helping people become more financially literate along with entertaining them through my content as an actor.


Rich Dad Poor Dad is not going to confuse you with high level technical jargon. It's a book written for the layman. You'll learn simple concepts like financial statements, the difference between assets and liabilities, and CASH FLOW. Cash flow is a HUGE concept that the middle class do not understand that the wealthy do. It's a big reason why the wealthy win in the long run. Cash flow is king. Assets that produce a combination of capital gains and cash flow are the best assets to invest in, which is why Robert Kiyosaki is so adamant about investing in Real Estate.


What is Cash flow? It's essentially income that's produced from you assets--paper assets, real estate, businesses--that you can rely on in a timely manner (weekly, monthly, quarterly). The wealthy focus on the asset side of their balance sheet. They focus heavily on taking every extra dollar they earn and investing it into cash flowing assets. Over time, by improving their financial literacy and consistently investing in assets, they produce enough cash flow to quit their dreaded 9-5 jobs, get out the of the rat race, and start living life the way they want. They Cash flow tens of thousands of dollars so that they can retire early and travel, start new businesses, non for profits, whatever they want!


Rich Dad Poor Dad opened my eyes to the importance of continually improving one's financial literacy. A high financial IQ is essential in today's world filled with unknowns. As I am writing this blog post, we are in the middle of a pandemic, central banks printing ungodly amounts of money in order to solve their countries' financial woes, and who knows what else?! What I do know for sure is that those of us that are financially literate are more adaptable. We have skills, or are continuing to build our skills in money, to help us cope with the unknowable future.


If you find yourself on the opposite track, not confident of how to cope with the abyss ahead, but you feel this voice inside you telling you, "it's time." IT'S TIME for you to face the fear of money and start educating. IT'S TIME to forgive your parents and education system for not teaching you about money. IT'S TIME to stop making excuses and start being a real leader of your life. IT'S TIME! Well, then you may consider doing yourself a favor and buying this book. Or find a free version online. Either way, get to self educating. That's the only way to becoming more prepared for the future ahead.


So, I think it's suffice to say that I LOVE this book and it's one of my all-time, go-to recommendations for anyone interested in improving their relationship with their money. Feel free to click the link below and order your copy now!


As always, happy investing ya'll.


The Layman Investor.




980 views1 comment