Rich Dad Poor Dad, A Must Read.

Rich Dad Poor Dad is one of my favorite books. I read it when I was 11 or 12 and up until now, the lessons and concepts I gained from the book still stands as my foundation for financial literacy.

Why did it capture me?

First of all, Robert Kiyosaki speaks with simplicity. Instead of bombarding you with financial terms and complicated vocabularies, he makes it simple that even a child (I was around 11 or 12 years old at the time I read the book) can understand.

Another uniqueness that strike me is his approach on education. Yes, education is important. But we are not taught how to handle money in school. And yet in the real world, we need it!

And even worst, accounting books and other accounting subjects teach us the wrong information. Take for example the simple definition of Asset vs Liability. In accounting, a house is defined as an asset, right? Well, is it? In Robert Kiyosaki’s book, he defines Asset as something that feeds you, while Liabilities are something that eats you.

One example of an asset can be a vending machine. Sounds wierd?

Well, it’s not. You see, assets are passive income streams. With a vending machine, you do not need to watch over it to generate income for you. Leave it in a high traffic area and your vending machine will make money for you.

Liabilities on the other hand eat you. Remember what your accountant said about that house being an asset? Well, do you earn passive income from it?

A house can either be an asset or a liability. If you rent it out, then it is an asset. You make money from people’s rent, but if you just pay the mortgage of the house and do not get anything in return, it’s a liability.

There are just some of the great topics Robert Kiyosaki covers in his book. And I really recommend reading Rich Dad Poor Dad. I’m sure you will love it, and also learn from it!

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