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Rich Dad Poor Dad Philosophy

Developing financial literacy is key to achieving success, freedom, and prosperity. Rich Dad Poor Dad by Robert Kiyosaki explores the philosophy of financial literacy as an empowering tool. It provides an understanding of money management in an unconventional way that encourages readers to think more deeply about the methods they implement when it comes to their own finances.

The story follows the financial growth of the writer, from being raised by two fathers; one who was his biological dad and one who was the friend of his dad. He alleged that his ‘Rich Dad’ (the friend) was always available to provide insight and advice on how to divest his finances, whereas his biological father was more than happy to bash his wealth-seeking attempts at every opportunity. Through this, readers are exposed to the notion that life skills, such as financial literacy, must be consciously pursued, rather than being passively acquired from our home environment.

The philosophy that Kiyosaki presents in Rich Dad Poor Dad is engaging and relatable, comprising of four main principles;

1. The importance of money - Kiyosaki highly values money and teaches readers to consider money an ‘ally’ rather than their ‘enemy’. This emphasizes the concept of ‘money mindset’: our perspectives and values that shape our relationship with money.

2. Investing not saving - The book constantly mentions the importance of investing instead of saving, to maximize our return on investment. The goal is to create as many assets as possible; assets that provide a repeated source of income.

3. Risk-taking - The book is a stark example of why risk-taking is encouraged when it comes to making money; the greater the risk, the greater reward.

4. Taking action - Kiyosaki emphasizes the importance of taking action to obtain financial freedom. Knowing how to save and how to invest is an important step, however, sitting on said knowledge will not bring desired outcomes. Taking action is an integral part of pushing a venture forward.

At its core, Rich Dad Poor Dad teaches that financial freedom requires a shift in thinking. It requires a focus on making money work for you, instead of you working for money. Kiyosaki also stresses the need to identify and develop skills that pay off in the long run. For example, having knowledge in the stock market or real estate.

The overall message and philosophy of Rich Dad Poor Dad is that economic success requires knowledge and strategy, as well as taking calculated risks. Building financial literacy is an essential part and something that needs to be developed not only for ourselves but for the generations to come. It’s this thought provoking and inspiring idea that has kept Kiyosaki’s book alive for years now, and no doubt, will continue to do so in the years to come.

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