Rich Dad Poor Dad is an international bestseller. It has sold over 32 million copies worldwide. The reason is easy to understand once you are reading the book.
The author starts by telling about the dire financial situation of his father who despite having earned a PhD struggled to fulfill his wishes. On the other hand, his friend’s father whom he calls Rich Dad prospered despite having a basic education. This perpelxed the author since his dad always told him that getting education leads to financial stability.
Wanting to become rich like the cool kids, the author requests Rich Dad to teach him how to be rich. Rich Dad trains him and his friend in financial matters through practical training as well as book knowledge. Rich Dad’s teachings influence the author greatly and he decides to choose a slightly different path than what his own father (Poor Dad) asks him to adopt. He recalls those teachings in the form of lessons that form the chapters of this book.You can read about these lessons here.
The first step towards success in any field starts with having a direction that can help you chalk out a detailed plan afterwards. This book can serve as that first step. This book won’t tell you how to invest in properties or how to thrive at stocks. Instead, it will change how you think about money, It helps the reader gain an insight as to why rich people become rich and why the middle class keep struggling. The book does this quite well. It criticizes schools for not teaching people about money and urges people to understand their personal finances so that their life is not limited by the size of their paycheck.
The author has a simple way of teaching. He illustrates these lessons with his personal success stories thus adding credibility to the lessons.However, the author focuses on real estate only. But as I mentioned earlier, the book is not about investment strategies. The book has received criticism as well for “factual errors” and “dangerous advice”. You can read John T Reed’s analysis here.
In my opinion, the book does a wonderful job of introducing a non finance person like me to start thinking about money seriously. The encouragement that it is possible to get rich is enough to get me started. A search on Coursera and Edx returned several courses in accounting,marketing and investment that can serve as stepping stones to financial freedom and financial literacy.
I highly recommend this book.