book report on rich dad poor dad

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Rich Dad Poor Dad - a quick book summary and review

Robert Kiyosaki’s Rich Dad Poor Dad  was first published in 1997 and quickly became a must-read for people interested in investing, money, and the global economy. The book has been translated into dozens of languages, sold around the world, and has become the #1 personal finance book of all time.

The overarching theme of Rich Dad Poor Dad is how to use money as a tool for wealth development. 

It destroys the myth that the rich are born rich, explains why your personal residence may not really be an asset, describes the real difference between an asset and a liability, and much more.

Key takeaways/lessons learned

• Six lessons Robert Kiyosaki learned from his Rich Dad about making money and the mistakes that Poor Dad made
• Five obstacles to overcome before you can become rich and stay rich
• Ten steps to follow to develop your financial genius
• Actionable to-do steps you can put to work right away

Chapter/Section Summaries

Rich Dad Poor Dad contains a total of 10 chapters plus the introduction, but much of the book is focused on the first 6 parts or lessons. 

We’ll cover the introduction and the first 6 lessons, then the remaining 4 sections later in this review.

• Introduction: Rich Dad Poor Dad
• Chapter 1: The Rich Don’t Work for Money
• Chapter 2: Why Teach Financial Literacy?
• Chapter 3: Mind Your Own Business
• Chapter 4: The History of Taxes and the Power of Corporations
• Chapter 5: The Rich Invent Money
• Chapter 6: Work to Learn – Don’t Work for Money

Introduction

Poor Dad was Kiyosaki’s biological father, a man who was highly intelligent and very well educated. Poor Dad believed in studying hard and getting good grades, then finding a well-paying job. Yet, despite these seemingly positive attributes, Poor Dad didn’t do well financially.

Rich Dad was the father of Kiyosaki’s best friend. He had a similar work ethic to Kiyosaki’s real dad, but with a twist. Rich Dad believed in financial education, learning how money works, and understanding how to make money work for you. Although he was an eighth-grade dropout, Rich Dad eventually became a millionaire by putting the power of money to work for him.

The book is written from Kiyosaki’s perspective of how Rich Dad went about making money and the mistakes that Poor Dad made. The first 6 chapters of Rich Dad Poor Dad make up about two-thirds of the book and discuss the 6 lessons that Kiyosaki learned from his Rich Dad.

Chapter 1: The rich don’t work for money

Oftentimes people misunderstand the title of this chapter, and mistakenly believe that it means the rich don’t work. In fact, the complete opposite is true.

Instead of reading the chapter title as “The Rich Don’t Work for Money”, what Kiyosaki means to say is that “The Rich Don’t Work for Money. ” Note that by putting the emphasis on the word “money,” this section takes on an entirely different meaning.

The truth is that the majority of rich people do work very hard, but they go about it differently than most people do. Rich people—and people who want to become rich—work and learn every day how to put money to work for them. As Rich Dad says, “The poor and middle class work for money. The rich have money work for them.”

Kiyosaki also notes that having a regular job is just a short-term solution to the long-term problem (or challenge) of creating wealth and financial freedom:

“It’s fear that keeps most people working at a job: the fear of not paying their bills, the fear of being fired, the fear of not having enough money, and the fear of starting over. That’s the price of studying to learn a profession or trade, and then working for money. Most people become a slave to money—and then get angry at their boss.”

Chapter 2: Why teach financial literacy?

The second chapter of Rich Dad Poor Dad explains the difference between an asset and a liability. Chapter 2 drives home the point that it’s not about how much money you make, but about how much money you keep.

An asset is something that has value, that produces income or appreciates, and has a market where the asset can easily be bought and sold:

• Assets produce income
• Assets appreciate
• Assets do both

Conversely, liabilities take money out of your pocket because of the costs associated with them. When Rich Dad Poor Dad was first published back in 1997, Kiyosaki created a lot of controversy with this statement. 

That’s because by definition, a personal residence isn’t an asset unless it appreciates enough to offset the costs of ownership. On the other hand, rental property is an asset because it can generate enough passive income to exceed the expenses of operating and financing the real estate.

As Kiyosaki writes in Chapter 2 of Rich Dad Poor Dad , “Want to grow rich? Concentrate your efforts on buying income-producing assets – when you truly understand what an asset is. Keep liabilities and expenses low. You’ll deepen your asset column.”

Chapter 3: Mind your own business

There are 2 key messages in this chapter.

• First, pay off your debts and start investing in income-producing assets as soon as possible.
• Next, stay financially healthy by spending your time (instead of your paycheck) and investing as much of your money as possible in assets.

Kiyosaki notes in Chapter 3 of Rich Dad Poor Dad that most people confuse their profession with their business. In other words, they spend their entire lives working in somebody else’s business and making other people rich.

One of my favorite quotes from this section is:

“The primary reason the majority of the poor and middle class are fiscally conservative is that they have no financial foundation. They have to cling to their jobs and play it safe. They can’t afford to take risks.”

Chapter 4: The history of taxes and the power of corporations

When reading this chapter, it’s important to keep in mind that Kiyosaki wrote Rich Dad Poor Dad as a motivational book, not to provide expert financial or tax advice. 

For example, Kiyosaki writes about the time he bought a Porsche and treated it as a business expense, using before-tax dollars. Buying a high-end luxury car when a much less expensive make and model would do could put an investor on the fast track to an IRS audit.

But putting the Porsche aside, the points made in this chapter discuss how to play the investment game smart. The rich understand the power of company structures and the tax code and use every legal means they can to minimize their tax burden.

Compare how business owners and investors with corporations such as C corps, S corps, or LLCs pay taxes to how most people pay tax:

Business owners with a corporate structure:

Employees who work for corporations:

Notice that employees who work for somebody else spend their money post-tax, while business owners earn and spend before paying tax.

Chapter 4 of the book also covers the 4 main components of what Kiyosaki calls “Financial IQ”: Accounting, Investment Strategy, Market Law, and Law.

As Rich Dad Poor Dad reminds us, understanding the legal and tax advantages significantly contribute to building long-term wealth:

“For instance, a corporation can pay expenses before paying taxes, whereas an employee gets taxed first and must try to pay expenses on what is left. . . Corporations also offer legal protection from lawsuits. When someone sues a wealthy individual, they are often met with layers of legal protection and often find that the wealthy person actually owns nothing [in their own name]. They control everything, but [personally] own nothing.”

Chapter 5: The rich invent money

Inventing money means finding opportunities or deals that other people don’t have the skill, knowledge, resources, or contacts for. 

In Chapter 5, Rich Dad Poor Dad explains there are 2 types of investors:

• Investment packages are bought by people who entrust their money to a developer or fund manager. This is the way that most people invest, such as buying shares of an ETF or putting money into a real estate crowdfunding venture.
• Professional investors look after their own investments, research the market to find deals that make sense , then hire professionals to manage the daily oversight. Professional investors have 3 things in common: 
• Identify opportunities that other people have not found
• Raise funds for investment
• Work with other intelligent people

Here’s one of my favorite closing thoughts from this chapter:

“Some people argue that there aren’t real estate bargains where they are, but there are prime opportunities everywhere that are overlooked. Most people aren’t trained financially to recognize the opportunities in front of them.”

Chapter 6: Work to learn—don’t work for money

Poor Dad was intelligent and well educated and worked for money because job security meant everything to him. Rich Dad became a millionaire by working to learn.

As Kiyosaki writes:

“I recommend to young people to seek work for what they will learn, more than what they will earn. Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race.”

In fact, that’s exactly what Kiyosaki did. He joined the Marines after graduating from college and learned the essential business skills of leading and managing people. After serving his country, Kiyosaki joined Xerox, overcame his fear of rejection to become one of the top 5 salespeople in the company, then left the corporate world to form his own business.

Chapter 6 of Rich Dad Poor Dad then discusses the synergy of management skills needed for success in business:

• Cash flow management
• Systems management
• People management

Overcoming Obstacles

Chapter 7 of Rich Dad Poor Dad begins by noting that “the primary difference between a rich person and a poor person is how they manage fear.”

Robert Kiyosaki isn’t talking about the type of fear that some people have when going to the dentist or watching The Exorcist . In the book, “fear” is about the fear of losing money and how to handle that fear.

It’s one of the 5 biggest obstacles people face on the path to becoming financially independent:

These roadblocks—and the failure to overcome them—are why people who have studied and achieved financial literacy are still unable to develop assets that generate plentiful amounts of cash flow.

Losing money is a fact of investing life, and so is the fear that comes along with it. Kiyosaki notes that he’s never met a rich person who has never lost money, but he’s met plenty of poor people who have never lost a dime because they’ve never invested .

Real estate investors who choose to act only on a “sure thing” are paralyzed by fear in disguise. People who can’t see the big picture and think big are the ones who almost never, ever succeed in investing or in life.

Everybody has doubts that affect self-confidence, and it’s easy to fall into the trap of playing “What if?” especially when friends and family are constantly reminding you of your potential shortcomings.

Things like the economy crashing, interest rates rising, and tenants not paying their rent are common “what if” fears that all real estate investors have. While these are important items to consider, it’s important not to allow the cynicism of others to overtake your control. Otherwise, you may become immobilized as opportunities pass you by.

In today’s interconnected world it’s easy to confuse being busy with actually accomplishing things that matter. In fact, according to Rich Dad Poor Dad , busy people are often the most lazy. 

Busy people arrive at the office early and leave late. They bring work home to finish at night and on the weekends. Before they know it, the people and things that matter most to them have disappeared. 

Instead of giving in to the call of the rat race and mistaking action for accomplishment, successful real estate investors are proactive and take care of themselves and their wealth first.

Habits control behavior. For example, most people pay their bills first before they pay themselves. The result is that there’s usually very little left over at the end of the month for investing.

Paying yourself first—even if you don’t have enough money to pay other people—makes you financially stronger, mentally and fiscally. In a way, it’s a form of reverse psychology. 

When you develop the habit of paying yourself first, you become motivated by the fear of not being able to pay creditors. In turn, you begin looking for other forms of income like investment real estate. 

Investors know what makes them money. But it’s the things they don’t know—and don’t know they don’t know—that makes them lose money. When people become truly arrogant, they honestly believe that what they don’t know doesn’t matter.

Train yourself to listen to what other people have to say, especially when it comes to money and investing. If you discover you’re ignorant about a subject, educate yourself or find an expert in the field.

Overcoming these 5 biggest obstacles on the path to real estate success requires a blend of balance and focus. There are plenty of “Chicken Littles” in the world today—people with a victimhood mentality who live their lives in cynicism and pessimism.

Rich Dad Poor Dad suggests filtering negative people and their fears out of your life. Instead, concentrate on the big picture and always ask, “What’s in it for me?”

Getting started

In Chapter 8, Rich Dad Poor Dad tells us that “there is gold everywhere, most people are not trained to see it.” 

Part of this lack of vision and clarity comes from the world we live in. We’re trained from a very young age to work hard for someone else, spend the money that we earn, and borrow more if we run short.

Unfortunately, people who choose to become one of the masses never take the time to develop their financial genius. 

Investing in real estate is the perfect example. The average person can spend a week out in the field and find nothing, while the investor who has trained himself can easily find four or five deals that make sense in a single day!

Here are the 10 steps to follow to develop your financial genius and discover the gold that’s already out there, just waiting to be found:

• Have a deep emotional reason or purpose for doing what you do, a combination of wants and don’t wants.
• Understand the power of choice and choose daily what to do, including choosing the right habits and educating yourself.
• Choose your friends carefully by leveraging the power of association, being careful not to listen to poor or frightened people.
• Master the power of learning quickly and develop a formula for making money.
• Pay yourself first by mastering the power of self-discipline to manage your cash flow, people, and personal time.
• Select great people for your team and compensate them generously for their advice, because the more money they make the more money you will make.
• Ask “How fast do I get my money back?” by focusing on return of investment first, followed by return on investment.
• Use money generated by assets you own to buy luxuries by focusing on self-discipline to direct money to create more.
• Have a role model to follow and tap into the power of their genius to put to your use.
• Realize that if you want something, you need to give something first.

Still want more? Here are some to-do’s.

In the final section of Rich Dad Poor Dad , Chapter 9, Kiyosaki pulls the key lessons of the book together into a checklist of actions you can start taking today:

• Stop doing what you’re doing by taking a break and assessing what is and isn’t working. 
• Look for new ideas by finding resources on different and unique subjects.
• Find a mentor who’s been where you're going, take them to lunch and pick their brain.
• Always be learning by taking classes, attending seminars, and reading.
• Make lots of offers (always with escape clauses) because eventually someone will say “Yes.”
• Spend 10 minutes each month for the next 12 months walking, running, or driving a certain area and looking for changes that create bargains.
• Shop for real estate deals when the market corrects, because profits are made when buying, not when selling.
• Learn how, when, and where to buy by investing in your education.
• Think bigger to get richer, because small thinkers don’t get the big breaks.
• Most people only look for what they can afford, so buy a bigger pie and cut it into pieces by finding a buyer first, then a seller.
• Negotiate volume discounts by thinking big, pooling people together, and buying in bulk.
• Read and learn from history, because history always repeats itself.
• Action always beats inaction.

Is Rich Dad Poor Dad Worth Reading?

The goal of Rich Dad Poor Dad is to motivate you to develop your own unique path to financial freedom. 

While the book doesn’t take a one-size-fits-all approach with ready-made answers, it does provide an excellent framework for creating your own objectives to build wealth by investing in real estate.

• Provides a contrarian view that is different from the “common knowledge” found in most personal finance education
• Focuses on turning income you earn into assets that produce even more income
• Encourages controlling spending and expenses
• Explains why investors should focus on real estate vs. other asset types
• Emphasizes the power of thought and continual learning
• Talks about taking action instead of just thinking about it
• Success examples in the book are unique to Kiyosaki’s specific situation and may be hard to replicate
• Some parts of the book also lack detail, which may make the concepts discussed more difficult to apply
• Frequently demeans people who are more comfortable following the herd rather than thinking for themselves
• Rich Dad Poor Dad is a motivational book, not a book written by a financial exper

Jeff has over 25 years of experience in all segments of the real estate industry including investing, brokerage, residential, commercial, and property management. While his real estate business runs on autopilot, he writes articles to help other investors grow and manage their real estate portfolios.

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• The Book “Rich Dad, Poor Dad” by Robert Kiyosaki Words: 654

Book Report: “Rich Dad Poor Dad”

Introduction.

The book “Rich Dad Poor Dad” was written by Robert Kiyosaki. The novel aims at enlightening people on how to achieve monetary success through rewarding business activities. It draws insights from the lives of two fathers who have disparate personalities and perspectives of money. The author compares the principles, financial practices, level of accomplishment, and ideas of the two dads. The book focuses on various ways of building up wealth through investments as opposed to working for a small salary.

The book starts with the narrative of two fathers and the early life of Robert Kiyosaki and his childhood best friend, Mike. One dad, who is his biological father, is a highly educated man, employed, and poor while Mike’s dad is an accomplished businessperson with only an eighth grade (Kiyosaki, 2018). Throughout the novel, the narrator likens his poor dad to individuals who have become susceptible to the vicious cycle of wanting to achieve more significant milestones in life but fail because they lack financial literacy (Kiyosaki, 2017). They spent much time in learning institutions reading books on societal issues without acquiring any valuable knowledge about money, perhaps because such lessons are excluded from the curriculum (Chu et al., 2017). On the other hand, his rich dad exemplifies a highly independent wealthy merchant who plays his cards well with the power of companies and the knowledge of taxation and financial accounting.

The book’s theme infers two essential impressions: willpower and audacious entrepreneurship. The narrator purposely relates to both concepts by providing numerous examples for each and emphasizing the significance of acquiring financial knowledge, how the power of corporations increases wealth among the rich, the role of fearlessness in overcoming obstacles, appreciating the speckled characteristics among human beings, and learning how to refrain from meddling in people’s businesses.

In the first lesson, the author alludes that the middle-class work for money as opposed to the rich people who let money work for them. The well-off father believes that individuals continue languishing in financial poverty because they do not understand this lesson. The author goes ahead to blame poor people for obliviousness, skepticism, and anxiety, among other characteristics that make them failures in life (Kiyosaki, 2017. A captivating twist arises when the author maintains that both fear and greed are catalysts to poverty. He states that poor people stay in job positions for a long time without realizing that their employers gain the most meaningful financial gains by allowing money to work for them.

The second lesson illustrates the importance of acquiring financial literacy. The author tries to show the audience the relevance of the education acquired from real-life scenarios as compared to that gained from ordinary school settings. He emphasizes that education should focus on creating and strengthening entrepreneurial mindsets rather than encouraging students to obtain good grades for future employment purposes. This reasoning shows distinctiveness in the handling of money matters between the rich and poor. Indeed, Kiyosaki (2018) believes that middle- and lower-class people regularly confuse liabilities, such as cars and expensive homes, with assets. He indicates that assets should generate money rather than create room for expenses.

In lesson three, the author wants people to get out of the rat race and start thinking about creating and developing their establishments. This example is illustrated where Kiyosaki (2018) explains the start of his professional career as a salesperson for Xerox photocopiers. He used his revenue to invest in real estate, and his income exceeded his salary in three years, prompting him to leave his job. In the fourth lesson, the narrator highlights the game of taxes and the power of corporations. He maintains that the rich have the supremacy to shield themselves from various ridiculous taxes by establishing companies. Employees earn taxed money from these establishments, protecting the owners from heavy duties.

