Book review: Rich Dad Poor Dad by Robert T Kiyosaki

So,

About two weeks ago I started to do a chapter by chapter review of this book, and even though it was usefull to do this, but I feel as if a lot of things was also lost in this way. So after having waited for over a week, I will now review the book completely.

First off: a warning. Whereas I was truly captured by the story, the RIch dad, the dad of a friend teaching the protagonist of our book as a kid how to handle money, and mentoring him throughout the years. Some research has shown that "Rich Dad" is a fictive character. This takes away some of the feeling, since, rather than "real story" the examples from the youth (the working at the store, the library,...) are now just fictions.

That being said, the information in the book is quite good and important. The most important tool, was to divide financial matters in a matrix like this:

Income Expenses

Assets Liabilities

This Matrix is also considered as being at the foundation of the difference between the Rich, Poor and Middle class:

The Poor spend all their income on expenses. Food, Alcohol, cigarettes, holidays. They obtain little liabilities or assets

Middle class Spend the remainder of their income after expenses on iabilities (cars, bigger houses,...)

The Rich funnel the remaining income into assets. Assets in turn produce additional income creating a vicious cycle.

That part, was the most important lesson from the book. This analysis can be immediately conducted, and it will change the way you think about your finances.

The later chapters focus more on gaining money, and in this, focusses quite heavily on real estate investing. Whereas in the long run, without a doubt, this is interesting, but it is less easy to implement.

I would hearthily recommend anyone to read this book, it is easy written, not burdened by difficult calculations, jargon, or littered with numbers. It teaches no nonsense, financial literacy. And that in itself is worth a lot, since it will change your feeling.