book review on rich dad and poor dad

Rich Dad, Poor Dad Summary & Review (2024)

Nick Gallo is a Certified Public Accountant and content marketer for the financial industry. He has been an auditor of international companies and a tax strategist for real estate investors

Rich Dad, Poor Dad is one of the most famous books in all of personal finance. Though it came out in 1997, it’s still the top #3 Best Seller on Amazon in 2024. Many of today’s most popular finance gurus cite it as the inspiration for their success.

I wanted to see what all the hype was about, so I grabbed a copy of the book, tore through it (it’s a pretty quick read), and compiled my thoughts for you here.

This Rich Dad, Poor Dad review will take a look at Robert Kiyosaki’s real lessons in this book (not just the ones he uses as names for his chapters) and help you decide whether it’s worth reading.

A Rich Dad, Poor Dad Summary

Right from the jump, Rich Dad, Poor Dad surprised me with its style and narrative framework. I expected more technical insight and investment math, but the book primarily consists of anecdotes that hold nuggets of (supposed) wisdom for the reader to absorb as if through osmosis.

Kiyosaki’s stories revolve around and contrast the lessons he received from his biological father (the educated but financially unsavvy poor dad) and his friend’s salesman father (the uneducated but clever, rich dad).

The book winds through Kiyosaki’s life and the reader witnesses him learning from his rich dad and rejecting the advice of his poor dad (which represents rising above the typical working-class mindset).

The book explains basic wealth generation in an understandable and inspirational way, and it’s a solid enough introduction to these concepts (at least for its time). However, it has issues that make its current relative value questionable.

❗️ Important Note: Do not take this book’s recommendations or any of my opinions on them as investment or tax advice.

Robert Kiyosaki’s Best Advice

I’ll start this Rich Dad, Poor Dad review with what I think Kiyosaki does well. Mainly, he makes some solid fundamental financial suggestions in an easily digestible manner.

The ideas might seem a bit shallow and apparent to anyone already engaged in entrepreneurship or investing, but they can be profound if it’s your first exposure to them. Let’s take a look. 

1. Learn Personal Finance (And Teach It to Your Kids)

While this is a pretty obvious suggestion, it’s still a significant one. The book does a great job of showing the reader how meaningful it is to learn how to manage your money. That means saving a high percentage of your earnings and putting the money to work in profitable investments.

Kiyosaki says: “ It’s not how much money you make. It’s how much money you keep. ” You have to keep your spending down as your income goes up and invest the difference in assets, not liabilities.

While his definitions of assets and liabilities might not follow Generally Accepted Accounting Principles, it’s practical: assets put money in your pocket, and liabilities take money out of it.

He supports learning to cut your taxes , studying accounting, and mastering saving, then teaching all these skills to your children. I love all of these ideas, and I’m glad his presentation of them resonates with so many.

2. Find Ways to Escape the Rat Race (Make Your Money Work For You)

Not only does Kiyosaki cover the fundamental best practices for personal finance, but he also does a great job of painting an inspiring picture of their end goal: financial independence, retirement, security, being rich, or whatever you want to call it.

I’ve always believed that people truly begin to understand the significance of their personal finance decisions when they realize that they constitute a journey that can culminate in holding enough wealth that work becomes optional.

Kiyosaki makes escaping the rat race using investments or a self-sustaining business sound glamorous and inspirational. I’m grateful for anything that gets people to plan for a better future.

3. Master Your Emotions Regarding Money

This one isn’t a personal finance message that you’d typically see today, but I like it a lot. Money is a hugely emotional issue for many people, and we could all probably benefit from understanding why it makes us feel however it does.

People often let their emotions sabotage their finances or let their finances upset their emotional state. They might have a fear of investing, insecurity over their job, or a need for the latest and greatest gadgets.

He urges readers to face their fears, cynicism, laziness, bad habits, and arrogance when it comes to money. That seems like an arbitrary list of emotional issues, but I like the sentiment.

4. Develop a Broad and Valuable Skillset

In a capitalistic society, having a practical and marketable skillset is the key to making money. If you can provide tangible value that people are willing to pay for, you’ll always be able to support yourself.

Kiyosaki recommends learning to manage money, lead teams, build systems, and close sales. More than that, he suggests that people cultivate a habit of continuing to learn throughout their careers so that they never stagnate.

He argues that people can improve their situations most effectively if they keep an open mind, learn from their mistakes, and keep improving. It’s a valuable lesson and one of the best in the book.

Robert Kiyosaki’s Worst Advice

Now that we’ve covered the good stuff, what follows is my Rich Dad, Poor Dad criticism. I hate to say it, but there’s more to talk about here than I’d like.

Honestly, Kiyosaki strikes me as a pretty typical guru. His attitude and tone throughout the book both rub me the wrong way. For example, he comes across as just a little too obsessed with the stereotypical image of a rich and powerful man.

He describes his rich dad as a charismatic manly man of few words, with power behind his statements and smiles. Rich dad is tall, blunt, and always closing deals. He doesn’t do things like the other guys, and he’s pretty smug in his superior knowledge.

Rich dad and his lessons also come off as manipulative to me. He pulls the protagonists’ strings purportedly to teach them esoteric lessons too complex to be put into mere words.

The book just feels like it’s selling me something, and salesman gurus are by far my least favorite. Here are some of the specific ideas the book tries to sell to the reader that I don’t like.

1. You Should Start a Business and Get Rich Because Employees are Broke and Miserable

As someone who truly loves being self-employed, I hate to admit this, but it’s not the right path for everyone. If you’d rather not branch out on your own, that’s perfectly fine. There are plenty of people who enjoy their jobs, make good or great money, and save responsibly.

But Kiyosaki has a habit of putting down anyone who works for someone else and suggesting that employees are generally broke and unhappy. They just don’t get it.

His poor dad (already an insulting title), who worked a traditional job, couldn’t possibly understand what his rich dad understood thanks to all his business success.

Not only does Kiyosaki fail to address the risks and downsides to business ownership, but he also suggests some definitely-not-okay tax strategies using business entities. For example, he proposes using a corporation to write off vacations as board meetings or deduct health club expenses. Those moves can get you into much more trouble thsan they’re worth.

2. Academic Learning isn’t Valuable (Rich People Don’t Need It)

Kiyosaki also has a bad habit of downplaying the value of academic education and traditional learning. He seems to believe people who follow the general wisdom end up like his poor dad: highly educated but ineffective and stressed about their money. Rich people learn only by doing or from living life.

For example, rich dad says: “ All too often business schools train employees to become sophisticated bean-counters. Heaven forbid a bean counter takes over a business. All they do is look at the numbers, fire people, and kill the business. ”

Ironically, he promptly contradicts that claims, later saying: “ Accounting is possibly the most confusing, boring subject in the world, but if you want to be rich long-term, it could be the most important subject. ”

As an officially licensed and certified bean-counter, maybe he just hurt my feelings, but I don’t think so. Kiyosaki also glorifies rich dad’s cruel and unusual teaching methods, which included giving kids the silent treatment for weeks at a time while they work below minimum wage until they can’t take it anymore.

Because that’s how life teaches: “ It just sorta pushes you around. ”

3. Invest in Real Estate! It’s the Best Way to Get Rich!

At this point, you’ve probably noticed that many of his “worst lessons” have something to do with getting rich. That’s a significant part of what struck me as wrong about this book.

Getting rich isn’t really the point of personal finance. Maybe I need to “overcome my cynicism,” but I generally don’t trust gurus who toss that word around. Kiyosaki does it a bit too much for my comfort, and his suggested strategies for creating said riches aren’t always great either.

Mainly, it bothers me how strongly he doubles down on real estate. Investing in real estate can be a great way to build wealth, but (like self-employment) it’s not for everyone. It’s also not a requirement for a successful and diversified portfolio.

There are benefits to real estate investing, but Kiyosaki borders on implying that it’s a sure way to get rich quickly or inevitably. In reality, it’s a business like any other. There are unavoidable risks involved, and it takes knowledge, experience, and luck to succeed.

4. Jump Off Cliffs and Build Parachutes On Your Way Down

Last but not least, we have one of my biggest pet peeves in the whole book. Kiyosaki legitimately suggests that you pay yourself first (meaning your savings) even if that comes at the cost of paying your creditors, even if one of those creditors is the Internal Revenue Service!

Rich dad says: “ So you see, after paying myself, the pressure to pay my taxes and the other creditors is so great that it forces me to seek other forms of income. The pressure to pay becomes my motivation. I’ve worked extra jobs, started other companies, traded in the stock market, anything just to make sure those guys don’t start yelling at me[…] If I had paid myself last, I would have felt no pressure, but I’d be broke. “

Don’t get me wrong, I’m all for prioritizing saving, but paying yourself first shouldn’t mean risking stiffing the people you owe money, wrecking your credit score, and racking up fees and interest. You pay your creditors and essential living expenses first, then you set aside your savings, and then you reverse engineer your remaining budget.

Is It Worth Reading Rich Dad, Poor Dad?

I don’t want this to upset anyone who considers the book to be the Holy Grail of personal finance, but I couldn’t recommend Rich Dad, Poor Dad to someone who asked me how to start managing their money better, let alone someone who already has some experience.

The book has a handful of positive lessons, but there’s nothing more profound in it than what you could find in the average personal finance blog these days. It’s mainly about inspiration, and there are places to get your inspiration these days without a side serving of Kiyosaki’s more troublesome ideas.

Learn More: If you’re looking for a comprehensive and grounded introduction to personal finance, take a look at some of our guides for beginners:

• How to Start Making Extra Income
• Taxation 101: How Do Taxes Work For Individuals?
• Budgeting 101: How to Budget Your Money
• Saving Money 101: The Road to Financial Independence
• Investing 101: Investing For Beginners

By Nick Gallo

Contributing writer.

Nick Gallo is a Certified Public Accountant and content marketer for the financial industry. He has been an auditor of international companies and a tax strategist for real estate investors. He now writes articles on personal and corporate finance, accounting and tax matters, and entrepreneurship. Find out more at NickAlexGallo.com.

This article was extremely well-written. I not only agree with the author’s claims about the book, but also genuinely enjoyed their writing style. I would like to see more reviews like this!

I’m delighted to hear that you liked this review! You said you’d like to read more reviews like this one, and now you can! Nick recently reviewed another personal finance favorite for our website: The Millionaire Next Door Review . Let us know what you think of this one!

I would have to somewhat disagree on the accounting statements being contradictory. Accounting is extremely important in business, but that doesn’t change the fact that if you just have the accountants run things that it can drive the company into the toilet. The accountants just don’t know any better. This was one of the problems with GM for example. It was a car and manufacturing company run by accounting and finance people instead of by people with a manufacturing background who also were car enthusiasts who knew some accounting.

