Book Summary: Rich Dad Poor Dad

There are many Finance related books out there which teach you the lesson that you need to learn instead of experiencing them personally. A wise man could get a lot of necessary information related to his field at prior rather than learning from his mistakes. I would suggests you to read the book "Rich Dad Poor Dad" which is written by Robert Kiyosaki who compares the habits and financial mindset of the two fathers in this book.

He compared two dads, the one of his own dad who is financially struggling but educated man, and the other one of his best friend's dad who is less educated than his dad but financially stable dad. I enjoyed a lot reading this book because I learned the basic mindset of two types people in this book which helped me to understand what is best for my future. I read this book 5 years ago and this is the very first book that I read and it got me into reading books to enhance my knowledge to get wisdom without making any mistakes. You should give it a read for once, you will eventually feel so good.

Image by Mohamed Hassan from Pixabay

Let us discuss the few important points about this book:

1. This book emphasis the essential needs of financial understanding between liabilities and assets. Liabilities are only draining your money while the assets generates the income. So, every one of us should focus on generating income not focusing on those things who only drain your money. Be sensible and choose what's the best for you.

2. "Rich Dad Poor Dad" encourages the readers to focus on income generating things such as real estate, businesses, gold, and bonds. This books also stops you to spend your money on liabilities such as excessive spendings on trivial things and consumer debt.

3. Robert is against the formal education system who doesn't educate you about financial freedom. He promotes the idea of getting financial education to take control on the finances in the future. Financial education is very important rather than getting a ratta-system education who produce only slaves.

4. This books also promotes the idea of creating such systems or businesses that generates passive income instead of working for money at somewhere after getting education. Only passive income generated ideas works to get financial freedom.

5. This book challenges the conventional beliefs about money. It encourages the readers to think out of the box about their financial strategies and goals rather than working like crazy for others. It focuses you on wealth-building ideas.

Overall, this book is differentiating the two mindset when it comes to financial freedom. It focus on wealth-building strategies rather than conventional beliefs about money. This book also make you to think out of the box and focus on passive generating income ideas.