Book Review – Rich Dad Poor Dad – Robert T. Kiyosaki


Finance is an important part in life. Everyone wants to be financially independent. What should be done to be financially independent? What are the skills needed to be financially independent? Why there are so many poor people in world? Why middle-class remain middle-class? Such kind of questions must have arrived to many at various point in life. Finding answers to such questions is can be difficult. But there is a book on personal finance which discusses such questions and provide answers. The Book titled, Rich Dad Poor Dad, written by Robert T. Kyosaki is a worth read which provides answers to such questions and at the same time gives the other way of thinking. This post provides review of that book.

About the Author

Robert T. Kiyosaki is best known as the author of Rich Dad Poor Dad (1997). He was born on 8th April 1947 and is an American businessman and author. He is an entrepreneur, educator and investor who believes the world needs more entrepreneurs who will create jobs. With perspectives on money and investing that often contradict conventional wisdom, Robert Kiyosaki has earned an international reputation for straight talk, irreverence, and courage and has become a passionate and outspoken advocate for financial education.

Robert T. Kiyosaki

His point of view is that “old” advice- go to college, get a good job, save money, get out of debt, invest for the long term, and diversify – has become obsolete advice in today’s fast-paced information age. His Rich Dad philosophies and messages challenge the status quo. His teachings encourage people to become financially educated and to take an active role in investing for their future.

He has authored several books. Some of his notable books includes:

  • Cashflow Quadrant (2000)
  • Rich Dad’s Before You Quit Your Job (2005)
  • An unfair advantage (2011)
  • FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer (2019) etc.

About the Book

This book is considered one of the best books on personal finance. The book boldly advocates the need to have financial literacy. According to the author, people should be financially literate which in turn make them financially intelligent. Lack of financial intelligence is the main cause of poor or middle class to remain poor or middle class.

The book is written in the form of stories which Robert Kiyosaki learnt from his rich dad and poor dad. He considers his friend, Mike’s father, rich dad and his own dad, poor dad. The book is a summary of teachings which he learnt from his rich dad and why his own dad having good academic background was a teacher and never become rich. The book revolves around these two ways of thinking, rich dad and poor dad.

The book starts with an introduction with mention of the classic poem of Robert Frost, “The Road Not Taken” and the below excerpt need a worth mention.

I took the one less travelled by,
And that has made all the differences.

The author had brilliantly explained the path which has made all the difference and the reason how and why people are rich and poor. The introduction itself creates the eager to read the entire book. The book is against the “old school” thinking of going to school/college, earn degrees, do job, pay the debt/bills and make entire life a burden. Instead, he firmly believes that school and college education is important to have basic knowledge to understand the concepts etc. but it is not sufficient to become rich. For that, what is more important is to have financial education over and above school/college education. The book tries to make readers think above having a job and become financially independent. One can become financially independent if he possesses financial intelligence which in turn can be achieved through financial literacy. Kiyosaki is a strong advocate of financial intelligence which can be felt while reading the book.

There are many people who are intelligent and have attained good academic qualification, but do they possess financial intelligence? Everyone should ask this question. The difference between intelligence and financial intelligence should be identified by the person through his financial decisions which one takes during his lifetime. The book has such kind of discussion which makes it an interesting read.  A small excerpt from the book is worth mention here:

Money is one form of power. But what is more powerful is financial education. Money comes and goes, but if you have the education about how money works, you gain power over it and can began building wealth. The reason positive thinking alone does not work is because most went to school and never learned how money works, so they spend their lives working for money.

One of the most important aspect the book figures it out is that one should learn how money should work for him rather than yourself working for money. This is quite interesting. Learning how to have money work for you is a lifetime subject. This is the main difference between the poor and middle-class. “The poor and middle-class work for money. The rich have money work for them.” One has to learn how money work for them to become rich. This is the bottom line.

PC: Google

The book provides a fruitful discussion on assets and liabilities, income and expenses of rich and poor. Need to mention that there are least financial jargons used in the book. The discussion revolves around how rich maintains their assets/liabilities and how poor does so. In general, rich people acquire assets whereas poor and middle class don’t turn their income into assets rather than they convert their income into liabilities which they think are assets. There is a cycle in which poor and middle class are trapped and in turn they remain poor/middle class lifelong. If a young couple would put more money into their assets early on, their later years would be easier.

Most people struggle financially because they do not know the difference between an asset and a liability. Rich people acquire assets. The poor and middle-class acquire liabilities that they think are assets.

The book provides a good insight on the mentality or way of managing expenses of rich and poor people. Rich poor buy luxuries at last, while the poor and middle-class tend to buy luxuries first.

As mentioned earlier, the book advocates a lot on financial intelligence (Financial IQ). Financial IQ is made of four broad areas of expertise:

  • Accounting
  • Investing
  • Understanding markets
  • The Law

Financial IQ is the synergy of many skills and talents. In the words of Robert Kiyosaki, financial IQ is the combination of four skills mentioned above that make up the basic financial intelligence.

