Rich Dad Poor Dad

"Go to good schools, study well, get excellent grades and get a job with great benefits!!!" is the success mantra taught to every kid, especially if he/she is hailing from a middle class background. Apparently, this is not the mantra to be financially successful is what Robert Kiyosaki debates in his book "Rich Dad Poor Dad". It doesn't mean that the author discourages education, rather he stresses the need for financial education in schools. The prevailing system of education is very socialistic and it is taught that becoming rich is the pastime of the greedy. We see no books in school that teach us about investment, taxes or any kind of concepts that help us manage our financial lives better in the future. This is what the author calls out in his book.

Distinguishing between assets and liabilities, building a strong asset column whose returns can payout expenses and the reasons why purchasing a house may not be the best investment all the time are some of the points the author makes in the book. My Dad used to always say that an entrepreneur spends before he pays taxes while an employee spends after paying the government. The book highlights this by showing how corporations can shield rich people from taxes and how the poor get the tax brunt. The author also lines up 10 principles to follow when it comes to money and investing, most of which are intuitive. The author compares a rich dad with a poor one (his own Dad) to bring out these ideas in the book.

Overall, a very light read that gives some insight into personal financial management. If you are looking for investing tips or financial jargon, this book is not meant for you. I was expecting this and was disappointed at the end. But, I do see the book providing enough encouragement and inspiration for an individual to manage his/her personal finances and was quite happy with this aspect. It also gives a few basic tips that could be useful to some of us. I strongly agree with the author about our education system not having enough material to prepare an individual to deal with certain aspects of life like money.

I also found this piece of criticism on the web (if you're interested).

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