The fifth lesson accentuates how the rich invent money through self-confidence. The author says, “Often in the real world, it’s not the smart who go ahead, but the bold.” (Kiyosaki, 2018, p. 112). This statement defies the notion that money comes along with more education, talent, or more contribution to society. He highlights changes that have defined wealth over time. The author states, “Land was wealth 300 years ago. So, the person who owned the land owned the wealth. Later, wealth was in factories and production, and America rose to dominance. The industrialist owned the wealth. Today, wealth is in the information. And the person who has the timeliest information owns the wealth.” (Kiyosaki, 2018, p. 113). Although the art of making money is learned, many people have no time to acquire financial skills.

The last lesson insists that people should work to learn and not to work for money. Kiyosaki explains how having a secure job was necessary for his poor dad. He was shocked by his low earnings, yet he was highly educated and talented. This lesson persuades people to expand their skill sets by getting out of their comfort zones and picking up some experiences in investment, sales, accounting, and law, among others. In a nutshell, the young Kiyosaki leaned towards the rich dad’s money principals.

Chu, Z., Wang, Z., Xiao, J. J., & Zhang, W. (2017). Financial literacy, portfolio choice, and financial well-being. Social Indicators Research , 132 (2), 799-820.

Kiyosaki, R. T. (2018). Why the rich are getting richer . Gramedia Pustaka Utama.

Kiyosaki, R.T. (2017). Rich dad poor dad: What the rich teach their kids about money that the poor and middle class do not! Paradise Valley, Ariz.

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Sam Thomas Davies

Rich Dad Poor Dad by Robert T. Kiyosaki

Buy on Amazon: Print | Audiobook  |  Get My Searchable Collection of 100+ Book Notes

The Book in Three Sentences

• Rich Dad Poor Dad is about Robert Kiyosaki and his two dads—his real father (poor dad) and the father of his best friend (rich dad)—and the ways in which both men shaped his thoughts about money and investing.
• You don’t need to earn a high income to be rich.
• Rich people make money work for them.

The Five Big Ideas

• The poor and the middle-class work for money. The rich have money work for them.
• It’s not how much money you make that matters. It’s how much money you keep.
• Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
• Financial aptitude is what you do with the money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you.
• The single most powerful asset we all have is our minds.

Want a Free Copy of My Summary?

Rich dad poor dad lessons.

• Lesson 1: The Rich Don’t Work for Money
• Lesson 2: Why Teach Financial Literacy?
• Lesson 3: Mind Your Own Business
• Lesson 4: The History of Taxes and The Power of Corporations
• Lesson 5: The Rich Invent Money
• Lesson 6: Work to Learn—Don’t Work for Money

Rich Dad Poor Dad Summary

“There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.”

“Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.”

“People’s lives are forever controlled by two emotions: fear and greed.”

“So many people say, ‘Oh, I’m not interested in money.’ Yet they’ll work at a job for eight hours a day.”

“Thinking that a job makes you secure is lying to yourself.”

“Intelligence solves problems and produces money.”

“You must know the difference between an asset and a liability and buy assets.”

An asset puts money in your pocket. A liability takes money out of your pocket.

“Illiteracy, both in words and numbers, is the foundation of financial struggle.”

“Money often makes obvious our tragic human flaws, putting a spotlight on what we don’t know.”

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

“Most people don’t understand why they struggle financially because they don’t understand cash flow.”

“The number-one expense for most people is taxes.”

Higher incomes cause higher taxes. This is known as “bracket creep.”

“More money seldom solves someone’s money problems.”

“The fear of being different prevents most people from seeking new ways to solve their problems.”

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

“Many financial problems are caused by trying to keep up with the Joneses.”

Once you understand the difference between assets and liabilities, concentrate your efforts on buying income-generating assets.

“The problem with simply working harder is that each of these three levels takes a greater share of your increased efforts. You need to learn how to have your increased efforts benefit you and your family directly.”

“Wealth is a person’s ability to survive so many numbers of days forward—or, if I stopped working today, how long could I survive?”

“The rich buy assets. The poor only have expenses. The middle-class buy liabilities they think are assets.”

“The rich focus on their asset columns while everyone else focuses on their income statements.”

“Financial struggle is often directly the result of people working all their lives for someone else.”

“The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else’s business and making that person rich.”

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

“Financial struggle is often the result of people working all their lives for someone else.”

“The primary reason the majority of the poor and middle class are fiscally conservative—which means, ‘I can’t afford to take risks’—is that they have no financial foundation.”

“One of the main reasons net worth is not accurate is simply because, the moment you begin selling your assets, you are taxed for any gains.”

“A new car loses nearly 25 percent of the price you pay for it the moment you drive it off the lot.”

“Keep expenses low, reduce liabilities, and diligently build a base of solid assets.”

Kiyosaki says he owns businesses that do not require his presence. “ If I have to work there, it’s not a business. It becomes my job.”

According to Kiyosaki, real assets fall into the following categories:

• Income-generating real estate
• Notes (IOUs)
• Royalties from intellectual property such as music, scripts, and patents
• Anything else that has value produces income or appreciates, and has a ready market

“For people who hate real estate, they shouldn’t buy it.”

Kiyosaki generally holds real estate for less than seven years.

Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities.

When Kiyosaki says mind your own business, he means building and keeping your asset column strong. Once a dollar goes into it, never let it come out.

“The best thing about money is that it works 24 hours a day and can work for generations.”

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

“A true luxury is a reward for investing in and developing a real asset.”

Kiyosaki’s rich dad did not see Robin Hood as a hero. He called Robin Hood a crook.

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

“Each dollar in my asset column was a great employee, working hard to make more employees and buy the boss a new Porsche.”

Kiyosaki reminds people that financial IQ is made up of knowledge from four broad areas of expertise:         

• Understanding markets

“A corporation earns, spends everything it can, and is taxed on anything that is left. It’s one of the biggest legal tax loopholes that the rich use.”

“Garret Sutton’s books on corporations provide wonderful insight into the power of personal corporations.”

“Often in the real world, it’s not the smart who get ahead, but the bold.”

Kiyosaki sees one thing in common in all of us, himself included. 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.

In Kiyosaki’s personal experience, your financial genius requires both technical knowledge as well as courage.

Kiyosaki always encourages adult students to look at games as reflecting back to them what they know and what they need to learn.

“Games reflect behavior. They are instant feedback systems.”

“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.”

“The world is always handing you opportunities of a lifetime, every day of your life, but all too often, we fail to see them.”

Richard uses two main vehicles to achieve financial growth: real estate and small-cap stocks.

“Simple math and common sense are all you need to do well financially.”

“The problem with ‘secure’ investments is that they are often sanitized, that is, made so safe that the gains are less.”

“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.”

“Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.”

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

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

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

“Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race.”

“Education is more valuable than money in the long run.”

“The reason so many talented people are poor is that they focus on building a better hamburger and know little to nothing about business systems.”

The main management skills needed for success are:

• Management of cash flow
• Management of systems
• Management of people

“The most important specialized skills are sales and marketing.”

“To be truly rich, we need to be able to give as well as to receive.”

“Giving money is the secret to most great wealthy families.”

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

There are five main reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow. The five reasons are:

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

“Failure inspires winners. Failure defeats losers.”

“Real estate is a powerful investment tool for anyone seeking financial independence or freedom.”

“A great property manager is key to success in real estate.”

The most common form of laziness is staying busy.

“Rich dad believed that the words ‘I can’t afford it’ shut down your brain. ‘How can I afford it?’ opens up possibilities, excitement, and dreams.”

“Whenever you find yourself avoiding something you know you should be doing, then the only thing to ask yourself is, ‘What’s in it for me?’ Be a little greedy. It’s the best cure for laziness.”

Richard has found that many people use arrogance to try to hide their own ignorance.

“There is gold everywhere. Most people are not trained to see it.”

“To find million-dollar ‘deals of a lifetime’ requires us to call on our financial genius.”

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

“Most people simply buy investments rather than first investing in learning about investing.”

Richard believes one of the hardest things about wealth-building is to be true to yourself and to be willing not to go along with the crowd.

“The rich know that savings are only used to create more money, not to pay bills.”

“The sophisticated investor’s first question is: ‘How fast do I get my money back?’”

If Richard could leave one single idea with you, it is that idea. Whenever you feel short or need something, give what you want first, and it will come back in buckets.

In the world of accounting, there are three different types of income:         

• Ordinary earned

Recommended Reading

If you like Rich Dad Poor Dad , you may also enjoy the following books:

• Building a Second Brain: A Proven Method to Organize Your Digital Life and Unlock Your Creative Potential  by Tiago Forte
• How to Win Friends & Influence People by Dale Carnegie
• Think and Grow Rich by Napoleon Hill

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Rich dad poor dad summary: key takeaways & review.

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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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Rich Dad, Poor Dad Summary – Robert Kiyosaki Book

Rich Dad Poor Dad is Robert Kiyosaki’s best-selling book about the difference in mindset between the poor, middle class, and rich. In this Rich Dad Poor Dad book summary, we’ll break down some of the best lessons Kiyosaki shares to help you become more financially literate. So, let’s dive in. 

Post Contents

20 Years… 20/20 Hindsight

Introduction, chapter one: lesson 1: the rich don’t work for money, chapter two: lesson 2: why teach financial literacy, chapter three: lesson 3: mind your own business, chapter four: lesson 4: the history of taxes and the power of corporations, chapter five: lesson 5: the rich invent money, chapter six: lesson 6: work to learn – don’t work for money, chapter seven: overcoming obstacles, chapter eight: getting started, chapter nine: still want more here are some to do’s, final thoughts.

Rich Dad’s Lesson 1: “The rich don’t work for money.”

In today’s world, there’s never been a more significant divide between the rich and all other income classes. Some economists in California even noticed that about 95% of income gains between 2009-2012 went to the wealthiest people in the world– the one percent. Thus, showing that the biggest increases in income go to entrepreneurs and investors– not employees.

Rich Dad Lesson: “Savers are losers.”

The emphasis on saving is only found in the poor and middle class. However, the reason why savers are losers is that since 2000 there have been three massive stock market crashes. 

• Dotcom Crash: 2000. 
• Real Estate Crash: 2007
• Banking Crash: 2008

The first three crashes of the 21st century pale in comparison to the great crash of 1929. When you look at the data visually, you can see how big of an impact the crashes were.

Notably, after each stock market crash, the American government and the Federal Reserve Bank started “printing money.”

Today’s interest rates are relatively close to zero, which is what makes savers losers. And the biggest savers are the poor and middle class. 

Rich Dad Lesson: “Your house is not an asset.”

When Robert Kiyosaki first published Rich Dad, Poor Dad in 1997, every publisher who had rejected his book had criticized the lesson regarding a person’s house not being an asset. Historically, people believed that your home was the biggest investment you can make. 

However, it wasn’t until 2007 when “subprime borrowers began to default on their subprime mortgages,” that people realized that a house wasn’t an asset.

The real estate crash was caused by the rich, not the poor. “The rich created financially-engineered products known as derivatives.” Even Warren Buffett hated these, calling them “weapons of mass financial destruction.” The derivatives were the cause of the housing market collapse. Yet, somehow, the poor were blamed even though there were approximately $700 trillion in financial derivatives. Believe it or not, but that number has since exploded to $1.2 quadrillion in financial derivatives. 

Rich Dad Lesson: “Why the rich pay less in taxes.”

Poor people often get angry when they learn rich people pay less in taxes. Instead, they should focus on learning from the rich as they pay fewer taxes legally.

The poor and middle class will always pay more taxes than the rich. This statement is true because it’ll always be the person who works for money who gets taxed the most.

When presidents promise to raise taxes on the rich, they typically mean the middle class. Not the real rich. 

Robert Kiyosaki had two fathers: a rich one and a poor one. One was highly educated with a Ph.D. and so intelligent he completed his undergraduate degree in only two years. The other father didn’t even finish the eighth grade. While both men worked hard, were successful, and earned a lot of money, there was always one who struggled with money. And the other dad, well, he became one of the richest people in Hawaii. 

By having two dads, with entirely different mindsets, Kiyosaki found himself comparing the two dads a lot. It was hard to figure out which dad he should listen to. Neither had found success yet. And both were experiencing financial struggles as they were still early in their careers.

Schools don’t provide financial education. Thus, causing the poor and middle class to be in debt. If millions of people need financial or medical assistance, Medicare and Social Security may run out. 

Transitioning from the mindset of “I can’t afford it” to “How can I afford it?” forces you to think instead of letting yourself off the hook. 

Poor Dad: The rich should pay more in taxes

Rich Dad: Taxes reward those who produce

Poor Dad: Study hard so you can find a good company to work for

Rich Dad: Study hard so you can find a good company to buy

Poor Dad: I’m not rich because I have children

Rich Dad: I must become rich because I have children

Poor Dad: Don’t talk about money over dinner

Rich Dad: Talk about money and business over dinner

Poor Dad: “Don’t take risks.”

Rich Dad: “Learn to manage risk.”

Poor Dad: A house is the biggest asset you own

Rich Dad: A house is a liability

Poor Dad: Pay your bills first

Rich Dad: Pay your bills last

Poor Dad: struggles to save a few dollars

Rich Dad: creates investments

Poor Dad: teaches how to write a strong resume

Rich Dad: teaches how to write a strong business and financial plan

Poor Dad: “I’ll never be rich.”

Rich Dad: “I’m a rich man, and rich people don’t do this.”

“The poor and middle-class work for money. The rich have money work for them.”

Growing up, Robert Kiyosaki went to the same school as the rich kids, simply because he lived on a different side of the street. Being poor, in a school filled with affluent students, made him seek an answer to the question, “how do I make money ?”

His best friend Mike was also poor, and so a friendship was struck between the two. The two spent an entire morning one Saturday brainstorming all the ways they could make money. Their first project wasn’t a success, nor was it legal. They decided to cast nickels out of lead to make money– literally. With a quick explanation of the laws of counterfeiting from Robert Kiyosaki’s poor dad, the pair went back to the drawing board. 

Robert Kiyosaki’s poor dad suggested that the two learn how to make money from Mike’s dad (Robert Kiyosaki’s rich dad). Poor dad had heard from his banker how good the rich dad is at making money. Mike arranged a meeting time, and the two began their lessons.

Robert Kiyosaki arrived at 8 o’clock sharp for his meeting with Mike’s dad. When the meeting began, the rich dad told the two that he’d be happy to teach them but won’t be doing it in a classroom style. He proposed that the two boys work for him so that he can teach them faster. The two weren’t allowed to ask questions about the deal. And so the first lesson was learned: opportunities are fleeting, so you need to jump on them when they arrive. He offered to pay Robert and Mike 10 cents an hour, for three hours, every Saturday. 

After a couple of weeks doing excruciatingly boring work, Robert told Mike that he wanted to quit . This response is what Mike’s dad was hoping for.

Before his meeting with his rich dad, Robert Kiyosaki’s poor dad told him to demand what he deserves at least 25 cents an hour and to quit his job immediately if he didn’t get a raise. Robert went to meet with his rich dad but was forced to wait 60 minutes longer than expected, which infuriated him. Robert felt that his rich dad hadn’t kept his end of the bargain of teaching him and that he was just trying to exploit him by making him work for him.

His rich dad noticed that Robert had sounded like his employees after only one month. Rich dad insisted that he was teaching Robert, but in a way that life teaches, not in the way that school does. The most effective way to learn is by doing, though most people consume education from books, which is the least effective way.

The main lesson he taught in the office that day was that Robert could either end up like his employees who blame others for his problems, or he could take another path and become a wealthy man.

Rich dad had suggested that the two boys find a new way to make money outside of working for someone else. 

Lesson 1: “The poor and middle-class work for money. The rich have money work for them.” 

Rich dad also shared how happy he was that Robert Kiyosaki got angry. He said, “anger is a big part of the formula, for passion is anger and love combined.” Fear is what controls employees that causes them to exploit themselves.

Rich dad continued, “…it’s fear that keeps most people working at a job: the fear of not paying their bills, the fear of being fired, the fear of not having enough money, and the fear of starting over.”

Employees often feel disappointed looking at their paychecks– especially after tax and deductions. This was nine-year-old Robert’s first introduction to taxes. It’s also how he learned that the rich don’t let the government do that to them, even though they earn more.

In a new deal, rich dad negotiated that Robert continues working for him, but for free. For the next three weeks, Robert and Mike worked for their rich dad for free. Then, on the third Saturday, he took them out to a park for some ice cream. He decided to introduce him to the trap of the rat race. He did this by offering to pay them twenty-five cents an hour. They said no. Rich dad then offered a dollar an hour. They said no. Then, two dollars an hour. They said no. Then, five dollars an hour. And they once again said no. The boys knew that they couldn’t be bought. They were committed to becoming wealthy. 

Rich dad later pointed out that poor people often say they’re not interested in money. Robert Kiyosaki thought back to the times his dad would say, “I’m not interested in money. I work because I love my job.” This is how poor people often cover themselves up.

It’s essential to not give in to your emotions, such as fear, so that you can prevent any quick reactions and think objectively about a situation. The reality is a job is merely a short-term solution to a long-term problem. Rich dad’s focus is on teaching the boys how to have a choice of thoughts instead of a knee-jerk reaction to things. 

