Rich Dad, Poor Dad
I know its not the most remarkable start to 2020's reading list, but the first book I read this year was Rich Dad, Poor Dad by Robert Kiyosaki. It's not the most exciting or unique title, but it's one of those books that I tend to read every couple of years to jog my brain (along with 1984 and Think and Grow Rich).
I've started 2020 with some ambitious goals in mind, across all aspects of my life and it's important to stay motivated and on target for those goals. Kiyosaki's first book in his Rich Dad series is a quick read that reminds you of some financial 101's and pushes them towards the forefront of your mind. I like the idea of having these notions front and centre at the beginning of the year when planning financial targets for the year as it helps me to focus on what I need to do.
For those that have never read this bestseller, Kiyosaki teaches the importance of financial literacy and wealth-building through a series of tales ostensibly based on his own experiences.
Kiyosaki claims to have been taught about finances by two polarising figures - his own father, and his friend's father. His own father is unsympathetically referred to as his 'Poor Dad' who worked hard his entire life, believed in traditional education and stable jobs, however, never managed to obtain financial security or freedom. In contrast, Kiyosaki's 'Rich Dad' was the father of his best childhood friend who accumulated vast amounts of wealth through investing and entrepreneurship. The book tells the tale of how these two opposing figures approach the subject of money, financial education and what they teach their kids about the subject.
The book is written in an extremely simplistic writing style designed to make it approachable by kids or young adults first beginning to learn about finances. Whilst the information in the book can come across as straightforward, I still believe it is a good starting point for many young people who simply lack any form of financial education whatsoever. (Disclaimer - you should never take any financial advice you read as gospel, always do your research and consult a professional before making any decisions).
Many critics warn against this book, claiming it contains numerous errors, poor advice and potentially dangerous advice. In contrast, I believe the book is worth a read, not for Kiyosaki's specific advice, but instead for the out the box thinking and state of mind that it encourages. That is the key component I take away from this book each time I read it. It simply reminds me to be a little smarter and to design ways to make my money work for me, rather than planning methods to get to the next promotion. The one point Kiyosaki makes that resonates with me is the notion of escaping the Rat Race - getting out of the rut of 9-5's, paychecks and annual leave. Anyone that has met me know's that I am borderline obsessed with the notion of financial independence and working because I want to, not because I'm tied to earning money. Escaping the rate race and being in a situation in which my assets bring in enough positive cash flow to outweigh my expenses is a dream of mind and is ultimately why I revisit this tale when I need to refocus.
Rich Dad, Poor Dad is a super quick and easy read, but better used for inspiring you to think more about your finances rather than taking direct advice from.
