Carver’s Favorite Book of 2023
Rich Dad Poor Dad by Robert T. Kiyosaki
This book totally transformed my thinking on personal finance and set Lauren and I on the path to overcoming bad debt and becoming financially free. If you feel like you can’t get ahead financially then Rich Dad Poor Dad could change your life just like it changed ours.
I had heard a few podcasters that I listen to mention the book Rich Dad Poor Dad when discussing how they got started on their entrepreneurial journey. They all mentioned how life changing of a book it is. I always thought to myself one day when Lauren and I have kids I’ll have to read it. This year when we found out that she was pregnant I knew the time had come. Now those of you that have read or know the premise of the book are probably thinking “wow Carver you are an idiot.” The book really has nothing to do with being a dad, but I had no idea until I got a few chapters in. Although the book has little to do with parenting, it does contain key concepts that will enable you and your family to live a more balanced life and put you on the track to financial freedom.
As I read each chapter my eyes were opened to how little I really knew about personal finance and how the world of money works. I kept having de ja vu moments where I felt like Robert was telling my life story. Lauren and I used to fit into the conventional way of how the middle class handle money. We both went to college to get good paying, secure jobs. We then used the money we made from our good paying jobs to go into debt first on new cars, then on a new house. Every year when evaluation and bonus time came around at our jobs we’d plan out what vacation we would want to spend our money on or what new things we wanted to buy. We always set a little aside for savings but never had a massive emergency fund. We were effectively trapped as employees because we had to work to keep the money coming in to pay for the debts that we had incurred. This is what Robert refers to as the rat race, and we were running the race at full speed with no end in sight.
This cycle can make you resent working a job that you truly love. I’m very fortunate to work for an amazing company with a lot of great people. My work is quite rewarding, and I get to see others grow and unlock their true potential on a daily basis. Often times I’ve joked with co-workers that even if I won the lottery I would still show up to work the next day. I truly love what I do and even once Lauren and I reach true financial freedom like Robert discusses in the book, a portion of our income will still come from the employee quadrant. At that point I’ll enjoy what I do even more because it will be a personal choice to continue doing it rather than knowing that I have to in order to provide for our family.
This rat race pattern is exactly the pattern that Robert’s actual dad or, Poor Dad, followed in life and unfortunately he never escaped the rat race. Fortunately for Robert, his friend Mike’s dad took Robert under his wing and taught him the ropes of money and finance from a young age. Mike’s dad or, Robert’s Rich Dad, was an entrepreneur with many business in Hawaii. He took the time to teach Robert and Mike through a hands on approach. He explained how emotions are tied to money and that true lessons are learned through failing and trying again. The main thing that rich dad explains to Robert and Mike is that our mindset around money is the only thing holding us back from truly being rich and financially free.
Rich Dad continues by breaking down how our current educational system is set up to produce employees with limited knowledge on finances. The current ways of teaching make us afraid of failure and limit our abilities to bring teams together to accomplish things. This is the exact opposite of what creates success in the business world. When it comes to finances and business, playing it safe and ensuring you’re 100% right almost always results in never taking the first step or being so late to the party that it’s already over.
Instead of the traditional approach to education, Robert’s Rich Dad suggests that you don’t work for money. Instead, work to gain knowledge and skills that will help you prosper in the long run. Robert shares the example of how when Rich Dad stopped paying him and Mike hourly, they got creative and spotted another way to make money. They loved comic books and realized that the store they were working at threw away the old comics every week. They struck up an agreement not to sell the discarded comic books, but instead create a comic library where they charged admission to read the comics. Although they were not getting paid to work at the store, the opportunity to start their own business blossomed from their time at the store. This is just a small example of how powerful our minds can be when we look at the world through the correct lens and take action on our ideas. There are opportunities out there every day it’s just a matter of whether we identify and act on them or not.
I’ve read a lot of books that I have applied to my life, but none of them have been as eye opening as Rich Dad Poor Dad. It changed my way of thinking so much that I continued to read each of the books by Robert T. Kiyosaki. After reading each book I felt even more empowered to take control of my financial situation and achieve financial freedom. Once you start down the path of learning how the rich handle money and amass wealth you’ll be hard pressed to slow down in your quest for knowledge on the subject. I highly encourage you to pick up a copy of Rich Dad Poor Dad and begin your own journey of financial freedom and wealth building.
