Rich Dad, Poor Dad

If you approach this book with the expectations of answers, then this is the wrong book to read. The biggest takeaway from this book is that there is a framework to help reassess the way you manage your finances, should you not already be in this framework.

Main takeaway is: Balance your finances like ‘Assets’ and ‘Liabilities’ My biggest personal distinction was that: I pay rent in NYC, that’s a ‘liability’. If I buy a place, that is now an ‘Asset’. Specifically: The thousands I pay per month in rent, essentially goes to the garbage, if I shift that to ownership of an asset, like a Condo/Co-Op, then I am now investing into an asset that I own.

There are other things that are ‘Liabilities’ in our lives, we can limit them or eliminate them. I unconsciously did this when I bought a used car, rather than leased a new one like my brother. My brother spent $10k+ on a new lease, that lasted two years, but then was left with no car. I paid $10K on a used car and kept that for 8 years (I donated it, but could have sold it for a small sum).

Another takeaway was on how we assess ‘luxuries’: no need for that fancy Mercedes today, if it means I can save and use that savings to invest in growing my savings.

I definitely recommend reading this, but don’t expect clear concrete ways to become Rich, rather expect some advice to follow and research, and some framework for self-management.