RichDad, Poor Dad
Thebook “” by Robert Kiyosaki is a financialeducation text that gives teachings based on the account his lifewith two dads. One was his biological dad, who he refers to as thepoor dad, to represent the teachings of the financially illiteratepeople who cling to employment as the only source of income. Theother dad was his mentor, who guided him to financial literacy andthe development of skills to be a businessman and an investor. Thebook provides important teachings of reading and understandingfinancial statements. According to Lambert (3), it is necessary for aperson in a business career to know how to interpret financialstatements. The book teaches the importance of having financialliteracy to make decisions that relate to finance and professionalcareer in business.
Thebook gives an insight on how I should plan and set goals for myprofessional career in business so that I can start and develop asuccessful business. According to Birkenmaier and Sherraden (10),planning and setting goals are the key steps to starting a businessor a career in business because it helps a person to decide whichtypes of sources of income to have. This is further affirmed by theargument that planning for a professional career in business shouldbe the first and major step to take (Lambert 9).
Inaddition, the book gives me insight to differentiate between assetsand liabilities as a lesson of cash flow management. According toKiyosaki, most people fail in business because they accumulateliabilities thinking they are assets. Kiyosaki provides theprinciples of financial literacy that helps a person to differentiatebetween the two. Through the mastery of the two I am now able toappropriately manage the cash flow of a business by encouraging themore cash inflow of assets and control the levels of cash outflowthrough liabilities.
Birkenmaier,Julie., and Sherraden, Margaret. FinancialEducation and Capability: Research, Education, Policy, and Practice.Oxford: Oxford University Press, 2013
Lambert,Richard. FinancialLiteracy for Managers: Finance and Accounting for BetterDecision-Making.Pennsylvania: Wharton Digital Press, 2012