One of the most empowering lessons rich dad taught in this section of Rich Dad Poor Dad was to “keep using your brain, work for free, soon your mind will show you ways of making money far beyond what I could ever pay you. You will see things that other people never see. Most people never see these opportunities because they’re looking for money and security, so that’s all they get.”

This lesson inspired the two boys to find a new way to make money. On one Saturday, they noticed Mrs. Martin cutting off the cover of the comic books and throwing them into a cardboard box. Since they weren’t allowed to resell the comic books, they decided to create a library for a fee where other kids could come over to read as many comic books as they like between 2:30 p.m. and 4:30 p.m. every day after school for only 10 cents. This deal was a bargain for the other kids who might’ve spent 10 cents buying a comic book. Each week, they averaged around $9.50, while paying Mike’s sister one dollar a week to manage the library. After three months, a fight broke out in the library, and Mike’s dad advised them to shut down the business. But they did manage to learn how to make money work for them instead of working for money. 

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

Robert Kiyosaki retired at the age of 47. He still works, but for him and his wife, Kim, working is an option as their wealth will continue to grow automatically.

In this section of Rich Dad, Poor Dad, Robert Kiyosaki shares a simple story. In 1923, the greatest leaders and richest businessmen joined together for a meeting in Chicago. Twenty-five years later, nine of them had their life end in the following ways:

• Four died broke
• One went insane
• Two were released from prison
• Two committed suicide

This unfortunate turn was likely due to their lives being drastically affected by the 1929 stock market crash and the Great Depression. 

The biggest financial lesson to learn is that it’s all about how much money you keep, not how much you make. And without financial literacy, you’ll lose your money soon.

Growing up, poor dad recommended that Robert read books while rich dad recommended that Robert master financial literacy. Robert shares, “If you are going to build the Empire State Building, the first thing you need to do is dig a deep hole and pour a strong foundation. If you are going to build a home in the suburbs, all you need to do is pour a six-inch slab of concrete. Most people, in their drive to get rich, are trying to build an Empire State Building on a six-inch slab.”

It’s vital to learn the subject of accounting if your long-term goal is to be rich – no matter how boring you think the topic is.

Rule #1: You must know the difference between an asset and a liability– and buy assets.

“Rich people acquire assets. The poor and middle class acquire liabilities they think are assets,” rich dad says.

The biggest challenge poor people have is knowing the difference between an asset and a liability. Knowing the difference between the two can help you become rich. 

So, what’s the difference?

An asset puts money into your pocket. A liability takes money out of your pocket. 

Assets add to your income. Liabilities add to your expenses. And the job of a poor person pays you an income that then covers your expenses. The job of a middle-class person pays you an income then pays down liabilities then pays expenses. However, for a rich person, their assets pay them an income. For example, their assets may give them rental income, dividends, interest, or royalties.

Here are a few examples of liabilities that the middle class own:

• Credit card debt
• School loans

Here are a few examples of assets that rich people own:

• Real estate
• Intellectual property

Many people who are poor or in the middle class often say, “I’m in debt, so I need to make more money.” However, getting money isn’t a problem. It’s the lack of financial literacy that’s the problem. So if they simply had more money, the problem might become worse. That’s why when people win the lottery or get a pay raise, they usually end up back in the same financial situation as they did before. If a person spends all they have, the pattern will continue every time they make money.

Professional success isn’t directly tied to academic success anymore. Most students leave their schools with limited financial literacy. Later in life, they find themselves struggling financially. What they need to know more than how to make money is how to manage their money. This skill is called financial aptitude. Most people learned how to work hard instead of how to make money work hard for them.

Taxes end up costing the poor and middle class in the long run. People often buy bigger homes to grow a family, and property tax rises. People’s salaries increase over time, and so social security tax also sees a rise. And before long, their liabilities column is filled up with a mortgage and credit-card debt. Thus, trapping them in the rat race. 

The secret to knowing how to make money is simply about creating assets instead of liabilities. 

Golden Rule: “He who has the gold makes the rules.”

“Most financial problems are caused by trying to keep up with the Joneses.” You might choose to buy a bigger house, work harder, or get a promotion or pay raise.

As teenagers, Mike and Robert would work with their rich dad. They studied how he held meetings with his bankers, attorneys, accountants, investors, so forth. Even though his rich dad had left school at 13, he was now directing some very educated people.

Rich dad regularly told the two teens, “An intelligent person hires people who are more intelligent than he is.”

As a teenager, Robert realized he had more financial literacy than his poor dad as he was able to keep books and spent a lot of time listening to bankers, tax accountants, real estate brokers, and others like them.

In this section of Rich Dad Poor Dad, Robert Kiyosaki shares that many people view their home as an asset. However, in many cases, the value of a home doesn’t always go up. Sometimes people buy million-dollar houses that would sell for far less. Retirees such as Kim’s parents had a strain on their budget when their property taxes increased to $1,000 a month.

When Robert plans on buying a bigger house, he “first buys assets that will generate the cash flow to pay for the house.” He shares that as you continue to grow your asset column, over time, you’ll also see the growth of your income. And that’s why the rich keep getting richer– however, the reason why the middle-class struggles are because taxes increase as their salaries increase.

Employees work for three key groups:

• Company: Making the owners and shareholders rich
• Government: Possibly 100% of the work you do from January until May goes towards taxes
• Bank: Your biggest expenses are your mortgage and credit card debt

“Wealth is a person’s ability to survive so many number of days forward– or, if I stopped working today, how long could I survive?”

For example, if a person has $1,000 a month in cash flow from their asset column and they have monthly expenses of $2,000 a month, they will only be wealthy once they have $2,000 a month of cash flow to their asset column.

The average American only has less than $400 in savings, with an astounding 34% with none at all.

So to sum up:

• “The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.”

“The rich focus on their asset columns while everyone else focuses on their income statements.”

While most people assume that Ray Kroc, the founder of McDonald’s, is in the hamburger business, Kroc once told an MBA class that he’s actually in the real estate business. That’s why he carefully chose every location for his franchises. Today, McDonald’s owns more real estate than any other organization in the world – even the Catholic church.

When someone asks the average person, “What is your business?” they typically respond with their profession. However, they are not owners of the company they work for. They still need their own business. Otherwise, they’ll spend their life working for everyone but themselves. That’s the importance of minding your own business.

Financial hardship comes from spending your life putting money into someone else’s pocket instead of your own. But by working for others, they’ll be dependent on pay raises, getting second jobs, or working overtime. 

Without a financial foundation, you’ll be stuck to your job and its security for the rest of your life.

However, it’s important to note that entrepreneurship can be a tricky path. In one instance, Robert Kiyosaki tried to get a loan. The loan committee saw that he owned a lot of real estate properties. However, they struggled to understand why he didn’t have a salary or a 9 to 5 job. Even though, at the time, he did own many assets such as Armani suits, art, golf clubs, and of course, property. 

It’s also good to note that as you sell your assets, the government taxes you on the gains. Robert recommends to “keep your expenses low, reduce liabilities, and diligently build a base of solid assets.” If you have children, advise them to build assets before they move out or fall into the trap of the rat race.

Here are a few more assets that Robert recommends that you or your children acquire:

• “Businesses that do not require my presence. I own them, but they are not managed or run by other people. If I have to work there, it’s not a business. It becomes my job.
• Income-generating real estate
• Notes (IOUs)
• Royalties from intellectual property such as music, scripts, and patents
• Anything else that has value, produces income, or appreciates, and has a ready market”

Rich dad used to say, “If you don’t love it, you won’t take care of it.”

You can keep your day job, but you should also start buying assets like those listed above.

Since 90% of companies fail, Robert Kiyosaki’s goal is to sell the entire stock of a company within a year of going public.

To become rich, you’ll need to buy luxuries last. People who buy luxuries first are often in much debt. The aim is to build income-generating assets that can buy luxuries.

“My rich dad just played the game smart, and he did it through corporations– the biggest secret of the rich.”

The poor often say, “‘Why don’t the rich pay for it?’ or ‘The rich should pay more in taxes and give it to the poor.’” However, the real rich never pay taxes. The people who pay taxes are the educated, middle class.

While poor dad knew the history of education, rich dad knew the history of taxes. Taxes originated in England and America temporarily to pay for wars. It wasn’t until 1874 when England permanently added income taxes as a requirement of its citizens. It started in 1913 for Americans. An interesting tidbit about taxes is that it was initially only for the rich to pay. That’s what governments told the poor and middle class to help get them on board with the idea. That was how it got voted into law in the first place.

Poor dad: paid to spend money and hire people; government gains respect the bigger it gets

Rich dad: gains respect of investor by spending and hiring less

Poor dad: the rich are ‘greedy crooks’

Rich dad: the government are ‘lazy thieves’

The rich don’t get taxed as tax laws help them to create jobs and provide housing. Thus, the government is dependent on the middle class for their tax revenue.

The rich put their money into a corporation. Their asset puts income into their corporation, and then corporate income can be used as income for their personal income statement. And the expenses from their personal income statement can go into the expenses for the corporation. Even though the masses continuously try to find ways to tax the rich, the rich consistently outsmart them.

Something to remember about the government is that if they don’t spend their allotted funds, they’ll risk losing money when the next budget is announced. They aren’t rewarded for being efficient spenders. Yet, entrepreneurs are rewarded for financial efficiency. The mindsets between the two are polar opposite.

The rich look for legal loopholes to avoid paying taxes. That’s why they often hire the smartest accountants and attorneys.

In real estate, Robert Kiyosaki uses one of these legal loopholes as well. There’s a section called 1031 in the Internal Revenue Code that allows a seller to delay the payment of taxes in w when they sell real estate provided that they buy a more expensive piece of real estate. Thus, by consistently trading up, he delays getting taxed until the time comes to liquidate. This strategy also allows him to continue building his asset column.

Knowing the law can help save you money (while also making sure you follow it).

Poor dad: climb the corporate ladder

Rich dad: own the corporate ladder

When Robert was in his mid-twenties working for Xerox, he realized how disappointing it was to look at his paycheck. His bosses would talk to him about promotions and pay raises. However, that only made him see his deductions rise too. He could see himself becoming his poor dad. This realization is what made him realize he needed to follow his rich dad’s path. So Robert turned to minding his business by building out his asset column so he could invest in Hawaii’s real estate market. This newfound motivation made him work harder at selling Xerox machines at work. He knew he was building something bigger than himself. 

After three years of hard work, his real estate business was making more than he was at Xerox. His company bought him his first Porsche. His coworkers had no idea that he wasn’t spending his commissions on the Porsche but assets. 

Financial IQ is made up of four key areas:

• Accounting: ability to read numbers
• Investing: the concept of money making money
• Understanding markets: knowing supply and demand
• Tax advantages: corporations can pay expenses before taxes, which employees can’t do. A corporation can spend everything it can and be taxed only on everything left over. You can expense car payments, insurance, repairs, health club memberships, and most restaurant meals.
• Protection from lawsuits: The rich use corporations to protect their assets from creditors, whereas the poor and middle class try to own everything themselves.

Business Owners with Corporations

Employees Who Work for Corporations

“Often in the real world, it’s not the smart who get ahead, but the bold.”

When companies downsize, employees often blame the owners for being unfair. In a news story he saw, Robert Kiyosaki shares, “A terminated manager of about 45 years of age had his wife and two babies at the plant and was begging the guards to let him talk to the owners to ask if they would reconsider his termination. He had just bought a house and was afraid of losing it.” Inside of us is both someone brave and someone who will get on their knees and beg.

However, when we’re so afraid that we start doubting ourselves, we fail to push forward. Instead, it’s the bold who get ahead. 

Aim to convert your fear into power.

The result of gaining financial literacy and taking risks is “having more options.”

In the future, we’ll be seeing a rise in successful companies being created but also a surge in companies failing– downsizing and laying off employees. It’s better to be making millions from the assets you build than aiming to get a raise. This period is a great era to be building assets.

Wealth over the years

• 300 years ago: the person who owns land
• Later: the person who owns factories and production
• Today: the person with the most timely information

“The players who get out of the Rat Race the quickest are the people who understand numbers and have creative financial minds.”

It is possible to have the money yet still struggle to move ahead financially.

Some people have a great opportunity present itself only to fail to have enough money to take advantage of it. Others have a fantastic opportunity present itself only to lack the ability to recognize that it’s a great opportunity (and they may even have the money to take advantage).

The strategy of the average person is: “Work hard, save, and borrow.” But instead of working hard, they should aim to improve their financial intelligence so that they can make more money. The people who get rich the fastest are those who realize that money isn’t real.

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

Today, savers are considered losers. The reason for this is because interest rates have never been lower. Plus, banks now charge you for holding your money.

During the stock market crash, Robert Kiyosaki was short of cash as he had his money in the stock market and apartment houses. However, he knew this was the time to buy. He and his wife had about a million dollars to invest in some amazing deals. He decided to shop for houses at the bankruptcy attorney’s office. He asked a friend for a $2,000 loan with a return of $200, so he could buy a $20,000 home that was worth about $75,000. He then ran an ad promoting the house for $60,000. It sold within minutes. He asked for a $2,500 processing fee. Thus, giving his friend his money back without using any of his own money. Thus, earning him a profit of $40,000 with a promissory note. The whole process took him five hours.

At the time Rich Dad Poor Dad was published, there had been three stock market crashes in 30 years.

• 1989-1990: real estate
• 2001-2002: dot-com bubble burst
• 2008-2009: housing bubble burst

All of these stock market crashes were investment opportunities.

Which one sounds harder?

• “Work hard. Pay 50% in taxes. Save what is left. Your savings earn 5%, which is also taxed. OR
• Take the time to develop your financial intelligence. Harness the power of your brain and asset column.”

Most of Robert Kiyosaki’s financial growth comes from real estate and small-cap stocks.

“The problem with ‘secure’ investments is that they are often sanitized, that is, made so safe that the gains are less.”

In one example, Robert Kiyosaki paid $45,000 on the house worth $65,000 that the owner was struggling to sell. The first year he rented it out to a local professor. And after expenses, he nets $40 a month. However, a year later, when the market picked back up, he sold it for $95,000. Since he had used the money to buy a bigger property, a 12-unit apartment, he was able to defer the payment of capital gains. He spent $300,000 on the apartment. And only two short years later sold it for $495,000 and bought a 30-unit apartment building with a cash flow of $5,000 a month. A few years later, he sold it for $1.2 million.

The best deals aren’t usually offered to newcomers. They’re often reserved for the rich. But the more sophisticated you get at the game, the more opportunities you’ll be presented with. Most of Robert Kiyosaki’s millions started with as little as $5,000 or $10,000 investments.

In the past, Robert has bought 100,000 shares at 25 cents a share before a company goes public. Then, the company goes public, and whether it’s $2 each or if it flies to $20, you can sometimes make a million dollars in less than a year.

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

Robert Kiyosaki shares, “Most people never win because they’re more afraid of losing. That is why I found school so silly. In school, we learn that mistakes are bad, and we are punished for making them. Yet if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk.”

People’s fear of losing causes them to not be rich. “People who avoid failure also avoid success.”

Three skills of an investor:

• Find an opportunity that everyone else missed: see with your mind instead of your eyes
• Raise money: know how to raise capital outside of a bank
• Organize smart people: hire people more intelligent than you

“Job security meant everything to my educated dad. Learning meant everything to my rich dad.”

During an interview with a journalist, Robert Kiyosaki learned that the journalist strived to become a best-selling author. He realized she was a great writer and that she should pursue that. She told him that she had tried, but no one was interested. He accidentally offended her when he told her to take a sales course so she could promote herself. She became defensive. 

She replied, “I have a master’s degree in English literature. Why would I go to school to learn to be a salesperson? I am a professional. I went to school to be trained in a profession, so I would not have to be a salesperson. I hate salespeople. All they want is money.” She packed her things. Robert Kiyosaki gently pointed out that he was the best-selling author, not the best-writing author. This statement only infuriated her more, and the interview ended.

The world has many successful and talented people: doctors, lawyers, dentists. And still, they struggle financially. But as a wise business consultant once said, “They are one skill away from great wealth.” If you took your skillset and paired it with financial intelligence, accounting, investing, marketing, or law, you could achieve great wealth.

If that journalist had instead picked up a job at an ad agency to learn how to sell, she could go on to create great wealth with her writing.

Rich dad says, “You want to know a little bit about a lot.” In school and at work, you’re expected to specialize. Those who earn promotions tend to be specialists. However, Robert Kiyosaki’s rich dad always recommended the opposite. That’s why, throughout the years, Robert would work in different areas of his rich dad’s company. He was expected to attend meetings with lawyers, bankers, accountants. It was essential to the rich dad for Robert to know every aspect of creating an empire.

When Robert Kiyosaki had quit his high-paying job, his poor dad had a heart to heart talk with him, failing to understand his mindset for quitting.

Poor dad: values job security

Rich dad: values learning

Poor dad: assumed Robert went to school to learn how to be a ship’s officer

Rich dad: knew Robert went there to study international trade

The reason Robert had quit his job was so that he could learn how to lead people as his rich dad said, “If you’re not a good leader, you’ll get shot in the back, just like they do in business.”

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

Robert Kiyosaki recommends taking on jobs where you can learn new skills instead of jobs that pay the most.

The biggest fear for aging Americans is running out of money before they die. When you add up health costs and long-term nursing home care, it’s quite likely that the average American will run out of money during their retirement.

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

The best advice Robert Kiyosaki has for those looking to earn more money is to pick up a second job that’ll teach them a second skill. 