Robert Kiyosaki has strongly suggested to focus on building assets through financial intelligence. One should be flexible enough to adjust in the changing environment rather than sticking to the past. One should keep the options open and avoiding limiting the options. Financial intelligence is simply having more options.

The author stresses on overcoming some obstacles after being financially literate. These obstacles are arrogance, cynicism, bad habits, laziness and fear. Fear and ignorance are essential cause of poverty or financial struggle.

The main cause of poverty or financial struggle is fear and ignorance, not the economy or the government. It’s self-inflicted fear and ignorance that keeps people trapped.

The author had beautifully advocated on being financially independent through financial intelligence in this book. The book provides the lessons the author learnt from his rich dad. One should read the book to know the lessons. He does not recommend falling in the trap or rat race which in his words, is a short-term solution to a long-term problem.

A job is only a short-term solution to a long-term problem.

The book is an interesting read as it as it offers the other way of thinking. It is written in simple and easily understandable language and provides some fruitful insights which is worth indeed. While reading the book, one will find many interesting sentences. Some of the interesting lines I have picked and shared below:

  • Intelligence solves problems and produces money. Money without financial intelligence is money soon gone. 
  • Most people fail to realize that in life, it’s not how much money you make. It’s how much money you keep.
  • Today, wealth is in information. And the person who has the most-timely information owns the wealth.
  • People struggle simply because they cling to old ideas. Old ideas are their biggest liability. It is a liability simply because they fail to realize that while that idea or way of doing something was an asset yesterday, yesterday is gone.
  • Great opportunities are not seen with your eyes. They are seen with your mind.
  • Workers work hard enough to not to be fired, and owners pay just enough so that workers won’t quit.
  • Most workers focus on working for pay and benefits that reward them in short-term, but are disastrous in the long run. Instead, I recommend to young people to seek for what they will learn, more than what they will earn.
  • The world is full of talented poor people. All too often, they are poor or struggle financially or earn less than they are capable of, not because of what they know, but because of what they do not know.  

Do read the book for such interesting discussions and share your thoughts. 🙂

-Ashish Kumar

It requires Courage to commit SUICIDE…


Death is the ultimate truth as it is one of the rarest events which is certain to happen in life. He who are born will surely die as nobody is immortal. There can be many reasons of death like malnutrition, hunger, disease, injury or accidents, death due to natural calamity etc. One of the other reasons for death is suicide. Suicidal death is a serious concern which is rarely discussed and debated. Death is certain but committing suicide is right or wrong? This question is debatable and is subjective in nature. Needless to say, Suicide is a crime and this crime is not punishable unlike others. Suicidal deaths happen across the globe. In this article, I have tried to cover this burning topic of suicidal deaths.

India is a large country both in terms of area and population and the country had faced and is facing many issues. The question arises whether suicide is an issue? Looking at the suicidal death figures, one can get the glimpse of it. The statistics mentioned in this article is based on the Accidental Deaths and Suicides in India (ADSI) 2015 report published by National Crime Record Bureau (NCRB), Ministry of Home Affairs, Govt. of India. In fact, suicidal deaths in India is more than 130,000 per year as per the NCRB data. Let’s look at the suicidal deaths from 2011 to 2015 as mentioned in below table:

Table 1: Suicidal deaths in India
Year Suicidal Deaths
2011 135,585
2012 135,445
2013 134,799
2014 131,666
2015 133,623
Source: Accidental Deaths and Suicides in India (ADSI) 2015 published by National Crime Record Bureau (NCRB), Ministry of Home Affairs, Government of India

As it can be inferred from the five years data, suicidal deaths in India is more than 130,000 per year. In fact, the average suicidal deaths for the above mentioned five years comes out to be 134,223 per year. Further, calculating the average suicide in a day from 2011-2015, it comes out to be 368 (134,223 / 365 = 368). It means 368 people are committing suicide in India on daily basis. Further, 15 people commit suicide per hour (368/24 = 15).

Breaking it further, incidence of suicidal deaths is not distributed equally throughout the country. Some states have large number of suicidal deaths and some have few. In fact, it is largely concentrated in few states. In the year 2015, Maharashtra, Tamil Nadu and West Bengal were top 3 three states in suicides as mentioned in below table:

Table 2: Top 10 states in suicidal deaths in the year 2015
State Suicidal Deaths Percentage Share
Maharashtra 16970 12.7%
Tamil Nadu 15777 11.8%
West Bengal 14602 10.9%
Karnataka 10786 8.1%
Madhya Pradesh 10293 7.7%
Telangana 10140 7.6%
Kerala 7692 5.8%
Gujarat 7246 5.4%
Chhattisgarh 7118 5.3%
Andhra Pradesh 6226 4.7%
Source: Accidental Deaths and Suicides in India (ADSI) 2015 published by National Crime Record Bureau (NCRB), Ministry of Home Affairs, Government of India

