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A Book Review on
“Rich Dad Poor Dad”
By Robert T. Kiyosaki
KRISTOFFERSON C. SOLAMIN
PILGRIM CHRISTIAN COLLEGE
PROFESSIONAL...
The Author
The “Rich Dad Poor Dad” series was written by author Robert T. Kiyosaki, born in Hawaii, a
Japanese-American bu...
Chapter 3
Chapter 3 discusses how Mike and Robert have gone as young adults on their path as career driven
individuals and...
Chapter 7
In this chapter Robert T. Kiyosaki talks about enhancing the individual skills and develop financial
success. Th...
Summary
The book Robert T. Kiyosaki wrote was his manifestation on “How to create financial freedom”. He
emphasizes on bei...
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A book review on "Rich Dad Poor Dad"

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A review on Robert T. Kiyosaki's book Rich Dad Poor Dad for Prof Ed book review Developmental Learning

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A book review on "Rich Dad Poor Dad"

  1. 1. A Book Review on “Rich Dad Poor Dad” By Robert T. Kiyosaki KRISTOFFERSON C. SOLAMIN PILGRIM CHRISTIAN COLLEGE PROFESSIONAL EDUCATION SEPTEMBER 27, 2015
  2. 2. The Author The “Rich Dad Poor Dad” series was written by author Robert T. Kiyosaki, born in Hawaii, a Japanese-American businessman and financial literacy advocate. His books were centered on the idea of financial freedom and financial success through investing, real estate, owning a business rather be an employee. Robert T. Kiyosaki proposed that owning high value assets that produce cash flow and generate passive income, to improve one’s finance status, he also suggests on financial literacy to increase one’s financial intelligence to attain these financial goals. His success on the “Rich Dad Poor Dad” book series generated at least 26 million copies in 2006. He founded Cashflow Technologies which marketed the “Rich Dad Poor Dad” book series and other brands associated with the name. The Book The book “Rich Dad Poor Dad” was about two dads that the author Robert Kiyosaki, consistently look upon into when the author needed advice. These two dads very much influenced major decisions that the author made in his lifetime. Through out the book, the comparison between the rich dad and the poor dad was consistent; they were compared based on life changing decisions, financial practices, principles, and attitudes towards acquiring wealth and managing the business of money. Chapter 1 The story starts off with the author, Robert T. Kiyosaki, and his childhood friend, Mike. Mike was his childhood friend and his father was the “Rich Dad” and the author’s was the “Poor Dad”. It was early in their childhood that the two boys were taught how to work for money. Mike’s father, the Rich Dad, hired Mike and Robert to work under Him on his grocery store but for more than way below the actual pay. They were taught the value of hard labor, low income and long hours of work. The two boys were at their young age, wanted more than the income substantiated by working on Mike’s father’s grocery store. They felt the lessons of self worth and valuing the self. It was here that the first lesson in the book was stressed “work for your money” and get out of the “RAT RACE”. It simply proposes that instead of working for the day to earn a living, it implies that you need to make people work for you and make a living. Chapter 2 Thought; “the only thing that life does is push you around”, the chapter talks about taking risks. Since most people are taught to save and not take unnecessary risks, the individual person generally, works for the money. The author implicates that the one of his life lessons was that “THE RICH DO NOT WORK FOR THEIR MONEY”. The person individual failed to see this notion relevant because every person works for money and security. While the rich take risks for their money to work for them, the common individual works for money, the person individual failed to take risks that are presently unnecessary, they are caved-in in their comfort zones that the future they see is not opportunities but failure to understand complicities of life because of fear to take risks.
  3. 3. Chapter 3 Chapter 3 discusses how Mike and Robert have gone as young adults on their path as career driven individuals and have been quite success in their fields. Mike has inherited the family business and has managed it and grown the family business much like his father, the Rich Dad before him did. Robert has an insightful career and now has interests in investing his retirement money. The chapter sums it up that once you have money, it is best that you need to be smart with your money. The author emphasizes on building a strong ground in dealing with investment, the difference between asset and liabilities, and how to control your assets to generate income. This chapter also puts emphasis on financial independence, the essence of enjoying your money. This chapter of the book stresses the importance of acquiring assets as passive income to generate cash flow that will not put stress on liabilities or debts. Keeping the liabilities at bay while building assets, to build up cash flow and minimizing the costs of keeping these assets without depleting your assets, specifically money. Chapter 4 The chapter discusses the concept of investing on real estate, and stocks. The author also stresses the importance of self-sufficiency in handling one’s finances. The author discussed in this chapter the ability and the skill needed to be financially independent. Self-sufficiency is the key to success. An individual should strive to take calculated risks in achieving financial literacy to increase one’s intellect on their finances. One way of building and acquiring assets is to invest on real estate and stocks because they are liquid, and the value of these assets tends to increase overtime and they are easy to liquidate or sell. The author also proposes to each individual to be more open and embrace new ways to create passive income, this type of income work for you, other than you working for the income. Chapter 5 This chapter stresses on the significance of corporations versus the common individual in terms of managing taxes. The point being stressed here is that the vantage point of corporations in terms of taxation mechanisms. Chapter 6 The chapter envelops into creating opportunities not to wait for it. The author stresses the significance of doubting the self and the innate abilities because of fear into the unknown. Opportunities are sought and created not to wait for it to happen. The author also proposes that to have a good vantage point in business, an individual need to have to invest on people, people that can contribute more into the objectives of your business, to hire people a lot better and more skilled than the individual and tap their abilities to suit your needs in your undertaking.
