6 Lessons Rich Dad Poor Dad taught me about Personal Finance
I finished reading the book Rich Dad Poor Dad by Robert Kiyosaki on December 2019. If I could reverse time, I would have read this book much earlier instead of procrastinating till this year. That book has given me valuable life lessons and insightful personal finance practices. This is a personal book summary, where I will highlight the key lessons I have learnt from reading this book and what actions I took to change my future.
LESSON 1: Recognize what are assets and what are liabilities
Prior to reading this book, I have taken some accounting courses and so I thought I knew what assets and liabilities are pretty well. In accounting, I learnt that assets are properties, equipment, intellectual property — basically something that you own. Liabilities are on the other hand, things that you owe to people like loans, etc. Well, from reading this book, it turns out that this definition was half true.
Robert Kiyosaki defined assets as things that generate income. So by his definition, cars or houses on mortgages are not assets even though they seem to be in accounting. Liabilities are…
