''Rich Dad Poor Dad'' - A book of Common Sense. Review on Rich Dad, Poor Dad - Robert T. Kiyosaki

Rich Dad Poor Dad -- A book for financial illiterates

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I read some reviews on this site about this popular book. Recently I saw this book in a shop and picked it up with curiosity. The two lines on the cover page and few at lines at the back of the book are sufficient to reflect the essence of the matter contained within.

The two lines on the cover page says:

''What the Rich Teach Their Kids About Money ---

That the Poor and Middle Class Do Not!''.

Few lines at the back says:

''The main reason people struggle financially is because they have spent

Author of: Rich Dad Poor Dad

As I finished reading the first two chapters of the book, I was amazed to know that our present education system is useless as far as financial literacy is concerned. We are simply not taught how to handle money. Since childhood one poor idea inserted in our brain, which is of hereditary origin, is that we have to study hard, get good grades, get good college, get good service with good income. But unfortunately, we see that our plenty of degrees just make us work more harder. It was also interesting to read in the book that the world's richest men out there does not necessarily have plenty of degrees. But, the difference is, we, the so called highly educated, are working in their firms for monthly wages. We pour our sweat, hard work and time in making others rich. They are getting rich because they know how to make money work for them, but unfortunately, we have been taught to work for money.

In real life we see Commerce Graduates and Post Graduates, who topped in colleges in the subject of Financial Accounting, struggling out there to survive themselves and their family. The author says that this is because they have simply not learned Accounting for money, but just to get good grades and lucrative job. But even after getting lucrative job, they struggle further to make more money to make life better. But their whole life is wasted in paying taxes, bills and educating their children. It's also interesting to read, from some practical real examples provided in the book, that even some presently rich people do not know the exact difference between an Asset and a Liability. The book contains some Cash Flow diagrams to show the difference between an Asset and a Liability.

The book also eliminates some myths we have been carrying hereditary. For example two such myths given at the back of the book are:

(1) You need to earn a high income to become rich, and

(2) Your belief that your house is an asset.

After reading the book I found that how few simple ideas I've been missing. I was just working hard, harder, hardest compromising health and time just to make more money, but the simple idea is that we have to learn how to smartly keep existing money for a longer time. Even if we make more money, our money is sucked by government taxes, bills, and in satisfying regular needs. This is because we don't know how to invest money smartly and how to keep money at hand for a longer time without wasting in taxes and bills.

The author tells how his RICH DAD taught him to make money work for him and how his POOR DAD taught him to study and work harder to make money. He also tells that when his RICH DAD died, he left money to be given to charity, church etc., but when his POOR DAD died, he left plenty of bills to be paid. After reading the book you will come to know who are author's Rich Dad and Poor Dad.

In today's competitive world where privatization is increasing, we are still living a life of pre-1945 era. Yes, its true, even before 1960 for example, this teaching worked, Study hard, work hard, lucrative job, make money. But in today's world, you don't need to collect degrees to become rich, but you need to collect some practical ideas to become rich. This does not mean that education is useless,....NO, definitely NOT. But one need to take education to learn not to digest theoretical ideas in books to get good grades and struggle hard.

The author, a millionaire himself, illustrates his own example. He says that now he is retired. But here RETIRE does not mean that he left money or donated money somewhere. But here he says that now he remains at home and is enjoying life. Because the money he previously invested smartly is generating income for him and the Money is working for him.

This book is a Starting Point to the financial world. It teaches some COMMON-SENSE as to how to struggle less and earn more.

The author and his company has written some more books. Take a look at the following site:

https://richdad.com

Wish you a rich life.

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Rohit.