Maharashtra accounted for 12.7% of suicidal deaths in India in 2015 followed by Tamil Nadu and West Bengal with 11.8% and 10.9% of suicidal deaths respectively. Karnataka and Madhya Pradesh accounted for 8.1% and 7.7% of suicidal deaths respectively. Combining these top five states, they accounted for 51.2% of suicides reported in the country, in 2015, and rest of India reported 48.8% suicides. It is important to note from the above table that Uttar Pradesh which is the most populated state (17% of country’s population) in the country is not in the top 10 list. In fact, Uttar Pradesh had reported comparatively lower percentage share in terms of suicidal deaths, accounting for only 2.9% of the total suicidal deaths in the country in 2015.

Apart from the top states with suicides, let us have a look at the major cities in India where suicidal deaths are in ample amount which is mentioned in below table:

                                Table 3: Top 10 Major cities with suicidal deaths in the year 2015
City Suicidal Deaths
Chennai 2274
Bengaluru 1855
Delhi 1553
Mumbai 1122
Pune 873
Ahmedabad 869
Hyderabad 728
Surat 663
Indore 528
Nagpur 483
Source: Accidental Deaths and Suicides in India (ADSI) 2015 published by National Crime Record Bureau (NCRB), Ministry of Home Affairs, Government of India

Chennai heads the top of the list when it comes to suicides in major cities followed by Bengaluru and Delhi. There were 2274 suicides in Chennai in 2015 followed by Bengaluru and Delhi having 1855 and 1553 suicides respectively in 2015. As we know, New Delhi is the capital and Mumbai is the financial capital of India, Chennai can be said as the “Suicidal Capital”, on a lighter note. All the major cities like Chennai, Bengaluru, Delhi, Mumbai etc have reported more than 1000 suicides in 2015.

The Big Picture

One important characteristic of human being is courage and courage is required many times in life. There are many adventures which people like to do which requires courage. Courage is required in taking tough decisions and tackling unwilling situation. In fact, it is often required to take daring and courageous decisions in life.

When a soldier is fighting with the enemy, he must be fearless and courageous to defend his nation. When a student disqualifies in his exams or job recruitment, he should fight back with proper preparations which requires strong determination. Imagine a situation where nothing is in your support (financial, moral or familiar) and you are determined to pursue your goals going against everyone, taking such kind of decision require immense courage. When farmers bow seeds in rainy season, courage is required. There are many famous personalities across the globe who have proved themselves with their strong determination and courageous decisions.

Having said that, what makes people to commit suicide. What makes them to take such decision? It can be poverty, love affairs, unemployment, hunger, financial problem etc. As per the ADSI report, 27.6% of suicidal deaths in 2015 happened due to family problems. The other causes of suicides are mentioned in below table:

Table 4: Percentage share of Various causes of Suicides during 2015
Causes Percentage Share
Family Problems 27.60%
Illness 15.00%
Causes not known 12.10%
Marriage related issues 4.80%
Love affairs 3.00%
Bankruptcy or indebtedness 3.30%
Drug Abuse/Addiction 2.70%
Unemployment 2.00%
Failure in Examination 2.00%
Other Causes (Poverty, Physical abuse, Professional/Career problem etc) 26.20%
Source: Accidental Deaths and Suicides in India (ADSI) 2015 published by National Crime Record Bureau (NCRB), Ministry of Home Affairs, Government of India

From the above table, it can be inferred that family problem was the major cause of suicides in 2015. Tamil Nadu recorded the highest number of suicides due to family problems. There were 7377 suicides due to family problems in Tamil Nadu in the year 2015. The second most cause of suicide is illness accounting for 15% of total suicides. Unemployment and failure in exam accounts for 2% separately.

From the statistics discussed above on number of suicides and causes of suicides, suicide is a major concern, but it is rarely discussed and debated. There are many problems one faces in his life but ending own life solves the problem?

Committing suicide requires enormous courage. Every decision in life requires some courage but committing suicide requires the most. Ending one’s own life is not feasible and suicide cannot be the solution of any problem. Think the other way around. If someone has the courage to decide to commit suicide, why can’t that courage should be used to solve the problem? There are some points which I would like to raise…

  • Committing suicide requires courage. Why that courage is not used to solve the problems which compels the person to commit suicide?
  • Ending one’s life and leaving the family members alone is good?
  • Committing suicide is the toughest decision and if someone can take such decision which requires enormous courage, that courage should be used to tackle the situation which compelled the people to commit suicide.
  • The person who commits suicide leaves a forever pain to his near and dear ones. The person who commits suicide gets rid of the problem, but his family suffers for long. A void is created which is impossible to fill.
  • India, where 368 people and 15 people commit suicide on daily basis and hourly basis respectively, why this issue is not raised and what can be the solution to minimize the same?

