One of the most influential self help books that have been made during the 20th century is Rich Dad Poor Dad, by Robert Kiyosaki. In the book, Robert Kiyosaki explains the importance of the flow of money through two different quadrants, assets and liabilities. Overall the book Robert explains his two different fathers, but in actuality his biological dad known as the “poor dad” and the other is his best friend’s dad known as the “rich dad” and compares them through their ideas, principles, and financial practices. His “rich dad” never finished the 8th grade while his “poor dad” went to Stanford and earned a PhD. He explains the idea of the principles of the four different types of people in life as the employee, self employed, business owners and the investors that he has learned from his “rich dad”. The importance of investing and understanding, Robert conveys to me and the readers the importance of investing and understanding the difference between liabilities and assets which separate the rich from the poor.
While reading Rich Dad Poor Dad, I gained a lot of information on the different ways the upper class parents teaches their children compared to the way middle and lower class parents taught their children. As shown in the book, Robert’s “Rich Dad” is shown teaching them how to apply money and use it efficiently to create a flow of income at a very young age. On the other hand, I was shown how his “poor dad” didn’t want him to learn about money, but focus in school by learning and going to college. This conveyed and taught me the importance of how massively difference the two different types of dads taught Robert, because at a very young age, “rich dad” is shown teaching him about assets and liability while people who are even in their thirties don’t understand the difference. As shown through his biological dad, lower class people generally think their houses are assets, but this is inaccurate because their houses take money out of their pockets which in turn creates it into a liability. On the other hand, an asset would be a house that is rented out to someone since the cost of property tax is lower than the amount of rent which creates income for the landlord. In this case, it is considered an asset because money is going into the pocket of the landlord. I personally recommend this book because of the message it conveys and the way it talks about the difference between the rich and the poor.