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Have you ever wondered why some people seem to have a magic touch with money while others struggle? Robert Kiyosaki’s eye-opening book, Rich Dad Poor Dad , might just have the answers. Imagine learning secrets from someone who has mastered the game of wealth – that’s what this book offers!

Are you looking for a Rich Dad, Poor Dad summary and review from a retired financial planner?

In Rich Dad Poor Dad , Kiyosaki shares his journey of growing up with two dads – his real dad (the “Poor Dad”) and the father of his best friend (the “Rich Dad”). Each dad taught him different lessons about money, success, and life . But here’s the twist: the Rich Dad, despite not having a college degree, built a fortune, while the Poor Dad, highly educated, struggled financially.

This book isn’t just a story; it’s a treasure trove of lessons on financial literacy and wealth building . It challenges the traditional belief that working hard and earning a salary is the way to wealth. Instead, it opens your eyes to the importance of financial education, investing , and understanding the difference between assets and liabilities .

Buy Rich Dad, Poor Dad on Amazon Today!

Are you curious about how to make your money work for you, instead of you working for money? Do you want to know the secrets of passive income and financial freedom ? Then, you’re in the right place! This summary & review will dive deep into Kiyosaki’s teachings, unraveling the wisdom behind wealth accumulation and financial independence .

Key Takeaways From Reading The Book Rich Dad, Poor Dad

Reflecting on Robert Kiyosaki’s influential work, several key takeaways emerge that can fundamentally alter one’s financial trajectory:

• Asset vs. Liability Mindset : Understanding the difference between assets that put money in your pocket and liabilities that take it out is crucial. This book teaches the art of discerning and investing in income-generating assets.
• Breaking the Paycheck Cycle : Kiyosaki emphasizes the importance of moving beyond the paycheck-to-paycheck existence. He encourages readers to educate themselves on investment strategies and seek opportunities for financial growth.
• Practical Financial Education : The book is not just about theoretical knowledge; it provides practical steps and tools for individuals to actively take control of their financial future.
• Investment and Risk Management : Learning to invest wisely and manage risks is a key theme. The book guides readers through the nuances of strategic investment and the importance of financial literacy.
• Empowerment Through Knowledge : Ultimately, “Rich Dad Poor Dad” empowers readers with the knowledge to make informed financial decisions, paving the way for financial independence and success.

Quick Links – Rich Dad Poor Dad Review

Rich dad poor dad summary: a tale of 2 mindsets.

In this book, Robert Kiyosaki draws from his own life experiences with two father figures – his biological father (the ‘Poor Dad’) and the father of his best friend (the ‘Rich Dad’). These two men represent contrasting financial philosophies:

Imagine standing at a crossroads: one path leads to a luxurious mansion, the other to a modest home. This is the visual metaphor for the financial choices outlined in “Rich Dad Poor Dad.”

• Poor Dad : Advocates traditional financial wisdom – get a good education, work hard, save money, and retire.
• Rich Dad : Encourages financial education, investing in assets, and understanding how money works to create wealth.

Kiyosaki’s journey through these contrasting views offers profound insights into how we can elevate our financial health. The book is more than a collection of advice; it’s a series of lessons in financial intelligence, risk-taking, and strategic investment.

Memorable quotes throughout the book serve as guideposts, steering readers toward smarter financial decisions and independence. It’s a roadmap for anyone looking to transform their financial mindset and embark on a journey to wealth and financial freedom.

In my deep dive into Robert Kiyosaki’s groundbreaking book, I’ll unravel the transformative views on personal finance and wealth building that have challenged and changed millions of lives.

The Core Philosophy: Rich Dad vs. Poor Dad

At the heart of Kiyosaki’s narrative is a stark contrast between two financial philosophies.

• The ‘Poor Dad,’ embodying a conservative, traditional approach, believes in the security of a regular job and a steady paycheck.
• In contrast, the ‘Rich Dad’ represents an entrepreneurial spirit, advocating for investing in assets and building wealth through savvy financial decisions.

Reshaping Our Financial Understanding

Kiyosaki doesn’t just narrate two different life paths; he looks into the psyche behind them. He urges readers to prioritize financial literacy , understanding the nuances of assets and liabilities, and the importance of making money work for you.

This book isn’t just about choosing between two paths; it’s about understanding the rules of the financial game and how to play it effectively.

“The rich think long term, the poor think short term.” Quotes from Rich Dad Poor Dad

The True Meaning of Wealth

One of the most striking revelations in “Rich Dad Poor Dad” is the redefinition of wealth. Kiyosaki argues that true wealth isn’t about earning a high salary; it’s about building and owning assets that generate income, even when you’re not actively working.

This paradigm shift from working for money to having money work for you is a game-changer.

The Financial Mindset Shift

Ultimately, Kiyosaki’s book is a call to action. It’s about adopting a mindset that embraces informed risk-taking, understands the power of investment, and sees beyond the traditional paycheck-to-paycheck living. This shift in mindset is what separates the financially successful from those who struggle.

• In ‘Rich Dad Poor Dad,’ Kiyosaki provides a compelling comparison between two distinct financial philosophies, each shaped by his own ‘dads.’
• The book encapsulates essential insights on how to elevate one’s financial health by shifting focus from merely earning to intelligently investing and creating assets.
• It’s peppered with memorable quotes that encapsulate the essence of Kiyosaki’s financial wisdom, serving as mental signposts guiding readers toward fiscal prudence and independence.

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Essential Book Insights: Discovering Financial Wisdom Through Two Fathers

What I Learned from “Rich Dad Poor Dad”

“The rich don’t work for money. The poor do.” Quotes From Rich Dad Poor Dad

• Be Smart with Money : The book tells us that it’s not just about how much money you make, but how you use it. It’s important to know the difference between things that make you money (assets) and things that cost you money (liabilities).
• Think About the Future : Instead of just working for money, think about how to make money work for you. This means learning about things like investing and starting a business.
• Learn About Money : School teaches us a lot, but not always about money. This book shows that learning about money is really important for everyone.
• Take Chances : Sometimes, to make money, you have to take risks. But these should be smart risks, where you’ve thought about what could happen.
• Work Hard, But Smart : It’s not just about working hard at a job. It’s also about working smart, like finding ways to make extra money without always having to do more work.

Why This Book is Important

“Rich Dad Poor Dad” is a great book because it makes us think differently about money. It tells us that anyone can learn to be better with money, and that it’s important to start learning early. This book is like a guide to help us make smart choices with our money.

“rich People buy assets, the poor only have expenses.” Quotes From Rich Dad Poor Dad

10 lessons from Rich Dad Por Dad

Book Review of Rich Dad Poor Dad

The Story’s Core:

“Rich Dad Poor Dad” is more than just a book; it’s a journey through contrasting financial ideologies. Kiyosaki’s narrative, rooted in his experiences with two father figures, offers a unique perspective on wealth and money management. The ‘poor dad,’ his biological father, represents traditional financial beliefs, while the ‘rich dad,’ a mentor, embodies a more progressive, investment-focused approach.

Author’s Background: The Credibility Factor

Robert Kiyosaki’s background as an entrepreneur and educator in finance adds depth and authenticity to his teachings. His real-life experiences and dual roles provide a practical and relatable approach to financial education, making complex concepts accessible to a broad audience.

Why This Book Matters

“Rich Dad Poor Dad” isn’t just a guide; it’s a transformative experience. It challenges deep-seated beliefs about money and employment, urging readers to adopt a proactive approach to wealth creation. The book’s emphasis on financial literacy and independence is not just educational but a call to action for personal financial revolution.

My Personal Takeaway

As a reader, “Rich Dad Poor Dad” has been a revelation. The book’s lessons on the distinction between assets and liabilities, and the importance of financial literacy, have reshaped my understanding of wealth and financial strategy. Kiyosaki’s approach to earning and investing is a wake-up call to rethink traditional financial paths.

The Impact: Unlocking Financial Wisdom

This book is a key to unlocking financial wisdom. It’s not just about accumulating wealth; it’s about fostering a mindset that prioritizes financial education and smart investing. Kiyosaki’s straightforward explanation of complex financial concepts makes the book an invaluable resource for anyone on the path to financial freedom.

Recommendation

I highly recommend “Rich Dad Poor Dad” to anyone looking to enhance their financial understanding and embark on a journey toward economic empowerment. It’s a must-read for those seeking practical wisdom and strategies for wealth-building in today’s world.

Book Advantages & Drawbacks

Many aspects of ‘Rich Dad Poor Dad’ have significantly influenced my approach to financial literacy, yet some elements of the book may not resonate with every reader. The Advantages of the book are substantial, offering a fresh perspective on money that challenges conventional wisdom.

However, the Drawbacks of the book, such as the one-size-fits-all approach, might not suit everyone’s individual financial situation.

Analyzing the book through this lens, it’s clear that while it’s a powerful tool for financial awakening, it’s not without its limitations.

Diverse Perspectives: A Community’s Take on Kiyosaki’s Teachings

Don’t just take my word for it. I have also consolidated other viewpoints about the book for you as well…

A Balanced Look: Reviews from Book Rating Websites

The reviews on various book rating websites present a kaleidoscope of opinions on “Rich Dad Poor Dad.” Many readers applaud the book for its clear and impactful insights into financial literacy and wealth-building. They appreciate Kiyosaki’s knack for simplifying complex financial concepts, making them accessible to a broad audience.

Quotes from the book, like “The rich see opportunities, the poor see obstacles,” resonate with many, encapsulating the essence of Kiyosaki’s philosophy.

However, some reviews offer a counterpoint, critiquing the book for its seemingly oversimplified approach to complex financial systems. Despite these differing views, the book is widely recognized as a thought-provoking piece that encourages readers to reassess their financial strategies.

“The rich see opportunities, the poor see obstacles.” Quotes from Rich Dad Poor Dad

Amazon & Reddit’s Candid Opinions

Here’s a table summarizing the diverse opinions from book rating websites, Amazon customer feedback, and Reddit discussions on “Rich Dad Poor Dad”:

This table provides a balanced overview of the varying perspectives on “Rich Dad Poor Dad,” highlighting its impact and the discussions it has sparked in different communities.

Despite these disparities, the consensus acknowledges the book as an eye-opener, stirring readers to reevaluate their financial strategies and prioritize the growth of assets over mere income.

Similar Books To Read

Beyond the insights gleaned from Amazon and Reddit, I’m eager to explore books similar to ‘Rich Dad Poor Dad’ that have also challenged and reshaped others’ financial perspectives. When seeking similar book recommendations, I look for those that offer a blend of transformative ideas and practicable advice for implementing financial strategies.

