Apr 4, 2009

Rich Dad Poor Dad Review

I've heard of this book years back then. I even had the ebook of Rich Dad Poor Dad. However, couldn't get myself to finish reading it. Then few months ago, I went to Barnes and Noble next to CVS. I passed the business shelf and randomly pick the Rich Dad Poor Dad book. I read the introduction written by Sharon Lechter and also some paragraph in chapter one. Few weeks later, I look up on Amazon.com to get the used book.

One thing about this book that mesmerized me is how Robert Kiyosaki explained the concept of liability and asset. He has different concept that always been taught in school. Asset, through his definition is anything that will generate income to in the future such as houses (get income by rent them) etc. While liability is anything that take out money from you such as car, and luxuries stuff but will not generate income to you. The middle class and the poor always spend their money buying liabilities. (damn, that's me.) However, the rich class spend their money buying assets cause they know with those assets, they'll get more money. Then the rich buy luxuries using money that' assets generated. That's why the rich always get richer and the poor always get poorer.

Another concept that make me thinks for days is don't work for money, let the money works for you. According to the author, who ever could understand that phrase, also understand the true value of money. Money is not real, it's an idea created by human being as regulations to posses real things.

Robert also discussed about financial IQ that consists of four rules; accounting, investing, understanding markets and the law. I read about all the rules and hey, it does make sense. A person need to have strong knowledge for these four rules to be financial independence.

Lastly, the author also talked about giving money to people in need. The more you give, the more you'll receive in return.
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