RICH DAD POOR DAD is a title of a best-seller book from personal finance guru “Robert KIYOSAKI”who teaches how to be independent in terms of money and make money work for you.
RICH DAD POOR DAD is not a book for a broke who is starting everything from scratch because the book doesn’t realize that there are people who want to grow from nothing, it always stick to those who only have something.
I hate being positive with everything, I’ve seen that it sometimes destruct mess up visions and ambitions which of course sucks.
I actually read book when I finish my University experience, I wanted to explore financial knowledge other than the one from class.
I’ve seen so many people appreciating the knowledge in Rich Dad Poor Dad about being financially freedom including me.
We are encouraging each others to read it, nothing is ever perfect but I’ve heard few people mentioning the drawbacks behind knowledge.
Who is a broke
Well, a broke is a wide term that is understood like a jargon. Have you ever heard something like, “That guy, is a broke, he can’t even buy shoes for himself”.
That is what is called to go broke, this is term used to mention someone who has very little to no money. Simply, it is being penniless.
Merriam-Webster defines being broke as lacking money or material possessions.
When someone is a broke means that he/she is living a miserable life that is totally bitter at that time. If you are a broke, then let me give you a good advice about this book and how you should pay attention.
What is this Rich Dad Poor Dad?
The book is now 23 years old (as of 2020), which means that it has found its way into the public in 1997 for the purpose of enlightening people about financial literacy by Robert Kiyosaki.
This book mainly focuses on financial independence & education, assets management and investment summarized as “Financial freedom” .
Did you know:
Rich Dad Poor Dad has a co-author other than Robert Kiyosaki, Sharon L. Lechter
The first (Original) copy was published by Kiyosaki alongside Sharon Lechter a famous American accountant and author who their purpose was to reveal how people are trapped in a circle of poverty and are too blind to see how the efforts they use are unrewarding.
If you have gone broke, this is why you should not read Rich Dad Poor Dad if as soon as possible:
This is not a type of book you should read
I don’t deny that this book is full of intelligence and knowledge, but I didn’t like that it is discriminatory in terms of financial status, how?
When you read this book Kiyosaki used the term “Poor Dad” referring to his father and “Rich Dad” referring to his friend (Mike) father.
The way he (Kiyosaki) described that poor dad it wasn’t implying a typical poor instead he meant who already earns a little but has no ability to use that little to get much.
This confirms that there is no place for a broke in the book, if you are completely broke and you were hoping to get an answer in the book, don’t expect much.
I know so many people who earn moderately and the try to follow everything from Rich Dad Poor Dad and it’s not working at all because they don’t have everything it takes.
This book will put you into exaggeration
I know how it sucks to go broke and how hard it can be to handle this situation where to afford basic needs like clothing, eating and sanitation is complicated.
The thing here is that if you try to apply what’s in Rich Dad Poor Dad while a broke you will be exaggerating your dreams and goals. I’m trying to say; don’t die trying to be rich, it is nonsensical.
Do you even think about how you can buy a real estate when you don’t have ticket fare to get you there? If I’m not wrong, that’s not possible you can’t afford it.
Renewable stream of income is a must to take risks
Let me tell one think if you are broke or have very little money, don’t take risks of Rich Dad because you’ll end up losing your money.
Those risks are not applicable for itsy-bitsy pennies, it always require tangible income to start thinking about risks which is absolutely beyond a broke person’s capacity.
To be very clear to this point, I want to take an example in this book:
When I graduated from the U.S. Merchant Marine Academy in 1969, my educated dad was happy. Standard Oil of California had hired me for its oil-tanker fleet. I was a third mate, and the pay was low compared with my classmates, but it was OK for a first real job after college. My starting pay was about $42,000 a year including overtime and I only had to work for seven months. I had five months of vacation.
Let me show you what simple math shows us:
At this time (1969) when Kiyosaki landed his first job was earning $42,000 a year, which means that at that time Kiyosaki was earning $3,500 a month (Yearly earnings / 12 months).
According to inflation tool, $1 of 1969 would be equivalent to $7.24 of today. From this projection, if it was now Kiyosaki would be earning $25,340 a month and $304,080 a year.
It looks like for Kiyosaki to take serious risks wasn’t a big deal but that’s not the case for a broke. If you want to take risks while you’re broke I do not see it as a good idea but the best one is “Wait until you’re ready to risk enough as well to save enough”.
That’s the best possible advice I can give you.
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Don’t mess up with tax
That’s OK if you start a company, I can tell you that you will be a warrior but the real war is handling what’s for the government A.K.A tax.
I know people in my country who have managed to start the company but finally the government punched them in face due to failure of tax payment which goes parallel with debts.
Do you know that tax will haunt you? I don’t think broke people are part of this game, this is for reach people who are really able to invest enough that can avoid tax.
You can’t afford it
Believe me on this, you sometimes can’t afford it for sure. Sometimes Rich Dad Poor Dad mentions things everyone can’t afford easily, especially broke people.
You know real estates, right? I suppose you do, this is not something you can wake up and have especially if you are a broke – what you need to do is stock up money to be able to achieve.
The same for other assets mentioned in Rich Dad Poor Dad, you can’t afford them without accumulated money to be able to afford them and invest.
Mind this business before others
A broke has only one business to mind, basic needs. Rich Dad Poor Dad Lesson #3, it tells you to mind your own business and to own your own business.
This statement makes sense for everyone until you have to invest something bigger than a broke can do. Before you start to think about business
Let’s say you create a business and that’s a good idea, what if you don’t play it safe and you fail. All your money will be gone probably you don’t have any left – You can’t eat or pay a rent…
Remember this again to choose your position between read or not read this book:
- If you are broke Rich Dad Poor Dad might not be a type of book you should read first.
- This book might force you to exaggerate your goals and ambitions in life.
- Rich Dad Poor Dad is looking for people with regular income, not a broke.
- Sometimes it is not possible for a broke to be a typical person that this book says.
- Mind life is your first business.
Rich Dad Poor Dad is an adventurous book, it can help you release that fear of being the real you and depending upon yourself.
I like the approach Kiyosaki uses to approach people in Rich Dad Poor Dad so that they can really understand they are missing from not being financially independent.
Truly this book has revolutionized the mindsets but it can be a serious nightmare for people who are not resourceful or broke.
Recapping the points from this article you can see that you have to pay attention while reading the book and making some practices from this book especially for a broke.
Not only a broke who should be careful but everyone.
To a broke reading Rich Dad Poor Dad, I preferred to say that shouldn’t read it because I know everyone who reads this books tends to copy what’s in the book and apply it immediately.
It doesn’t work out every time even the book owner has once filed bankruptcy.
Has RICH DAD POOR DAD helped you? Why are you planning to read it (if you haven’t)? You can share your thoughts and suggestions in the comment section below. Thanks for being with us!