If you are interested in this book, you may want to check out the Best Books Like Rich Dad Poor Dad as well.

• ‘The Millionaire Next Door’ by Thomas J. Stanley and William D. Danko : This book delves into the common traits of those who’ve accumulated wealth, emphasizing frugality and smart investing.
• Think and Grow Rich by Napoleon Hill : A classic that explores the psychological power of thought in achieving personal wealth.
• The Richest Man in Babylon by George S. Clason It offers timeless parables about the fundamentals of saving, investing, and financial planning.
• The Millionaire Fastlane by MJ DeMarco
• The Millionaire Mindset by Gerry Robert
• The Cashflow Quadrant by Robert Kiyosaki
• The 7 Habits of Highly Effective People by Stephen Covey

Summarizing the Key Insights:

In wrapping up this insightful journey through the realms of personal finance, let’s revisit the essential nuggets of wisdom we’ve unearthed. Our exploration has not only equipped us with practical advice but also instilled a sense of empowerment in our financial decision-making.

• Financial Literacy: The cornerstone of our discussion, understanding the nuances of assets and liabilities, is pivotal. It’s not just about earning; it’s about making your earnings work for you.
• Investment Strategies: We looked into the art of investing wisely, emphasizing the importance of informed risk-taking and strategic financial planning.
• Breaking the Paycheck Cycle: We underscored the significance of transcending the paycheck-to-paycheck lifestyle, advocating for a proactive approach to wealth accumulation.

As someone who has navigated the complexities of financial planning, I can attest to the transformative power of these principles. They are not just theories but practical tools that can lead to a more secure and prosperous future.

What’s your biggest financial goal, and how do you plan to achieve it? Is it financial literacy , investment strategies , and wealth accumulation ? Share your thoughts and join the conversation below. Your insights could be the catalyst for someone else’s financial breakthrough.

Embarking on your journey to financial literacy and independence can be the most rewarding decision of your life. Remember, it’s not just about wealth accumulation; it’s about creating a life of financial freedom and security.

Are you ready to take control of your financial future? I encourage you to subscribe to our newsletter for more insights, or schedule a consultation to personalize your financial journey. Your path to financial freedom starts here.

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Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.

The book is 336 pages. Created by Robert Kiyosaki, “Rich Dad Poor Dad” is a book that stresses the importance of financial literacy and teaches the reader how to acquire and use wealth. The book sold over 32 million copies and has been translated into over 51 languages. If you do nto want to read the book – consider listening to the audiobook of Rich Dad Poor Dad.

While some may find Kiyosaki’s views controversial, “rich dad poor dad” is an interesting and thought-provoking read. There are many different ways to view success. In “rich dad poor dad” by Robert Kiyosaki, he looks at success through the lens of wealth. Kiyosaki argues that the traditional mindset of going to school, getting good grades, and finding a stable job is not the best path to riches. Instead, he advocates for taking risks, starting businesses, and investing in assets.

The answer is yes and no. The details are embellished, but the overall story is mostly true. In the book, “Rich Dad Poor Dad”, author Robert Kiyosaki talks about his two father figures – his birth father and his best friend’s father. He paints a picture of growing up with two completely different types of dads. His birth father was a highly educated man who worked hard for his family, but was never able to get ahead financially. On the other hand, his best friend’s father was a self-made millionaire who always seemed to have money to spare. Kiyosaki uses his experience growing up with these two very different men to explain some basic principles of financial success. So, is “Rich Dad Poor Dad” a true story? While the book is based on Kiyosaki’s own life, some of the details have been changed or embellished in order to make a more compelling story. However, the overall message – that financial success is more about mindset than anything else – is true. If you’re looking for a true story about growing up with two very different father figures, this book is definitely worth a read.

The book rich dad poor dad is written by Robert Kiyosaki. It is a story about his two dads, one rich and one poor, and the lessons he learned from them about money.

In 1974, two young men graduated from the same college, in the same month, and with the same degree. They both had plans to become rich. One was my rich dad and the other was my poor dad. This is a story about two fathers, one rich and one poor, and the different lessons they taught their sons about money. Robert Kiyosaki, the author, grew up with two very different role models for money and success. His rich dad was a successful businessman who taught him the importance of investing and creating passive income. His poor dad was a well-educated government employee who taught him the importance of working hard and saving his money. Kiyosaki argues that the rich dad’s lessons were more valuable and have helped him become more successful than his poor dad.

Rich Dad Poor Dad is a book that tells a different story. It is the story of Robert Kiyosaki and his two fathers – his real father (poor dad) and the father of his best friend (rich dad). Kiyosaki found that his rich dad’s advice led to a life of financial freedom, while his poor dad’s advice left him struggling to make ends meet. The book has four main lessons: 1. You must learn to work to make money, not the other way around. 2. Your primary purpose in life should be to acquire assets, not to acquire liabilities. 3. The rich focus on opportunities, not on jobs. 4. The rich know that time, not money, is their most important asset. Rich Dad Poor Dad is a book that advocates financial independence through asset acquisition. The book provides four main lessons on how to acquire assets, how to think about work, and the role of time in building wealth.

Michael Ryan Money Bot

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3 real estate investors and early retirees agree on the best personal finance book to read if you want to change your mindset around investing. They told us its greatest lessons.

• Real estate investors and early retirees say that "Rich Dad Poor Dad" changed their money mindset.
• The book explores timeless money lessons, including the importance of having money work for you.
• One real estate investor and early retiree, Michael Zuber, says he's read it upwards of 10 times.

After losing nearly his entire nest egg to day trading stocks, Michael Zuber decided to explore alternative ways to invest his money. 

He went to a bookstore to look for investment books and was drawn to the only purple one on the shelf: " Rich Dad Poor Dad " by Robert Kiyosaki. "I grabbed it and ended up reading it over and over, 10 to 15 times, just because it was so different from anything I'd ever read before," he told Insider.

Originally published in 1997, Kiyosaki's bestseller is considered one of the greatest personal finance books of all time. The author grew up with two father figures: "poor dad," his real father who died with bills to pay, and "rich dad," who started with little before becoming a wealthy man. Both fathers were successful in their careers and earned substantial incomes, but one always struggled financially.

Kiyosaki noticed fundamental differences in the way "rich dad" and "poor dad" thought, spoke, and acted. Throughout his book, he offers timeless lessons he learned from "rich dad" that will help you master your money and build long-term wealth.

The book introduced Zuber to the concept of "having money make money," he said. "I'd never really had a conversation about how money works and how the rich get richer by owning assets." 

One of Kiyosaki's main points is that the wealthiest people focus on building assets — things that put money in your pocket — while everyone else focuses on their monthly income and salary. "The long-term rich build their asset column first," Kiyosaki writes. "Then the income generated from the asset column buys their luxuries. The poor and middle class buy luxuries with their own sweat, blood, and children's inheritance."

With that in mind, Zuber and his wife decided to try real estate investing and build wealth by buying homes and renting them out. They lived below their means, saved enough to buy one rental property in Fresno, California, and started earning passive income. 

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They continued acquiring properties for the next two decades and eventually started earning enough in passive income that they felt comfortable quitting their day jobs in their 40s. Today, the couple owns over 100 units in Fresno, California and earns over $100,0000 a month in rental income, according to portfolio summaries reviewed by Insider.

Zuber, 49, isn't the only real estate investor who drew inspiration from Kiyosaki's principles. Boston-based investor Karina Mejia told Insider that "Rich Dad Poor Dad" completely changed her mindset and encouraged her to quit her 9-to-5 and pursue a career as a real estate agent. 

She was 22 when she decided to leave her salaried position as an analyst to take a stab at working for herself. It was a big decision and probably wouldn't have crossed her mind had she not spent so much time consuming podcasts and books, including Kiyosaki's. 

"'It's not the smart who get ahead, but the bold," writes Kiyosaki, who believes in intelligent risk-taking. Blind risk won't get you anywhere, but intelligent risk, in which your self-education plays a role, is often what leads to reward. 

"I remember my thought process when I read that and I was like, 'I don't want to live like everybody else. I want to create a different life,'" said Mejia, now 25.

She took a calculated risk when she decided to quit her 9-to-5 and bet on herself. She already had her real estate license, which she got in college, and had even closed a couple of deals on the side, so she knew a career as an agent could be lucrative. 

She was right: In 2021, she earned over $350,000 from commissions and rental income . That's more than five times what she was earning as an analyst. Insider reviewed sales commission reports and a W-2 form from her previous employer that showed these details. 

Seattle-based real estate investor Peter Keane Rivera, who bought his first home at age 25 and plans to achieve financial freedom via real estate investing, couldn't put the book down when he first read it. "I finished it in three days," he told Insider. It put him at ease about his finances. "I was no longer really worried about my financial future. I realized that I don't have to get that high paying job or be the smartest person in the room. I just had to earn passive income through rental properties and I knew I'd make it."

Kiyosaki emphasizes that there is a difference between how wealthy people and average people choose to get paid: Average people choose to get paid based on time — on a steady salary or hourly rate — while rich people generally own their businesses or work on commission and find ways to have their money work for them. They're not limited to a salary dictated by a company; their earning potential is completely up to them.  

"If you work for money, you give the power to your employer," Kiyosaki writes. "If money works for you, you keep the power and control it."

• Main content

Rich Dad Poor Dad Book Review

• Post author: booktellings
• Post last modified: April 24, 2024

Introduction

Welcome to my “Rich Dad Poor Dad book review”, where I dive into Robert Kiyosaki’s seminal personal finance book. In this review, I’ll explore the contrasting financial philosophies of two father figures in Kiyosaki’s life: his biological father (the “Poor Dad”) and his friend’s father (the “Rich Dad”). This comparison sheds light on unconventional wisdom about wealth-building and financial independence.

I aim to unpack the key lessons from the book and discuss how they might transform your mindset on money, investments, and economic savvy. Whether you’re new to managing finances or seeking ways to enhance your financial strategy, this Rich Dad Poor Dad book review is designed to provide insights that could help you navigate your path to financial success.

Disclaimer: This post contains affiliate links. This means we may earn a commission if you should chose to sign up for a program or make a purchase using our link.

Table of Contents

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

Rich dad poor dad book review: a personal take on financial wisdom.

Robert Kiyosaki’s “Rich Dad Poor Dad” is arguably one of the most discussed books in the field of personal finance and wealth development. In this blog post, I will provide a thorough review of this influential book, examining the contrasting financial ideologies of Kiyosaki’s two dads—one a highly educated yet financially struggling man (the “Poor Dad”), and the other, a savvy entrepreneur who became one of the wealthiest men in Hawaii (the “Rich Dad”). This review aims to dissect the core lessons from the book and how they propose to shift your thinking about money and investing.