It’s normal to feel a bit of resistance to that idea; you might not be excited to do something you aren’t passionate about. But remember, you go to the gym not because you want to but because you want to be healthy and live a long life. 

Robert shares the story of an artist in Hawaii who inherited $35,000. He used the money to run ads in an expensive magazine that targeted the rich. However, not a single person reached out. He lost his entire savings. The artist is now trying to sue the magazine for misrepresentation. However, the reality is that he didn’t have any advertising experience. When Robert asked this artist if he’d be interested in taking a course, he said, “I don’t have the time, and I don’t want to waste my money.” Most people focus on improving their product rather than learning how to sell it.

Management Skills Needed for Success:

• Management of cash flow
• Management of systems
• Management of people

“The most important specialized skills are sales and marketing.”

Robert Kiyosaki’s friend Blair Singer shares, “Sales = Income. Your ability to sell– to communicate and position your strengths– directly impacts your success.”

Most people fear rejection, which is why they’re often intimidated by sales and marketing.

Law of Money: “Give, and you shall receive.”

Robert shares, “In conclusion, I became both dads. One part of me is a hard-core capitalist who loves the game of making money. The other part is a socially responsible teacher who is deeply concerned with this ever-widening gap between the haves and the have-nots. I personally hold the archaic education system primarily responsible for this growing gap.”

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

There are five core reasons why even the financially literate don’t become financially independent:

Not even the rich, like losing money. No one does really. Rich dad says, “Some people are terrified of snakes. Some people are terrified of losing money. Both are phobias.” That’s why it was so crucial for Robert’s rich dad to teach his two sons how to take risks at a young age. The younger you are, the easier it is to become rich. 

Approach risk like a Texan. Texans both win big and lose big. Their attitude is what’s game-changing. They feel a sense of pride when they win, but they still brag even if they lose. They lack a fear of loss. Their loss inspires them.

Before you win, you lose. Like all those times you fell off a bicycle before you learned how to ride it. Before people became rich, they lost money. Most people are more afraid of the pain of losing money than the happiness of becoming rich.

“Rich dad knew that failure would only make him stronger and smarter.”

Losers are defeated by loss. Winners are inspired by loss. You can still hate losing without being afraid of it.

Most people invest in low-yield mutual funds because it’s the safe thing to do. But that’s not the portfolio of a winner.

To be successful, you’ll need to be focused, instead of balanced.

FOCUS: Follow One Course Until Successful

Don’t let doubt cause you not to act. Avoid remarks from friends and family, such as, “‘What makes you think you can do that?’ ‘If it’s such a good idea, how come someone else hasn’t done it?’ ‘That will never work. You don’t know what you’re talking about.’”

Investors know that when it’s a period of doom and gloom, that’s the best time to make money.

Robert’s friend Richard recently asked him for advice on buying property. The two of them identified a two-bedroom townhouse for only $42,000. Others at the time were selling for $65,000. He bought it. But after talking to a neighbor, he backed out, thinking he got a bad deal. A short few years later, the property was worth $95,000. And Richard’s small investment of $5,000 could’ve helped him get out of the Rat Race. Doubt can be a deal killer.

When it comes to financial education, you need to know the difference between good debt and bad debt. Analyze instead of criticizing. 

Most people say they’re too busy to focus on their wealth and health, but really they’re avoiding it.

“Rich dad believed the words ‘I can’t afford it’ shut down your brain. ‘How can I afford it?’ opens up possibilities, excitement, and dreams.” Instead of buying his kids everything they wanted, rich dad asked them to think about how they can afford it. Rich dad never gave Robert or Mike anything. The boys had to pay for college on their own.

The financial struggle often comes from bad habits. You need to pay yourself first. Otherwise, you likely won’t be left with anything after paying your bills. That’s because if you pay yourself first and fail to have enough money left over for bills, you’ll need to find new ways to earn more money. It becomes a motivator – especially when debt collectors start calling.

“What I know makes me money. What I don’t know loses me money.”

A gold miner in Peru once told Robert Kiyosaki, “There is gold everywhere. Most people are not trained to see it.”

Robert said this was also true for him in real estate. He said he could find about four to five excellent properties a day, whereas others may look and find none.

10 Steps to Develop Your God-given Powers

• A young woman who dreamed of going to the Olympics would swim every morning for three hours before going to school. She also spent her weekends studying to maintain high grades. When asked why, she responded, “I do it for myself and the people I love. It’s love that gets me over the hurdles and sacrifices.”
• With every dollar we receive, we choose whether we become: rich, poor, or the middle class. However, you need to train your children to know how to manage your assets. Otherwise, they’ll be lost in the next generation.
•  It’s important to learn how to invest before investing.
• You don’t have to choose friends based on their financial statements.
• Choose friends who talk about money and are interested in the subject.
• People with money often report that their friends without money never ask them how they did it. But they do ask for: a loan or a job.
• Study what you want to do. For example, if you want to be a cook, study cooking.
• If you want to make money, don’t work for it.
• Most people learn but fail the most crucial step: action.
• It’s not what you know but how fast you learn.
• Without self-discipline, you wouldn’t know how to manage a million dollars if you were to receive it.
• You’ll only get pushed around in life if you lack self-discipline and internal control.
• Personal time
• People who pay themselves first end up using the money to acquire assets that pay for their expenses, and then they’re leftover is income. People who pay themselves last, lose all their money with expenses.
• Even if your cash flow is far less than your bills, you need to pay yourself first.
• Robert Kiyosaki has more liabilities than most of the population, but he uses tenants to pay for his debts.
• “Don’t get into large debt positions that you have to pay for. Keep your expenses low.”
• Don’t dip into your savings when pressure builds. Use the pressure to find new ways of making more money.
• Savings need to be used to make more money instead of paying bills.
• Pay professionals well and have expensive attorneys, accountants, real estate brokers, and stockbrokers. Their services should be making you money. Those professionals who make more will also make you more money.
• Poor people will often tip restaurant servers 15-20 percent even with lousy service but get mad when they need to pay a broker three to seven percent.
• Have a board of directors; it’s essential to have people working for you who are smarter than you.
• “The sophisticated investor’s first question is: ‘How fast do I get my money back?’ They also want to know what they get for free, also called a ‘piece of the action.’ That is why the ROI, or return on investment, is so important.’
• When Robert Kiyosaki wanted to buy a small condominium in foreclosure, he submitted a bid $10,000 less than asking. But since he presented a cashier’s check with the full amount, the bank knew it was a serious deal and accepted it. After three years of renting out the property, Robert Kiyosaki officially owns the asset, which continues to make him money.
• When you acquire an investment, you should aim to get something free with it– for example, a condominium, a piece of land, stock shares, etc.
• McDonald’s founder, Ray Kroc, wanted the land underneath every McDonald’s location for free with every franchise he opened
• A father wanted to teach his child how to make money. His son had been asking for a car but didn’t want him spending his college money on it. His father gave him $3,000 that the son could use to buy a vehicle indirectly. So he couldn’t use the cash to buy a car. His son started learning how to invest in stocks. He read every book, he read publications, and even though he lost $2,000 in the stock market, his interest had been piqued.
• Don’t buy luxuries with liabilities like credit, buy them from your asset column
• 80 would have spent it all or gone further in debt
• 16 would’ve increased the amount by 5-10 percent
• Four would have either doubled it or grew it to the millions
• Robert Kiyosaki’s heroes are Warren Buffett, Peter Lynch, George Soros, etc. 
• When Robert Kiyosaki analyzes a deal, he tries to look at it the same way Warren Buffett would. This strategy helps him tap into raw genius.
• Robert’s rich dad taught him to be charitable. His poor dad taught him to give away his time and knowledge, but not money.
• Rich dad says, “If you want something, you first need to give.”
• If you want money, give money.

Stop doing what you’re doing.

• If it’s not working, try something new.

Look for new ideas.

• Read how-to books with formulas on topics you want to learn more about.
• Read: The 16 Percent Solution by Joel Moskowitz

Find someone who has done what you want to do.

• Find the expert who has done something you want to do and pick their brain so you can learn from them.

Take classes, read, and attend seminars.

• Many classes are free or low cost, search the internet for them so you can absorb more knowledge.

Make lots of offers.

• Robert submits offers on multiple real estate properties that he wants. He leaves the deal up to the real estate agent, who is the expert, whereas he isn’t.
• Most sellers ask for too much money, and until there’s a second offer, it’s hard to know what the right price is.
• You’d be surprised at how many people would say yes to an offer.

Jog, walk, or drive a certain area once a month for ten minutes.

• You’ll find some of the best real estate investments by driving around. He might talk to postal workers, moving truck workers, retailers, and so forth to better understand a neighborhood. 

Shop for bargains in all markets.

• “Profits are made in the buying, not in the selling.”

Look in the right places. 

• Most people buy with real estate agents. Robert Kiyosaki buys at the foreclosure auction.

Look for people who want to buy first. Then look for someone who wants to sell.

• When buying property, find a seller first then find a person who’s looking to sell their property and buy through them.
• If your business is buying something in bulk, call some friends up to see if they’re looking for that as well. Then, you can negotiate deals for having a large bulk purchase, so you get the best deal on what you’re buying.

Learn from history.

• “All the big companies on the stock exchange started out as small companies.”

Action always beats inaction.

Robert’s friend was once trying to save up for his four children’s college educations. But with only $12,000. It was clear it wasn’t going to happen any time soon. He advised his friend to buy a property in Phoenix since there was a slump in the market. After two weeks, they found a three-bedroom, two bathroom home in a good area. The homeowner was desperate to sell. They ended up buying the property for $79,000, even though the owner wanted $102,000.  His friend needed a down payment of $7,900. Each month after all expenses were paid, his friend pocketed $125. He planned to keep the house for 12 years. He used his $125 to pay down the mortgage even faster. Three years later, someone offered him $156,000 for the house. Robert advised him to sell it using a 1031 tax-deferred exchange. Next, he bought a mini-storage facility. After three months, he was making $1,000 a month that he put into the college fund. A couple of years later, he sold that mini-warehouse for close to $330,000. His next investment made him $3,000 a month in income, going back to the college fund. The man now feels confident in his ability to pay for his children’s college education. And it all started with only $7,900.

There are three types of income

• Ordinary earned

Poor dad: ordinary earned, get a safe and secure job

Rich dad: portfolio and passive, make money work for you

“The key to financial freedom and great wealth is a person’s ability to convert earned income into passive and/or portfolio income.”

Warren Buffett advises that “Risk comes from not knowing what you’re doing.”

Rich dad would often say, “If you want to be rich, you must know what kind of income to work hard for, how to keep it, and how to protect it from loss. That is the key to great wealth… If you do not understand the differences in those three incomes and do not learn the skills on how to acquire and protect those incomes, you will probably spend your life earning less than you could and working harder than you should.”

Your destiny relies on how you spend your money and your time. Your family’s future will be determined by your choices today.

You can buy Rich Dad Poor Dad by Robert Kiyosaki on Amazon .

Rich Dad, Poor Dad

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Rich Dad Poor Dad Summary

The “Rich Dad Poor Dad” book by Robert Kiyosaki contrasts the financial philosophies of Kiyosaki’s two father figures. His biological father, the ‘Poor Dad’, believed in traditional education and a stable job. In contrast, his friend’s father, the ‘Rich Dad’, advocated for financial literacy and investing. The book highlights key lessons: the importance of understanding money, differentiating assets from liabilities, investing in income-generating assets, learning valuable skills over earning, and adopting a mindset that embraces opportunities and solutions. The overarching theme is the significant impact of financial education and mindset on wealth building.

Please note: This is an unofficial summary and workbook created to help you understand and apply the principles outlined in the book. For full disclaimer details, click here .

Each of the following topics captures a fundamental aspect of the philosophy presented in “Rich Dad Poor Dad,” providing a comprehensive overview of the book’s key teachings on personal finance and wealth building. We offer a printable PDF version below.

Financial Education vs. Traditional Education: The importance of financial literacy compared to conventional academic education.

In “Rich Dad Poor Dad,” Robert Kiyosaki contrasts the value of financial education with traditional academic education. He argues that conventional education systems often neglect to teach students about money management, investing, and wealth creation, which are crucial skills for financial success. Traditional education focuses more on academic and professional skills, preparing individuals for employment, but does not typically equip them with the knowledge to manage finances, invest wisely, or accumulate wealth.

Key Aspects:

• Lack of Financial Training in Traditional Education : Traditional schooling teaches many valuable skills but often fails to cover basic financial management, investment strategies, and ways to generate passive income.
• The Importance of Financial Literacy : Kiyosaki emphasizes that financial literacy, including understanding how money works, how to make it work for you, and how to manage it, is essential for financial independence and wealth building.
• Educational System’s Focus on Employment : Traditional education systems are geared towards producing good employees, not necessarily financially savvy individuals or entrepreneurs.
• Self-Education in Finance : Take the initiative to learn about personal finance, investing, real estate, stocks, and taxes through books, courses, and online resources.
• Practical Financial Experiences : Engage in practical experiences such as budgeting, investing small amounts in stocks or mutual funds, or even starting a small side business.
• Seek Alternative Learning Opportunities : Attend workshops, seminars, and talks on financial topics. Look for opportunities to learn from financial experts and successful investors.
• Apply Learning to Personal Finances : Regularly review and manage your personal finances, investments, and savings strategies based on your growing knowledge.
• Encourage Financial Discussions : Start discussions with friends or family about financial topics, sharing knowledge and learning from each other’s experiences.
• Continual Learning and Adaptation : Stay updated on financial news, market trends, and emerging investment opportunities. Adapt your financial strategies as you gain more knowledge and experience.

This detailed summary and action items highlight the contrast between traditional and financial education as discussed in “Rich Dad Poor Dad,” underscoring the importance of proactively seeking financial knowledge and applying it to achieve financial success and independence.

Assets vs. Liabilities: Understanding the difference and focusing on acquiring assets.

In the “Rich Dad Poor Dad” book, a core principle is understanding the difference between assets and liabilities. Robert Kiyosaki defines assets as things that put money into your pocket, such as investments, real estate, stocks, or businesses that generate income. Conversely, liabilities are defined as things that take money out of your pocket, like loans, expenses, and any financial obligations that do not produce income. The book emphasizes the importance of accumulating assets over liabilities for long-term financial growth and stability.

• Misconceptions About Assets : Commonly, people mistake possessions like homes and cars for assets, but if these items don’t generate income, they are actually liabilities.
• Focus on Income-Generating Assets : True assets are those that produce a steady flow of income, such as rental properties, dividend-paying stocks, or profitable businesses.
• Reducing and Managing Liabilities : Understanding that minimizing liabilities is as important as acquiring assets for financial health.
• Assess Your Financial Situation : Start by distinguishing your own assets and liabilities. Create a balance sheet listing all your assets and liabilities to understand your financial standing.
• Educate Yourself on Income-Generating Assets : Learn about different types of assets, such as real estate for rental income, stocks for dividends, and other investment opportunities that can generate passive income.
• Plan to Acquire Assets : Set specific goals for acquiring new assets. This could include saving for a down payment on a rental property, investing in a diversified stock portfolio, or starting a side business.
• Minimize and Manage Liabilities : Look for ways to reduce liabilities. This could involve paying off high-interest debt, avoiding unnecessary loans, or reducing major expenses that don’t contribute to wealth accumulation.
• Invest Wisely : Before investing in any asset, conduct thorough research or seek advice from financial advisors to ensure you make informed decisions.
• Monitor and Adjust Your Portfolio : Regularly review your asset and liability balance. Adjust your strategies as needed to ensure you’re continuously increasing your net worth.
• Create a Long-Term Financial Plan : Develop a plan that aligns with your financial goals, focusing on increasing assets while managing and reducing liabilities.

This summary and set of action items encapsulate the crucial concept from “Rich Dad Poor Dad” regarding assets and liabilities, offering a roadmap to financial literacy and effective wealth management.

The Power of Mindset in Wealth Building: How different attitudes towards money can lead to different financial paths.

“Rich Dad Poor Dad” emphasizes the critical role of mindset in achieving financial success. Robert Kiyosaki illustrates how a person’s attitude towards money can significantly influence their financial path. He contrasts the mindsets of his “Rich Dad” and “Poor Dad” – the former viewing money as a tool for wealth creation and the latter seeing it as a means to pay bills. The book advocates for a mindset shift from viewing money as something you work for to something that can work for you, emphasizing the importance of thinking like an investor or entrepreneur rather than just an employee.

• Scarcity vs. Abundance Mindset : Understanding that a scarcity mindset can limit financial growth, while an abundance mindset opens up possibilities for wealth creation.
• Seeing Opportunities, Not Obstacles : Learning to identify and seize financial opportunities, instead of being deterred by risks and challenges.
• The Entrepreneurial Mindset : Thinking beyond traditional employment to consider ways to create and grow personal wealth, such as starting a business or investing.
• Cultivate an Abundance Mindset : Regularly remind yourself that financial resources aren’t limited and that with the right strategies, you can create more wealth.
• Identify and Overcome Limiting Beliefs : Reflect on any beliefs you have about money that may be holding you back, such as fear of risk or a belief that wealth is unattainable, and actively work to change these perceptions.
• Educate Yourself on Financial Opportunities : Stay informed about various investment opportunities, market trends, and entrepreneurial ventures.
• Practice Seeing Opportunities in Challenges : Whenever faced with a financial challenge, train yourself to look for potential opportunities or learning experiences within it.
• Develop an Entrepreneurial Approach : Even if you are in traditional employment, look for ways to adopt an entrepreneurial attitude, such as being proactive, innovative, and solution-focused.
• Set Goals and Visualize Success : Regularly set financial goals and visualize achieving them, reinforcing the belief in your ability to create wealth.
• Network with Like-Minded Individuals : Surround yourself with people who have a positive and abundant mindset about money and wealth. This could be through networking events, online communities, or mentorship programs.
• Reflect and Adjust Regularly : Take time periodically to reflect on your financial decisions and mindset, and be open to adjusting your approach as you learn and grow.

