Rich Dad Poor Dad by Robert Kiyosaki

 Rich Dad Poor Dad by Robert Kiyosaki

Introduction

In the book, the author, who is also the narrator, says that the main reason as to why people struggle financially is that they do not know how to manage their finances. They go through school and acquire absolutely no skills in how they enhance their revenue streams and also become successful entrepreneurs. In other words, they learn to work at the service of money and do not learn how they can put the money to work for them.

The poor but educated dad is of the idea that people should go through school, get good grades that can help them get top jobs and rely on the benefits that come with employment. However, the rich dad is of a divergent opinion as he tells the narrator that he should make money by himself and not depend on salaries. In this essay, I assert that we strive to make the most of our abilities, just like the poor dad prescribes, as opposed to being defined by the environment.

The most crucial pearl that we can get from the book is that we are products of our thought systems. For instance, is we think of ourselves as rich, we become precisely that. The poor, educated dad limited himself to how he felt about his prospects. He let employment limit his abilities. The rich dad was very calculative in his development.

He was employed and got the skills he needed to own the system. As a result, he held many assets and became richer as it got.

Employment provides a short-term solution to a problem that is long term. When the educated dad urges his son to work hard so that he can stand a chance of getting a better job, he is deliberately condemning him to emulate his miserable life. The son has unlimited potential, just like the rich dad. It was just a matter of finding acquiring the right entrepreneurial skills that could help him establish his financial empire. The rich dad says that rich people do not work for money. Instead, they make money work for them.

In this regard, employment is a short solution for a life long problem. As one grows, the demands for more money increase. Thus, they should be looking at avenues that can enhance their financial streams. The best scenario, according to the rich dad, is finding a job that can help you to sharpen your skills and later become an entrepreneur. This, he says, is the safest to fulfilling one’s potential. We should look at life in the context of a long-term basis.

We do not learn to become rich in learning institutions. The dynamics of life are increasing the gap between the rich and the poor with each passing day. Unfortunately, what we do not learn in school is how to accumulate wealth and become rich. This is another pearl that is missing in most people’s lives. The author insists that we should learn financial management skills by ourselves for us to have an edge in life. This aspect is the difference between the tycoons and beggars.

He also insists on the importance of learning the significant difference between liabilities and assets. Assets generate wealth while liabilities rob from us. The poor are only interested in managing their finances daily. Those in the middle class buy debts while believing that they are assets while the wealthy buy assets that hand them a solid financial base. For the poor, they rely on their salaries as the primary source of income.

This situation is somewhat precarious, given the fact that salaries are always not enough as we have many expenditures. He says that we should expand our revenue platforms if we are to stand a chance of living a comfortable life. The poor dad advises the son that they should go for the perks that come with good jobs, which is a wrong idea. By confining oneself to employment, they are letting their bosses define what is right and wrong for them.

We should understand how finances work. This ranges from understanding the basic principles of tax remittances as well as investment. The rationale here is to ensure that one is on the right side to avoid costly confrontations that can rip their dreams apart. This understanding is critical in guaranteeing longevity in business.

Entrepreneurship is about breaking loose from the yoke of employment slavery. The only way we can do this is through acquiring competencies that can help us establish successful business ventures. Even if one were to be paid a fortune, they would remain employees unless they become owners of businesses. Entrepreneurship is beautiful as it allows an individual to set the tone for the operations, unlike if they were to remain employed throughout their lives.

Conclusion

Financial freedom is the safest way to fulfill our potential. We should strive to learn and later venture into entrepreneurship as a way of seeing our dreams come true. This book is inspirational in the sense that it highlights how we can become better at what we do. Also, we can go one better by establishing our business empires.