Overview of the Core Concept

“Rich Dad Poor Dad” is structured around a series of lessons that Kiyosaki learned from each of his father figures. The central premise is the stark difference in mindset and financial strategies between the two. His biological father, the “Poor Dad,” emphasized traditional education and a steady job as the pathway to financial security. In contrast, his “Rich Dad” focused on the importance of financial education, investing, and starting businesses as the real keys to wealth. Through these narratives, Kiyosaki discusses the limitations of a salaried job and the advantages of entering the investment world.

Key Financial Lessons

One of the fundamental lessons from the book is the importance of understanding the difference between an asset and a liability. Kiyosaki stresses that true assets put money into your pocket, such as investments and rental properties, whereas liabilities take money out, such as mortgages and other debts. This simple yet profound advice aims to reshape the reader’s approach to acquiring and managing wealth.

Another significant point discussed is the idea of making money work for you, rather than working for money. Kiyosaki argues that financial independence is achieved through generating passive income streams that cover your expenses, rather than relying solely on income from employment.

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Impact on Personal Finance Perspective

Reading “Rich Dad Poor Dad” profoundly changed my perspective on personal finance. It challenged many traditional notions I held about money, especially the belief that a high income from a secure job equates to financial stability. Kiyosaki’s emphasis on financial literacy, understanding the market, and taking calculated risks opened my eyes to the possibilities outside of conventional employment.

Critique and Considerations

While “Rich Dad Poor Dad” has garnered immense popularity for its straightforward financial advice, it is not without criticism. Some experts argue that the book oversimplifies complex financial concepts and sometimes underplays the risks involved in investing and entrepreneurship. Moreover, the lack of detailed practical steps on managing finances day-to-day means readers may need to seek additional resources to implement Kiyosaki’s strategies effectively.

Final Thoughts : Rich Dad Poor Dad Book Review

“Rich Dad Poor Dad” is more than just a financial guide; it is a provocative insight into alternative ways to view and handle your money. This book is a must-read for anyone looking to break free from the paycheck-to-paycheck lifestyle and venture into making their money work for them. Whether you are new to financial literacy or well-versed in investment strategies, Kiyosaki’s teachings can offer valuable perspectives to consider and potentially incorporate into your financial planning.

In conclusion, this Rich Dad Poor Dad book review reaffirms the book’s status as a cornerstone in personal finance literature. It provides compelling viewpoints that can catalyze a shift towards financial independence through education and proactive investment. If you’re looking to change how you think about money and your economic approach, “Rich Dad Poor Dad” might just be the starting point you need.

Don’t forget to check out our other blog posts like “ It Ends with Us Book Review “

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Rich Dad Poor Dad Summary

1-Sentence-Summary:   Rich Dad Poor Dad tells the story of a boy with two fathers, one rich, one poor, to help you develop the mindset and financial knowledge you need to build a life of wealth and freedom.

Favorite quote from the author:

Table of Contents

Video Summary

Rich dad poor dad review, audio summary, who would i recommend the rich dad poor dad summary to.

Rich Dad Poor Dad is a modern classic of personal finance and our favorite finance book of all time . Although the book is controversial and often takes criticism, people still believe it’s worth reading. Otherwise, it wouldn’t have sold over 32 million copies.

Robert Kiyosaki tells the story of his two Dad’s in his childhood. His own father and the father of his best friend. While he speaks affectionately of both, they were very different when it came to dealing with finances.

The summary on Blinkist starts with the idea that many of us are too afraid of being branded as a weirdo, in order to exit the rat race . We let the two main emotions everyone has around money dominate our decisions:  fear and greed.  That’s why we still stick to the outdated mantra “Go to school, go to college, get a job, play it safe.” when in reality no job is safe any more .

For example, when you get a raise at your job, a wise choice would be to invest the extra money. Put it into something that builds wealth like stocks or bonds, which has risk, but a lot of potential. Maybe you find a good fund with a 60% chance to double your money within a year, but a 40% chance of losing it all. However, most likely your fear of losing the money altogether will keep you from doing so.

But when your greed takes over, you might then spend the extra money on an improved lifestyle. You might buy a fancy new car, and the payments eat up the money, for instance. This way you’re almost certain to lose 100%. This already gives you a glimpse of how important it is to educate yourself financially. Since we receive no financial education in school or college, sadly, this is entirely up to you.

Look around and you’ll see plenty of financially ignorant people in your own life. Just take a look at local politicians. Is their city in debt? Your mayor might be great, but unfortunately, he probably doesn’t know how to deal with money.

If you want to save this summary for later, download the free PDF and read it whenever you want.

For the same reason 38% of Americans don’t save anything for their retirement . The only way for you to counteract this is to  start now.  Today is the youngest you’ll ever be, so take a close look at what you can and can’t afford. This way you’ll be able to set realistic financial goals , even if it means waiting for that shiny new BMW.

Next, adopt the mindset of “work to learn” instead of “work to earn”. Take a job in a field you have no clue about, such as sales, customer service or communications, to develop new skills – you never know what they might be good for . Set aside 5% of your income each month to buy books, courses and attend seminars on personal finance to start building your financial IQ .

The first step toward building wealth lies in the mindset of managing risks instead of avoiding them. Also, learn about investments to understand that it’s better to not play it safe because you’ll miss big potential rewards. Don’t start big, just set aside a small amount, like $1,000 or even $100, and invest it in stocks, bonds, or even tax lien certificates . Treat the money as if it’s gone forever and you’ll worry less about losing it.

As soon as you start your journey towards wealth, you’ll realize that it’ll be quite a long one. That’s why it’s important to stay motivated. Kiyosaki suggests creating an “I want” and an “I don’t want” list. Include items like: “I want to retire at age 50.” or “I don’t want to end up like my broke uncle.”

Another idea is to pay yourself first each month.  Take the portion of your salary you want to spend on stocks or your financial education, invest it, and pay your bills afterward. It’ll create pressure to be creative in making money and show you what you can afford.

Use your money to acquire assets  instead of liabilities . Assets are stocks, bonds, real estate that you rent out, royalties (for example from music ) and anything that generates money and   increases in value over time.  Liabilities can be cars with monthly payments, a house with a mortgage, and of course debt.  Anything that takes money out of your pocket each month is a liability .

There’s no rush. Just stay at your full time job and “mind your own business”. In this case, your job is what pays the bills and your business is what makes you wealthy.  Build your business on the side and use it to invest in assets until your assets eventually become the main source of your income. You can even file a corporation to be taxed only  after  you’ve earned and invested, instead of being taxed  before investing as an employee and trying to live off what’s left.

The most important thing is that you start today . You are your own biggest asset, so the first thing you should put some money into is yourself.

I read the book a year ago and I loved it. I felt a little heartbroken when I found out that most of the story is made up and that there’s so much criticism around Robert and the book. However, that doesn’t make it less of a good story or advice.

Unfortunately, the story of his two Dads is what makes the book great – and it’s completely missing in this summary on Blinkist. While the financial advice is sound in the summary, it’s not nearly as powerful as it is when you get it wrapped in the book’s story.

The book isn’t too long either, and the initial story is mostly covered in the first 50 pages, so I highly recommend you get a copy of the book and read it yourself. It costs less than $10, which I think makes it a great investment. And isn’t that what you came here for?

Listen to the audio of this summary with a free reading.fm account:

The 9-year-old who just got her first allowance, the 42-year-old who’s worried about her job being secure, and anyone who doesn’t know what the definition of an asset is.

Last Updated on July 25, 2022

Niklas Göke

Niklas Göke is an author and writer whose work has attracted tens of millions of readers to date. He is also the founder and CEO of Four Minute Books, a collection of over 1,000 free book summaries teaching readers 3 valuable lessons in just 4 minutes each. Born and raised in Germany, Nik also holds a Bachelor’s Degree in Business Administration & Engineering from KIT Karlsruhe and a Master’s Degree in Management & Technology from the Technical University of Munich. He lives in Munich and enjoys a great slice of salami pizza almost as much as reading — or writing — the next book — or book summary, of course!

*Four Minute Books participates in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising commissions by linking to Amazon. We also participate in other affiliate programs, such as Blinkist, MindValley, Audible, Audiobooks, Reading.FM, and others. Our referral links allow us to earn commissions (at no extra cost to you) and keep the site running. Thank you for your support.

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Book Summaries

Rich dad poor dad summary: key takeaways & review.

Senior Content Marketing Manager

March 8, 2024

Few personal finance books have reached the cult status that the book Rich Dad, Poor Dad has.

When first published in 1997, it impacted the finance world by introducing revolutionary ideas. It changed the way most people think about money and how to acquire wealth.

If you haven’t read the book but want a gist of all the brilliant ideas it introduced, read this detailed Rich Dad, Poor Dad summary. You will also find the best quotes, key takeaways from the book, and practical ways to implement them.

Let’s get started.

Rich Dad Poor Dad Book Summary at a Glance

1. focus on assets, not liabilities, 2. get a financial education, 3. run your own business, 4. understand the tax code and legal system, 5. learn to invent money, 6. work to learn, not for money, 7. take financial risks, 1. the rich don’t work for money; only the poor do, 2. rich people acquire assets, and poor people acquire liabilities, 3. it doesn’t matter how much money you make but how much you save, 4. financial aptitude is what you do with the money you earn, 5. our single most valuable asset is our mind, popular rich dad poor dad quotes, apply rich dad poor dad learnings with clickup, ace financial management with clickup.

Rich Dad, Poor Dad by Robert T. Kiyosaki is one of the most important books on personal finance that introduced a new perspective on wealth management.

The author explains key concepts of financial management by comparing and contrasting the financial philosophies of his two dads—the rich dad and the poor dad.

His poor dad was a highly educated, salaried man who believed in hard work, job security, and formal college education.

His rich dad was an entrepreneur who didn’t believe in formal education—he believed in financial literacy. He had a different view on financial management than his poor dad. He believed that the only way to build wealth is to run a business and invest in assets that generate passive income streams.

The book’s most notable and revolutionary concept was Kiyosaki’s explanation of assets versus liabilities. He explained that assets bring in money while liabilities drain money.

Many people think of homes or cars as assets, but they’re liabilities. Investment and rental properties that generate income are the real assets.

Overall, the Rich Dad, Poor Dad book is about getting a financial education and making wise financial decisions to acquire wealth and escape the rat race.

