Since its release in 1997, Robert T. Kiyosaki's Rich Dad, Poor Dad has been a personal finance classic and a best-seller that has sold nearly 40 million copies around the world.
I first read the book in 2014, when I was just starting out as a business owner. I thought I would read it again now that I have more life experience. I also wanted to see if Rich Dad, Poor Dad still holds up and if I still like it as much as I did when I first read it. In the last 20 years, a lot has happened in the financial world, and I'm interested to see if some of Kyosaki's predictions came true. basketball stars
When I first read the book, what I liked most was that Kiyosaki had a different way of looking at the world. It made me think about my business and investments in a different way than I had before.
I like how the difference between an asset and a liability is explained in the second chapter of Rich Dad Poor Dad. Chapter 2 shows that how much money you keep is more important than how much money you make.
An asset is something that has value, makes money or increases in value, and has a market where it can be bought and sold easily.
Assets bring in money.
Assets go up in value.
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On the other hand, liabilities cost you money because of the costs that come with them. When Rich Dad Poor Dad came out in 1997, this was one of the most controversial things Kiyosaki said.
That's because a home isn't an asset by definition unless it goes up in value enough to cover the costs of owning it. On the other hand, rental property is an asset because it can bring in enough passive income to cover more than the costs of running and paying for the property.