Yair Benyamini is the co-founder and CEO of Lendai, a fintech direct lender that finances U.S. real estate for foreign investors. He joined CTech to share a review of “Rich Dad Poor Dad: The Rich Teach Their Children About Money Poor and Middle Class Don’t Know!” Robert Kiyosaki.
title: “Rich Dad Poor Dad: The Rich Teach Their Children About Money The Poor And The Middle Class Don’t Know!”
author: Robert Kiyosaki
American businessman and author Robert Kiyosaki published the first edition of Rich Dad, Poor Dad in 1997. Kiyosaki is well known to Israelis, especially business and real estate investors.
Interestingly, at first, the book was not a bestseller. However, it became a hugely popular book in Israel in the years before the internet revolution, and it started to gain readers when readers realized the value behind it.
Thanks to Kiyosaki, the middle class of the world has learned the secret to creating passive income and has gradually become interested in it.
This book tells the story of Kiyosaki’s unique self-development process, taking readers on a journey through his life. When Kiyosaki was 9 years old, he was exposed to the minds of rich people. In Hawaii, he studied with children from wealthy families. Throughout the story, Kiyosaki is lost between two worlds: the world of the rich kids at his school, and the world of his home and his father. Kiyosaki’s biological father believed in the government’s ability to help citizens, while his wealthy father was an entrepreneur who believed in finding new ways to make more money and hire talented people to succeed.
According to the book, the poor and middle class work for money, while the rich do not. The main message here is: when you don’t have to work all day for money, you have your own time and can innovate or pursue your own interests.
Usually, people want financial freedom. They want to be hired not out of necessity, but out of passion for the job. Kiyosaki explained that most people give up the goal because they think it’s too difficult.
An individual who has clear goals for his career or is considering business ownership knows what he intends to accomplish in the future. Therefore, setting goals should be the first step. Because of its difficulty, many people abandon this goal. When people make a living without setting immediate goals, they forget about goals they have no chance of achieving. While at Xerox, Kiyosaki founded his first company to accumulate property and investments. Through these first steps he took to escape the fierce competition, he was able to become more and more successful in the employee position.
The book describes the four types of people and goes on to give examples of their financial goals and how to boost their business. The first is employees with jobs, and Kiyosaki explains why moving to the next quadrant, self-employment, is an actual financial advancement. After moving from the first quadrant, the next moves are much easier. The last and most respected quadrant is investors. Money works for investors, not investors work for money.
The most important basics of financial IQ that everyone should know:
Accounting – Understand assets and liabilities and read numbers.
Investing – Investing is based on money that generates cash flow.
Understand market – demand and supply rules. You must understand the basics of the economy.
Understand the specific laws of the business – Companies that understand technical issues such as accounting, investing and leverage are likely to be more successful than others.
Legally save tax – companies can have advantages that private individuals cannot.
Readers need time to implement the insights they gain from this book, as they are often influenced by the current environment and business. Being an investor and a business founder was my only way out of the fierce competition. My co-founders and I built Lendai not only to get closer to the investor quadrant, but to help others get there too!
Investors around the world are following Kiyosaki’s example and building their own real estate portfolios. With each new edition of the same old book, I understand more and more of Kiyosaki’s thinking. Through Lendai, we are helping foreign investors raise their profile by helping them finance their real estate investments in the United States. We are helping more people make their money work for them.
Although the book gives specific advice on why and how to progress from your current position to financial success, it requires readers to have a strong mindset and a strong ability to implement these lessons. Not everyone is in the right mode of self-development. Therefore, these methods cannot be implemented without taking personal risk as an investor or entrepreneur. It took me a few years to jump through jobs and become an entrepreneur.
Who should read this book:
Even though this book was written 25 years ago, this book is still as relevant today as it was when it was written. This is because of the ease with which new businesses can be built in the digital world: fintech, online and e-commerce. Additionally, the book has become more practical due to the availability of digital tools for managing money and investment opportunities.
Fundamentals of accounting and finance are considered specialties for CPAs. Based on today’s reality, this may have been the case in the past. In a changing world that creates innovation ecosystems, everyone should read Rich Dad, Poor Dad. Innovation cannot exist without a deep understanding of investing and finance.
Finally, readers who believe that financial literacy is a basic need in today’s world should read this book.