This detailed summary and action plan encapsulate the essence of the third point in “Rich Dad Poor Dad,” focusing on the transformative power of mindset in wealth building and financial success.

The Importance of Investing: Why investing in stocks, real estate, and businesses is crucial for wealth accumulation.

In the “Rich Dad Poor Dad” book, Robert Kiyosaki places a strong emphasis on the importance of investing as a key component to financial success. The book differentiates between working for money and having your money work for you. Kiyosaki argues that the pathway to wealth is through smart investments in assets such as real estate, stocks, and businesses. He underscores that investing isn’t just about having large amounts of money; it’s more about making informed, strategic decisions with the money you have, regardless of the amount.

• Investing vs. Saving : Understanding the difference between merely saving money and actively investing it to generate more wealth.
• Risk and Return : Recognizing that all investments carry some risk and learning how to balance risk with the potential for returns.
• Diversification : The importance of not putting all your financial resources into one type of investment, but spreading them across different asset classes.
• Start with Financial Education : Before diving into investing, educate yourself on various investment options, market trends, and financial principles.
• Assess Your Financial Situation : Understand your current financial standing, including your risk tolerance, investment goals, and available capital for investing.
• Start Small and Scale Up : Begin with small, manageable investments to gain experience and confidence. As your knowledge grows, you can gradually increase your investment size.
• Diversify Your Investments : Don’t concentrate all your resources in one type of investment. Spread your investments across different assets like stocks, bonds, real estate, or starting a small business.
• Understand and Manage Risks : Learn to evaluate the risks associated with different investments and develop strategies to manage them.
• Stay Informed and Adapt : Keep abreast of financial news and market changes. Be prepared to adapt your investment strategy as market conditions change.
• Set Clear Investment Goals : Define what you want to achieve with your investments, whether it’s building retirement savings, generating passive income, or accumulating wealth for other specific purposes.
• Seek Professional Advice When Needed : Don’t hesitate to consult with financial advisors or investment professionals, especially when making significant investment decisions.
• Regularly Review Your Investment Portfolio : Periodically assess your investments to ensure they align with your financial goals and adjust as needed.

This detailed summary and action plan address the fourth key point from “Rich Dad Poor Dad,” highlighting the critical role of investing in achieving financial independence and long-term wealth creation.

Work to Learn, Not Just for Money: The value of gaining skills and experiences that lead to long-term financial success.

Robert Kiyosaki emphasizes the importance of working to learn valuable skills and experiences, rather than solely for a paycheck. This principle challenges the conventional mindset of working primarily for money. Kiyosaki advocates for choosing positions and opportunities that offer the most learning potential, especially in areas that contribute to financial intelligence, such as sales, marketing, investment, and management. The idea is that the skills and knowledge gained can later be leveraged to create wealth, rather than relying solely on a salary for financial security.

• Value of Diverse Skill Sets : Understanding that a broad skill set, particularly in areas related to finance and business, is invaluable for long-term wealth building.
• Learning Over Earning in the Short Term : The concept of prioritizing opportunities for learning and growth, even if they don’t offer the highest immediate financial return.
• Developing Financial Intelligence : Gaining skills that contribute directly to your ability to make, manage, and invest money effectively.
• Identify Learning Opportunities in Your Career : Look for roles or projects within your current job that can expand your skill set, especially in areas like finance, negotiation, leadership, and strategic thinking.
• Consider Jobs or Roles for Their Learning Value : When evaluating job offers or career moves, consider the learning opportunities they offer, not just the salary.
• Pursue Education and Training : Actively seek out workshops, courses, or seminars that can enhance your financial knowledge and business skills.
• Learn from Mentors and Experienced Individuals : Find mentors who have achieved financial success and can provide guidance and insights. This could be a successful entrepreneur, a seasoned investor, or a leader in your field. Engaging with mentors can provide practical, real-world advice that complements formal education.
• Volunteer or Take on Side Projects : Consider volunteering for roles or projects, especially those that allow you to work in areas like budgeting, investing, or strategic planning. This hands-on experience can be invaluable.
• Participate in Networking Events : Engage in industry events, conferences, or online forums where you can learn from others, share experiences, and gain new perspectives on wealth building and financial management.
• Set Personal Development Goals : Create specific, measurable goals for your personal and professional development. This could include mastering a new financial software, understanding a particular market, or developing leadership skills.
• Read and Stay Informed : Regularly read books, articles, and reports related to finance, business, and investment. Staying informed about market trends and economic principles is crucial for developing financial intelligence.
• Practice Financial Decision Making : Apply what you learn by making small, low-risk financial decisions, whether it’s investing a small amount in stocks or creating a budget. The experience gained from these decisions can be very educational.
• Reflect and Adapt : Regularly reflect on what you are learning and how it applies to your financial goals. Be open to adapting your approach as you gain more knowledge and experience.

Overcoming Financial Fear and Ignorance: How fear and lack of knowledge can be major barriers to financial independence.

In the “Rich Dad Poor Dad” book, Robert Kiyosaki discusses the importance of overcoming fear and ignorance regarding financial matters. Fear, particularly the fear of losing money, often prevents individuals from making wise financial decisions or taking opportunities that could lead to wealth. Similarly, ignorance about how money works can lead to missed opportunities and financial mistakes. Kiyosaki emphasizes that educating oneself about finance and adopting a positive, proactive approach towards financial risk are key to overcoming these barriers.

• Fear of Financial Loss : Many people avoid investing or starting businesses due to the fear of losing money. This fear can be paralyzing and prevent financial growth.
• Lack of Financial Knowledge : A lack of understanding about investing, markets, and financial strategies can lead to poor decisions and missed opportunities.
• The Role of Emotions in Finance : Emotions can significantly impact financial decisions. Learning to manage them is crucial for success.
• Educate Yourself Financially : Start by learning the basics of personal finance, investment, and the principles of wealth building. Books, online courses, and workshops can be great resources.
• Start Small to Overcome Fear : Begin with small investments or financial decisions to build confidence. As you learn and experience success, gradually increase your financial commitments.
• Seek Advice from Financial Experts : Consult with financial advisors, mentors, or knowledgeable individuals in your network to gain insights and guidance.
• Develop a Risk Management Strategy : Understand the risks associated with various financial decisions and develop strategies to manage them.
• Practice Rational Decision Making : Train yourself to make financial decisions based on logic and information rather than emotions or fears.
• Reflect on Financial Mistakes and Learn from Them : Instead of fearing mistakes, view them as learning opportunities. Analyze what went wrong and how you can avoid similar mistakes in the future.
• Regularly Review and Adapt Your Financial Plan : Continuously assess your financial strategy and be willing to make changes as you learn more and as your circumstances evolve.
• Build an Emergency Fund : Having savings set aside can alleviate the fear of financial ruin and provide a safety net for taking calculated risks.
• Embrace Continuous Learning : Stay informed about financial trends and continue to educate yourself. Knowledge is a powerful tool against fear and ignorance.

By following these action items, individuals can confront and overcome the common fears and knowledge gaps that Kiyosaki identifies as major obstacles to financial success.

The Role of Risk in Wealth Creation: Learning to manage and embrace risk as an integral part of wealth building.

Robert Kiyosaki highlights the significance of understanding and managing risk in the journey to wealth creation. He argues that avoiding risk entirely can mean missing out on significant financial opportunities. Instead, savvy investors learn to identify, assess, and manage risks effectively. Kiyosaki points out that successful wealth builders don’t avoid risks but rather learn how to mitigate them and make informed decisions. Embracing and managing risk, rather than fearing it, is a key differentiator between those who build substantial wealth and those who do not.

• Risk as an Integral Part of Investing : Accepting that all investments carry some level of risk and that avoiding risk can mean missing growth opportunities.
• Educated Risk-Taking : Differentiating between taking calculated risks and gambling. Educated risk-taking involves thorough research and understanding.
• Risk Management Strategies : Developing strategies to minimize potential losses while maximizing potential gains.
• Educate Yourself on Risk Management : Learn about different types of risks associated with various investments and strategies to manage them.
• Start with Low-Risk Investments : If new to investing, start with options that carry lower risk to get comfortable with the concept of risk.
• Diversify Your Investment Portfolio : Spread your investments across different asset classes to reduce the risk of major losses.
• Conduct Thorough Research Before Investing : Never invest in something you don’t understand. Take time to research and understand each investment.
• Develop a Financial Cushion : Build an emergency fund or reserves to protect yourself against unforeseen financial downturns.
• Consult with Financial Experts : Seek advice from financial advisors, especially when making significant investment decisions.
• Regularly Review and Adjust Your Investments : Continuously monitor your investments and make adjustments as needed to align with your risk tolerance and financial goals.
• Embrace Failure as a Learning Opportunity : Understand that not all investments will be successful. Learn from failures to make better decisions in the future.
• Stay Informed About Market Trends : Keep up with financial news and market trends as they can impact the risk associated with your investments.
• Set Clear Investment Goals and Boundaries : Define what you aim to achieve with your investments and set clear boundaries for how much risk you are willing to take.

By implementing these action items, individuals can navigate the inherent risks in investing and wealth creation, as emphasized in “Rich Dad Poor Dad,” and use risk management as a tool for financial growth.

The Significance of Financial Independence: Moving beyond job security to create a sustainable financial future.

Robert Kiyosaki stresses the importance of striving for financial independence rather than settling for job security. Financial independence is described as a state where your assets generate enough income to cover your expenses, freeing you from the need to work for a living. Kiyosaki argues that this can be achieved through smart investing and building income-generating assets. He suggests that achieving financial independence requires a shift in focus from earning a salary to generating passive income through investments, businesses, or other ventures.

• Financial Independence vs. Job Security : Understanding the difference between relying on a job for financial security and creating your own sources of income.
• Building Passive Income Streams : Focusing on creating income sources that do not require active work, like rental properties, dividends from stocks, or income from a business.
• Long-Term Financial Planning : Developing a plan that leads to financial independence over time, taking into account factors like inflation, changing personal circumstances, and market variations.
• Assess Your Financial Goals : Clearly define what financial independence means for you, including how much income you need to cover your living expenses without active work.
• Educate Yourself on Income-Generating Investments : Learn about different types of investments that can generate passive income, such as real estate, dividend stocks, or bonds.
• Create a Financial Independence Plan : Develop a detailed plan that outlines how you will build and manage your assets to achieve financial independence. This plan should include timelines, income goals, and strategies for risk management.
• Start Building Passive Income Sources : Begin investing in assets that can generate passive income. This could involve purchasing rental property, investing in the stock market, or starting a side business.
• Regularly Review and Adjust Your Financial Plan : As your financial situation and the economic environment change, continually reassess and adjust your plan to stay on track towards financial independence.
• Minimize Debts and Liabilities : Work towards paying off high-interest debts and avoiding new debts that don’t contribute to building assets.
• Maximize Savings and Investments : Allocate a portion of your income regularly towards savings and investments that align with your financial independence plan.
• Seek Professional Financial Advice : Consider consulting with a financial advisor to get professional guidance tailored to your personal situation and goals.
• Network with Like-Minded Individuals : Connect with people who are also pursuing financial independence for support, advice, and potential partnership opportunities.
• Stay Informed About Economic and Market Trends : Keep up to date with economic news and market trends as they can impact your investment decisions and financial strategy.

By following these action items, individuals can work towards the goal of financial independence, a central theme in “Rich Dad Poor Dad,” shifting away from sole reliance on employment for financial security.

Entrepreneurship and Business Ownership: The advantages of creating and owning a business.

In the “Rich Dad Poor Dad” book, Robert Kiyosaki highlights the value of entrepreneurship and owning a business as a path to financial success. He advocates for using entrepreneurial ventures to create and accumulate wealth, rather than relying solely on a salary from traditional employment. Kiyosaki emphasizes that owning a business can lead to significant financial gains, primarily through the creation of assets that provide passive income. This approach is contrasted with the traditional mindset of working for someone else, where opportunities for wealth accumulation are often more limited.

• Building Assets Through Business : Understanding that a business can be a powerful asset, generating ongoing income and increasing in value over time.
• Leveraging Entrepreneurial Opportunities : Recognizing and seizing opportunities to create profitable business ventures.
• Risk and Reward in Business : Balancing the inherent risks of entrepreneurship with the potential for substantial financial rewards.
• Identify Business Opportunities : Keep an eye out for market gaps or needs that a new business could address. This could involve innovations, improving existing products or services, or entering an underserved market.
• Educate Yourself on Business Management : Gain knowledge in business operations, management, marketing, and finance. This can be through formal education, online courses, or self-study.
• Develop a Business Plan : Create a detailed business plan outlining your business idea, market analysis, financial projections, and growth strategies.
• Start Small and Grow : Consider starting your business on a small scale, especially if resources are limited. This allows you to learn and adapt with less risk.
• Seek Mentorship and Advice : Connect with experienced entrepreneurs and seek their advice and mentorship. Learning from their experiences can provide invaluable insights.
• Build a Strong Network : Develop a network of contacts in the business community. This network can provide support, advice, partnerships, and customer referrals.
• Manage Financial Risk : Understand and manage the financial risks associated with your business. This includes prudent financial management and possibly securing insurance.
• Focus on Creating Value : Ensure that your business focuses on creating real value for customers, as this is the key to long-term success.
• Reinvest in Your Business : Plow back profits into the business to fuel growth and development, especially in the early stages.
• Stay Adaptable and Responsive to Change : Be prepared to adapt your business model as the market or industry changes to ensure continued relevance and profitability.

By following these action items, individuals can embrace the entrepreneurial journey and business ownership, a key concept in “Rich Dad Poor Dad,” as a means to building wealth and achieving financial independence.

Understanding Taxes and Corporations: Utilizing knowledge of tax strategies and corporate structures for wealth preservation.

Robert Kiyosaki delves into the importance of understanding how taxes and the use of corporate structures can impact personal wealth. He explains that the rich often use corporations to protect and enhance their wealth, primarily due to the tax advantages and protection from liability that corporations offer. Kiyosaki stresses that a deep understanding of tax laws and corporate structures can lead to significant financial benefits, including tax savings, asset protection, and increased opportunities for reinvestment.

• Tax Benefits of Corporations : Exploring how corporations can legally reduce tax liabilities through deductions, expenses, and other financial strategies.
• Protection of Personal Assets : Using corporate entities to separate personal assets from business liabilities, providing a layer of protection against lawsuits or debts.
• Strategic Use of Corporate Earnings : Understanding how to reinvest earnings within a corporation for growth, rather than taking them out as taxable personal income.
• Educate Yourself on Tax Laws and Corporate Structures : Gain a basic understanding of how different corporate structures work and their tax implications. This can be done through self-study, courses, or seminars.
• Consult with Tax Professionals and Legal Experts : Seek advice from accountants, tax advisors, and lawyers who specialize in corporate and tax law. They can provide guidance tailored to your specific situation.
• Consider Forming a Corporation : If you have a business or are planning to start one, consider forming a corporation to take advantage of legal and tax benefits.
• Learn About Tax Deductions and Credits : Understand what expenses can be legally deducted through your business to reduce taxable income.
• Keep Personal and Business Finances Separate : Ensure clear separation between personal and business finances to maintain the integrity of the corporate structure and for ease of accounting.
• Regularly Review Tax Strategies : Tax laws can change, so it’s important to review and update your tax strategies regularly with the help of professionals.
• Educate Yourself on International Tax Laws : If your business operates internationally, understand the tax implications and opportunities in different jurisdictions.
• Plan for Long-Term Tax Efficiency : Develop a long-term tax strategy that aligns with your overall financial goals, including retirement planning, estate planning, and wealth transfer.
• Utilize Tax-Advantaged Investment Opportunities : Explore investment options that offer tax advantages, such as retirement accounts or tax-free bonds.
• Stay Informed About Tax Law Changes : Keep up to date with changes in tax legislation that could affect your business and personal finances.

Through these action items, individuals can leverage the knowledge about taxes and corporations, a vital concept from “Rich Dad Poor Dad,” to protect their wealth and maximize their financial growth potential.

Creating Multiple Streams of Income: Diversification as a key to financial stability.

In the “Rich Dad Poor Dad” book, Robert Kiyosaki emphasizes the importance of creating multiple streams of income to ensure financial stability and growth. He argues that relying on a single income source, such as a salary from a job, can be risky and limits potential financial growth. Diversifying income sources can include investments in stocks, real estate, side businesses, or earning passive income through various assets. This approach not only provides financial security in case one stream dries up but also accelerates wealth accumulation.

