Author Robert Kiyosaki’s book Rich Dad Poor Dad is a path to build up wealth. The idea of his book is generated from the experiences he received from his well educated natural father, whom he refers to as ‘poor dad’ and he uses terms ‘rich dad’ for his friend’s father who had a much lower level of education. Both of the dads had very different viewpoint on how to achieve success in life. The book ‘RICH DAD POOR DAD’ distinguishes the two approach and makes it clear to the reader the advantage of the rich dad’s money making principles.
His father used to think that education is the key to success. His father is represented at being more worried about education than money. He is used to believe that more education means more money. He likes his father approach to that held by many parents thinks that education is necessary for financial security. They send their children to school and college to get a good education and later a decent job in a stable company. His own father thought of financial success was built around a job that offers – stability, promotions and social security. Robert Kiyosaki defines this overall process like a Rat Trap. His father worked day and night continuously and persistently but never moved forward financially.
His friend’s father the Rich dad was very less educated. The ‘Rich Dad’ led his life on the principle that education only creates people for employment and education do not create people who could wisely manage their own finances. Robert Kiyosaki learnt from his friend’s father the Rich Dad that those people who want to control the financial goals should always keep one question in the mind that how to make more and more money.
The author Robert Kiyosaki quickly understood that the ‘Rich Dad’ was very keen on investments. An investor give importance on accumulate assets in form of rental housing estates, bonds and stocks while staying clear of liabilities like cars, residences or boats. This is the main reason why the assets create income and liabilities always eat the income. He says if any person is able to form a stable financial foundation it is because of the differentiates between their assets and liabilities.
If one wants to become rich they should be financially literate this is the main principle followed by Rich Dad. The book ‘Rich Dad Poor Dad’ states that financial literacy help you increase your financial growth. If you are equipped with the knowledge required to take financial decisions then you can surely increase your wealth.
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