Essay on Rich Dad Poor Dad: Summary
The book talks about a person whose biological father was poor where as his friend’s father was the rich dad. Mike whom his father was rich happened to have been the author’s best friend. These two personalities gave the author two different approaches of becoming rich later in life.
It was now the author’s discretion to discern which approach would best work for him. The author keeps comparing these two fathers on their financial practices and their depth in terms of dynamism. The author’s poor but educated dad could not much the real dad in terms of building of assets and business mind.
According to the author, his dad is one of those people who are determined to be rich in life but are held back by lack of sufficient knowledge relating to finances. He doesn’t blame his actual dad for this but hips blame on education system that has no curriculum on financial literacy. However, his rich dad who represents the affluent takes advantage of his financial advisors coupled with his tax and accounting expertise to enrich himself.
The author tries two portray characters of personalities who harbor the can-do attitude and the other who is a fearless entrepreneur. The author tries to bring to the attention of the users how basic knowledge of finances is very vital in any business undertaking and how corporations can contribute to the rich becoming even richer. He underscores how ones upbringing can contribute to his or her to acquire financial freedom. He highlights six main topics which he gives prominence to throughout the book.
These include: importance of financial literacy; reality that the rich never work for money; the issue of tax and how they relate to public corporations. The author also emphasizes that people should work to learn and not to work for money as widely perceived by many. The reality of the rich inventing money is also brought to the attention of the reader.
Rich Dad Poor Dad Essay: Analysis
When Mike and the author teams up to form a first-reach scheme, Mike’s father insists that they both have to attain financial literacy to be successful in any business enterprise. The boys dedicate their free-time to learning about finances and economics. When the author is employed in Mike’s father grocery shop he decries his being paid meagerly.
The author routes for salary increase but is instead paid even less. The author uses this to show the ineffectiveness of rat race in pursuit to acquiring riches and that the rich do not work for money. The author depicts the disadvantages of working the whole of your lifetime putting little money into your very own pockets while the bulk of it goes to other people. It is imperative that people should work to put money into your own pocket.
The author is bent on divorcing the idea that life teaches from their mindset and instead embrace a reality that life indeed pushes people around. Because of failure to be taught about risk taking early in life many people tend to engage in playing safe.
The author is emphatic about the idea that the poor and the middle income earners will always work for money and that poverty is majorly caused by fear and greed. The author underscores the importance of using ones emotions as opposed to thinking with emotions if one is to become a business magnet of repute. Life is full of opportunities that come and go (Kiyosaki and Lechter 2000). The rich make substantive use of these once in a lifetime opportunities whereas others who are so preoccupied with pursuit of money and security fail to make use of these opportunities.
The author stresses that any entrepreneur needs financial literacy to stay safe and healthy. Were it not for lack of financial literacy, the 1920 entrepreneurs who met in Chicago would not have ended up dead, in jail, or poor. Financial illiteracy has contributed to many professional athletes languishing in poverty. The author intends to teach the readers to use a lot of wisdom when it comes to spending money they have toiled for.
One has to be very smart when it comes to issue pertaining to his finances. He cautions people who may want to build skyscrapers without building a stable foundation for it. Such project is bound to c rumble to its very foundation. One should be in a position to discern an asset from a liability and be in a position to control assets. The author champions for financial independence. He reiterates that intelligence can help solve problems and raise money. Kiyosaki asserts that wealth that is not founded on financial intelligence is wealth soon gone.
The author believes that for one to be financially literate he or she must have working knowledge of accounting. With this he will be able to separate between assets and liabilities. He states that the poor remain poor because they cannot keep liabilities to the bare minimum and their inability to purchase assets to strengthen the asset column. He says that that people should lay much emphasis on how much they keep as opposed to how much they make.
The author is categorical that the rich are capable of manipulating corporations hence enhance their assets while the poor are manipulated by these corporations. He states that by the very virtue of the fact that the poor work for state corporations they enrich the government where as the rich are rarely taxed. One must therefore develop financial IQ to be able to get out of these economic doldrums hence the knowledge of the law, accounting, and the financial markets.
The author is very certain that education is very valuable in entrepreneurship and in cases where it is lacking it is paramount that one hires others to be able to attain his investment objectives. He says that money should be created just like luck is created.
Essay on Rich Dad Poor Dad: Reflection
The authors idea that money should be created just as luck is created is very interesting because no body should expect to be rich by just sitting and waiting for luck to come their way. The author is very right in advocating for hiring of experts by entrepreneurs to give them advice on how certain issues they do not know about should he handled. This would save them committing mistakes that would cost them their business initiatives.
On taxation and corporation, it is interesting that the author informs the reader of the reality that those who work for corporations have too live with that is-taxation. People who survive strictly from government coffers have rarely managed to make a leap into financial freedom because of over taxation. However, I find it not true for him to say that the rich are rarely taxed. Tax evasion is illegal and concerned government department will not fail to reign in anybody who does this malpractice.
It is a requisite that any serious entrepreneurs acquire knowledge on financial literacy for him to stay financially healthy. Entrepreneurship is founded on financial literacy. This will ensure that nobody makes suicidal investment decisions. It is worth noting that more meaning could not be drawn on how the corporations make the rich richer.
Rich Dad Poor Dad: Essay Conclusion
The book has scored a seven (7) because it talks about financial issues in a way that any person whether educated or uneducated can understand and try to apply in life. It is paramount that one acquires financial literacy in order to transact any business activity. People should never work for money but instead work to learn.
The author also brings to the attention of the readers how the poor continue to languish in poverty by working for corporations while the corporations continue to enrich the rich. The reader’s attention is also drawn to the fact that it is the rich who invent money.
Work Cited
Kiyosaki, Robert and Lechter, Sharon. Rich Dad Poor Dad. New York: Amazon, 2000.