Book Report on Rich Dad Poor Dad

Only available on StudyMode
  • Download(s) : 508
  • Published : April 4, 2011
Open Document
Text Preview
KNUTSFORD UNIVERSITY COLLEGE
KNUTSFORD BUSINESS SCHOOL

ENTERPRENEURSHIP

BOOK REPORT:
Rich Dad Poor Dad by Robert T. Kayosaki with Sharon L. Lechter, CPA

WRITTEN BY:
Richmond Gyamfi Boateng
(KBS0035)

LECTURER:
MR. ANTHONY ANNAN

MONDAY APRIL 4, 2011

Rich Dad Poor Dad is a book that presents thought provoking teachings on wealth creation and financial independence. The book can be describes as a narrative motivational novel that features four interesting characters, Rich Dad, Poor Dad, Mike and Robert (the author). Poor Dad is a highly educated professor who despite have worked hard over the years barely meets his household expenses. His believe on money was that money is root of all evil. Rich Dad on the flip side was a school dropout who was not able to complete high but because he appreciated financial literacy, was able to build and grow a chain of business and become one of the successful businessmen in Hawaii. Mike was Robert friend at school who both set out to learn how to become rich. Their interest in becoming rich was ignited when a school mate left them out of a trip because they were not rich. They decided to make money and their first project was to start a counterfeit money making business which collapsed on the first day because they were told by Mike’s father that was illegal. After series of brainstorming, Robert suggested to Mike to ask the Dad (Rich Dad) if he will teach them how to become rich, which Rich Dad grandly agreed. Through their interactions with Rich Dad, taught Mike and Robert six lessons which Robert recounst in the book. These lessons are; Lesson One: Rich don’t work for money; they have money work for them. Roberts recounts how Rich Dad made them work for three hours every Saturday and being paid 30 cents. This irritated Roberts so much so that decided to confront Rich Dad and demands a raise or quite the job. He discussed with Mike who told him that father had told him to bring Robert to him when he complains. When Robert met Rich Dad, Rich Dad pointed to him why it is annoying to work for someone and the need to become one own boss. The lesson here was that whilst the poor work hard to get money, the rich work their money to acquire more wealth. The rich does not need to work three four jobs but would employ someone to do all these jobs and pay them. Lesson Two: why teach financial literacy.

Here Roberts introduce readers to the need to acquire knowledge in accounting, investment and law if he or she wants to be rich. In also introduces readers to the concept of assets and liabilities. He differentiated his definition of assets from the conventional definitions of assets saying assets which do not bring in income are not assets but liabilities. He writes that, whilst the poor are busy accumulating liabilities thinking they are assets, the rich are acquiring income generating assets. The lesson is here that, in other to be rich, one must aim at acquiring income generating assets. Lesson three: Mind your own business.

Robert in this chapter (chapter four) distinguishes between one profession and one’s business. He asserts that most persons confused their profession with their business. One’s profession what the person does for a living, so if you are a baker, your profession baking etc. One’s business is the collection of other income generating activities which does not necessarily demands the presence of the owner, example investments into stocks, bonds and real estates. Roberts encourages readers to build a diversified portfolio of assets taking on risk. The lesson here is that, one must build his or her assets column whilst concentrating on your profession. The income from your profession should be channeled into the assets Column and not the liabilities column. Lesson four: The history of taxes and corporation.

Robert presents to readers a briefly history of how taxes of introduced to the American economy. He said the purpose was help redistribute income...
tracking img