The #1 Personal Finance book for starters - Rich Dad Poor Dad.

The #1 Personal Finance book for starters - Rich Dad Poor Dad.

Personal Finance books are often about how you save money, how you make money and how you spend money. They are sometimes so advanced that you miss out on the basics of saving money.

No matter what age you are, learning starts with the basics. It even applies to personal finance as well.

There are very few books that actually make an impact on how you save money or spend money.  Rich Dad Poor Dad is one such book.

Rich Dad Poor Dad is a gem that basically gives you interest in personal finance using a simple story of how the author grew up in Hawaii and learnt financial freedom. It has a great story and good tables that explain cash flow to even kids.

I have earlier written a book review on George Clason’s “Richest man in Babylon”.

It uses the ancient tales of Babylon to explain various ways on saving money and its importance.

The book serves as a foundation of why we need to save money and the benefits we reap in our lives. Rich dad Poor dad helps us to identify how we can save money in our daily lives and how to make wealth work for itself.

This book helps you understand why you need to save money and how to change your thought process to achieve it.

UPDATE: Here is a video from MotivationHub who interviewed Robert Kiyosaki. He explains a bit of what is in the book here:

The best thought process that I liked in this book is asking yourself “How can I afford it?”

It really changes the way you look at things you need to buy. Instead of saying to yourself, “I will buy this when I have money”, you’ll look for new ways to make money.

When you ask yourself how you can improve your income, you changed the way you think about finding income sources.

Instead of relying on your credit cards, you’ll start thinking about how to make that extra income to buy your favorite thing.

The cash flow quadrant is the most important aspect of this book. You have to make a note of your income and expenses. Then make sure you understand what are your liabilities.

Robert says you need to first know what is a liability and what is an asset. Once you know the difference, you’ll tread carefully before investing in liabilities.

This book has its caveats as well.

First the story about the childhood is interesting in the first chapters. As we progress, the story feels a bit draggy and becomes lackluster. The first chapters capture the enthusiasm of the readers completely.

As we move move forward, we don’t want the things about Mike or poor dad. We want Rich dad’s wisdom and Roberts practical applications. While the book has plenty of things to learn, there are some more concepts that can be added.

The thing about real estate has been given in detail. In today's circumstances, real estate can’t be that lucrative anymore as in the 90’s. So considering that aspect Robert should have added other avenues of making money as well. Through out the book, Robert’s main motivation in stooped towards real estate.

Rich Dad Poor Dad is a simple and informative financial planning book for anyone that wants to save money and make it work for you.

It is a must read book even in 2020. Get your copy today and preserve it. It will be best even after another twenty years.