“Rich Dad, Poor Dad” by Robert Kiyosaki

“Rich Dad, Poor Dad” by Robert Kiyosaki, a Japanese-American author, is considered a legendary self-help book. Even those who haven’t read the book have likely heard of it at least once due to its impactful title, making it a global bestseller.

Although it was published much earlier, even looking at it now, it can be said to be a must-read for anyone aspiring to become wealthy. Even if becoming rich isn’t the goal, it’s recommended to read this book to establish proper financial and economic perspectives.

“Impressive Title: Rich Dad, Poor Dad”

The book’s title itself is compelling enough to predict what content it covers. By juxtaposing relative terms like “Rich Dad” and “Poor Dad,” it grabs people’s attention.

First published in 1997, the English title of the book is “Rich Dad, Poor Dad.” It gained immense popularity in the United States before being translated and introduced to South Korea around 2000. Similarly, it created a significant impact in South Korea.

“A Financial and Economic Self-Help Book Comparing Two Fathers”

In summary, the book can be described as a “financial and economic self-help book.” However, rather than simply listing financial or economic concepts, it naturally explains what constitutes desirable economic and financial perspectives by comparing the author’s rich friend’s father with his own father, who prioritized education despite being poor.

The book contrasts two fathers’ economic perspectives, making it easy to read for those without much knowledge of economics or management.

The author compares his own father, who struggled financially despite receiving a lot of education, with his friend’s father, who, despite receiving less formal education, had abundant knowledge about money and became wealthy. Based on lessons learned from his friend’s rich father, especially during childhood, the author shares insights in episodic format.

“Following the Thinking of a Rich Dad to Become Rich: Robert Kiyosaki”

Through his growth from childhood, the author, Robert Kiyosaki, follows the path of his friend’s rich father. Building upon the lessons learned from the rich father, he gradually becomes wealthier, leading to the publication of this book.

The author emphasizes that the mindset of a rich father is entirely different from that of a poor father. While the rich father thinks, “How can I afford it?” when lacking money, the poor father firmly concludes, “I can’t afford it.” Such comparisons throughout the book highlight essential points.

“The Key to Becoming Rich: Accumulating Knowledge About Money”

The author ultimately states that accumulating knowledge about money is the key to becoming rich. This includes understanding the difference between “assets” and “liabilities.” Despite seeming complex, financial concepts are explained very simply in the book, often based on explanations the author received from his friend’s rich father in his youth.

“Seven Things That Truly Become Assets”

Explaining assets and liabilities, the author lists seven things that truly become assets:

Business (a business that can run without you)
Stocks
Bonds
Real estate (real estate that generates income)
Notes, loans
Royalties from music, manuscripts, etc.
Other marketable assets

“Economic Quadrants”

Another key concept the author discusses is the economic quadrants. Understanding assets and liabilities, we realize the importance of acquiring assets over liabilities.

He divides the economic quadrants into:

E: Employee
S: Self-Employed
B: Big Business
I: Investor

Moving from the E/S quadrant to the B/I quadrant is essential for achieving financial freedom.

“Key Management Skills for Success”

To transition from earning income through labor to earning through finance or business in the B/I quadrant, the author outlines essential financial knowledge and skills:

Managing cash flow
Managing systems
Managing people

These are similar to learning about management. In particular, he emphasizes that four aspects of financial IQ are crucial:

Accounting knowledge
Investment knowledge
Market knowledge
Legal knowledge

“Five Reasons People Fail to Become Rich”

Drawing from his experiences, the author explains why people fail to become as wealthy as he did:

Fear of losing
Cynicism
Laziness
Habit
Arrogance

He suggests that to succeed and achieve financial freedom, one must overcome these obstacles.

“Ten Forces Needed to Become Rich”

Conversely, the author lists ten forces one must possess to become rich:

The power of the mind
The power of choice
The power of cooperation
The power of quick learning
The power of self-control
The power of paying well to intermediaries
The power to get something for free (Indian giver)
The power of focus
The power of myth
The power of giving

Ultimately, the road to wealth requires steady learning and belief in oneself.

This legendary self-help book in the economic field remains a bestseller to this day. It’s an enduring book that provides valuable insights into establishing the right economic principles. If you want to establish a proper economic mindset, this book is a must-read.

“Rich Dad, Poor Dad” by Robert Kiyosaki