Since its publication in 1997, Robert T. Kiyosaki’s Rich Dad, Poor Dad has become a personal finance classic and a best-seller, selling approximately 40 million copies worldwide.
I read the book for the first time in 2014, when I was just starting out as a company owner. I decided to reread it now that I had more life experience. I also wanted to check whether Rich Dad, Poor Dad was still as good as I remembered it being when I originally read it. A lot has transpired in the financial world in the previous 20 years, and I’m curious to see whether any of Kyosaki’s forecasts come true basketball stars
What I appreciated most about the book when I first read it was Kiyosaki’s unique perspective on the world. It caused me to reconsider my company and investments in ways I had not before considered.
In the second chapter of Rich Dad Poor Dad, I enjoy how the distinction between an asset and a liability is addressed. The second chapter demonstrates that how much money you save is more significant than how much money you earn.
An asset is anything that has worth, generates income or rises in value, and has a market where it can be readily purchased and sold.
Money is brought in via assets.
Assets increase in value.
Both assets and
Liabilities, on the other hand, cost you money because of the expenditures associated with them. This was one of the most contentious statements Kiyosaki made when Rich Dad Poor Dad was released in 1997.
That’s because a house isn’t considered an asset until its value rises enough to pay the expenses of ownership. Rental property, on the other hand, is an asset since it may generate enough passive income to cover the expenses of maintaining and paying for the property.