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

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

His friend’s father (rich dad) was much less educated. Yet he is the one who provided the practical answers on what it takes to make the transition from rat trap to riches. ‘Rich Dad’ clung to the principle that education only produced people for employment and not people who could wisely manage their own finances. Robert Kiyosaki learned 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 investments. In the book Rich Dad Poor Dad, Robert Kiyosaki states that an investor’s emphasis is on accumulating assets such as rental developments, bonds, and stocks while staying away from liabilities such as cars, homes, or boats. This is because assets generate income while liabilities consume this income. Only once you clearly differentiate between your assets and liabilities can you form a stable financial foundation.

Another key principle that runs throughout the book is the need to be financially literate to get rich. Rich Dad Poor Dad claims that financial education will help accelerate his financial growth by giving him the knowledge to make wise financial decisions even before he gets the money. If he is not smart in money matters, it will be difficult for him to make sound financial decisions, even when presented with a large amount of money, causing him to lose it as fast as he earned it.