Imagine having two mentors with completely different views on money. One values a stable job and traditional education, while the other supports financial independence and entrepreneurship. Rich Dad Poor Dad by Robert Toru Kiyosaki focuses on these two perspectives and challenges us to rethink what we know about money and success.
Some lessons from this particular book can help us rethink our financial plans and work towards real financial freedom.
In the book, Robert Kiyosaki shares the lessons he learned from his two dads—one his biological father whom he calls his “Poor Dad” and other the father of his best friend whom he calls his “Rich Dad.” These two men had drastically different approaches to money, investing, and financial education.
Through their viewpoints, Kiyosaki reveals his view on achieving financial independence and success. Kiyosaki highlights a significant gap in traditional education which is financial literacy. His “Poor Dad” believed in the traditional route of working hard for a stable job, while his “Rich Dad” focused on financial education as the key to wealth. Achieving financial independence is as much about mindset as it is about strategy. Kiyosaki emphasizes that to reach financial freedom, one must develop a mindset that is open to learning, risk-taking, and proactive management of finances. This involves questioning traditional financial norms, setting clear financial goals, and continuously educating oneself about money management and investment plans.
From Kiyosaki’s view we should focus on acquiring assets and minimizing liabilities which can help an individual to build wealth over time.
You may start by tracking your income and expenses to understand where your money is going. Begin to explore investment options such as stocks, mutual funds, or real estate. Educate yourself about different investment strategies.
The most memorable and catchy parts for me in this bestseller are the concepts of “The Rat Race” and the idea of “making money work for you.” Robert Kiyosaki introduces the concept of the Rat Race which is a cycle where people work hard to earn money only to spend it on expenses. He compares this with the mindset of his Rich Dad who focuses on “making money work for you” by investing in assets and creating multiple streams of income.
Think about this: Sarah works as an accountant. She earns a good salary, but she spends most of her earnings on monthly expenses like rent, credit card debt etc. She finds herself constantly struggling to keep up with bills and rarely has any savings or investments. Sarah’s situation symbolizes the Rat Race. She works hard to earn money but ends up spending it on expenses. John, on the other hand, is a software developer with a decent salary. However, instead of spending all his earnings he focuses on investing. He buys rental properties and invests in portfolio of stocks and bonds. This symbolizes “making money work for you”.
Rich Dad Poor Dad has been transformative for many readers, including myself. It challenges general wisdom about money and inspires a proactive approach to financial management. The book’s impact extends beyond just personal finance but influences how we think about wealth, investment, and the importance of financial education. The book serves as a powerful reminder that financial success is not just about earning a high income but about understanding and managing money wisely. By embracing the lessons from Kiyosaki’s “Rich Dad” and applying them to our lives, my hope is that we can move towards financial independence and security.
Princia Dhakal is a grade 12 management student at Uniglobe Secondary School, Kamaladi, Kathmandu.
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