I read a lot, and lately have been focusing the majority of my reading on books that deal with entrepreneurship and business. Reading about success stories has always inspired me and kept me motivated to stay hungry.
My father recommended this book to me some years ago so I decided to pick it up and I’m glad I did. The book is a very easy read and Kiyosaki’s writing style is quite easy to understand. You can tell he writes in a very similar manner to the way he talks, so he doesn’t come off as sounding like a pompous prick or arrogant douche bag.
He more or less talks about his life as a child, and how he had two fathers; his actual biological dad and the father of one of his good friends.
His actual biological father was extremely well educated and specialized. He continued to study for advanced degrees so that he could acquire pay raises and live what he thought was a more secure financial life. However his father never got ahead financially, and was for the most part living from paycheck to paycheck.
The father of his good friend was somewhat different. He did not hold any advanced degrees, but he was a business owner and extremely wealthy. Everything that his biological father told him to do was the complete opposite of what his good friend’s father would tell him.
It’s interesting to see the completely different dynamics of the two fathers. The one who has the specialized degrees sounds very much like what the “majority” of the population strive to become. While the millionaire/wealthy father was completely different.
He also talks about how investments, and how the way you spend money falls into two basic categories; assets and liabilities.
An asset is anything that produces income for you, such as a business, while a liability is something that costs you money. Your cars, house etc. He makes a great point of stating how most people tend to think that their home is an asset when it in fact is not. Unless you own that home free and clear, and have built equity in it, it’s not an asset but a liability. You are constantly pumping money into it for repairs, mortgage payments, taxes and so on.
All in all I thought it was a great book and an easy read, and I definitely recommend it.
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