The book Rich Dad, Poor Dad is a story about two dads. One was a scholar and studied at Stanford University, University of Chicago and Northwestern University and earned his Ph. D. The other one was not able to reach college. The one who had Ph. D. struggled financially throughout his life time and died leaving bills for his family to pay. The one without college degree became one of the richest men in Hawaii and died leaving tens of millions of dollars for his family. Both dads believed in education but did not recommend the same type of education. The one with Ph. D. emphasized academic and professional skills while the one without college degree emphasized financial education.
The story of these two dads shows the limitation of contemporary education, which needs to be supplemented with financial education. It also shows the power of thoughts and words to determine the future of a person. Several examples of differences in perspectives and words between these two dads are as follows:
Dad with Ph. D
“I can’t afford it.”
“Study hard so you can find a good company to work for.”
The reason I’m not rich is because I have you kids.”
“When it comes to money, play it safe, don’t take risks.”
“Our home is our largest investment and our greatest asset.”
Dad without College Degree
“How can I afford it?”
“Study hard so you can find a good company to buy.”
“The reason I must be rich is because I have you kids.”
“Learn to manage risk.”
“My house is a liability, and if your our greatest house is your largest investment, you’re in trouble.”
The differences in the words of these two dads show the differences in their thoughts, which determine the outcome in their lives. It shows that a person shapes his life by his thoughts. If this is the case, the key to change one’s life is to change one’s thought and words. It also gives us a warning that a person needs to be cautious from whom he is listening to and to choose carefully his thoughts. As a famous saying goes, “Your thoughts would either make you or break you.”
The challenge is how can a person obtain empowering thoughts in relation to finances? Rich Dad, Poor Dad is a book about financial education. Reading books on financial education gives a person empowering thoughts that will change his/her financial future. This is why I advocate reading Kiyosaki’s books. I agree with the realization of an accountant in the introduction of this book that the primary reason why most people struggle financially is due to ignorance of this subject. Only a fool would deny that money is powerful. That is why most people believe in “Golden Rule,” that is, he/she who has the gold has the rule. But financial education is more powerful than money or gold and through it you will know how money works and as a result you will gain power over it. But financial education takes time. It requires patience and the pay out is great. In the case of Robert Kiyosaki, he learned it for 30 years. And in this book, he shares financial education under 6 main lessons. I expect that reading this reflection would cause you to find that book and start your own journey to invest in your own financial education. No one knows what would be the impact of such investment in your life after several years from now.
Financial Literacy 