Rich Dad Poor Dad is a book on author Robert Kiyosaki’s path to accumulating wealth. The book is based on the advice he received from his well-educated biological father, whom he refers to as “poor father,” and from the father of his friend, who had a much lower level of education, but whom he calls “rich father.” “. Both dads had very different perspectives on how one should achieve success and the book contrasts the two approaches and ultimately makes clear to the reader the superiority of the rich dad’s money-making principles.

His biological father’s approach viewed education as the key to success. Interestingly, his father is portrayed more concerned with education than money in the belief that more education will eventually lead to more money. He compares his natural father’s approach to what many parents hold as the social standard for financial security: sending children to school and college to get a good education and then a decent job in a stable company. His biological father’s idea of ​​financial success was based on what a job offered: stability, promotions, and social security. Robert Kiyosaki calls this being confined to a rat trap: His natural father seemed to work continuously and relentlessly, but he never advanced financially.

His friend’s father (rich dad) had much less education. However, he is the one who provided the practical answers on what it takes to make the transition from rat trap to riches. ‘Rich Dad’ held onto the principle that education only produced people for employment and not people who could wisely manage their own finances. Robert Kiyosaki learns from Rich Dad that the question on the mind of anyone who wants to be in control of their financial goals should always be how to make more money.

Robert quickly realized that ‘Rich Dad’ was very interested in investing. In the book Rich Dad Poor Dad, Robert Kiyosaki states that an investor’s emphasis is on accumulating assets such as rental properties, bonds, and stocks, while staying free of liabilities such as cars, residences, or boats. This is because assets generate income, while liabilities eat up this income. Only once your assets and liabilities are clearly distinguished will they be able to form a stable financial foundation.

Another key principle found throughout the book is the need for financial literacy to get rich. Rich Dad Poor Dad claims that financial education will help you accelerate your financial growth by equipping you with the knowledge you need to make sound financial decisions before you even get the money. If you are not smart about money, it will be difficult for you to make sound financial decisions, even when you are presented with a large amount of money, causing you to lose it as fast as you earned it.