Book Reviewed by Pawar Anjali G., Student, MBA, RMD Sinhgad Technical Institutes Campus, Warje, Pune- 58
Rich Dad Poor Dad:
This book, written by Robert Kiyosaki, is a real eye-opener, especially for us. It challenges many of our traditional beliefs about money and teaches us some valuable lessons.
The core idea is simple: there’s a big difference between being “rich” and being “wealthy.” Kiyosaki explains this through the stories of his two dads – his “poor dad,” his biological father who was highly educated but struggled financially, and his “rich dad,” his best friend’s father who was a 1 school dropout but became incredibly wealthy.
Main Topics of the book:
• Mindset is Everything: The book emphasizes that our mindset about money plays a crucial role. Our “poor dad” focused on security and a stable job, while the “rich dad” focused on building assets that generate income.
• Financial Literacy is Key: We learn that financial education is vital. Our school system doesn’t teach us about money management, investing, and building wealth. We need to learn these skills ourselves.
• The Importance of Assets: The book distinguishes between assets and liabilities. Assets put money in your pocket, while liabilities take money out of your pocket. Understanding this difference is crucial for building wealth.
• Overcoming Fear: Fear of losing money can prevent us from taking risks and investing. The book encourages us to overcome this fear and embrace calculated risks.
• Building a Business: Kiyosaki strongly advocates for building businesses as a path to wealth. He explains that owning a business allows you to leverage your time and effort to generate significant income.
Conclusion:
“Rich Dad Poor Dad” is a thought-provoking and inspiring book that challenges our traditional beliefs about money. It’s a must-read for anyone who wants to take control of their finances and achieve financial freedom. this book delves deeper into various financial concepts and provides practical advice on how to build wealth.
This book has particular relevance for Indians. Many of us prioritize job security and saving money, which are important but may not necessarily lead to wealth creation. The book encourages us to think differently about money, to embrace entrepreneurship, and to invest in our financial future.
As per my decision that the book oversimplifies complex financial concepts and that its advice may not be suitable for everyone. However, despite these criticisms, “Rich Dad Poor Dad” remains a valuable book for anyone who wants to improve their financial literacy and build a stronger financial future.