Introduction: There is a need

Rich Dad Poor Dad, a 196-page long book, originally published in 1997, written by Robert T. Kiyosaki and Sharon Lechter is one of my favourite Finance books. The best thing about this book is unlike explaining about complex finance jargon or giving trading advices, this book mainly paves the foundation for the financial journey. So, here goes the Introduction: There is a need -

One day in 1996, one of Sharon Lechter’s children came home disillusioned with the school. He was bored and tired of studying. "Why should I put time into studying subjects I will never use in real life?" he protested. Without thinking, Sharon responded, "Because if you don't get good grades, you won't get into college." “Regardless of whether I go to college,” he replied, "I'm going to be rich.” "If you don't graduate from college, you won't get a good job”, Sharon responded with a tinge of panic and motherly concern. "And if you don't have a good job, how do you plan to get rich?" "Mom," he began. It was Sharon's turn to be lectured. "Get with the times! Look around; the richest people didn't get rich because of their educations. Look at Michael Jordan and Madonna. Even Bill Gates, who dropped out of Harvard, founded Microsoft; he is now the richest man in America, and he's still in his 30s. There is a baseball pitcher who makes more than $4 million a year even though he has been labeled "mentally challenged.' “Study hard and get good grades and you will find a high-paying job with great benefits,” this advice may have worked for people born before 1945, but it may be disastrous for those of us born into a rapidly changing world. As a mother as well as an accountant, Sharon has been concerned by the lack of financial education her children receive in school. One day, Sharon's husband called from his office. "I have someone I think you should meet,' he said. "His name is Robert Kiyosaki. He's a businessman and investor, and he is here applying for a patent on an educational product. I think it's what you have been looking for.” Robert Kiyosaki was developing a new educational product, CASHFLOW. It had a twist: it looked like a colourful Monopoly board with a giant well-dressed rat in the middle. Unlike Monopoly, however, there were two tracks: one inside and one outside. The object of the game was to get out of the inside track-what Robert called the "Rat Race" and reach the outer track or the "Fast Track." As Robert put it, the Fast Track simulates how rich people play in real life. Robert then defined 'The Rat Race' as:

‘The Rat Race’

"If you look at the life of the average-educated, hard-working person, there is a similar path. The child is born and goes to school, further, and is accepted into a college. The child graduates and then look for a safe, secure job or career. The child finds that job, maybe as a doctor or a lawyer, or joins the Army or works for the government. Generally, the child begins to make money, credit cards start to arrive in mass, and the shopping begins, if it already hasn't. Having money to burn, the child goes to places where other young people just like them hang out, and they meet people, they date, and sometimes they get married. Life is wonderful now, because today, both men and women work. Two incomes are bliss. They feel successful, their future is bright, and they decide to buy a house, a car, a television, take vacations and have children. The happy couple decides that their careers are vitally important and begin to work harder, seeking promotions and raises. The raises come, and so does another child and the need for a bigger house. They work harder, become better employees, and are even more, dedicated. Their incomes go up, but so does the tax bracket they're in and the real estate taxes on their new large home, and all the other taxes. They get their large paycheck and wonder where all the money went. The children reach 5 or 6 years of age, the need to save for college increases as well as the need to save for their retirement. That happy couple, born 35 years ago, is now trapped in the Rat Race for the rest of their working days. They work for the owners of their company, for the government paying taxes, and for the bank paying off a mortgage and credit cards. Then, they advise their children to 'study hard, get good grades, and find a safe job or career.' They learn nothing about money, except those who profit from their lack of experience and work hard all their lives. The process repeats into another hard-working generation. This is the 'Rat Race’.” The only way to get out of the “Rat Race” is to prove our proficiency at both accounting and investing, arguably two of the most difficult subjects to master. Sharon was out within 50 minutes, although the game went on for nearly three hours. Within the next week, Sharon and her husband set up a dinner meeting with Robert and his wife. A self-taught, self-made entrepreneur who travelled the world putting investments together, Robert was able to retire at the age of 47. He knows that the world has changed, but education has not changed with it. "So how would you teach a child about money and all the things we've talked about?" Sharon asked Robert. "How can we make it easy for parents especially when they don't understand it themselves?" "I wrote a book on the subject, he said. "Where is it?" “In my computer. It's been there for years in random pieces.” And in pieces it was. After reading the scattered sections, Sharon decided that the book had merit and needed to be shared, especially in these changing times. Finally, Sharon agreed to co-author Robert's book, Rich Dad Poor Dad.

No one has a crystal ball, but one thing is for certain: Changes lie ahead that are beyond our reality. Who knows what the future brings? But whatever happens, we have two fundamental choices: ‘Play it safe or play it smart by preparing, getting educated, and awakening your own and your children's financial genius’ - Sharon Lechter