Article by Lee Spaziano

Rich Dad Poor Dad, written by Robert Kiyosaki, is an enlightening tale about a young man growing up with two dads; his biological dad and his close friend’s father who treated him as his own son. His biological dad was the one that he considers his Poor Dad, while his friend’s father is the one that is considered to be the Rich Dad. The poor dad is compared to other poor dads all over the world that encourage their children to succeed in school and to be able to get a good job later as an adult. In contrast, his Rich Dad encourages him master the power and knowledge of investing. With the benefit of having two fathers with such different views, he was able to compare and contrast the two and also create his own perspective. Throughout Rich Dad Poor Dad, Robert Kiyosaki discovered six very important lessons: The Rich Do Not Work For Money. Within this part of the tale, Robert Kiyosaki learns to take risk. Most people do not understand this and end up playing it safe for the majority of their life and therefore are never able to financially get ahead. His Rich Dad teaches him that poor people tend to be afraid, so they work for money and security, but don’t see the opportunities which lay right before their eyes. The Importance of Financial Literacy. With this lesson, Robert Kiyosaki is older and learns through the misfortune of others that you have to have financial literacy to stay safe. He discovers the key reason for financial difficulty is not recognizing the difference between assets and liabilities. That’s why more and more people have problems staying wealthy, after they get rich. Kiyosaki?s Rich Dad tells him simply, “An asset is something that puts cash into my wallet, and a liability is something that takes cash out of my wallet. In order to be wealthy, just spend your life obtaining assets.If you want to be poor or middle class, spend your life buying liabilities.”Minding Your Own Business. Within this lesson, Robert Kiyosaki finds out from his Rich Dad that if you want to become financial self sufficient you must discover a method to become your own boss and worry about your own business. He discovers from his Poor Dad that the major reason for financial struggle is spending your entire life doing work for someone else. Taxes and Corporations. Robert Kiyosaki?s Rich Dad taught him that rich folks do not let themselves be stepped on by corporations, instead they use the large corporations safeguard their money and assets. He learned that he could help himself by taking lessons about marketing and advertising, investments, accounting, etc.The Rich Invent Money. The main point Kiyosaki learns from his Rich Dad all through this particular lesson is that you have to create your own luck. You can’t just sit around and wait for the right opportunity to show up! It will not take place if you don’t put effort into it. In this lesson ?fear? once again comes into play. According to Kiyosaki?s Rich Dad, it is not the well schooled people who become wealthy, but it really is the people prepared to take a risk and make it happen.Work to Learn, Do Not Work For Money.Kiyosaki discovered that the wealthy do not work for cash, they work for knowledge and skill. Should you devote effort and time chasing after the dollar, you will find it to be an illusive goal. If on the other hand, you pursue wisdom and skills, the money will naturally follow. Robert Kiyosaki sums up his account of Rich Dad Poor Dad with the 5 major road blocks which restrict financial growth.

FearCynicismLazinessBad habitsArroganceOverall, this book is an excellent read. It will help you to develop a solid foundational base for a long and profitable entrepreneurial career. I would suggest this book as a primer to a business education and learning and a must read for anyone that would like to create wealth and financial freedom.