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Rich Dad Poor Dad Analysis

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Introduction The following executive summary is a hybrid of the investments article, “How to start out investing right” and the four of the six major lessons in the best selling personal finance book, “Rich Dad, Poor Dad.” Two different resources that highlight the importance of education and personal financial independence through life investments. We can agree that today’s society possess numerous amounts of resources to become self-employed and financially independent. However, not everybody takes advantage of such resources and fail to become financially independent due to fear of the unknown and lack of knowledge. Therefore, the following document will highlight the overarching path to becoming financially knowledgeable by learning how…show more content…
Unfortunately, too many times to count; situations that are not too far from us. How many of us have a sibling, a cousin, an aunt, an uncle, or even parents that work extensive shifts, but barely make enough money to make ends meet? The truth is that the statistics of people who are unable to meet payment deadlines continue to increase with time; while the minimum wages increase, people also increase their expenditures, so there is never really a benefit in earning more money, as society tends to spend more. Therefore, Robert T. Kiyosaki, author of “Rich Dad, Poor Dad,” invites us to start investing in our financial education; thus, opening the doors for financial independence through four of its six major lessons: “The Rich don’t work for money,” “The importance of financial literacy,” “The rich invent money,” and “Work to learn, Don’t work for money.” Similarly, “How to start out investing right,” promotes education and provide us with seven easy steps to start investing in the 21st century: “Choose the proper mix of assets,” “Start out with mutual funds,” “Educate yourself,” “find a knowledgeable and trustworthy broker,” “Adopt a Scrooge-like approach toward fund expenses,” “Go for consistency,” and most importantly “Never invest in anything you don 't…show more content…
Therefore, he emphasized on “The importance of financial literacy,” meaning that people needs to learn how to make money work for them. Although the idea sounds complex, it is very simple; Kiyosaki is telling us to control our assets and liabilities by increasing our investment and decreasing our expenditures. Simple math, manage your income, so that inflows are always greater than outflows; thus, never spending the money you don’t have. Further, he tells us that “The Rich don’t work for money,” which is the same concept given through the prospective of the wealthy. The rich don’t work for money, they “work to learn,” thus, always acquiring knowledge that can assist them in a future project or business initiative. Consequentially, “The rich invent money,” meaning that they don’t wait on a job to generate the revenue, they developed business strategies to open their own business and/or invest in real state or stocks that guarantees them a constant source of revenue. Similarly, “How to start our investing right,: highlights the importance of income generating strategies such as the purchase of mutual funds, CDs, stock, and/or bonds. Already overwhelmed? No problem, the article breaks it down for us in seven easy steps that can help us get start investing. First, “choose the proper mix of assets to reach your financial goals before buying any investment.” Everybody has different goals;
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