What is your take on suicide? Is it justifiable to end own life or that courage should be utilized to solve the issue? While reading this article of mine, some of you may think that I am being philosophical by raising such query but frankly speaking, this is a concern which was in my mind for many years and hence thought of putting before you. In fact, I have raised this issue in one of my previous articles titled “Suicide – Right or wrong?”, the same can be read here.

Please share your views. Would be happy to have insights from all of you on this rarely discussed issue.

– Ashish Kumar

Accidental deaths and suicide – A serious concern



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Death is certain and it is the ultimate truth. One will die for sure after birth. Accidental deaths and suicidal deaths are unfortunate. There are several problems that India is facing like inflation, corruption, unemployment etc. People die due to several reasons like heart attack, cancer, murder, natural disaster, poverty, accidents, suicide etc.

Death due to accidents and suicide is unfortunate. But it doesn’t mean that death due to other causes is fortunate. This article highlights the accidental deaths and suicidal deaths in India. In my previous article, I have addressed the issue of suicide. It is surprising that instead of several awareness campaigns, people are dying due to accidents. Let’s look at the statistics of accidental deaths and suicides from 2011 to 2015 which is given in the following table.

Table 1: Accidental deaths and suicidal deaths in India
Year Accidental deaths Suicidal deaths
2011 390884 135585
2012 394982 135445
2013 400517 134799
2014 451757 131666
2015 413457 133623
Source: National Crime Record Bureau (NCRB), Ministry of Home Affairs, Government of India

From the above table, the accidentals deaths and suicide does not have an increasing/decreasing pattern. Accidental deaths were most in 2014 which was 451757 and suicidal deaths were most in 2011, reporting to 135585. Suicidal deaths decreased from 2011 to 2014 but again increased in 2015. It is surprising to see that the number of suicides in India is more than a lakh per year. There can be several reasons for suicides like poverty, farmer suicides, love failure, not getting what desired, exam failure, frustration, depression etc.

The number of accidental deaths is more than 4 lakh in a year which is alarming. What can be the root cause of accidents? Accident does not only mean road accident. Road accident is one of the type of accident. Broadly accident can be classified as natural calamity and unnatural causes. Natural calamity includes flood, earthquake, landslide, cyclone, avalanche etc. Unnatural cause includes air crash, fire, collapse of structure, explosion, traffic accident, stampede, factory/machine accidents, drowning etc. An accidental death due to natural calamity is much less than those of unnatural causes. The below table illustrates the accidental deaths due to natural and top five unnatural causes from 2011 to 2015.

Table 2: Accidental deaths due to Natural and Unnatural causes
S.No Cause of death 2011 2012 2013 2014 2015
1. Natural Calamity 23690 22960 22759 20201 10510
2. Unnatural Causes
i)                    Drowning 29708 27558 30041 29903 29822
ii)                  Sudden Deaths 26649 28961 31278 26526 35023
iii)                Poisoning 29478 30748 29249 20587 26173
iv)                Traffic Accident 165072 168301 166506 169107 177423
v)                  Fire 24576 23281 22177 19513 17700
Source: National Crime Record Bureau (NCRB), Ministry of Home Affairs, Government of India

 

As it can be inferred from the above table, deaths due to unnatural cause is higher than the natural calamity. The five unnatural cause depicted in the above table are drowning, sudden deaths, poisoning, traffic accident and fire. Of the five major causes, traffic accident accounts for the highest number of deaths which is more than one and half lakh. This makes one thing clear that road traffic accidents is a serious issue prevailing in India. It can be seen that road traffic accident have increased in these five years. It resulted in 177423 deaths in the year 2015. What can be the main reason behind such traffic deaths? Some of the reasons can be:

  • Not obeying the traffic rules.
  • Driving the vehicle above the specified speed limit.
  • Crossing the road without looking at the signal.
  • Driving vehicle in hurry, tension, depression.
  • Drinking while driving (drink and drive) etc.

The other causes of accidental deaths like fire, poisoning, drowning, etc also accounts for major proportion. Natural calamity is beyond our control but what about the deaths due to unnatural causes and suicides? If you combine the accidental deaths and suicidal deaths, it is more than 4.5 lakh per year. This figure is very high and startling. Isn’t it a big jolt for all of us ???

Generally, people ignore the accidental death. Many people drive ruthlessly on road to pretend themselves to be the hero of an action movie but they don’t think for a while that such driving may harm others on road and themselves as well. Speedy driving has become a fashion in India which is not feasible at all. What is your opinion on such accidental deaths and suicides in India ? What is the major cause behind such deaths and what should be done in order to curb such miss-happenings? Do share your views…

– Ashish Kumar