Rich Dad, Poor Dad is the story of author Robert Kiyosaki's upbringing and his two fathers, one rich father (not biological) and one poor father (biological). He was forced to choose between following in the footsteps of his poor father – a highly educated government worker – or his rich father – an entrepreneur who never graduated high school.
In the end he decided to learn from his rich dad.The book focuses mostly on the education and financial advice Kiyosaki learned from his rich dad. His rich father was able to create a multi-million dollar empire from virtually nothing, using his financial knowledge and the power of his imagination.
The book gives basic lessons which combine the teachings of Kiyosaki's rich dad with experiences from his own life.One of which is the importance of improving your financial IQ and financial literacy,(skills the author believes is absent from the current education system).
The book also shows how the rich don't work for money, they make money work for them. They acquire assets rather than liabilities. The author emphasises the importance of being able to differentiate between an asset and a liability. He states that in order to be truly wealthy, your asset must be large enough to offset your living expenses. He explained about the misconception of a high income meaning wealth, but in reality a strong asset column is what is needed. Higher incomes often lead to higher expenses, higher taxes, and more debt. The author (Kiyosaki) eliminates the myth that taxes affect the riich more – instead he shows how many rich people avoid taxes and outsmart the system. Taxes actually affect the poor and middle class more than the rich.
Kiyosaki also talks about how fear, criticism, laziness, bad habits, and arrogance prevent people from being wealthy. The book explores how each one of these factors acts as a hinderance to financial