Key Takeaways from Rich Dad Poor Dad by Robert T. Kiyosaki

This classic has numerous gems, but we’re restricting ourselves to the seven biggest lessons you learn from the book.

The key focus of the book was to teach people to be financially independent and how to build wealth.

Kiyosaki says most people don’t understand the difference between assets and liabilities. He defines them as:

• Assets are things that bring in money, such as real estate, stocks, and businesses
• Liabilities, on the other hand, drain money from your pocket. These include home or car loans, credit card debt, and more

For this, he takes the example of a house, which most people consider an asset but is a liability. He explains that if you buy a house for yourself and use a mortgage, you only incur expenses and get no income from it, making it a liability.

Only commercial real estate, for which you get a rental income, is an asset. Build assets that bring you income, not liabilities that incur expenses.

The most important lesson from Rich Dad, Poor Dad is that financial literacy is crucial to financial success. 

He argues that school education fails in this regard and needs to effectively teach financial literacy, including the basics of financial management and wealth building.

He uses the example of his two dads—rich and poor—and the differences in their financial philosophies to point out why financial education is essential.

His poor dad was well-educated and believed in earning a salary. Though less educated, his rich dad was more financially literate and believed in investing money and running a business to build wealth and become financially independent.

So, as vital as it is to be well-educated, being financially educated is a whole different ball game. Invest in financial education and learn the basics of money management, risk assessment, and other vital aspects to manage your finances better.

Another takeaway from Rich Dad, Poor Dad is that having a job and earning a salary will not make you rich; running a business will.

According to Kiyosaki, the rich acquire assets and make the money work for them. They don’t work for others but only for themselves. 

Earning passive income from assets is the key to building wealth over time instead of relying on a salary. Rather than working hard to make money for someone else, let others work for you to make you richer. 

Kiyosaki says that the rich understand and use the tax code to their advantage.

He explains that you pay high taxes when you earn a salary or take loans. Some taxes include income tax, social security tax, and Medicare tax.

But if you run a Corporation, you can write off business expenses and pay less taxes. You can even reinvest the profit generated by a company in the business for expansion and growth. One can also pay out the profits to the owners as dividends, which face lower taxes than those incurred on salaries.

You can keep more of your earnings and minimize your tax liability by running a business.

This is one of the more controversial lessons taught by Robert T. Kiyosaki, where he says that hard work does not help you earn money; making strategic decisions does.

He discounts the philosophy that working hard and doing a good job will make you wealthy. Instead, he argues that the rich invent money, not earn it. They capitalize on opportunities, take risks, and create multiple passive income streams to acquire wealth.

The lesson?

Don’t work for money. Buy assets that will work to earn you money and deliver infinite returns. Some examples of such assets include

• Businesses that don’t require active supervision
• Rental properties that provide a passive income
• Financial investments that pay dividends over time

Another key takeaway from Rich Dad, Poor Dad is that the rich work to acquire skills, not to earn money.

If you work to earn a paycheck, you will never get out of the rat race and acquire real wealth. However, if you work to develop new skills, you will become more talented and open new earning opportunities for yourself in the long run.

This mindset shift directs people from aspiring for well-paying jobs to becoming entrepreneurs. He also emphasizes the importance of building marketable skills and uses McDonald’s as an example. 

When he asked a room full of people, “Who can make a better hamburger than McDonald’s?” almost everyone raised their hands. Yet, McDonald’s is a multi-billion dollar business. 

Everyone can make a great hamburger, but turning it into a profitable business is a more valuable skill. So, acquire marketable skills that help you earn money and work to upskill yourself, not to earn a paycheck.

Take risks to become rich. If you follow in the footsteps of everyone else, you will be a part of the crowd. If you want to escape the rat race, you must do something different. The rich try new things and explore various opportunities instead of letting them pass by. If you want to gain massive profits, you must take high risks.

Kiyosaki explains that job security differs from financial security. A secure job provides a false sense of security that could lead to complacency. External factors can always change that, and you may lose your job, no matter how secure you think it is.

However, investing in stocks, bonds, real estate, and other assets that create multiple income streams will make you financially secure. If one income stream is affected, you’ll still have many more.

Does that mean you must take unnecessary risks?

Absolutely not! He emphasizes the importance of taking calculated risks to achieve financial success. You must carefully weigh your options but don’t hesitate to bet on a good opportunity because of limiting beliefs and risk aversion.

The Five Big Ideas

Here are five big ideas from the book that you should understand and implement to achieve financial success.

The wealthy do not work for money but have their money work for them.

They invest in assets and create multiple passive income streams. Kiyosaki delved into the idea more in his second book ‘The Cashflow Quadrant.’

If you invest in others’ business—via stocks, for instance—you are letting your money work for you to generate more money. You’re not actively working for it, yet you’ll generate income and gather wealth over time.

Wealthy people build wealth by acquiring assets that generate income, such as stocks, bonds, and real estate.

Poor people acquire homes, cars, and other possessions that look like assets but are liabilities because they drain money.

The only money that makes any difference in your life is the money you save. You may earn a lot but pay taxes and spend it on essential expenses, leaving next to nothing with you.

Earning a lot of money doesn’t make you rich, but keeping most of it does. If you want to be wealthy, you need to learn how to maximize your tax savings and keep most of the money you make.

Earning money is the first step. To be wealthy, you need the financial aptitude to know what to do with that money.

Investing in financial assets is the best way to use your money and let it work for you. Buy stocks, bonds, rental properties, and other income-generating financial assets.

Financial literacy will help you gain financial intelligence and learn how to have your money earn more money.

Lastly, if you want to learn anything from the book Rich Dad, Poor Dad , let it be this—your mind is your most valuable asset.

It’s not your material possessions—house, car, etc.—or money or anything else.

If you have a keen mind and train it well to develop a strong financial IQ, you can gather wealth and become rich. It’s your mindset and values that you need to change. 

Change how you think about money, including how to earn and manage it, to change your financial status and become wealthy.

Rich Dad, Poor Dad is full of great quotes on personal finance and money management. It provides smart advice on how to make money, generate wealth, and change our mindsets about money.

Here are five inspirational quotes from the book. 

• “In the real world, the smartest people are people who make mistakes and learn. In school, the smartest people don’t make mistakes.”
• “The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.”
• “Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.”
• “It’s not what you say out your mouth that determines your life. It’s what you whisper to yourself that has the most power.”
• “Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.”

Rich Dad, Poor Dad teaches the fundamentals of financial management.

While it is good to set a firm foundation for good wealth management, there must be a comprehensive solution to manage your wealth practically.  If you’re looking for a useful tool to manage your cash flow, you must try ClickUp Finance .

Use it to create custom dashboards to track your income and expenses, manage project budgets , and manage your payments. ClickUp offers numerous finance and accounting templates to help you manage your finances without starting from scratch. 

Use these ClickUp Finance and Accounting Templates to create financial statements, manage accounts payables and receivables, and all other financial accounting tasks for your business.

The ClickUp accounting template is ideal for managing your business accounts, payables, and receivables. It is a customizable template that you can modify to your specific requirements.

If you agree with Rich Dad’s philosophy in Rich Dad, Poor Dad , you understand how important it is to track your expenses. The ClickUp Business Expense and Report Template can help you with that.

Use the ClickUp Cost-Benefit Analysis Template to weigh your strategic business decisions and risky financial investments.

Finally, check out ClickUp’s project budget templates to ensure each project remains profitable and you earn more than you spend. After all, that’s what the Rich Dad taught us—what matters is how much money we keep, not how much we earn. 

Overall, Rich Dad, Poor Dad is a book that will change your mindset about money and how to become rich. It teaches valuable concepts, bursts several myths, and gives you actionable information. 

Ready to put Robert T. Kiyosaki’s valuable financial lessons to practical use? 

Use ClickUp to simplify your business’s finance and accounting processes and focus on how you can tap on opportunities to generate wealth.

Sign up for free on ClickUp and explore its financial features and more!

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Book Review: “Rich Dad Poor Dad” by Robert T. Kiyosaki

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“Rich Dad Poor Dad” is a groundbreaking personal finance classic penned by Robert T. Kiyosaki that challenges conventional beliefs about money and wealth. With its straightforward narrative and practical insights, the book has captivated millions worldwide, making it a must-read for anyone seeking financial independence.

In this engaging memoir, Kiyosaki contrasts the financial teachings of two father figures in his life: his biological father (referred to as “Poor Dad”), who followed traditional paths of education and stable jobs, and the father of his best friend (nicknamed “Rich Dad”), a successful entrepreneur who viewed money and investing from a unique perspective.

One of the book’s central tenets is the importance of financial education, which Kiyosaki believes is inadequately taught in schools and homes. He highlights how traditional schooling often perpetuates the “get a good job, work hard, save money, and retire” mindset, which can trap individuals in the cycle of living paycheck to paycheck. In contrast, “Rich Dad” imparts valuable lessons about the significance of financial literacy, creating assets, and leveraging money to work for you.

Throughout the book, Kiyosaki shares simple yet profound principles that can lead to financial success. He emphasizes the significance of investing in oneself, acquiring assets that generate passive income, and avoiding excessive liabilities that drain one’s financial resources. These fundamental concepts, such as distinguishing between assets and liabilities, have inspired many readers to rethink their approach to money and adopt a more strategic mindset.

Furthermore, “Rich Dad Poor Dad” stresses the value of taking risks and stepping out of one’s comfort zone to seize investment opportunities. Kiyosaki’s own experiences as an entrepreneur demonstrate that calculated risks can yield substantial rewards, paving the way to financial freedom.

Critics argue that some of Kiyosaki’s advice might be oversimplified, and his examples may not apply universally. However, the book’s true strength lies in its ability to ignite curiosity and encourage readers to explore the world of finance and investing further.

Lessons Learned from “Rich Dad Poor Dad”

The Importance of Financial Education : The book emphasizes the need for a solid financial education, which extends beyond traditional schooling. Understanding money, investing, and financial principles is crucial for achieving financial independence.

Distinguishing Assets from Liabilities: “Rich Dad” teaches the importance of knowing the difference between assets and liabilities. Acquiring income-generating assets and minimizing liabilities are essential steps towards building wealth.

The Power of Passive Income: Creating streams of passive income is a key aspect of achieving financial freedom. By investing in assets that generate income without constant effort, individuals can secure their financial future.

Embrace Risk and Learn from Failure: “Rich Dad” encourages taking calculated risks and viewing failures as valuable learning experiences. Embracing risks and learning from mistakes can lead to significant opportunities and growth.

Challenge Conventional Beliefs: The book challenges traditional notions about money, work, and success. By questioning conventional wisdom and thinking outside the box, readers can discover alternative paths to financial prosperity.

