Rich Dad, Poor Dad by Robert T. Kiyosaki has been a personal finance classic and a best-seller ever since it was first published in 1997. To date, the book has sold almost 40 million copies in countries all over the world.
In 2014, when I was just getting my footing as a company owner, I read the book for the first first time. I figured that now that I had more life experience, I should go back and read it again. I was also curious about whether or not the book Rich Dad, Poor Dad is still relevant today and whether or not I still enjoy it as much as I did when I first read it. I'm curious to find out how accurate some of Kyosaki's forecasts turned out to be in light of the many developments that have taken place in the business sector over the past two decades basketball stars.
When I initially started reading the book, the thing that stood out to me the most was that Kiyosaki had a unique perspective on how the world works. In the past, the way I thought about my company and my investments is not how I think about them now because of what you said.
I really enjoy how the author of Rich Dad Poor Dad breaks down the distinction between an asset and a liability in the second chapter of the book. It is more vital to maximize the amount of money you keep than it is to maximize the amount of money you produce, as demonstrated in Chapter 2.
An asset is something that has worth, either because it earns money or because its value has increased through time, and that also has a market where it is easy to buy and sell.
Money may be generated via assets.
Value is added to assets through time.
Properties both
On the other hand, liabilities are financially detrimental because they come with their own associated costs. This was one of the most contentious statements that Kiyosaki made in his book Rich Dad Poor Dad, which was published in 1997.
This is due to the fact that a residence does not qualify as an asset according to the standard definition unless there is an increase in its value that is sufficient to pay the expenses associated with possessing it. On the other hand, rental property is considered an asset since it has the potential to generate sufficient passive income to meet expenses that are in addition to those associated with paying for and maintaining the property.