Rich Dad Poor Dad Book Review – The Base of the Financial Education

Even though the world has changed significantly during the last 100 years, the advice given to our children are still the same: “Go to school, get good grades, get a degree, and look for a high-paying, secure job at a big, reputable company. If don’t do this, you won’t be successful.”

As a result, we have tens of millions of graduates who are either unemployed or underemployed. Most of the ones who are lucky with landing a job hate their jobs or their career, plus their income barely keeps up with their bills, which makes it harder to make ends meet.

There’s got to be something wrong with the advice and education that we receive. If you think this way, you probably have read Rich Dad Poor Dad by Robert Kiyosaki.

For those of you who haven’t read it, I suggest that you read my Rich Dad Poor Dad book review, so you get an idea if this book is worth checking out.

What Rich Dad Poor Dad is About

Rich Dad Poor Dad is a book written by Robert Kiyosaki, which criticizes the current education system for not teaching about money, and challenges the widely accepted dogma: “To be successful, you need to go to school, get good grades, so you can get a degree and find a good-paying, secure job at a big company.”

Also, Kiyosaki puts emphasis on financial education, since this what he believes can help people get rid of financial woes, become financially independent, and start living a lifestyle they always wanted.

To convey this message, Robert tells a story about how he was raised by two fathers, his real, “poor” dad and his friend’s “rich” dad, where “poor” dad had the highest educational accomplishments and degrees, and his “rich” dad was a school dropout.

Brief Overview

  • Product: Rich Dad Poor Dad
  • Author: Robert Kiyosaki & Sharon Lechter
  • First Published: 1997
  • Price: $8.17 (Amazon)
  • Rank: 87/100

Pros & Cons

Because there is no product that is 100% perfect, and because I don’t want to build hype around the book, regardless of how much I like it, let me share the pros and cons.

Pros:

  • Great arguments that bust the myths created by the society
  • Lots of valuable lessons
  • Simplified explanations of difficult topics
  • Great source of motivation

Cons:

  • Sometimes the stories may seem too long; some stories may seem a bit off topic
  • Little to no steps that a future entrepreneur should take

Who is Rich Dad Poor Dad for

This book is for people who are curious about how money actually works and who are ready to break the stereotypes instilled in their minds by the society.

Rich Dad Poor Dad Lessons Learned

After reading Rich Dad Poor Dad, there are a lot of lessons that you can learn, both about money and the world today. I’ll share here the lessons that I’ve personally learned.

Traditional education is outdated

Throughout the book, Robert criticizes the function of the traditional education system, since it is one of the things that doesn’t really change in the world. In other words, the world and economy change, but the educational system stays the same.

It still functions as an “employee factory”, where kids and students are taught to be obedient. They are punished for making mistakes or giving wrong answers. As a result, this atmosphere instills the fear of failure and errors, which contributes to aversion to risk and people playing too safe.

In addition to this, they are by default trained to work for money; in school, money is either taught on a very basic level or not taught at all. Students are then sent to colleges or universities to study a certain profession (mostly the one that the society deems “viable” such as a doctor, lawyer, engineer, etc.) and then they become employees working for a salary.

Later on, the bills will always catch up with their income, which leads to a “rat race”.

Rich people don’t work for money, but money works for them

According to Robert, rich people are focused on creating or buying assets that will generate money for them. On the other hand, people who work for money are usually people from poor or middle classes, given that they received no financial education; they work just to pay bills, and eventually wind up in debt.

Work to obtain skills, not a paycheck

When you choose work, you should look at the skills that you can master, skills that can help you make money in more than one cash flow quadrants (“E” for employees, “S” for self-employed, “B” for business owners, and “I” for investors). As Robert argues, gaining skills at work is a lot more important and valuable than just earning a paycheck.

Personally, I agree with him, and I’m still working on this type of mindset.

Your house is a liability, NOT an asset

Masses believe that their houses are “their biggest assets”, while they aren’t aware that they don’t really put any money into their pockets, but do completely the opposite. Because you have to pay mortgage, bills for gas, water, electricity, etc., your house actually drains money from your pocket. Hence, it’s a liability.

My Final Opinion on Rich Dad Poor Dad

Robert Kiyosaki did an amazing job at challenging the widely accepted mantra that the sole way of being successful lies within “good grades, having a degree and a good-paying secure job.”

Hence, I strongly recommend reading this book, since it will give you a different perspective about current education system and give you the foundation of your financial education. After you leave school, college, or university, you education continues.

But again, this book will only help you get a different perspective about what is going on as well as give you some lessons and advice, but unfortunately it doesn’t give any specific steps that you can take, if you decide to pursue your entrepreneurial ventures.

Have you read Rich Dad Poor Dad? What impressions do you have after reading this book? Maybe you just have some questions or feedback? Feel free to share your thoughts in the comment section below. I’ll be happy to hear your voice and help you out, if needed.

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