Work to Learn, Not Just to Earn: Kiyosaki advocates for a mindset shift from working solely for a paycheck to using work as a means to gain valuable skills and knowledge. Continuous learning and self-improvement can lead to increased earning potential and financial success.

Avoid the Rat Race: The “Rat Race” refers to the cycle of working for money to pay expenses, leading to perpetual financial struggle. The book encourages breaking free from this cycle by focusing on building assets and passive income.

Make Money Work for You: Instead of working tirelessly for money, “Rich Dad” advises making money work for you through smart investments and passive income streams.

Seek Opportunities in Adversity: Kiyosaki shares how challenging economic times can present opportunities for those who are financially educated and prepared. Being proactive during economic downturns can lead to substantial gains.

Foster a Mindset of Abundance: “Rich Dad” emphasizes cultivating an abundance mindset rather than dwelling on scarcity. Adopting a positive outlook and believing in one’s ability to create wealth can lead to greater financial success.

Learn to Manage Taxes: Understanding and managing taxes effectively can significantly impact one’s financial well-being. “Rich Dad” highlights the importance of tax education and legal strategies to minimize tax burdens.

Focus on Long-Term Goals: Building wealth is a gradual process that requires discipline and long-term thinking. “Rich Dad” advises setting clear financial goals and consistently working towards them over time.

In conclusion, “Rich Dad Poor Dad” is a compelling book that encourages readers to reevaluate their attitudes towards money and presents alternative ways of thinking about wealth and financial independence. While some aspects might be subject to individual interpretation, the book’s core message about financial education, smart investing, and embracing opportunities is undeniably valuable. For those seeking to improve their financial well-being and break free from conventional money paradigms, this book serves as a thought-provoking and inspiring guide.

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The Spreadsheet Dad

A family and personal finance blog.

Book Review: Rich Dad Poor Dad – Robert Kiyosaki

September 1, 2018 thespreadsheetdad.

Rich Dad Poor Dad was the first personal finance book I read, it also happens to be one of the most popular personal finance books ever written, having sold 32 million copies (at the time of publishing this article).

In the book author Robert Kiyosaki recounts the entertaining stories from his childhood, right through to adulthood and along the way points to the lessons from his two ‘Dads’. The two ‘Dads’ being his Rich Dad, who is actually his friends father and his Poor Dad, who is his real father.

The stories are quite entertaining and fun to read, particularly the stories from his childhood learning from his Rich Dad. From setting up a highly successful comic book library from his parents basement to getting put to work for free in one of his Rich Dads stores.

Whilst Robert provides 6 lessons (listed below) the book is not exactly an instructional style finance book, rather it is more about driving home the importance of mindset in wealth creation.

The rich don’t work for money

The importance of financial literacy

Minding your own business

Taxes and corporations

The rich invent money

The need to work to learn and not to work for money

In the book his friend’s father, the “Rich Dad”, takes him under his wing at a young age and helps him understand business and how to become wealthy. During this education from his “Rich Dad” he becomes well aware of why his real dad is poor despite being well educated and having a good and stable job.

People tend to have polarising views on the book, some love it and some think it is rubbish. Personally I think, while it is certainly not perfect and there are parts that are quite vague around the “examples” there is certainly a lot of value to be had from Rich Dad Poor Dad, especially around having the correct mindset to become wealthy, how to recover from failure and how to maintain wealth.

Our education system is flawed

Robert very rightly points out that our current education model is designed to produce employees and does not encourage entrepreneurship, highlighting the need for financial literacy to become part of the curriculum.

This is a subject that is very close to my heart, having two kids of my own so I could not agree with this and am personally doing everything I can to ensure my kids grow with a good level of financial literacy.

If nothing else from this book I took away this little tidbit that I use with myself and my kids when considering an expenditure that is not currently within reach, and I wish it is something that I knew sometime ago.

My poor dad said, “I  can ‘t  afford it . My rich dad asked, “How  can I afford it ?”

This line alone helps shift the mindset from poor to rich.

(I have just purchased Scott Pape’s latest book  The Barefoot Investor for Families: The only kids’ money guide you’ll ever need so I have to have a review up shortly.)

What is an Asset?

This is perhaps one of the more polarising views that Robert discusses in his book.

An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket.

In general people consider their home an asset as it grows in value, however Robert’s view is that is actually a liability as it take money from your pocket, even if you have paid it off in full it still takes money from you via maintenance cost and utility costs and it does not produce you any income.

Whilst this does not exactly align with general accounting standard, in order to become financially free you must have income generating assets. There is no use being equity rich and cash poor.

I tend to agree with Robert, this is the view that people should be taking when considering their investments. What good is an investment property that is losing you money? How can it be an asset if it is not putting money in your pocket each month?

There are points in the book where the Robert does seem to downplay the risk in some of his investment suggestions, which has lead to some criticism. The types of deals that he talks about are also not easily accessible to most people and in some cases may not even be relevant in the current economic climate.

In his defence he does also say that you should not invest in something that you do not fully understand.

In summary, I think this book is an excellent starting point for someone beginning the journey to financial freedom as it does help you to shift your mindset when thinking about money. I have also read  Rich Dad’s Cashflow Quadrant which builds on many of the things in this book and I also would recommend.

Thanks for reading.

If you have an read Rich Dad Poor Dad I would love to hear your opinion in the comments below.

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Rich Dad Poor Dad Book Summary, Review, Notes

Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter is a book that came out in 1997 and focuses on the importance of financial literacy from an early age. 

Throughout the book, the author explains how a person can increase their wealth by investing in assets and by being smart with money.

Book Title—  Rich Dad Poor Dad Author —  Robert Kiyosaki, Sharon Lechter Date of Reading—   February, 2023 Rating—   9/10

Table of Contents

What is being said in detail.

Rich Dad Poor Dad follows snippets of Robert Kiyosaki’s childhood as he starts learning about money from the young age of nine. 

The name of the book comes from Kiyosaki’s real father who was the “poor dad” and his friend’s father who was the “rich dad”. 

His real father was a professor who earned a lot yet always struggled financially, while his friend’s father, an entrepreneur who left school at an early age ended up as one of the richest people in Hawaii. 

Kiyosaki often tried to understand the perspective of both his rich dad and poor dad, however, his rich dad’s advice is what helped him gain knowledge of finances and acquire wealth.

The book introduces the concepts of cash flow, balance sheet, income statement, assets, and liabilities in a simple manner, easy for everyone to understand. 

The author wishes that everyone was taught the basics of finances from childhood like he was, which he lists as one of the reasons for writing this book. 

The importance of knowing the difference between assets and liabilities and focusing on investing in assets is emphasized through multiple chapters and called “the number one and the only rule”.

Rich Dad Poor Dad consists of 10 chapters and an epilogue. 

Chapters contain simple explanations of basic finance concepts, often followed by pictures and examples from the author’s life or from his family and friends.

Introduction

Introduction explains the idea behind the book and emphasizes the importance of financial literacy over the standard, outdated education received at school. 

In the wake of constant global and technological changes, knowledge of finances might just be of the greatest use for financial independence.

Chapter One 

Chapter 1 highlights the contrast between Robert’s rich dad and poor dad,  as it shows both of their perspectives on money and wealth. 

Robert decides to follow the rich dad’s advice, which were based on six lessons: 

• The Rich Don’t Work for Money, 
• Why Teach Financial Literacy, 
• Mind Your Own Business, 
• The History of Taxes and the Power of Corporations, 
• The Rich Invent Money, and 
• Work to Learn Don’t Work for Money.

Chapter Two – Lesson One: The Rich Don’t Work For Money

In Chapter 2 Robert and his friend Mike ask Mike’s dad, the rich dad, to teach them how to be wealthy and successful. 

They start working for him every Sunday, and at the age of 9 learn what it is like to live as an average adult – earning money and spending it. Rich dad advises them to use their head over emotions when it comes to money.

Chapter Three – Lesson Two: Why Teach Financial Literacy?

In Chapter 3 Robert speaks about, as he says, ‘rule number one and the only rule’, which goes as follows “You must know the difference between an asset and a liability, and buy assets”. 

This chapter contains simple drawings explaining the basics of cash flow, income statements, and balance sheets.

Chapter Four – Lesson Three: Mind Your Own Business

Chapter 4 suggests that a person should focus on increasing their assets and in that way “work for themselves”, instead of working and earning money for someone else their whole lives (for employer, government, bank).

Chapter Five – Lesson Four: The History of Taxes and The Power of Corporations

Chapter 5 talks about the history of taxes and how understanding that concept and making it work to one’s advantage makes the difference between the rich and poor or middle class. 

The importance of financial IQ is also mentioned and it is based on four areas: accounting, investing, understanding markets, and the law. 

Chapter Six – Lesson Five: The Rich Invent Money

Throughout Chapter 6 Robert explains how even “risky” investments are not gambling if one knows what they are doing; it becomes gambling “if you’re just throwing money into a deal and praying”. 

He argues that financial intelligence is knowing how to take good opportunities that come your way. 

Kiyosaki also talks about CASHFLOW, the investment game he came up with in order to make investing easier to comprehend for people with different backgrounds

Chapter Seven – Lesson Six: Work to Learn – Don’t Work for Money

Chapter 7 describes how knowing a little bit about a lot is better than specializing in just one thing. 

Kiyosaki notes that the main management skills needed for success are management of cash flow, management of systems, and management of people.

Chapter Eight – Overcoming Obstacles

Chapter 8 states five reasons why even financially literate people might not acquire assets that will produce a satisfying cash flow.

•     Arrogance . The cure to arrogance is realizing and accepting our ignorance, and choosing to educate ourselves on the subject.

Chapter Nine – Getting Started

Chapter 9 offers ten steps to awaken financial genius:

Another important thing to note is that a person needs to stay true to themselves on the road to wealth.

Rather than what we know, how fast we learn is more important in the information age.

If we want knowledge, money, or information, we should first give those things to others in order to receive them.

Chapter Ten – Still Want More? Here are Some To Do’s

In Chapter 10 the author shares some practical steps on how to start the journey of financial literacy and wealth, such as looking for new ideas, finding someone who has done what we want to do, taking classes, reading and attending seminars, making a lot of offers, and learning from history.

One of the more compelling steps instructs that “ action beats inaction ”.

In Epilogue the reader is offered an example of how to afford education for children and provide for retirement based on the case of Robert Kiyosaki’s friend. 

The author also invites the reader to learn how to make money work for them and therefore have an easier and happier life.

Most Important Keywords, Sentences, Quotes

Introduction.

“Getting a good education and making good grades no longer ensures success, and nobody seems to have noticed, except our children.”

