Kiyosaki begins “Rich Dad, Poor Dad” with the story of his two dads. One had a Ph.D. and made a good living, but he found himself always short of money and died penniless. Kiyosaki’s other dad dropped out of school at age 13 and went on to become one of the wealthiest men in Hawaii.
Both dads had a lot to teach Kiyosaki about how to approach money, and throughout the book, he uses them as an example to illustrate how, in his terms, rich and poor people think.
In “Rich Dad, Poor Dad,” Kiyosaki says that most people let their emotions motivate their actions, and that it is an emotional driving force that sends them to work every day. He uses the term “poor,” regardless of how much money people have, because it is never enough, making poverty more a frame of mind than how much one has in his or her bank account.
Kiyosaki explains that rich people, on the other hand, are less likely to allow their emotions motivate their actions, which enables them to think before reacting out of fear. It is how people approach money that makes them rich or poor, and it is the goal of “Rich Dad, Poor Dad” to make everyone rich.
One way Kiyosaki did this personally was by quitting his well-paying job at Standard Oil to join the Marine Corps. By overcoming his fear of not having enough money, he was able to learn leadership and management skills that have since proven invaluable. If it hadn’t been for his rich father, Kiyosaki says he wouldn’t have had the foresight and courage to do it.
Another difference he points out is that middle-class people work for money and wealthy people have their money work for them.
I’ve noticed this in my own life, as I tend to spend money on temporary items rather than use it to make money. Instead of buying something I will only use short-term, I could instead invest my money and use it to make more.
For instance, instead of saving for a temporary item like a new jacket, Kiyosaki says I should invest in financial instruments such as stocks, bonds, mutual funds and real estate, where it has the potential to earn me more money. Kiyosaki points out that I could work the same amount yet earn enough to buy a jacket every time my investment earns enough, or I could use those funds to continue making money.
For those who are afraid of investing, Kiyosaki says the more knowledge you have about your investment, the less risky it becomes. This opens you up to more potential investments besides low-risk stocks.
Reading “Rich Dad, Poor Dad” has convinced me that I have succumbed to the mentality of working for money, and in the long run, it’s not going to get very far financially. Instead, Kiyosaki has made me realize that dealing with money isn’t as intimidating as I thought and that the more I learn, the easier it is for me to take control of my finances.
Between Kiyosaki’s two-dad analogy and writing style, this is a very easy read that packs a lot of information into less than 200 pages. Don’t expect a get-rich-quick book, but if you want to reevaluate your approach toward money and start creating a stronger financial future, this is definitely a great start.