Like most cash flow investors, reading Rich Dad Poor Dad is either a prerequisite or inspiration into starting your quest for financial freedom. I’m going to start my book review series with the financial and life lessons I learned from Robert Kiyosaki.
Financial & Life Advice
1. Buy Assets (however small)
Robert explains the difference between an asset and a liability. Only buy assets can grow in value. Don’t buy a new TV, suit, or expensive dinner. Use that money to find something that appreciates and hold them until you find an even more valuable asset to invest in.
2. your money must work for you
Robert preaches freedom of your thoughts, job and money. He considers corporate jobs and the education system a sham. Studying a trade that forces you into that trade and a 9-5 for life is a mistake. Instead he says to understand the application and multiplication of your money. His primary preference to do this is through real estate and stocks.
3. understand the financial system
The book talks about 2 classes: the haves and the have-nots. Robert wants you to understand that the haves game the financial system to their benefit. But in doing so they are oppressing the have-nots. He wants investor to be educated with how to benefit from the system before investing. This way they can get the advantages through the law — tax advantages and even protection from lawsuits.
The book can seem a bit repetitive. What can be said in about 30 pages is drawn out over 200 pages. But because each chapter acts as a single lesson they can be read out of order. Overall it is worth reading.
Robert speaks of investing in your own intelligence and to nurture it. Every job you choose should help grow your knowledge in that field. He says if you take a job just for a paycheck, that will guarantee you to never truly gain financial freedom.