Rich Dad Poor Dad By Robert Kiyosaki –book review
Robert Kiyosaki tries in his book to teach us that acquiring high education, will
not necessarily bring us wealth, since nobody teaches you in school how to make money. He explains that people who buy a house by taking a mortgage don’t really possess an asset, but rather are chained into a commitment which called liability. In order to posses a real valuable asset, it needs to be mortgage free and bare an income, such as rent .
A young coupe from anywhere in the world and especially from the US, who purchases a mortgaged house, a new car and electric appliances by credit – is enslaving themselves and their monthly paycheck for paying debts, and they are unable to save money. The moment one or both of them loses his/her job they might find themselves homeless and helpless, after the bank has confiscated their house to pay their debts.
Kiyosaki advises us start saving money as early as 20 years old. Invest the savings in bonds, stocks, real estate for rent, or a small business. Only after accumulating enough of these assets, that supply passive income, you should consider purchasing a private house or a new car.
You should look for bargains in real estate or in stock exchange. Don’t be afraid to take calculated risks. This way, as the years go by, you can produce passive income sources. Let your money work for you instead of working for money. The way you usually do when you work for your monthly paycheck, enslaving yourself to the job, being dependant on one source of income, and your boss.
Kiyosaki advises not to put all the eggs in one basket, but to distribute them among many baskets. Meaning investing your money in various prospects such as: Bonds, Stocks, Real Estate or a small business/company of our own.
Wise expressions from the book: