Rich Dad, Poor Dad

I was successful in taking home few lessons Robert Kiyosaki taught in this best seller. Though I got my hands on it very late (first published in 2000) I am happy I got to it anyway. There are numerous reviews available online written in the last 8 years. So, I don’t want this post to be more of a review; but my personal experience reading the book. This is what I either learned, realized or stand corrected:

  • The Rat Race: He says “waking up in the middle of the night and wondering if a particular bill is paid, or if there are sufficient funds in the bank account to take care of it by due date is a terrible way of living life”. And I did go through this multiple times. This happened to me irrespective of the size of the paycheck. I realize how bad a financial manager I am. Waiting for the next pay check is becoming increasingly embarrassing and insecure!
  • Wealth: The definition itself was confusing to me. How much money do I need to earn/ save to be called wealthy? I now understand ‘how wealthy’ a person is- and I can calculate/ measure wealth
  • Luxury: Again, the definition in financial terms. A car, a house and many of the ‘typical items conceived as luxury’ are not luxuries all the time! About 80-90% of the times we call a liability a luxury. It’s working negative on the finances, not adding comfort to your life!
  • The basics: I’ve never come across the balance sheet and income statement stuff until I completed my graduation. My confidence was always with simple math of addition and subtraction. While it is still true (after reading the book), I do have a platform on which I can stand and THEN add or subtract. This class starts around page 75 in the book, but for me, it was worth the wait
  • Financial intelligence: A little knowledge about accounting and a little about investing can make us lead better lives financially. Agreed these are the most boring subjects ever- but after getting an insight into the benefits, am planning to break my head to learn a little if not become very proficient
  • Who’s working? In my case, it’s still me earning/ generating money. Though it is going to take some time, I have to draw a plan so that my money works a little too; there should be some money generated every month without me physically present there!
  • Credit cards and compound interest: He says “compound interest is one of the best things ever invented”. Now, I want it to work for me, not against!
  • Real Estate: I always believed investing in real estate is not my cup of tea. Well, this is the only concept I am still not convinced after reading the book. I still don’t think it’s for someone like me. However, it’s always good to have clarity at it!

Finally: “The trouble with the rat-race is that even if you win, you’re still a rat.” I want to get out of it as soon as I can!

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