My definition  of terms like ‘assets’ and ‘liabilities’ underwent tremendous change after  reading this book. RICH DAD POOR DAD by Robert Kiyosaki and Sarah Lechter, is not all about how to make money, but also about recognizing opportunities to make money and also about financial intelligence.

The book also puts in perspective the realities regarding our education and where it is leading us. It is indeed true that we become what our education wants us to become. The absence of financial training and financial intelligence is what makes our education limited when it comes to the  ways of the world. It is true,money is power but education is knowledge.The lack of financial intelligence is best seen amongst the middle class,anywhere.They are the biggest tax payers and they also hold on to morals like the benefits of a good education and a government job, that almost always puts them in the vicious cycles of loans and debts.

Most of us belong to the middle class and for us land and a house are the biggest assets by any terms. But the actual truth about these acquisitions  have to be analysed in detail so as to determine whether they belong to the assets column or amidst liabilities. According to the authors anything that doesn’t generate an income is a liability. So if we are building a house on a housing loan, then does it become an asset? We spend the rest of our service to pay off the loans and that actually uses up a lot of our income. Now this might sound revolutionary, but the author suggests planning our investments in such a way where money generates money for us. He also suggests means like share market, mutual fund etc. where money will have an opportunity to grow, and if the interest of the house is payable by such investments then the house becomes an asset since its our money which is getting the house for us without any extra penny from us.Any investments which is income generating without we working for it, is an asset.

Coming from a literature background,it took a while for me to get a feel of the book. But then I caught on and I’m on my way to be fully convinced. Its time, we remove our financial ignorances and start taking the bull by its horn. After all, its almost always about money,and there is nothing wrong with that. I would happily quit from the rat race, if I have investments which will take care of me for the rest of my life. Sounding stupid? Go read the book

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