Book Review: Rich Dad, Poor Dad

In this review, I discuss another great book on financial education. The first book, written by Robert Kiyosaki, “Rich Dad, Poor Dad,” presents simple but powerful lessons in managing personal finances using simple stories and simple concepts.

Rich Dad Poor Dad: Why the rich teach their kids about money – what the poor and middle class don’t do!

This book does an excellent job of explaining such dry concepts of income statements and income statements in a very readable and understandable format. It shows cash flow patterns of poor people, middle class people and rich people. It also shows how from a strictly financial point of view it is absolutely the worst of all types of cash flow.

But not just the concept of accounting, it discusses that rich people just think differently about money, about how to use it, about their power and worth. I have long noticed that the United States is a country that longs for success, but hates successful people. Too often I have seen people slandered whose only crime is that they have worked hard and achieved success and wealth. When I was younger, I also shared a lot of these opinions.

Sure, there are a few people who work like leeches and make a living by sucking the financial backbone out of the lives of others (people who get loans a day, and many sellers of financial products come to mind), but by and large, most people who have attained wealth have done so through hard work and service to others.

One of the most powerful concepts is the fact that you earn so much by working for a salary. You can get rich by working for others if you start early and manage your cash flow well. However, if you open your business sideways, the potential for reward is much greater than that of a business owner. In addition, as an employee, you serve the employer in the assigned role. This means that most likely the role was not designed specifically for you and therefore was not designed to take advantage of your unique gifts and talents. Only if you have the opportunity to create a role just for you will you have the best chance of success. Finally, when you work for wages rather than profits, and you can count on a safe and stable flow of profits, you often subconsciously turn off part of your creative brain centers. If your financial well-being is tied to generating new ideas, you’ll be amazed at how much more you can dream and give life. If you are not trained to look for opportunities, you will bypass them.

The most important thing that can be learned from this book is the understanding that the thinking of employees is limited. The employee, as it is understood today, is a relic of the industrial age and factory culture. Before the industrial era, money was usually earned by farmers and traders by buying and selling the fruits of their labor. Virtually everyone worked self-employed. In the 1800s and most of the 1900s roles were assigned so that people acted as rifles in the production process. Tasks were designed by managers according to established procedures, and the last thing managers wanted was for an employee to use their brain to redesign the system or come up with ways to change the situation. Instead of doing what your managers told you to do, the employee was paid a salary. Belief in the infallibility of managerial decision making has fortunately disappeared in most jobs, modern managerial thinking moves much more in a workplace developed by employees that is paid on the basis of productivity and production. But the thinking of the factory / employee is still alive and unchanged. It is very dangerous to have the economic climate of the 2000s. To stay competitive in the global economy, you need to be able to harness the talents and creativity of people, and the thinking of employees is a real hurdle that needs to be overcome by business.

By rejecting an employee’s thinking and accepting self-employment (even if you are an employee), you will not only differentiate yourself from the employer, but will also continue to engage and develop your creative muscles and ability to identify yourself and seize opportunities.

Rich Dad, Poor Dad is a great book that brings you some great lessons.

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