Book review - Rich Dad Poor Dad

Book review - Rich Dad Poor Dad




This book is a master piece from Robert Kiyosaki. Robert Kiyosaki is a forth generation Japanese American. This book has been written in form of story. And everything he explained in form of conversation that's why it becomes easier to digest the financial concepts. Even laymen who don't have very good understanding of finance can understand writing and message given in this book.
In book, he talked about two dads: one is his own dad and other is his friend's dad. He learned most of practical things and financial knowledge from this rich dad. Rich dad gave training to his son and author both since they were children. his mindset is most affected by rich dad as what rich taught him was very much precious things in life. Authors have introduced the concept of 4-quadrants where they have divided quadrant into 4 section: B (business ), S (self-employed), I (Investor), E(Employee). He strongly recommend us to be in I and B quadrants as these two creates assets which works for you even when you are slepping or on vacation. rich like to stay in these quadrants. In those quadrants people creates the assets and assets create cash flow for them. He tells that the moment you started to think in terms of rich, you are rich. They argue that Rich have both income statement and balance sheet and have good understanding of both. Rich creates the assets means money work for them and they don't work for money i.e. stocks, business, mutual funds etc. Medium class people alos have income statement and balance sheet but they are often confused between assets and liabilities. They creates liabilities and mistakenly identify them as assets like mortgaged home, credit cards, personal loans, car, bike etc. Poor people don't have balance sheet, they have only income statement and they spend all their monthly income on their monthly expenses, mean they neither have assets which works for them and nor liabilities to pay for, they work hard their whole life and live paycheque to paycheque.
I would highly recommend this book to read. this book is very inspiring. this is a great book for people who are in their twenties or thirties or even when they are teenage as there is not age-bar to start investing. people should start investing as soon as possible, it means NOW.