Daily Recco, February 1: Rich Dad Poor Dad, your guide to financial freedom
It is Budget Day for the nation and a day for you to rethink the way you have been planning your money. While we all work for money, how many of us make money work for us? And that is what Robert Kiyosaki’s Rich Dad Poor Dad (1997) teaches us.
The expressions “poor” and “rich” (in the title and throughout the book) are used to explain the preferred behaviour to achieve financial freedom, and not about judging oneself based on the current state of finances.
The timeless book on personal financial management is based on a set of parables. The story is of two fathers. While the “rich dad” is a school dropout, the “poor dad” has an enviable collection of degrees and educational qualifications. The former builds an empire in Hawaii and passes it on to his son. When the latter dies, he leaves next to nothing behind, with a few unpaid bills to boot.
The two fathers are ostensibly based on Kiyosaki's life, with the “rich dad” being his friend’s father and the poor one his own. However, there is no proof or confirmation of the same.
While the poor dad worked hard his entire life, he never managed to achieve financial security, let alone financial freedom. The rich one accumulated wealth due to smart investing and entrepreneurship.
The parables are based on what the rich dad teaches his son and the son’s friend, including some invaluable lessons on money management. Some of these lessons include, “Get out of the rat race. Being an employee is a short-term solution to a long-term problem. Learn how to seize opportunities, find solutions, take care of your business and investments. The rich don’t work for money. Learn how to make money work for you and not be its slave.”
If you have not already embarked on the journey to financial education and freedom, Robert Kiyosaki’s Rich Dad Poor Dad should be your first read to start. It will not only set you on the right course but will make your journey positively easy. The book will not offer you any readymade answers (nor is it meant to) but will coach and motivate you to take the path of financial freedom. A rich start to your week and month indeed!