• Reducing Dependence on a Single Income Source : Understanding the risk of relying solely on a paycheck and the benefits of having multiple income streams.
• Diversification for Financial Stability : Exploring different types of income streams, including passive income, to reduce financial risk.
• Leveraging Skills and Interests : Utilizing personal skills and interests to create additional income sources.
• Assess Your Skills and Interests : Identify what skills, knowledge, or hobbies you have that could be monetized, like consulting, freelancing, or creating digital content.
• Learn About Investment Opportunities : Educate yourself about different types of investments that can generate income, such as stocks, bonds, real estate, or mutual funds.
• Start a Side Business or Hustle : Consider starting a side business that aligns with your interests or skills. This can range from e-commerce to offering professional services.
• Invest in Income-Generating Assets : Look into assets that can generate passive income, such as rental properties, dividend-paying stocks, or peer-to-peer lending.
• Create a Financial Plan for Multiple Income Streams : Develop a plan outlining how you will create and manage these income streams, including timeframes and financial goals.
• Regularly Review and Adjust Your Income Strategies : Monitor the performance of your income sources and be prepared to make changes as necessary.
• Network and Collaborate : Engage with others to find opportunities for collaboration, which can lead to new income streams.
• Set Aside Time for Your Side Projects : Dedicate specific times to focus on developing and managing your additional income sources.
• Reinvest Profits for Growth : Reinvest earnings from your additional income streams to further grow and diversify your income.
• Stay Informed About Market and Economic Trends : Keeping up with economic trends can provide insights into new opportunities for income generation.

By following these action items, individuals can implement Kiyosaki’s advice from “Rich Dad Poor Dad” to create multiple streams of income, enhancing their financial security and working towards greater financial freedom.

The Power of Networking and Mentorship: Leveraging relationships and learning from successful individuals.

Robert Kiyosaki underscores the significance of networking and mentorship in achieving financial success. He emphasizes that building relationships with knowledgeable and experienced individuals can provide invaluable insights and opportunities in the journey to wealth. Networking can open doors to new business ventures, investment opportunities, and wisdom from those who have already achieved financial success. Mentorship, in particular, offers personalized guidance and learning from someone’s direct experience, helping to avoid common pitfalls and accelerate the path to financial independence.

• Learning from Successful Individuals : The benefits of connecting with people who have achieved financial success and learning from their experiences.
• Expanding Opportunities through Networking : How a robust network can lead to new business and investment opportunities, partnerships, and resources.
• Mentorship for Personalized Guidance : The advantage of having a mentor to offer direct advice, guidance, and feedback on your financial strategies and decisions.
• Attend Networking Events and Seminars : Regularly participate in business networking events, financial seminars, and workshops where you can meet potential mentors and like-minded individuals.
• Join Professional and Business Associations : Become a member of relevant professional groups or associations where you can connect with experienced professionals and entrepreneurs.
• Actively Seek a Mentor : Look for a mentor who has achieved the kind of financial success you aspire to. This could be someone in your existing network, a professional within your industry, or even a local business leader.
• Leverage Social Media and Online Platforms : Use platforms like LinkedIn, business forums, and financial blogs to connect with potential mentors and peers in the financial field.
• Engage in Reciprocal Learning : Offer your own skills and knowledge in exchange for learning opportunities. Networking and mentorship are two-way streets.
• Volunteer or Intern : Consider volunteering or interning with a business or individual you admire to gain direct experience and build relationships.
• Regularly Communicate with Your Network : Maintain regular contact with your network through emails, social media, or attending regular meetups.
• Be Open to Different Perspectives : Be willing to listen to and learn from the diverse experiences and viewpoints within your network.
• Apply Learned Lessons to Your Financial Strategies : Actively apply the insights and advice you receive from your network and mentors to your own financial planning and decisions.
• Give Back to Your Network : As you gain experience and success, offer your own guidance and mentorship to others in your network.

By following these action items, individuals can harness the power of networking and mentorship, a vital principle in “Rich Dad Poor Dad,” to gain insights, opportunities, and guidance on their path to financial success.

Continuous Learning and Adaptation: Emphasizing the need for ongoing education and adaptability in the financial world.

In Poor Dad Rich Dad, Robert Kiyosaki stresses the importance of continuous learning and adaptation, especially in the ever-evolving financial world. This principle revolves around the idea that financial education is a lifelong process and not a one-time event. The financial landscape, including markets, tax laws, and investment opportunities, is constantly changing. To stay ahead and make informed decisions, individuals must commit to ongoing education and be adaptable to new information and changing circumstances. This approach allows for better risk management, more informed investment decisions, and the ability to capitalize on new opportunities as they arise.

• Evolving Financial Knowledge : Recognizing that financial strategies and market dynamics are not static and require regular updating of knowledge.
• Adaptability to Market Changes : Being flexible and responsive to economic changes, new technologies, and shifts in investment trends.
• Proactive Learning Approach : Taking a proactive stance in seeking new information and understanding emerging financial concepts and tools.
• Regularly Update Financial Education : Dedicate time each week to read financial news, books, and articles to stay informed about current trends and developments.
• Attend Workshops and Seminars : Participate in financial workshops, webinars, and seminars to learn from experts and stay abreast of new strategies and ideas.
• Engage in Online Learning : Utilize online platforms and courses to deepen your understanding of various financial topics, from basic personal finance to advanced investment strategies.
• Stay Informed About Global Economic Trends : Monitor global economic events as they can have an impact on local markets and investment decisions.
• Experiment with New Investment Tools : Explore and experiment with new financial tools and technologies (like financial apps, online investment platforms) to enhance your financial management skills.
• Join Financial Discussion Groups or Forums : Engage with online communities or local groups where you can discuss financial topics, exchange ideas, and get different perspectives.
• Review and Adjust Financial Plans Regularly : Periodically assess your financial plan and investment portfolio to ensure they align with current economic conditions and personal goals.
• Learn from Financial Mistakes : Analyze any financial setbacks or mistakes, and use these experiences to inform future decisions.
• Seek Feedback from Financial Advisors : Regularly consult with financial professionals to get expert opinions and guidance on your financial strategies.
• Embrace Technology in Finance : Stay up-to-date with technological advancements in the financial sector, such as digital banking, online trading platforms, and blockchain technology.

By actively engaging in these action items, you can embody the principle of continuous learning and adaptation in finance, as emphasized in “Rich Dad Poor Dad,” thus equipping yourself to navigate the dynamic and complex world of personal and investment finance effectively.

Rich Dad Poor Dad PDF

This is an 8 page detailed summary of the book in PDF format.

PDF Summary

25 Lessons from Rich Dad Poor Dad

• Financial Education Over Working for Money : Understand the mechanics of money and investing to make money work for you, instead of solely working for money.
• Know the Difference Between Assets and Liabilities : Assets put money in your pocket, liabilities take money out. Building wealth involves acquiring assets and minimizing liabilities.
• Create and Nurture Your Own Business : Focus on building and growing your own business or income-generating ventures alongside your regular job.
• Leverage Corporations for Protection and Benefit : Utilize the legal and tax advantages offered by corporations to protect and enhance your wealth.
• Innovation in Wealth Creation : Develop the ability to spot and create new opportunities for wealth, rather than relying on traditional methods.
• Value Learning More Than Earning : Emphasize acquiring new skills and knowledge, particularly in sales, marketing, and investing, over a short-term focus on salary.
• Confronting and Overcoming Fear : Overcome the fear of losing money, which often holds people back from taking financial risks and opportunities.
• Teach Financial Literacy Early : Educate children about money management and investing from a young age to cultivate their financial intelligence.
• Accelerating Your Wealth Growth : Understand that financial education can significantly speed up the process of wealth building.
• Risk Management : Learn to evaluate and manage risks effectively, an essential skill for financial success.
• Importance of Sales and Marketing Skills : Develop strong communication and sales skills, crucial for success in any business or investment venture.
• Diversify Income Streams : Avoid dependency on a single income source by creating multiple streams of income.
• Learning from Economic Trends and History : Gain insights from past economic trends to make informed investment decisions.
• Embrace Philanthropy : Share wealth and knowledge, understanding that giving back is a key aspect of wealth.
• Separating Emotions from Financial Decisions : Make logical and informed decisions rather than letting emotions drive your financial choices.
• Embrace Failure as a Learning Tool : Understand that making mistakes and facing losses is part of the journey toward financial literacy and independence.
• Consistently Build and Increase Assets : Continuously seek opportunities to acquire and grow assets that generate passive income.
• Networking for Opportunities : Build and maintain a network of contacts that can provide support, advice, and opportunities.
• Prioritize Financial Learning Over Leisure : Dedicate time to learning about finances and investments instead of excessive leisure activities.
• Understanding Tax Advantages and Protection : Learn how to use tax laws and corporate structures to your advantage in wealth building.
• Develop a Robust Financial Plan : Create a clear and strategic plan for financial growth and security.
• Learn from Successful Mentors : Seek guidance and learn from those who have achieved financial success.
• Transition from Active Earning to Passive Income : Shift focus from active income (from a job) to generating passive income through investments.
• Hard Work in Building a Financial Foundation : Recognize the importance of a strong work ethic in establishing a base for financial growth.
• Continuous Learning and Adaptation : Stay committed to continual learning and adapt to changing financial landscapes and opportunities.

Each of these lessons from “Rich Dad Poor Dad” provides insights into building and managing wealth, emphasizing the importance of a mindset shift from traditional views on money to a more proactive, informed approach.

PDF Workbook

Rich Dad Poor Dad Review

“Rich Dad Poor Dad” is not just a book; it’s a paradigm-shifting guide that challenges conventional wisdom about finance, work, and wealth. Robert Kiyosaki’s narrative, based on lessons from his own life, juxtaposes the financial philosophies of two father figures: his biological father, the ‘Poor Dad,’ and the father of his childhood best friend, the ‘Rich Dad.’ Through this compelling contrast, Kiyosaki delivers profound insights into the world of money and investing.

The book’s core premise is that true financial education is seldom taught in schools. Kiyosaki argues that the traditional path of getting a good education and a secure job is not the only or the best way to achieve financial success. Instead, he puts a strong emphasis on acquiring assets that generate passive income and understanding the difference between assets and liabilities.

One of the book’s greatest strengths is its simplicity in explaining complex financial concepts. It turns the often intimidating world of finance into something approachable and understandable. Kiyosaki’s storytelling is engaging, making the book accessible to readers from all walks of life, regardless of their financial background.

However, it’s important to note that while the book is inspirational, it’s not a step-by-step guide to wealth. Some critics argue that it oversimplifies complex financial strategies and lacks specific advice. The book is more about changing one’s mindset regarding money than about specific financial tactics.

“Rich Dad Poor Dad” also stands out for its emphasis on risk-taking and entrepreneurial spirit. Kiyosaki encourages readers to break out of their comfort zones, to see opportunities where others see obstacles, and to learn from failures. This approach is refreshing and can be incredibly motivating for those feeling stuck in traditional career paths.

In conclusion, “Rich Dad Poor Dad” is a compelling read for anyone looking to rethink their approach to finance and wealth. It’s a call to develop financial intelligence and to view money-making through a broader, more opportunistic lens. While it may not provide detailed financial solutions, it certainly sparks the kind of thinking that could lead to financial independence and success.

Highly recommended for its thought-provoking content and fresh perspective on wealth and financial education.

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Book Summary Rich Dad Poor Dad , by Robert T. Kiyosaki

Rich Dad, Poor Dad is one of the best-selling financial books in history, selling over 35 million copies. The premise: when growing up, author Robert Kiyosaki had two dads advising him: 1) a Stanford-educated PhD who followed traditional career thinking and was financially illiterate (the Poor Dad, his biological father); 2) a high school dropout who built a business empire employing thousands (the Rich Dad, his best friend’s father).

The two dads are a parable for two different approaches to wealth : Poor Dad recommends getting a secure job with good benefits and retiring with a pension. Rich Dad recommends amassing assets that make money for you , becoming financially literate, and practicing independent thinking.

In this book, learn how to achieve financial independence, why it’s a terrible idea to see your home as your biggest investment, and how to overcome the biggest mental blocks to becoming wealthy.

Rich Dad Poor Dad

Robert T. Kiyosaki

1-Page Summary 1-Page Book Summary of Rich Dad Poor Dad

The premise: when growing up, author Robert Kiyosaki had two dads advising him: 1) a Stanford-educated PhD who followed traditional career thinking, was allergic to risk, and was financially illiterate (the Poor Dad, his biological father); 2) a high school dropout who later built a business empire worth many millions and employing thousands (the Rich Dad, his best friend’s father).

The Poor Dad represents the traditional view on work and money - go to school, get a good job and climb the ladder, prize stability over independence, buy a house, and spend money without a clear long-term plan.

• Most parents belong to this system, so they pass it down to their kids.
• The traditional view worked better in the 20th century, when strong growth and decades-long employment meant stability was a viable strategy. Nowadays, pensions are rarely guaranteed; job security at a loyal employer is rare; professional education and academic success are no longer guarantees for security.

The Rich Dad represents what was then a more contrarian view - work for salary if you have to, but aim for financial independence; have your money generate more money; and take calculated risks boldly.

Most people adopt the Poor Dad view of finances and life. Even worse, they let money control their life:

• Fear of not having money makes people work hard.
• Then once they get a paycheck, greed gets them to buy things they covet.
• But the joy is short-lived. As they spend unwisely, they have money problems, and the fear of not having money drives back in. They have to go back to work to get the next paycheck.
• This cycles endlessly, even as their paychecks increase with raises - this is the Rat Race. Money ends up running their lives. They get stuck in jobs they dislike for the sake of money.

Lesson 1: The Rich Don’t Work For Money - Money Works for Them

The rich don’t get rich merely by being paid higher salaries (though this is a great help). They get rich by owning things that make them more money.

Wealthy people use their Income to buy Assets that return more Income. Meanwhile, they minimize their spending on Expenses and buying Liabilities, to have more money to buy more Assets.

People who don’t become rich either spend all their income on expenses, or buy liabilities that increase their expenses but don’t add income.

The key to financial independence is having money that makes more money. You want your money to make enough money that you don’t have to work anymore.

Lesson 2: Buy Assets, Not Liabilities

The key is to buy things that generate income (assets). You do NOT want to buy things that lose money over time or incur large expenses (liabilities).

This is obvious...

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Rich Dad Poor Dad Summary Shortform Introduction

Rich Dad, Poor Dad is one of the best-selling financial books in history, selling over 35 million copies since its publication in 1997.

The book doesn’t teach the tactics of getting rich as much as it does the principles : the mindset and high-level strategies that distinguish the wealthy from the hapless.

Unfortunately, as many critics have commented, much of Rich Dad, Poor Dad is flawed. It’s not clear exactly how and when to apply the principles, and less discerning readers can follow the advice and get into trouble. Here are some caveats to set the advice in context.

Rich Dad, Poor Dad doesn’t engage on tactical details that would help people apply the decisions. Kiyosaki says these are out of scope of the book, and maybe details would alienate the popular reader, but it’s a poor excuse. Examples of useful questions to cover:

• When does it make sense to rent vs buy a house? What will end up being a better financial decision in the long run?
• How do you assess the risk and return of an...

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Rich Dad Poor Dad Summary Introduction: Rich Dad and Poor Dad

Growing up in Hawaii in the 1950s, Robert Kiyosaki had two dads:

• Poor Dad: His biological dad, who was well educated (Stanford grad, PhD from Northwestern) but had the traditional mindset: work hard, get a stable job, and be financially conservative. The family did fine, but never made it to financial independence and left little to their kids.
• Rich Dad: His friend Mike’s dad, who didn’t graduate from high school and had his own financial ups and downs, but eventually built a local business empire and employed thousands. (believed to be Richard Kimi )

Robert Kiyosaki got conflicting advice from both dads on how to manage money, career, and financial risk. Ultimately he saw more wisdom and results in Rich Dad’s advice, and followed in the Rich Dad’s path.

While Robert Kiyosaki might really have had two dads, the more important point is that the two dads are a parable for two types of financial thinking .

• The Poor Dad represents the standard consensus view on work and money - go to school, get a good job and climb the ladder, prize stability over independence, buy a house, and...

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Rich Dad Poor Dad Summary Learning with Rich Dad

Spread across a few chapters in Rich Dad, Poor Dad , the author narrates his experience with Rich Dad learning the principles of money and work.

Learning the First Lesson

As a 9 year old, Robert Kiyosaki is rejected socially by the rich kids in his public school. He asks his dad, a teacher, how to get rich and make money, but his dad has no satisfactory answer.

He commiserates with his best friend Mike, the only other non-visibly-wealthy kid in the school. They start a misguided idea to melt down metal toothpaste tubes and mint their own nickels. Bemused, Robert’s dad (Poor Dad) suggests they talk to Mike’s dad (Rich Dad), who owns multiple local businesses and seems to be on a good path.

• Poor Dad also notes that the other apparently rich kids have parents who are just like him - they’re employed by the local plantation, and if the company gets into trouble, they’ll soon have nothing. Rich Dad is different since he seems to be paving his own way.

Rich Dad is busy, but meets with them early in the morning between his regular business meetings with his managers. Rich Dad has this dialogue:

• “Here’s my offer. I’ll teach you, but not like a teacher in a...

Rich Dad Poor Dad Summary Lesson 1: The Rich Don’t Work For Money - Money Works for Them

With the narrative over, the rest of the book covers Robert Kiyosaki’s major lessons from Rich Dad.

Most people work 40+ hours a week to earn salaries. Many then take their earnings to 1) buy stuff they think will make them happy (but this is short-lived), 2) save the remainder in a conservative way.

