Reflection after reading book “Rich Dad Poor Dad” : Day 1
Title of the book: Rich Dad Poor Dad
Author: Robert T. Kiyosaki
Genre of the book : Self-help
Why was this title selected: It talks about the story of Robert who grew up with two dads — his real father and the father of his best friend, his rich dad — and the ways in which both men shaped his thoughts about money and investing and hence the title. Chapter 1 and 2 reflection: Chapter 1 begins with an interesting statement “The poor and the middle-class work for money. The rich have money work for them.” The chapter focuses on his story as a nine-year-old and how he starts learning about money from his friend’s father. The inspiration to learn more about managing money links to an incident when the author and his friend Mike feels bad when their friends don’t take them to a party calling them poor and how this father whom he calls poor dad advises him to go and meet Mike’s father to learn about money and it’s handling. Mike’s father believes in hands-on teaching and not lecture method and gives challenges to both the boys and how in the process they learn to use their thinking is the most interesting part.
Few statements were spoken by Mike’s father whom the author now calls Rich Dad are worth pondering upon.
1. Opportunities come and go. Being able to know when to make quick decisions is an important skill.
2. Deep down you were terrified of taking risks.
3. The main cause of poverty or financial struggle is fear and ignorance, not the economy or the government or the rich.
4. Human life is a struggle between ignorance and illumination.
5. Confronting fear, weakness and neediness by choosing our own thoughts is the way out.
Chapter 2 focuses on why is it important to teach financial literacy. This chapter explains the difference between assets and liabilities using simple sketches. This chapter drives home the point that it’s not about how much money you make, but about how much money you keep. An asset puts money in the pocket and a liability takes money out of the pocket.
Can’t wait to read more.