Rich Dad poor dad is a must read book for those who want to accumulate wealth and to become financially free. This book is also one of my all time favourite books. The book describes the story of a person (author himself) who has two fathers. One is rich dad and another is poor dad. Both of his dads teach him to become successful in life but in a different manner.
After reading this book you can clearly understand why the rich are getting richer and poor are becoming poorer. Author mentions that rich people are accumulating assets which can generate passive income throughout the life. In the contrast poor people are accumulating liabilities throughout their life. Assets put money in your pocket and liability takes money away from your pocket. This is the simplest definition that author provides in this book. Rich don’t work for money rather than they invent money. If you want to become rich then you have to first differentiate between assets and liabilities and you have to focus on to accumulate asset through stocks, bonds, mutual funds, income-producing real estate, royalties from intellectual property, etc etc. Financial literacy is the first step to become rich. The book is also written in an easy to understand language with lots of interesting examples. It is highly recommended to read and understand each and every concept of this book.
There are total 10 chapters in this book-
1. Rich Dad, Poor Dad
2. The Rich Don’t Work for Money
3. Why Teach Financial Literacy
4. Mind Your Own Business
5. The History of Taxes and the Power of Corporations
6. The Rich Invent Money
7. Work to Learn, Don’t Work for Money
8. Overcoming Obstacles
9. Getting Started
10. Still Want More? Here are Some To Do’s