“At my table was a banker, a business owner and a computer programmer. 

What greatly disturbed me was how little these people knew about either accounting or investing, subjects so important in their lives.”

“He knows that the world has changed, but education has not changed with it. 

According to  Robert, children spend years in an antiquated educational system, studying subjects they will never use, preparing for a world that no longer exists.”

“Remember that financial intelligence is the mental process via which we solve our financial problems.”

CHAPTER ONE 

“Both men offered me advice, but they did not advise the same things. Both men believed strongly in education but did not recommend the same course of study.”

“Although both dads worked hard, I noticed that one dad had a habit of putting his brain to sleep when it came to money matters, and the other had a habit of exercising his brain. 

The long-term result was that one dad grew stronger financially and the other grew weaker.”

“My poor dad would also say, ‘I’m not interested in money,’ or ‘Money

doesn’t matter.’ My rich dad always said, ‘Money is power.’”

CHAPTER TWO – Lesson One: The Rich Don’t Work For Money

“Most of the time, life does not talk to you. It just sort of pushes you around.

Each push is life saying, ‘Wake up. There’s something I want you to learn.’”

“Or if you’re the kind of person who has no guts, you just give up every time life pushes you. If you’re that kind of person, you’ll live all your life playing it safe, doing the right things, saving yourself for some event that never happens.”

“I’ll bet you that I earn more than your dad, yet he pays more in taxes.”

“They work very hard, for little money, clinging to the illusion of job security, looking forward to a three-week vacation each year and a skimpy pension after forty-five years of work.”

“Let me finish the other emotion, which is desire. Some call it greed, but I prefer desire. It is perfectly normal to desire something better, prettier, more fun or exciting.”

“The main cause of poverty or financial struggle is fear and ignorance, not the economy or the government or the rich. It’s self-inflicted fear and ignorance that keeps people trapped.”

CHAPTER THREE – Lesson Two: Why Teach Financial Literacy?

“Our assets are large enough to grow by themselves. It’s like planting a tree. You water it for years, and then one day it doesn’t need you anymore.”

“Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.”

“An intelligent adult often feels it is demeaning to pay attention to simplistic definitions.”

“Rich dad believed in the KISS principle—Keep It Simple, Stupid (or Keep It Super Simple)—so he kept it simple for us, and that made our financial foundation strong.”

“‘In accounting,’ rich dad would say, ‘it’s not the numbers, but what the numbers are telling you. It’s just like words.’”

“Cash flow tells the story of how a person handles money.”

“What is missing from their education is not how to make money, but how to manage money.”

“A person can be highly educated, professionally successful, and financially illiterate.”

CHAPTER FOUR – Lesson Three: Mind Your Own Business

“To become financially secure, a person needs to mind their own business.”

“The better I was at understanding the accounting and cash management, the better I would be at analyzing investments and eventually starting and building my own company.”

“An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.”

CHAPTER FIVE – Lesson Four: The History of Taxes and The Power of Corporations

“My rich dad did not see Robin Hood as a hero . He called Robin Hood a crook.”

“It was difficult to go to work for one of the biggest capitalists in town and come home to a father who was a prominent government leader. It was not easy to know which dad to believe.”

“The harder you work, the more you pay the government.”

“If you work for money , you give the power to your employer. If money works for you, you keep the power and control it.”

“My money was working hard to make more money. Each dollar in my asset column was a great employee, working hard to make more employees and buy the boss a new Porsche with before-tax dollars.”

CHAPTER SIX – Lesson Five: The Rich Invent Money

“We all have tremendous potential, and we all are blessed with gifts. Yet the one thing that holds all of us back is some degree of self-doubt.”

“Old ideas are their biggest liability. It is a liability simply because they fail to realize that while that idea or way of doing something was an asset yesterday, yesterday is gone.”

“Most people have an opportunity of a lifetime flash right in front of them, and they fail to see it. A year later, they find out about it, after everyone else got rich.”

“Financial intelligence is simply having more options.”

“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.”

“Another case for developing your financial intelligence over a lifetime is simply that more opportunities are presented to you.”

“It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying.”

“Great opportunities are not seen with your eyes. They are seen with your mind.”

CHAPTER SEVEN – Lesson Six: Work to Learn – Don’t Work for Money

“I am constantly shocked at how little talented people earn.”

“‘You want to know a little about a lot’ was rich dad’s suggestion.”

“Job is an acronym for ‘Just Over Broke.’”

“Once people are trapped in the lifelong process of bill-paying, they become like those little hamsters running around in those metal wheels.”

“So I wonder: Are workers looking into the future or just until their next paycheck, never questioning where they are headed?”

“I know of no other skills to be more important than selling and marketing.”

“The better you are at communicating, negotiating, and handling your fear of rejection, the easier life is.”

CHAPTER EIGHT – Overcoming Obstacles

“The primary difference between a rich person and a poor person is how they manage that fear.”

“For most people, the reason they don’t win financially is because the pain of losing money is far greater than the joy of being rich.”

“Losers avoid failing. And failure turns losers into winners.”

“Rich dad explained that criticism blinded while analysis opened eyes. Analysis allowed winners to see that critics were blind, and to see opportunities that everyone else missed. And finding what people miss is key to any success.”

“So what is the cure for laziness? The answer is—a little greed.”

“If I pay myself first I get financially stronger, mentally and fiscally.”

“When you know you are ignorant in a subject, start educating yourself by finding an expert in the field or a book on the subject.”

CHAPTER NINE – Getting Started

“A reason or a purpose is a combination of ‘wants’ and ‘don’t wants’.”

“I’ve learned that, without a strong reason or purpose, anything in life is hard.”

“Financially, with every dollar we get in our hands, we hold the power to choose our future: to be rich, poor, or middle class.”

“In today’s fast-changing world, it’s not so much what you know anymore that counts, because often what you know is old. It is how fast you learn.”

“Simply put, people who have low self-esteem and low tolerance for financial pressure can never be rich.”

“Too often today, we focus on borrowing money to get the things we want instead of focusing on creating money.”

“Copying or emulating heroes is true power learning.”

“Whenever you feel short or in need of something, give what you want first and it will come back in buckets.”

CHAPTER TEN – Still Want More? Here are Some To Do’s

“The definition of insanity is doing the same thing over and over and expecting a different result.”

“I also attend and pay for expensive seminars on what I want to learn. I am wealthy and free from needing a job simply because of the courses I took.”

“Without financial training, we all too often use the standard formulas to get through life: Work hard, save, borrow, and pay excessive taxes. Today, more than ever, we need better information.”

“It takes only a few dollars to start and grow it into something big.”

“With each dollar bill that enters your hand, you and only you have the power to determine your destiny. Spend it foolishly, you choose to be poor. Spend it on liabilities, you join the middle class. 

Invest it in your mind and learn how to acquire assets and you will be choosing wealth as your goal and your future.”

Book Review (Personal Opinion):

I often heard about this book but the thought of reading it has not crossed my mind until recently, and I am very glad that I decided to do so. 

Even with some background knowledge of finances and accounting, the book somehow broke it down and helped me understand the practical and real-life aspects instead of just theoretical ones. 

The whole point of the book was the author explaining to the readers these concepts the way it was explained to him when he was a child – simple and comprehensible.

The chapter builds on each other and it starts from the pure basics – the difference between assets and liabilities, and continues onto the history of taxes, overcoming setbacks on road to financial literacy, and other useful topics. 

My favorite part was the last chapter which gave us practical advice for beginners to implement to become wealthy and financially independent. 

Rating : 9/10

This Book Is For:

•   Parents who want to teach their children to be responsible and smart with money
•   Young individuals who seek wealth and independence and need a place to start
•   People who want to invest in assets such as real estate

If You Want To Learn More

Robert Kiyosaki explains how you can make money from nothing and other topics contained in his book in this 2018 interview at New Orleans Investment Conference . 

How I’ve Implemented The Ideas From The Book

This book motivated me to start taking matters into my own hands through small steps. 

I started reading about investing and subscribed to the Wall Street Journal, where I sometimes spend hours reading articles on current business affairs and following stock market news.

One Small Actionable Step You Can Do

Kiyosaki mentions the educational board game he came up with multiple times in the book, called CASHFLOW. 

It is a game designed for people who want to learn the fundamentals of investing through a fun simulation. Try playing it for free on Kiyosaki’s website www.richdad.com and see how well you understand the principles explained in the book.

Bruno Boksic

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Rich Dad Poor Dad by Robert T Kiyosaki – Book Review

Sep 29, 2016 | 13 comments

Rich Dad Poor Dad by Robert Kiyosaki  is probably the most well known ‘how to be rich’ books ever written. And it’s also one that I have been putting off reading for a long time.

I hate the branding – “what the rich teach their kids about money that the poor and middle class do not!” – and there’s a sort of snobbish cult following around the book that I can’t stand. I have also read quite a bit of criticism that has left with an image that it just tells you to get big loans, buy lots of property and aggressively chase being rich while laughing at the stupidity of the poor folk.

But I keep hearing quotes from it that I actually really agree with. A few days ago I was listening to a podcast and heard the quote:

“It’s not how much money you make, it’s how much money you keep..”

Well, that makes sense and is pretty close to what I bang on about all the time. So I finally bit the bullet and cynically started reading.

But the more I read the more I found myself nodding along. I don’t agree with everything he says. I think he excuses away a lot of social responsibility and that his personal investment stories are unhelpful.

But that’s beside the point. Whether his anecdotes are true or not, the fundamental concepts and his way of thinking about money and work are spot on. He has basically put into better words a lot of the things I try and talk about on this blog. Concepts such as financial independence, passive income and early retirement.

Here are the main points I have taken away from Rich Dad Poor Dad .

Financial Literacy Is not Properly Taught At School

I couldn’t agree more. We are taught to save, but to save for what? Bigger, better and more stuff.

But we are never taught about investments. That those savings don’t need to be spent but can be put to work to earn more money.

And those investments can quite quickly grow to earn more than we can make from working.

Most people get stuck in a loop:

Swap your time for money in a job – save – buy something – start again

That’s a never ending loop that doesn’t depend on how much you earn. As you get promoted and bring in more money, you just increase your spending. Constantly resetting the net worth to zero, or less than zero with credit cards, mortgages and loans.

Kiyosaki says that people end up in this loop because they never learned ‘financial literacy’. He claims, and I agree, that everyone  needs to learn financial literacy.

In fact, it is even more important if you’re not ‘materialistic’ or ‘don’t care about money’. Whether you like it or not, if you’re stuck in the above loop, then you are dependent on and a slave to money.

