Jul 04, 2009 11:10 PM
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I read this book a long time back in 2004 from a library. Seemed interesting enough to do something about enhancing my income beyond the salary. I did start taking the dig in stock market & realty as per the author's advise and has definitely multiplied my financial position.
The last review on mouthshut is of 2007 and the book seems to have been forgotten. However, its still contemporary, as its about money.
This book is all about Attitudes and Action – attitude towards money and financial action.
The author, Robert Kiyosaki was brought up in Hawaii, being the son of a highly educated professor. He had a close fried whose father was a high school drop out but was a multi millionaire. The first one, his natural father he refers to as his Poor Dad, while the latter was his Rich Dad.
A young Kiyosaki developed a very strong need for status which led him to believe that one need to have money to gain status and power. He took advise of his Rich Dad on becoming rich, which according to him is not wrong.
Kiyosaki developed his unique economic insight through exposure to this duo of reciprocal influences. The two dads had opposing attitudes in thought. He picked up following truths from his rich dad:
"Taxes punish those who produce and reward those who don't produce."
"Study hard so you can find a good company to buy."
"Learn to manage risk."
"My house is a liability, and if your house is your largest investment, you're in trouble."
"There is a difference between being poor and being broke. Broke is temporary, and poor is eternal."
You need to understand money and how it works, how to make it, invest it, and have it work for you. He gives a concept of an asset that adds to your income and liability as otherwise and recommends that our major expenditure should be towards such income generating assets.
The book is worth giving a thorough reading in order to absorb the learning given therein for our own implementation. But for the same, it is imperative to have a strong motivation to change our attitude towards money.
I was a risk averse individual till then and soon afterwards I started making certain considered investment in stock markets and over the years have definitely added to my salary income thru stocks. Its easy now a days with online trading and a little study of the companies. MFs are also a safe bet to make your money work to make more. I’ve also made certain investment in real estate which has really appreciated my money multifold.
Yet to make a bold decision to create a business, i.e. my own company to make money. Its really eye opening to know that you can avoid an awful lot of taxes by opening a company. All your personal expenses can be booked in the company as an expense account of Managing Director & his residence, and only the gross profit is taxed. What’s more you can buy a car on company account to claim depreciation, still you get to drive.