While this ensures some degree of stability, it doesn’t make you rich. And working to earn a pension makes you financially dependent - let alone the risk that pensions won’t be funded decades from now, when you need it.

The counter-intuitive lesson here is this: the rich don’t get rich merely by being paid higher salaries (though this is a great help) . They get rich so by owning things . No one on the Forbes billionaire list got there purely with a salary.

( As tech investor Sam Altman says , “You get truly rich by owning things that increase rapidly in value. This can be a piece of a business, real estate, natural resource, intellectual property, or other similar things. But somehow or other, you need to own equity in something, instead of just selling your time. Time only scales linearly. ”)

When you work for an...

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Rich Dad Poor Dad Summary Lesson 2: Buy Assets, Not Liabilities

So how do you put your money to work for you? The key is to buy things that generate income (assets). You do NOT want to buy things that lose money over time or incur large expenses (liabilities).

This is obvious enough. But the most deceptive investments look like assets, but are actually liabilities .

Liability: Buying a House as a Primary Residence

In Robert Kiyosaki’s view, the most common mistake is buying a house as a primary residence, and considering it an asset and their primary investment.

His reasoning:

• This is why many are stuck in the rat race - someone buys an expensive house. Now she has high monthly expenses, so she has to keep working to sustain it. Yes, the house may be appreciating, but that doesn’t help her high month to month expenses.
• The money tied up as a down payment, building up home equity, and paying...

Rich Dad Poor Dad Summary Lesson 3: Reduce Taxes Through Corporations

(Shortform caveat: we consider this the worst chapter in the book. He doesn’t explain the advice clearly enough to be useful. The advice doesn’t apply to most people’s situations. And taken incorrectly, it could get you into trouble.

Treat none of this as actual tax advice; seek a tax attorney for real advice, and executing some of this too liberally is illegal.)

Why Taxation is Bad

In Rich Dad, Poor Dad , Robert Kiyosaki is clearly strongly against taxation, saying things like:

• Most people work from January to May just for the government.
• The Social Security tax is an insidiously large tax, at 15% of wages.
• Originally in England/early US, taxes were only levied against the rich. They were then extended to middle and lower classes to support a growing government appetite for money, and eventually taxation disproportionately punishes the poor.
• The biggest bully isn’t your employer or your manager, but the tax man. “The tax man will always take more if you let him.”

Whatever your philosophical bent on taxation, the practical point is that the rich find ways to minimize their tax burden, sometimes paying a lower % of their income than lower tax...

Rich Dad Poor Dad Summary Lesson 4: Overcome Your Mental Obstacles

More people have the potential to be happy, but common obstacles get in the way. People who overcome these obstacles get a huge advantage.

Self-doubt or lack of self-confidence hold all of us back, to some degree. Some are affected more than others.

In the real world, more than just intelligence and grades is required. Guts, chutzpah, balls, daring, tenacity, grit are different names for the factor that plays a huge role in success.

When you recognize a great opportunity, you must have the courage to chase it.

(Shortform example: a quote from Charlie Munger: “We read a lot. But that’s not enough: You have to have a temperament to grab ideas and do sensible things. Most people don’t grab the right ideas or don’t know what to do with them.”)

Fear manifests in a lot of ways.

Fear of Losing or Failure

Fear of losing makes you play it safe and avoid opportunities that can have huge upsides and relatively low downsides. Control your fear of losing, money or otherwise. Everyone has fear of losing money, but you have to handle it properly.

• (Shortform note: This is well rooted in psychology - losses are more painful than equivalent...

Rich Dad Poor Dad Summary Lesson 5: Keep Learning All the Time

Developing financial intelligence pays off huge returns. If your mind is trained well, you can create enormous wealth in what in the grand scope of things is an instant.

In contrast, an untrained mind can also create poverty that lasts lifetimes.

Robert Kiyosaki believes financial intelligence is made up of four broad areas of expertise :

• Accounting: financial literacy. Read and understand financial statements.
• Investing: strategies to use money to make more money. The creative piece.
• Understanding markets: understand supply and demand. Can you create something that the market wants? Does an investment make sense under current market conditions?
• Law: use tax advantages and legal protection to build wealth more quickly and reduce risk.

Taken together, financial intelligence allows you to construct creative ways to solve financial problems, vet the ones that are more likely to work, then have the technical ability to execute them.

Consider that spending money on financial intelligence is like buying yourself life - you may save on years of working because of making the right decisions.

Keep Learning, and Learn Quickly

Great opportunities arise...

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Rich Dad Poor Dad Summary Lesson 6: How to Get Started

Finally, we’ll end with tips on how to get started on your path to building wealth:

1. Need a reason greater than reality.

Find a deep reason you want to succeed. This is usually a combination of “wants” and “don’t wants.”

Examples: “I don’t want to work all my life. I don’t like being an employee. I hated that my dad missed my football games since he was obsessing about his career. I want to be free to travel the world when I’m young. I want control over my time.”

If you don’t have a strong reason, you won’t make it. It will sound like too much work.

2. Actively choose to be rich and think every day.

Ask, what would a rich person do in this situation?

Invest in educating yourself.

3. Choose friends carefully. Consciously make effort to learn from them.

Don’t seek people for their money. Seek them for their knowledge.

Find someone who has done what you want to do. Take them to lunch.

Don’t listen to frightened people who always advice caution or are pessimistic. They drag you down.

Funnily, rich people have friends who ask them for jobs or a loan, but rarely to ask them how they made...

Table of Contents

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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Rich Dad Poor Dad

43 pages • 1 hour read

A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.

Chapter Summaries & Analyses

Introduction-Chapter 1

Chapters 2-3

Chapters 4-5

Chapters 6-7

Chapter 8-Epilogue

Key Figures

Index of Terms

Important Quotes

Essay Topics

Discussion Questions

Summary and Study Guide

Published in 1997, Rich Dad Poor Dad is a financial self-help book written by Robert Kiyosaki and Sharon Lechter. Kiyosaki’s aim in writing the book was to impart financial lessons and insights to the masses, drawing from his own life experiences and the starkly contrasting financial philosophies of his two “dads.” Upon its release, the book quickly became a bestseller and remains a classic in the personal finance genre .

Kiyosaki structures the book as a series of lessons, each elucidating the differences in mindset and approach to money between Kiyosaki’s “poor dad,” his biological father, and his “rich dad,” the father of his best friend Mike . Poor dad, a highly educated academic and government official, believed in the traditional path of academic success leading to a secure job, while rich dad, who lacked formal education beyond the eighth grade, emphasized financial education, entrepreneurship , and investing as the keys to wealth. Throughout the book, Kiyosaki shares advice on how individuals can escape the cycle of working for money and instead make money work for them, highlighting the importance of assets , passive income , and financial literacy. In addition, Kiyosaki encourages readers to challenge conventional financial wisdom, thereby taking control of their financial future.

Rich Dad Poor Dad has been a long-term commercial success and has been translated into numerous languages, selling millions of copies worldwide. It has also spawned a series of follow-up books, educational games, and seminars, as Kiyosaki has become a well-known speaker in the personal finance space. However, the book has also faced criticism for its oversimplification of complex financial concepts and for not providing investment advice that is specific enough to readers.

 Summary

Rich Dad Poor Dad recounts Robert Kiyosaki’s early financial lessons, initiated the author was nine years old. The book’s title alludes to Kiyosaki’s two father figures: his own “poor dad” who, despite his high income, struggled financially, and his friend’s father, the “rich dad,” an uneducated entrepreneur who became wealthy by applying a series of specific financial concepts. Ultimately, Kiyosaki sought to comprehend both perspectives, but he found his rich dad’s financial wisdom invaluable in his own path to financial success.

Kiyosaki provides simplified explanations of financial concepts such as cash flow , balance sheets, income statements, assets, and liabilities . Kiyosaki often accompanies his explanations with illustrations and real-life examples from his own experiences and those of his family and friends. Kiyosaki laments the lack of financial education in childhood, expressing his belief that it should be a fundamental part of early learning. Additionally, Rich Dad Poor Dad underscores the importance of distinguishing between assets and liabilities, emphasizing the importance of investing in assets as a foundational “rule.” The first six chapters of the book, comprising the majority of its content, delve into the six fundamental lessons Kiyosaki gleaned from rich dad’s financial wisdom, while the final three chapters provide further thoughts and analysis on the lessons.

In the Introduction, Kiyosaki shares his life’s financial lessons and introduces his two father figures. The Introduction lays the thematic foundation for the book as Kiyosaki explores their divergent philosophies. Through Kiyosaki’s own perspective , readers gain insights into his preferred wealth-building strategies and the importance of financial education .

In Chapter 1, Kiyosaki explains that the rich don’t work for money, in contrast to the poor and middle-class who rely on paychecks to survive. He highlights how the fear of taking risks, combined with the desire for job security, often keeps people trapped in their comfort zones, which leads to missing out on opportunities recognized and seized by the rich.

In Chapter 2, Kiyosaki highlights the importance of financial literacy, as he argues for the importance of understanding the distinction between assets and liabilities. Moreover, he emphasizes that even the rich can face financial ruin without financial education, citing cases of celebrities who made poor financial decisions. He provides a diagram to differentiate assets and liabilities, stressing that true wealth is not solely about income but about prudent financial management.

In Chapter 3, Kiyosaki advises readers to focus on their own business and not their employer’s. Thus, he encourages individuals to become their own bosses by building assets that will generate cash flow, even if they do not start their own businesses. He includes examples of such assets, such as stocks, bonds, income-producing real estate, mutual funds, royalties, and notes.

Kiyosaki shifts the focus in Chapter 4 to contrast how the poor and middle class are manipulated by big corporations, while the rich use corporations to protect and grow their wealth. He explains that the rich employ corporations to earn and spend and that they are taxed only on what remains. He argues that developing financial IQ through knowledge of investing, accounting, law, and market understanding is crucial.

In Chapter 5, Kiyosaki contends that a person’s innate talents are often suppressed by fear and self-doubt, as financial success is not solely determined by intelligence but also by boldness and risk-taking. Waiting passively for opportunities is a common financial pitfall, even among those with substantial wealth.

In Chapter 6, Kiyosaki emphasizes skills that he argues are essential for financial success, using an example of a highly educated and talented individual whose resistance to learning sales and marketing stifles their economic opportunities. He underscores the significance of mastering cash flow management, people management, and system management, thus accentuating communication skills as an essential component for financial prosperity.

In Chapter 7, Kiyosaki identifies five personality traits that hinder individuals: fear, cynicism, laziness, bad habits, and arrogance. He emphasizes the importance of handling fear and recommends ignoring pessimists. Kiyosaki discusses the irony of people worrying about trivial tasks such as fixing toilets, instead of focusing on real estate opportunities. He encourages a level of self-interest, urging individuals to ask, “What’s in it for me?” when making financial decisions.

In Chapter 8, Kiyosaki provides tips for building personal wealth, one of which is the advice to seek a motivation greater than reality to awaken the financial genius within oneself. He emphasizes feeding the mind to gain the power of choice, as well as the importance of selecting friends wisely, favoring those who discuss money and its lessons. Furthermore, Kiyosaki suggests studying a field and then venturing into a new one selectively. He also stresses the importance of generosity, while also recommending having heroes who inspire and make success seem attainable. Lastly, he promotes the idea that teaching and generosity can lead to receiving assistance from higher powers.

In Chapter 9, Kiyosaki supplements the previous chapter with additional tips for financial success, advising readers to cease unproductive endeavors by seeking new ideas from more experienced people. In terms of real estate investment, Kiyosaki suggests looking in the right places and offers ways to enter the market with minimal capital, suggesting the potential of making money without any initial investment.

Finally, in a brief Epilogue titled “Final Words,” Kiyosaki reiterates the book’s purpose: to promote financial intelligence . He discusses how this knowledge can solve common life problems by helping people break away from conventional approaches like working hard and excessive taxation. As Kiyosaki shares a real-life example of a friend’s financial transformation through real estate investment, he grounds in his own personal observations and experiences. Finally, he urges sharing this knowledge with children for a life of financial abundance and happiness.

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Rich Dad Poor Dad by Robert Kiyosaki

Reading Time: 13 minutes

Rich Dad Poor Dad Summary

Rich Dad Poor Dad is the crash-course financial education that you should have learned in school. Robert Kiyosaki tells stories about what he learned from his two dads to deliver valuable lessons for any financial education. You will learn the difference between working for money vs. having your money work for you, why buying a house may not be a good idea, and how to overcome the barriers in your mind that stop you from having the financial life you want.

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Key Takeaways

Lesson 1: the rich don’t work for money.

“The poor and the middle class work for money. The rich have money work for them.”

Life pushes everyone around. Some people figure out how to learn from being pushed around. Other people fight back and blame other people for their problems. The first group succeeds. The second group does not.

Most people have a price because they’re afraid of not having money. So they settle for a deal, work hard, and then get excited about all the things money can buy for them. They stay in that cycle for the rest of their lives, not realizing they may have settled for something less than what they’re worth.

The Rat Race is driven by people who are controlled by fear and greed. Their fear of not having money drives them to get up, go to work, and pay their bills. When they get paid more, their desire drives them to increase their spending and requires them to stay in the cycle of working incessantly. Most people in this cycle believe that money will solve the fear that they feel, but it never does.

Many people with lots of money are more driven by fear than people without money. That’s because they fear losing what they have earned and the social and other consequences of that loss. This fear drives them to continue in the Rat Race long after they have enough money to exit the game.

The first step to avoiding the traps caused by fear and desire is to recognize these two emotions as powerful forces in driving most human behavior. You cannot eliminate these emotions, but you can become less reactive to them. And in doing so, you can stop them from allowing them to have an outsized influence on your decision-making.

You don’t need to be a financial genius to create enormous wealth. But you do need to break free from the desire for a paycheck and the short-term security that comes with it. And once you do, you can start seeing opportunities that will create far more money than you could earn as an employee.

Great quotes:

• “Life pushes all of us around. Some people give up and others fight. A few learn the lesson and move on. They welcome life pushing them around.”
• “A job is really a short-term solution to a long-term problem.”
• “It’s fear that keeps most people working at a job: the fear of not paying the bills, the fear of being fired, the fear of not having enough money, and the fear of starting over. That’s the price of studying to learn a profession or trade, and then working for money. Most people become a slave to money – and then get angry with their boss.”

Lesson 2: Why Teach Financial Literacy

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

Financial literacy is the education you need to learn how to make, grow, and keep your money over time. Without being financially literate, you can end up making a lot of money and still being broke. With it, you can learn smart ways to make money work for you over time.

Formal schooling does not teach financial literacy. The result is that most people leave school with a heavy pile of debt and a weak financial foundation. They chase the American Dream, get into debt, and then look for ways to get-rich-quick to solve their problems.

These efforts are a lot like trying to build a skyscraper on a weak foundation. Instead of the Empire State Building, you end up with a wobbly tour that’s highly vulnerable.

The first rule of finance is to know the difference between assets and liabilities. Assets are things you own that generate income for you. Liabilities, on the other hand, take money from you. Rich people focus on acquiring assets, not liabilities. In other words, they buy assets to make sure that their asset column is hearty.

Despite this, people pour their money into liabilities, like expensive cars and other material items that cost them money. Instead, they should look to acquire more assets over time (e.g., real estate, stocks, bonds, IP, and other things that make you money). When you have enough assets, you don’t have to rely on a salary to earn income.

Many people learn how to work hard for their money, but fail to learn how to make their money work for them. And without that foundation, they’re forever caught in the Rat Race.

For example, many people believe their home is an asset. But it is really a liability. That’s because it takes money out of your pocket with taxes, expenses, any losses in value, and the opportunities you miss by having your money tied up in a home.

Instead of buying a home, it’s better to first buy income-generating assets that will generate enough cash flow to pay for the mortgage payment on your home. Once you have enough assets to cover all of your expenses and more, you can invest the balance into more assets, thus producing more income and giving you the freedom to escape the Rat Race.

One definition of wealth is that of R. Buckminster Fuller: “Wealth is a person’s ability to survive so many number of days forward – or, if I stopped working today, how long could I survive?” The first step to being wealthy is to ensure that the income generated from your assets exceeds your expenses.

• “Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.”
• “If your pattern is to spend everything you get, most likely an increase in cash will just result in an increase in spending.”
• “In 80 percent of most families, the financial story paints a picture of hard work to get ahead. However, this effort is for naught because they spend their lives buying liabilities instead of assets.”

Lesson 3: Mind Your Own Business

“The rich focus on their asset columns while everyone else focuses on their income statements.”

Most people spend their lives working for other people. That can include their employer, the government via taxes, and banks via their mortgages. Most people stay trapped in this cycle of working for other people and making those people rich instead of themselves.

You don’t have to start your own company to break this cycle. In fact, all you have to do is focus on growing your assets, instead of only relying on your income. Many people live paycheck to paycheck and can never free themselves from the Rat Race because they don’t have assets working for them.

Net worth is a bad proxy for how much money you have because often the things that you use to make that calculation aren’t as valuable as you think they are, or if they have gained value, they will trigger taxes on the gain once they’re sold.

