It is said that the rich get richer while the poor get poorer. There was never a greater truth. And to understand how we are sucked into this vicious circle, one must understand how the rich work. What do they have that the others dont... apart from all that money :-)
For all you people not from the Accounting background -- that includes me too -- ’’Rich Dad Poor Dad’’ is your ticket to big money. Dump all those ’’Get Rich Quick’’ Schemes, cause this is the Real McCoy. Written by Robert T. Kiyosaki, RDPD is the adventure of 2 kids into the world of money, who start out minting money -- literally -- and end up as owners of their own companies.
Brilliantly written and easy to read, this book makes sense of all that Mumbo Jumbo that we had to read in Economics in our Engineering. It defines all the terms used in simple words, making the meaning self evident, cocking a snook at Adam Smith et al, who played around with both words and money to give us such confusing definitions.
Kiyosaki, in his book explains the basic principles of making money, which are that you must never put your capital into Liabilities, which are anything that makes you spend money. So forget all those people telling you that a house is an asset, or that a car is one. Both are huge liabilities. Instead, make your money work for you. Invest in land, or shares... it is the knowledge of where to put money that is important.
Another thing is that the rich pay themselves first, and pay the Government later -- in taxes-- which is the other way round for the poor. The poor pay their taxes even before they get their pay cheques. The best way to do that is through the Corporation. Companies pay their employees before they pay the Government.
In all, an inspiring read... though I don’t know if a few of the methods that he goes on to explain can be adopted in India. But the general principles are universal. This book has inspired me to start investing in stocks in the share market. A must read for all you future CEOs.