Free Rich Dad Poor Dad Essay Sample
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The book 'Rich Dad Poor Dad' by Robert Kiyosaki and Sharon Lechter, is a book that promotes financial freedom through participation in owning businesses, real estate, investing and implementing of finance protection methods is a requirement. The style of writing is a set of allegories founded on Kiyosaki's life experiences and upbringing in Hawaii. The two men in Kiyosaki's life have different approaches to money and are key influences in his decision-making.
The topics in the book include the significance of financial intelligence, how the rich and poor differ in using financial entities, and the necessity to work to learn, not for financial gain. Throughout the book, Robert compares his father (poor dad) and his childhood best friend's father (rich dad). They have different viewpoints in matters pertaining to financial applications and their diverse scale of dynamism.
Kiyosaki's biological father is well educated but does not seem to get ahead in life, staying stuck in a brutal cycle of needing more but never getting it and satisfying his dreams of wealth. The underlying reason is one: financial illiteracy. Contrary to this situation, his rich dad is averagely educated but takes advantage of the supremacy of corporations to get ahead in life. The key themes in the book are an action attitude and bold entrepreneurship. A vital point wealthy people apply in their pursuit of wealth is not to entertain laziness, fear, and doubt. Avoiding these will make the wealthy wealthier. The book also stresses the need to have an entrepreneur attitude, not being an employee all the time.
In Rich Dad Poor Dad, Robert Kiyosaki brings out several linked issues concerning a better financial life. Through the book, Kiyosaki tries to enlighten his readers that wealth is not as elusive as they think. He goes farther to advise parents on how to get their children set for the cruel world of finance. Issues brought out in the book include giving the real definition of an asset and liability, destroying the falsehood that a person has to earn a high income to become rich and informing parents about tactics to teach their children about money so they benefit themselves (Rich Dad, Poor Dad).
An asset is an economic resource,touchable or intangible, that is controllable and produces value.Simply defined, it is any valuablethingthat capable of converting to cash.A liability is adebtarising frompastdeals and settling of these may require shifting or utilizingassets to pay the debt.Simply, it is using an asset and not gettingbackthe value used. In the book, Robert Kiyosaki termsfinancialintelligenceas the mostauthoritativeasseta person can have (Rich Dad Poor Dad). If a person just works to bring in money and in the process does not learn anything, he becomes aliability. The person is not attaining anyknowledgethat will provehelpfulin the future. Questions that may come up include:
- What are the best ways to acquire assets?
- What attitudes are helpful in building a successful business empire?
- How can a person cultivate a learning attitude while working?
- What are the best ways to avoid liabilities?
- How is financial intelligence the most powerful asset?
Defined earlier, assets and money are the same. Henceforth, the best ways to acquire assets/money include:
- Use the rule of supply and demand to your benefit- opt to do something that you are good at than most people doing it and you will get more money than the others
- Be practical- make realistic plans and do all calculations. Do not lean much on the positive but also think of what can go wrong and try to avoid it.
A person's attitude is imperative to how successful the business will. Definitely, a positive or winning attitude will go far and assist the person succeed.
- Be hard working- put a lot of effort into what you are doing, especially something you love doing (How to Build A Business Empire)
- Think of the future- save money for financing the enterprise. Many resources will go into the business if it is to succeed.
Everything is all about attitude. A person needs to take pride in all they do, especially a business enterprise. Through working with others, the entrepreneur gets to know points to improve in his or her business endeavors. An attitude of detesting the job will result in failure.
At one point or another, the business will incur liabilities. To curb this early:
- Keep superb documentation of all transactions- when properly recorded, everything is justifiable. No loopholes will surface when going through the records.
- Be legal- ensure that all necessary licenses are paid. Delaying may mean more payments in the future. The earlier, the better.