Different Views On Money In Rich Dad Poor Dad

The book I read goes by the name of Rich Dad Poor Dad written by Robert Kiyosaki This book was published by Warner Books Ed on the 1st of April 2000 however it was written in 1997. This book consists of 195 pages, it depends on whether it is a hard copy or PDF, because some pdfs have 207 or 336. This book is about a man who has 2 fathers. He had 1 real one which unfortunately was his poor dad, and he had his best friends’ father, obviously the rich dad. He writes about the different perspectives of how both these men viewed ‘how money works. Therefore, his rich dad showed him FINANCIAL LITERACY is key.

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Personally, I say that Robert Kiyosaki wrote and structured this book excellently. This book has several chapters, and, in each chapter, he named after each lesson his Rich Dad gave him. Firstly, I would like to begin by giving you the background of the man who wrote this book. Robert Kiyosaki was born on April the 8th 1947. He was born in Hilo, Hawaii, United States. He is well known businessman, motivational speaker and Author. Through this book he has changed the way millions of people view finances and they make people, INCLUDING MYSELF notice the importance of financial literacy.

In his book he mainly focuses on one question which many people have asked. Which is “how do you become rich”. In the book I like how Robert appreciates how he had 2 fathers in his life. They both had completely different ways on how they viewed money however he still respected them both.

His biological father was a man who believed in having gone to school and achieving the qualifications so that he can get the best JOB, I quote “study hard so you can find a good company you can work for”. His father was very educated, and he exceled in his career, he was unfortunately ‘poor’. His other Dad was man who was a college dropout and told him to get qualifications so that he can achieve his dreams and I quote ‘study hard so you can find a good company to buy” however he was the richest and wealthiest man in Hawaii.

Both Robert’s fathers really had good advice however it was up to him to decide which one is going. One thing this I enjoyed about this book is that I learnt so much from it. It made me realise that your future depends on the saying “think out of the box”. This saying is very crucial, and why do I say this? This is because Robert talks about the government having a something we could rather just call ‘The System’. Let me explain this thoroughly. I looked at life and school differently before I read this book. Before I read this book, I use to think that School was really an important tool in a person needs in life. Then after I read the I noticed that it is not important, in fact it rather actually gets you trapped in ‘the system’.

And what is this system that I am talking about? Robert speaks about how we all work towards one thing which is MONEY. You may disagree with that, let me make it clearer to you. Why do we go to school… because we want to get qualifications then get a JOB, and why do you want a job? Because you want to earn MONEY And that is where the problem comes in, we all work towards money but there is no subject for money at school.

And there is a reason for that, and that’s because School teaches you how to become an ‘employee’ rather than an ‘employer’. THEN once you follow the path you eventually become stuck in the system because that means you will work for the rest of your life and make another man rich instead of yourself.

The main reason why most reason people do not become wealthy is because they do not know how money works. This ties in with the General management function in the textbook. You need to ask yourself what an entrepreneur is because you are knowing what that is, is a very crucial step. An Entrepreneur is someone who combines the three factors of production (capital, labour, raw material) in order to start a new business venture.

Therefore, that means that you as a person needs to know that you need to make sure that you do not get in the trap of working a 9-5 job, which is also part of ‘The System’. You need to know that you are working harder and giving your absolute sweat and tears for another mans business is not worth your time. You need to be an entrepreneur, BE YOUR OWN BOSS! Therefore, you need to make sure that you do not get stuck in the system. Be the rich dad.

Being an entrepreneur means you need things like the difference between a leader and a manager, because usually when most people start their businesses, they usually manage it themselves. For example, a manger maintains the business however a leader develops new methods on how to do things. Once you do that, you will have better chances of becoming rich.

In rich dad poor dad there is a chapter which teaches us about how the poor dad always told Robert to stick to having a job and playing it safe. The rich dad however told him something different. He told him that he should learn how to manage his risks. That he should become financially intelligent and literate, then he will certainly know what he is doing. To summarize what he said is that; the problem is that financial literacy is taught at home, so fortunately he saw different perspectives and it helped him see that he should really learn to manage his risks. His rich dad said instead of saying “I can’t afford it” he should Instead of being ask himself “how can I afford it”. That links with the chapter 8 topic ‘INVESTMENTS’.

Firstly, what are investments? It is the action or process of investing money for profit. It is an asset or item acquired with the goal of generating income or appreciation. Even though Robert talks about making sure you have investments, you still need to know the different types of investments you can make. However, each one has its own Risks that you need to assess and evaluate. Each investment also has (ROI) Return On investment.

• First, we have Equitiesshares, theses are known as shares in company. Like you as a person buying shares from Curro then you will get a percentage stake into the company. It also has its own risks
• Debentures, debentures are also sometimes called bonds, it is a letter of credit that a business sells in order to raise borrowed capital for large products
• Retirement annuities and pension funds, a retirement annuity is a policy that aims to provide an income to the person when heshe reaches the age 55. A monthly premium is paid and when the RA pays out, it will be in a lump sum combined with a monthly income

Endowments- are form of long-term saving. It can be in a lump sum or monthly contributions

One of the the lessons which made me realise that the rich know much than we do is when Robert was talking about how we need to know two important things which is The Asset column and Liability. Most of us are confused about it, just like me I take accounting and I thought that I know a lot about assets and liabilities but very unfortunately I was wrong.

Accounting and Business taught me when you have a house you have an Asset; however, Robert says that his rich dad tells him something else. His rich dad says that an asset is something which brings money in, which is the same as what we are taught however the only difference is that in school, we are told that a house appreciates meaning it is an Asset. However, the rich dad says that we need to take the matters into hand that a house is an expense because it takes money out of your pocket, things like estate monthly dues, electricity, water and things like Wi-Fi. None of those things bring money in and that opened my eyes.

There is another thing that ties the book to the grade 12 chapters which is marketing. Throughout the book I read all those lessons and I really learnt a lot from them, but I was still surprised that this book is one of the best financial books in history, this therefore relates to Marketing. I would say that it was marketed very well. Meaning if a person were to market their business like that it would make money

I found this book as engaging because I might not directly relate with it because I unfortunately do not have 2 dads, however I could engage with it from the perspective of making money. After I read lesson in the book, it somehow gave me the urge to go do research in relation to the lesson. The book was persuasive.

Personally, it gave me the drive to think of ways on how I could start my own business at the age I am at and it really talks about the importance of Saving and working on a budget. I learnt on working on ways I can save. Currently speaking I made a promise to myself that I will save 20% of any money that enters my pocket or hand.

I agree with most of the things he has enlightened us with, it really changed my perspective. Well, he has shown me that Money is not the root of all evil. That money is actually very important and what is more important is that We SHOULD KNOW HOW MONEY WORKS.

I would really recommend this book this book to people from the age of 15 because at that stage you start to realise that you about to face reality. I recommend this book for people who need the drive or have the drive to achieve they goals and dreams. I have a quote by Robert himself “The size of your success is measured y the strength of your desire; the size of your dream; and how you handle disappointment along the way”

Conclusion

Robert Kiyosaki indeed showed many different views of Money. However he still outlined the importance of money and how people seem to view it as the root of all evil although Money is basically the reason why we wake up. I believe that his objective was achieved as now we know how the rich become richer and how they actually make money work for them and not the other way round.

Here is a quote that should give motivation to all “I have a problem with too much money. I can’t reinvest it fast enough, and because I reinvest it, more money comes in. YES, the rich get richer”

This just proves he isn’t telling us a folks tale, he is doing what he talks about in his book.