Rich Dad Poor Dad Book Review

A classic within the FIRE world and pretty much any other group that has some financial interest. Recommendations to read this finance book came from so many sources I thought there must be value in this and that many people can't be wrong. 

I remember seeing this book in the airport years ago and stupidly thought it was aimed at fathers only, at the time I wasn't a dad so thought it wouldn't be applicable to me! 

Robert Kiyosaki has loads of finance books - around 20 I believe - all geared to a particular niche. But the most popular is this one which has been translated into over 50 languages and sold 41 million copies worldwide which is simply staggering. 

There are some uncomfortable truths which disrupt the status quo on what we all traditional taught. It's definitely one of those you think "why wasn't I taught this at schools!?"

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He really is a pioneer in the Financial Independence Retire Early world and some of his early endeavours give you some inspiration of what is possible as some side hustle ideas.

Overview: 

The story within the lessons here are linked very well. Robert discusses his childhood and young adult life experiences with money and finance, what he learnt and why certain things work. It's a story that is educational ultimately but linking it to real life events in the way he has done helps you understand the point he is trying to get across, and also helps make the whole book relatable. He wants you to learn from the lessons he was taught, and also the mistakes he and others have made. 

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First Impressions:

I won't give away the plot twist which I found really interesting but it gave the book some authenticity. It also was very relatable from the offset. I saw the lifestyle and choices him and his family were making, in my family and others around me, and could see the limitation it was providing. It gripped me straight away and had some practical key points to keep me engaged on how to apply his lessons. 

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Key features:

The main premise this finance book works around is understanding the difference between liabilities and assets. They give some examples to make it even easier and show you the effect they have on building wealth. 

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This was the take-away diagram they build up highlighting the difference between classes. 

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I've not given any spoiler away here and seeing this doesn't devalue reading the book at all. For those that are lazy it may mean you get something helpful from this review that you can apply! 

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What I learnt:

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1/ The simple definition of asset and liability and some examples. Along with the effect they have on your wealth long-term and spending in the short-term. It made me re-assess a motorbike I had that was a huge liability that brought zero enjoyment due to the financial risk. I ended up selling this bike and as a result stopping the expenses of insurance, fuel and maintenance. Seven months later and I am so happy I did it. I intend to get another motorbike once I have more secure finances and can afford a more reliable bike. It was purely a toy and an expensive one that right now I couldn't afford. Reading this book made me re-assess so much and this was one of them. It also makes me think about future purchases on not just the initial outlay, but any ongoing costs it may incur. 

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2/ That the traditional advice we are given limits our potential for growth. Obviously investing will increase our risk but if we do the 'norm' we will have a normal life - which I do not want. I reflected on the advice I have been given from school, jobs, friends and family and it all follows the same narrative. This leaves you forever working the 9-5 for 40+ years and saving a small percentage of your salary. This traditional life leaves you with minimal risk but also no chance for change. I know there are many other books and authors who talk like this, and I have read them as well before this, but I really resonated with the examples he used.  

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Conclusion: 

This finance book is an easy read with a great story that links with some very applicable lessons. It gets a 4/5 from me and I would suggest others add it to their arsenal. I really valued the examples and explanations on the asset vs liabilities argument and it certainly has had a positive change on how and where I spend money. I also really liked the relatability of the story he uses of how traditional teachings perhaps are not applicable to the ambition we see nowadays within society. 

My only criticism is the repeatable nature I felt the book had in the final third. I felt everything pertinent was said in the first third of the book and it just kept repeating itself towards the end. I understand you need to repeat the message many times for someone to learn, and others will say it was a perfect length, and I am sure there are many people who understood all the messages much earlier in the book than me!

That said you will definitely learn from this book, it's very well written and it will improve your financial position for sure. 

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