  4. 4. Chapter 7 In this chapter Robert T. Kiyosaki talks about enhancing the individual skills and develop financial success. The need to enhance and develop other skills that are needed for financial success, other skills that are not inline with an individual’s current school degree, a different field will only be beneficial to the individual if he/she maximizes different skills and traits that an individual can maybe lacking in other fields. The individual needed to know other skills in money management like accounting, cash flow management, marketing and selling which beneficial if one goes to business. Chapter 8 Robert T. Kiyosaki sights basic truths; arrogance, bad habits of people, cynicisms, fear and laziness while it is a normal traits of man, the underlying difference is that “how to control and balance these truths. The author also stresses the notion of “What’s in it for me?” That in every decision to make this notion should be the first to ask one’s self, not out of greediness but out of perception into the future of the decision being made and the action following the decision. Chapter 9 The chapter give valuable insights, tips in how to build personal wealth. Robert T. Kiyosaki puts emphasis on the individual’s purpose in living; he indicates that free will has something to do with your motivation to be financially independent. Next, he encourages acquiring knowledge, knowledge that would point to the direction of your future goals to be financially independent; he also encourages learning multiple skills/fields that will help the individual to grow, he also suggests on choosing friends, friends that influences individuals to “how to handle money” ”how to make money” “where to make money” “when to make money”. Robert T. Kiyosaki also believes in the power of teaching, teaching, others what you want to share will come as a blessing other than a curse. Chapter 10 The last chapter encourages its readers to create ideas, opportunities and seek it. It explains the financial rewards in taking risks and calculated decisions to improve one’s financial status. Financial success depends on that individual that is smart to know the difference between assets and liabilities and capitalize on it. By immersing on different fields and improving financial IQ the individual can create wealth and be on the path to financial freedom.
  5. 5. Summary The book Robert T. Kiyosaki wrote was his manifestation on “How to create financial freedom”. He emphasizes on being productive with a single person’s financial IQ; Increased in financial IQ means knowing how to use it to his/her benefit. Financial literacy if applied on the real world should make an individual person financial status better. The author suggests taking full advantage of other people’s skills and talents to enhance the goals you set in your undertaking, he also suggested to make do of people who is better than you in other fields or far more intelligent and manage these resources to achieve your set up goals. Robert T. Kiyosaki stresses that an individual should not be content as an employee but by being, your own boss. He stresses the importance of seeking other means to create income. He suggests that one way is to build-up your current assets and make the expenses into a minimum low. In this way, you can control your cash flow and manage your money more freely by bringing in cash flow and minimizing liabilities, by building your asset based income, passive income, in terms of investments and other money schemes that involve assets. He also put importance on preference of a more liquid asset like real estate and stock options because these are assets that are more liquid and quicker to liquidate than most assets and it tends to grow overtime. Reflection I think that financial freedom is about not having to worry about money you spend versus the bills that you are paying and it depends on how you perceive success. The author’s approach was sound and fundamentality good; he was basing these through experience in his lifetime. I think that it is ideal that an individual has or is debt-free but actually very few people is debt-free. I also think that debts are necessary. In a sense that by solidifying you’re assets or even acquiring one and building assets, a debt or loan is necessary considering the current pay in workers wage and salary and other benefits. I think that another way of building and solidifying your current status is to pay your debt on time and managing it. By this, I mean building rapport and building your image positively by tediously paying your debts, this is not easy when your cash flow is already shaky than it is. Businessmen do this approach acquiring loans to invest and paying off the debt when they can. Investments come with money, these money come from banks. Other success stories are inspiring but, how do we explain people with business enterprise that are still considered poor and whose total income fall below the poverty line and yet they work past working hours and in wee times in the morning and some few to those who still manages to wake-up early in the morning and work. I think that the author is a good story teller. The book is inspiring in its sense, the points pointed are valid and simple to understand but the process does not guarantee financial freedom to all. It is only a guide, food for thought. The individual perception when in play will hinder or trigger an individual to take action. Developing your learning does not necessarily make you rich, knowing a lot of things that not led to financial freedom. I think that being frugal makes more sense than being suggested on the book of Kiyosaki, I think that you can only invest when you are debt free and not worrying for the next bill to show up in your mail.

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