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Robert T. Kiyosaki’s 1997 book “Rich Dad Poor Dad” is a classic in personal finance that questions accepted wisdom on money and investing. The book, written in the style of a memoir, compares and contrasts the financial beliefs and methods of Kiyosaki’s boyhood friend’s father (known as Rich Dad) with his biological father (known as Poor Dad). Kiyosaki teaches important lessons about accumulating money, financial literacy, and the mindset required for financial success through these two divergent viewpoints.
Assets vs. Liabilities:
- The essential idea of knowing the distinction between assets and liabilities is presented by Kiyosaki. He emphasizes the value of building up assets that generate income and put money in your pocket as opposed to building up debt that takes money out of it.
The Rat Race:
- The conventional route of obtaining a solid education, landing a steady job, and conserving money is criticized by Kiyosaki. He creates the phrase “rat race” to characterize the pattern of earning money through labor without truly accumulating wealth.
Importance of Financial Education:
- The necessity of financial education outside of formal education is emphasized in the book. According to Kiyosaki, attaining financial success requires knowing how investments are made and how money is managed.
Entrepreneurship and Investing:
- Investments and business are two of Rich Dad’s main routes to financial independence. Kiyosaki exhorts readers to look into company ventures, real estate investments, and passive income streams.
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