Rich Dad Poor Dad Analysis
After reading the novel Rich Dad Poor Dad, by Robert Kiyosaki, I found key differences between Kiyosaki’s definition of accounting terms and the definitions I am aware and taught of in my accounting course. One example being the term asset, in the book an asset is something in which puts money in your pocket, while, the term I was taught is that an asset is a useful or valuable thing. Robert’s definition in the book doesn’t seem to make much sense to me, because I find his definition to sound more like the term revenue than it does of an asset. However, for the term liability he says it is something that takes money out of you pocket, which is similar to what I was taught with the idea of it being an expense. There is a benefit in his definitions, because it all comes down to the way we spend and save money that is actually available to be put towards that use. The mindset Robert Kiyosaki is setting with the terms is if you want to buy something, you must first generate enough cash flow from your assets to cover the expenses that way you are not dependent upon your paycheck. Kiyosaki's main point is that the only way to become financially independent is to accumulate income generating assets which can pay for your expenses. However, many people rather buy a new car or an iPad (liabilities) instead of investing that money in stocks or real estate (assets).
As a result of reading Robert Kiyosaki’s book, Rich Dad Poor Dad, things that I will change and do differently in my life are, first I am going to change my mindset to understand that the luxuries in life can only be purchased when I have more assets than expenses, I do not want money to control me like it does to most people, so I will have to do things differently from the crowd and invest in the long run. I will aim for more assets instead of aiming for more income. Another aspect of my life that I will change, after reading Kiyosaki’s book is to start changing the way I...