He defines wealth as the number of days you could survive at your current living standard if you lost your job today. If you can survive forever then you are financially independent. Unfortunately, most people, even those earning a fortune, couldn’t survive a month.

So how do you create wealth? In Rich Dad Poor Dad, Kiyosaki simplifies it by saying all you need to do is acquire assets and minimise liabilities .

Assets are anything that earns you money. Liabilities are anything that costs money.

Your Home Is Not An Asset

How many times have you heard people say that their home is their greatest investment?

A house and their employer’s pension is often the only investment that most people have. As soon as they have saved enough, they will upgrade to a bigger house.

Well by the Rich Dad Poor Dad definition, your home is not an asset and actually goes into the liabilities column. Living in a house costs you money and doesn’t earn you anything. Even if you don’t have a mortgage you are still paying for upkeep and taxes. The bigger house you have, the more it will cost.

We need shelter and to live somewhere. But don’t fool yourself into thinking that buying the biggest house you can is a good investment.

A house you have bought as an investment to rent out is an asset. A house you have bought to live in is not.

So if a house isn’t an investment what is?

Kiyosaki holds back from telling us what assets to buy (which is good because I disagree with a lot of his investments). But rather puts the focus on getting educated in investing and learning ‘the game’. He says your greatest asset is your mind and you should continually invest in improving it. Something else I agree with !

He personally has made most of his money from investment properties and small cap stocks and shares, but doesn’t say that is the only or best way. The important thing is to make sure that you are minimising your liabilities, growing your assets and learning financial literacy.

Actually, that’s not the most important thing. The most important thing is to:

Take Responsibility For Your Financial Future

Despite being written 20 years ago, I believe this is even more important now than then.

I’ve been hearing it said more and more that by the time my peers and I reach retirement age, there won’t be a retirement age and there won’t be any state pension. Well if that’s what you believe, what are you going to do about it?

My Facebook feed is full of wailing at our dismal future and complaining that the government doesn’t care. But there is almost no personal planning for that future.

Regardless of your political point of view, you can’t bury your head in the sand. We need to accept the facts of life and adapt. If you believe there is a chance that you will soon be without a safety net from the government or employer then you better get to work building your own safety net.

We have very little control over what anyone else decides to do. Our boss, the government, our neighbours. But we do have a lot of control over how we choose to spend our time and money. The best thing you can do is get to work.

If you don’t know where to start then feel free to have a browse round this blog. Here are some more detailed articles to get you started:

• How I started a sporting goods brand
• What is financial independence?
• How I invest my money

In Summary: I Highly Recommend Rich Dad Poor Dad

There we have it. There is plenty more good stuff in Rich Dad Poor Dad and I recommend reading it . But if you can’t be bothered, here is my summary in three sentences:

• Take responsibility for your financial future.
• Learn how to invest and improve your financial education.
• Grow your money-making assets while shrinking your liabilities.

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Hello! My name is Sam Priestley and I would like to welcome you to my blog. I read all comments so any questions don’t hesitate to ask.

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Rich Dad, Poor Dad – Book Review

by Teacher Man | Jul 3, 2011 | Financial Advice & Investing | 1 comment

A couple weeks ago I wrote a review on my favourite personal finance book: The Wealthy Barber .  I have read many more personal finance books, and some probably give overall better advice than that found in Rich Dad, Poor Dad by Robert Kiyosaki ; however, the main idea presented in the book was responsible for opening my eyes to the difference in thinking between rich people and everyone else and this is why I would recommend reading it.  Kiyosaki seeks to show the reader how middle-class and sub-middle-class look at money much differently.  This revelation represents a fairly major philosophy change for most people and for that reason alone it is worth reading the book.  In order to illustrate his theme Kiyosaki compares the attitudes towards wealth that his “Poor Dad” (his biological father) and his “Rich Dad” (his best friend’s father) have.

Money Is A Means To An End… Not The End Result

The most important lesson that you can take away from Rich Dad, Poor Dad , is that rich people see money as a tool to build more wealth , while non-rich people usually see money as a means to get what consumer items they want.  Kiyosaki explains how his “Rich Dad” didn’t have much a formal education, but he worked hard and reinvested his profits into “assets,” or ventures that would eventually create more wealth.  His “Poor Dad” held multiple post-secondary degrees and worked his was up the ladder in the public education sector (obviously he wasn’t actually poor at all, Kiyosaki just uses him to illustrate his point about wealth management).  Eventually his “Poor Dad” got heavily involved with the teachers union, and was always talking about how the rich deserved to be taxed more so that everyone could have “just a little more” and live the “perfect” life.  He also felt that plenty of paid holidays and other benefits should be standard all the time so that he could enjoy life more.  Of course, “Poor Dad” also spent his paycheque on consumer goods for the family to enjoy and was always chasing a certain lifestyle that (as Kiyosaki points out) he wanted paid for by his tax-funded job.  This central theme of rich people seeing money as a tool to generate assets that then make more money, while everyone else tries to gain money in order to get specific items for their own consumption or use is pretty enlightening.

The Man With Two Dads…

After Kiyosaki outlines this central theme he goes onto explain how he patterned his life after this childhood.  He takes several jobs (including one in the military) that he sees as skill-building processes instead of the means to a paycheque.  All the while, he has his eye on opportunities to build wealth.  Eventually he becomes fairly successful from real estate wheeling and dealing.

Is All Debt Bad?

One interesting insight that Rich Dad, Poor Dad provided me with that has since been confirmed in talking to other knowledgeable people, is the attitude towards debt that people have and how this affects building wealth.  Poor people often get into debt using credit to buy consumer goods that they consume and then have to pay interest on.  This often leads to individuals leading excessive lifestyles and getting trapped in destructive debt cycles .  Middle-Class people like Kiyosaki’s Dad save up their money, pay off their mortgage as fast as possible, and generally see debt as evil.  You won’t get into trouble with this outlook, but you aren’t getting the maximum benefit either.  Rich people, or people who are focused on building wealth, see credit as just another tool that can help them acquire profitable assets.  Taking out debt for investment purposes is so encouraged by Canadian and American governments that they have even provided tax incentives to do it.  This is one of the ways wealthy people get out of paying a lot of taxes.  For example, Warren Buffett (3 rd wealthiest person in the world) observed a couple of years ago that he had a lower average tax rate on his income than his secretary did on her relatively modest paycheque.  Most people would wonder how this could be since we have a progressive tax system that is supposed to take higher tax rates from those that can afford it because of higher incomes.  The fact is that Buffett (and most wealthy people) make much of their money from the stock market and real estate investments.  The government always wants more money invested in these areas so they give huge tax breaks (and growing larger every few years) to people that use credit as a tool to build wealth.  Buffett’s secretary made her income from direct payment, whereas Buffett made his from stock market proceeds and he was rewarded for this with a lower tax rate.

I would be remiss if I didn’t mention the criticisms that Kiyosaki has had concerning the book over the years.  Critics have questioned everything from the identity of his “Poor Dad” to the legitimacy of his real estate investments, and Kiyosaki’s name has been mentioned in numerous other scams.  For me, the bottom line is that his book opened my eyes to the difference in perspective that allow some people to build wealth through a capitalist system, while others will forever be chasing the latest accessory in their quest to keep up with their neighbours.

Being A Capitalist In The 21 st Century

In today’s world economy it is almost inevitable that we will some transfer of wealth from mature economies such as those in Europe and North America to emerging powerhouses like China, India and Brazil.  The average worker salaries in both the public (see Wisconsin for further proof) and private sectors will be squeezed in the years to come.  The flip side of this coin is that if you think like a capitalist instead of a consumer, you can see that there are tremendous growth opportunities for companies based in these burgeoning regions.  I believe one of the best ways to grow your wealth in the years to come will be to invest abroad.  I would have never considered this line of thinking before reading Rich Dad, Poor Dad , and so regardless of if the details are completely correc,t I think the book is definitely worth a read.

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Couldn’t agree more with your review. :) It’s a good book to read if you want inspiration and to change your mindset on how one makes money, though I wouldn’t take any concrete advice from it (e.g. only look for foreclosures, spend big money on seminars to educate yourself on real estate etc.).

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How to Get Rich: Rich Dad Poor Dad by Robert Kiyosaki

Robert Kiyosaki’s “Rich Dad Poor Dad” has been a cornerstone of financial self-help literature since its publication in 1997. This book challenges conventional wisdom about money and offers a fresh perspective on building wealth.

Understanding the Difference Between Assets and Liabilities

Kiyosaki redefines assets and liabilities in a way that differs from traditional accounting. According to him, an investment puts money in your pocket, while a liability takes money out. This perspective shifts the focus from net worth to cash flow.

The Power of Financial Literacy

You can improve your financial literacy by reading books , attending seminars, and seeking mentorship from successful individuals. Remember, financial education is an ongoing process that requires continuous learning and adaptation.

Why Your House Isn’t Always an Asset

Overcoming the rat race mentality.

The “rat race” refers to the cycle of working to pay bills without getting ahead financially. Many people find themselves trapped in this cycle, living paycheck to paycheck. To escape the rat race , you must shift your mindset from employee to investor or entrepreneur.

This means focusing on building assets and passive income streams rather than relying solely on a salary. It’s about working smarter, not just harder, and making your money work for you.

The Importance of Passive Income

Examples include rental income from real estate , stock dividends, or intellectual property royalties. By developing multiple passive income sources , you can reduce your reliance on active income and gain more control over your time and financial future.

Investing for Cash Flow, Not Capital Gains

Why the rich don’t work for money.

One of Kiyosaki’s most provocative ideas is that the rich don’t work for money; they make money work for them. This doesn’t mean wealthy individuals don’t work hard . Rather, it suggests they focus on acquiring assets and building systems that generate wealth .

The Value of Real-World Financial Education

Seek opportunities to apply economic concepts in real situations through small investments, side businesses, or financial simulations. Embrace failures as learning opportunities and continuously refine your strategies based on real-world results.

How to Think Like an Entrepreneur

The tax advantages of business ownership.

Business ownership can offer significant tax advantages. Kiyosaki points out that business owners can often reduce their tax burden by deducting legitimate business expenses. This concept of “paying yourself first” involves reinvesting in your business and taking advantage of tax laws to keep more of what you earn.

Building Your Financial IQ

Continually work on improving these areas through study and practice. Higher financial intelligence leads to better decision-making and more opportunities for wealth creation .

The Myth of Job Security and Why You Need Multiple Income Streams

“Rich Dad Poor Dad” offers a paradigm shift in our thinking about money and wealth creation. You can chart a course toward financial independence by focusing on economic education, asset acquisition, and entrepreneurial thinking.

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