When you’re young, the best thing you can do is keep your liabilities low and start using your excess cash flow from your job to build a solid foundation of assets. There are a few different types of common assets:

• A business that does not require your presence. For example, you own a business that is managed or run by other people. If you have to be there, it’s a job, not a business.
• Income-generating real estate
• Notes (IOUs)
• Royalties from intellectual property such as music, scripts, and patents
• Anything else that has value, produces income or appreciates, and has a ready market

It’s important to focus on acquiring assets that you love. Some people love real estate and startups; other people feel burdened or scared by these types of assets. An important part of your asset acquisition strategy is to invest in things that align with forms of income generation that work for you.

• “Once a dollar goes into it, never let it come out. Think of it this way: Once a dollar goes into your asset column, it becomes your employee. The best thing about money is that it works 24 hours a day and can work for generations.”
• “Financial struggle is often directly the result of people working all their lives for someone else. Many people will simply have nothing at the end of their working days to show for their efforts.”
• “An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.”

Lesson 4: The History of Taxes and the Power of Corporations

“My rich dad just played the game smart, and he did it through corporations – the biggest secret of the rich.”

While it’s commonly believed that the rich should pay more in taxes than the poor, it’s often the middle class and upper-middle class who pay the most taxes. While taxes were originally levied only on the rich, the need to expand the tax base grew as the government grew and needed to fund itself. That leads to income tax being a larger burden on people at the lower and middle rungs of the socioeconomic ladder.

The primary way that the rich have been able to avoid taxes is through corporations. Corporations benefit from having a lower income tax rate than individuals have, and many of a corporation’s expenses can be paid with pre-tax dollars.

While tax law has tried to find new ways to tax the rich, there are often new loopholes that they exploit. For example, one tax law allows you to delay paying taxes on a piece of real estate that is sold for a capital gain by exchanging it for a more expensive piece of real estate.

So if you continue to trade up your real estate, you don’t have to pay any taxes until you sell. That’s simply one way in which savvy people who understand taxes keep more of their money than people who don’t know the regulations.

That’s why tax advisors who know what they’re doing are often worth the cost. They prevent you from paying more than you need to the government.

The higher your financial IQ, the more you’ll find opportunities to make your money go further. A few key areas of financial IQ include:

• Accounting: being able to read financial statements and understanding the strengths and weaknesses of a business
• Investing: Understanding strategies and models for making money
• Understanding markets: knowing about supply, demand, and market conditions
• Understanding the law: knowing about tax advantages and protections

The best example of using financial IQ is having a corporation. Instead of paying your expenses after you’ve been taxed on your paycheck, you can pay for expenses with pre-tax dollars, lowering your tax burden and your expense burden by knowing how to use legal entities.

• “Every time people try to punish the rich, the rich don’t simply comply. They react. They have the money, power, and intent to change things. They don’t just sit there and voluntarily pay more taxes.”
• “If you work for money, you give the power to your employer. If money works for you, you keep the power and control it.”
• “Employees earn and get taxed, and they try to live on what is left. A corporation earns, spends everything it can, and is taxed on anything that is left. It’s one of the biggest legal tax loopholes that the rich use.”

Lesson 5: The Rich Invent Money

“Often in the real world, it’s not the smart who get ahead, but the bold.”

Avoiding financial struggle and acquiring financial intelligence requires knowledge, but it also requires the courage to act in the face of uncertainty and to avoid “playing it safe.” Those who are willing to act boldly are the ones who see opportunities and seize them, instead of sitting on the sidelines wondering how things may have played out.

One thing that holds people back with money is holding onto the way that “things used to be.” If you get used to things and don’t find ways to adapt to a fast-changing world, you’ll likely be left behind.

Once you build the habit of acting on opportunities, not only will you learn more, but luck will eventually come in your favor. Even if you learn to play the game and figure out how to play it well, it’s important to know that money is not your most valuable asset. Your mind is the key to financial independence, so it’s important to train and treat your mind well.

The truth is that markets go up and down, and opportunities come and go. The important thing is to be able to spot things as they come, have the skills to evaluate them, and move forward with ideas that have a high probability of success and low downside risk. If you can do that well, you improve your chance of moving beyond the poor and middle class.

With money, you won’t always win. You’ll make losing investments and winning ones. The key is to get better over time and not to beat yourself up over the losses.

There are two types of investors – ones who buy packaged investments from a retail outlet, and ones who create investments. To be the second type of investor, you need three skills:

• The ability to find opportunities that everyone else missed
• The ability to raise money
• The ability to hire and organize people that are smarter than you
• “Old ideas are some people’s 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.”
• “If the opportunity is too complex and I do not understand the investment, I don’t do it. Simple math and common sense are all you need to do well financially.”
• “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.”

Lesson 6: Work to Learn – Don’t Work for Money

“Job security meant everything to my educated dad. Learning meant everything to my rich dad.”

Many people live opportunities and money on the table by specializing too much and failing to learn one more skill. Most people focus simply on working hard, but that’s often not enough. If you’re a great writer and write a great book, you still not be a best-selling author. But if you learn how to sell and become a good marketer as well, you may exponentially increase your chances of having a best-seller. Many people are not willing and excited about learning that one skill that will take them to the next level.

One way to think about a job is that it is a learning opportunity. Making money at a job is great, but if you learn new skills, you start to build a stack of experience that can be valuable over your life. That’s why it may be good to try many different types of jobs while you’re young.

A job in which you have a high rate of learning is far more valuable than a secure job, with good pay and benefits over the short term. It’s often better to learn skills and make a little bit less money.

There are three management skills needed for success:

• Management of cash flow
• Management of systems
• Management of people

The most important specialized skills are sales and marketing. Being able to communicate well via writing, speaking, and negotiating are skills that help you in all areas of life. Many people are held back in the realm of communication because they fear rejection.

• Life is much like going to the gym. The most painful part is deciding to go. Once you get past that, it’s easy.”
• “The world is filled with talented poor people. All too often, they’re poor or struggle financially or earn less than they are capable of, not because of what they know, but because of what they do not know.”
• “I recommend to young people to seek work for what they will learn, more than what they will earn.”

Lesson 7: Overcoming Obstacles

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

There are 5 core reasons why financially literate people may still not have good cash flow:

Overcoming fear

Everyone has a fear of losing money. It’s how you respond to that fear that differentiates a rich person from a poor person. When you inevitably lose money, the important thing is to learn from the experience and remain in the game. Instead of being down about your failures, learn to be inspired by them. Figure out how you can turn the obstacle into an opportunity down the road. Most people end up playing not to lose when the best strategy is to play to win. You don’t win big with a safe, balanced portfolio.

Overcoming cynicism

Doubt – whether it’s self-doubt or doubts of people in our lives – often stops us from acting. But often the best opportunities are found when everyone is fearful, including you, and you find the courage to act anyway. When you learn to work through self-doubt, you start to see more opportunities and to be less influenced by other cynical people who lead you to bad decisions.

Overcoming laziness

A common form of laziness is staying too busy to take care of things in your life. In this state, you convince yourself that you can’t do something. For example, you may say you “cant afford it.” That may be true, but if you ask “How can I afford it?” instead, you may find solutions to your problem. Asking better questions helps you reframe the problem and see things that you would not otherwise see. And that’s how progress happens.

Overcoming bad habits

Successful people often have good habits. Those good habits often require a sacrifice, but in the long run, it’s worth it if it leads you closer to your goals.

Overcoming arrogance

Staying humble when you don’t know something and avoiding thinking that you’re infallible is a key ingredient to preserving and growing your wealth. It’s easy to lose money when you become overconfident.

• “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.”
• “Getting out of the Rat Race is technically easy. It doesn’t take much education, but those doubts are cripplers for most people.”
• “I’ve never met a golfer who has never lost a golf ball. I’ve never met people who have fallen in love who have never had their heart broken. And I’ve never met someone rich who has never lost money.”

Lesson 8: Getting Started

“There is gold everywhere. Most people are not trained to see it.”

Learning how to make money, exit the Rat Race, and become financially successful takes trial and error, but with enough effort, you’ll find your way. Here are 10 steps to get started:

• Find a reason greater than reality: the power of spirit . Many people want to be financially free, but they don’t want to put in the work to get there. You need a core motivator to make sure you’re up to the task. One idea is to write the things you don’t want (e.g., I don’t want a job), and to use that list as the motivation for becoming financially free. Then list the things you do want (e.g., to travel anywhere in the world anytime you want). Those emotional reasons can drive you to do the work.
• Make daily choices: the power of choice . Every day you make choices that will move you toward where you want to go or away from it. For example, you can choose to think money is evil and avoid learning about it, or you can choose to see money as a tool to create the life you want and learn about. One group will likely be more successful than the other. The best choice is to choose to learn.
• Choose friends carefully: the power of association . Your friends can be powerful teachers about what to do and what not to do. It’s important to learn from friends but to make your own judgments and avoid folling the crowd. Good bargains are rarely found when everyone shows up. Don’t try to time the market. Have friends who can help you see opportunities before they’re saturated.
• Master a formula and then learn a new one: the power of learning quickly . Most people follow a standard formula – work, earn, pay the bills, buy mutual funds, and go back to work. That’s one formula, but there are many formulas that may work better for you. The ability to learn is your greatest asset.
• Pay yourself first: the power of self-discipline . Learn how to have the courage to do what needs to be done, even when it’s difficult.
• Pay your brokers well: the power of good advice . Don’t look for discounts on advice.  Good advice is priceless  and often worth paying for.
• Be an Indian giver: the power of getting something for nothing . Find investment opportunities that pay you back quickly.
• Use assets to buy luxuries: the power of focus . Buy the stuff you want with income from your assets, instead of trading away your assets for a liability.
• Choose heroes: the power of myth . Heroes can inspire you to be more of what you want to be. Choose your heroes wisely.
• Teach and you shall receive: the power of giving . Whenever you’re feeling short of something – money, love, friendship, etc. – try giving it first. You will often receive it in return. Being generous with yourself and others pays off in the long run.
• “If you’re tired of what you’re doing, or you’re not making enough, it’s simply a case of changing the formula via which you make money.”
• “The easy road often becomes hard, and the hard road often becomes easy.”
• “Each of us knows people who are highly educated, or believe they are smart, but their balance sheet paints a different picture.”

Lesson 9: Some To Do’s

Here are some more things you can consider doing:

• Stop doing what you’re doing. Try taking a break to assess what is working or not working for you.
• Look for new ideas. Read books, explore the world, and try to find new opportunities.
• Find someone who has done what you want to do. Get their advice.
• Learn. Take classes, read, and talk with people.
• Look for bargains.
• Learn from history.
• Action always beats inaction. When in doubt, act.

If you want to discover more great books...

• Explore the best books for expanding your mind, the best self-help books, the best philosophy books for beginners, books for people who don't enjoy reading, and more great books .
• Check out Foundations. Foundations is a searchable digital notebook built for curious, lifelong learners. It will help you accelerate your learning, solve hard problems, and save time by giving you access to a growing digital collection of insights from timeless books.

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Rich Dad Poor Dad: Book Review, Summary & Key Takeaways

by Holistic Leave a Comment | Filed Under: Wealth Management

Today we are looking at “Rich Dad, Poor Dad” by Robert Kiyosaki. One of the very famous books on personal finance.

I will quickly take you through the gist of what the book is all about.

This book was first published in 1997, and the overarching theme of this book is How to Make Money as a Tool for Wealth Development.

This is a very interesting book because it destroys the age-old beliefs that you and I inherited from our forefathers. It also denies the fact that the majority of rich people are born with a silver spoon!

Table Of Contents

1.)Quick Summary 2.)Rich Dad Poor Dad – Wealth Creation 3.)Six Lessons From Rich Dad Poor Dad 4.)Stay Rich! 5.)Rich Dad Poor Dad – Steps For Financial Genius 6.)Assets vs Liabilities – Insights From Rich Dad Poor Dad 7.)Concept Of Tax 8.)Rich Invent Money 9.)About The Author 10.)Conclusion

1. Quick Summary

Rich Dad and Poor Dad revolves around three main characters: Poor Dad, Rich Dad, and Son (the author himself as the narrator of the book).

The Rich Dad is the father of his best friend who happens to be an eighth-grade dropout, not qualified and did not study well, but this dad believed in financial education, not just academic education. The Poor Dad is actually Kiyosaki’s biological father.

His biological father is highly qualified and very well educated, and he believes in the principle that you must study hard so that you get good grades, this is what typically happened with all of us when we were children, especially in India. Right?

2. Rich Dad Poor Dad – Wealth Creation

The book explains the principles of cash flow, balance sheet, income statement, assets, and liabilities in an easy-to-understand manner. The author hopes that everyone was taught the fundamentals of finance from childhood, as he was, which is one of the reasons he wrote this book.

This is a given that parents always persuade you to study hard, and get good grades, so that you get a good job, a well-paying job. Despite all of this, his poor dad did not do financially well, which basically talks of the fact that your qualifications, your profession, and your job may not guarantee wealth creation.

Please remember I’m using the word ‘ wealth creation’ . Your good grades, your good job, your profession, and your job title could perhaps guarantee good income. You may be earning well, but you may not necessarily create wealth

3. Six Lessons From Rich Dad Poor Dad

If you look at the book, he talks about six lessons that he has learned from his Rich Dad about making money, and he also talks about the mistakes made by his Poor Dad.

That’s also important, right? For example, if you want good health, you should know what are the foods that you’re supposed to eat. Equally important is that you also should know what to avoid. Similarly, what are the lessons that he has learned from his Rich Dad, and what are the mistakes made by his Poor Dad so that you and I don’t make the same mistakes?

Lesson 1: The wealthy do not work for a living. Lesson 2: Financial Literacy Lesson 3: Take Care of Your Own Business. Lesson 4: The History of Taxes and Corporate Power. Lesson 5: The Wealthy Create Money. Lesson 6: Work to Learn, Not to Make Money.

4. Stay Rich!

“It’s not just about becoming rich, it is also important to stay rich”.

What are the obstacles that have to be overcome to become rich and stay rich?

• Apprehension
• Poor Habits

Shortcomings motivate the Fearless Man since they provide a learning experience from which they might improve. The Lazy and arrogant do not achieve financially because the agony and misery of losing money outweigh the delight of being wealthy.

They chose a life that is basic, safe, and little. They may buy large houses and expensive cars, but they do not prioritize large investments. The bulk of people suffer financially because they play to avoid losing rather than to win.

5. Rich Dad Poor Dad – Steps For Financial Genius

“The poor and the middle-class work for money, and the rich have money work for them”. 

There are 10 steps that Robert Kiyosaki talks about in his book to develop your financial genius. This is in a nutshell what the book is all about, and these are some of the lessons from his book.

• 1.Have a strong emotional reason or purpose for doing what you do, a mix of wants and dislikes.
• 2. Understand the power of choice and pick what to do on a daily basis, including developing good habits and educating yourself.
• 3. Choose your friends carefully by utilizing the power of association, and avoid listening to impoverished or scared people.
• 4. Master the ability to learn quickly and devise a money-making technique.
• 5. Pay yourself first by developing the ability to handle your cash flow , people, and personal time with self-discipline.
• 6. Choose exceptional team members and generously compensate them for their advice, because the more money they make, the more money you will make.
• 7.”How quickly can I get my money back?” Emphasize more on getting the money back.
• 8. By focusing on self-discipline to direct money to create more, you can use the money earned by assets you own to buy indulgences.
• 9. Have a role model to look up to and use their genius to your advantage.
• 10. Recognize that if you want something, you must first give something.

6. Assets vs Liabilities – Insights From Rich Dad Poor Dad

The necessity of understanding the distinction between assets and liabilities and focusing on investing in assets is highlighted throughout the book and referred to as the “one and only rule.”

Most of us, when we learned assets and liabilities, we were taught that assets are those which increase in value, and liabilities are those which reduce in value.

Robert Kiyosaki talks about an additional point.

“ That assets produce income and they also appreciate”.

They produce income, appreciate, liabilities, and take money out of your pocket. That is why he also talks about our own personal real estate. The house that we stay in may not be an asset because you are living in that house and it’s not producing any income for you.

• Look After Yourself!

He also talks about minding your business, which is basically looking at yourself, trying to pay off your debts as much as possible, being in zero debt, and starting investing in assets that can produce income.

The book discusses looking at yourself first and trying to pay off your debts before investing in assets.

7) Concept Of Tax

The book talks about the concept of tax in a very beautiful way. The equation is very important to understand. He says that between salaried versus business owners, which is self-employed.

Companies, business owners, self-employed. The formula is, Earn → Spend → Pay Tax. Spending can be taken as an expenditure in the business. You are left with a very limited, little amount of taxes to be paid. You and I are salaried employees.

We work for companies. We also earn, but we pay tax because there’s also TDS that already takes away money. Then what remains we spend.

So, self-employed, people have flexibility. They can structure their expenses. The equation is beautiful. Earn → spend → Pay Tax.

If something remains, you pay tax, otherwise, you don’t even pay tax. You and I have no choice because there’s a TDS.

8) Rich Invent Money

In this book, Robert Kiyosaki talks about the rich inventing money. They identify opportunities that other people have not found and they work with intelligent people..“I recommend to young people to seek work for what they will learn, more than what they will earn. Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race”.

Again, this is very interesting , “It’s not learning to work, it is working to learn”.

which means you don’t work for money. Identify skills that you want to acquire before you choose a profession.

Isn’t it true that the majority of us have ended up in our profession by chance? Robert Kiyosaki says to pick a profession, and then figure out what abilities you want to develop so that you may be the highest earner in that profession.

9) About The Author

Robert Kiyosaki grew up in the small Hawaiian town of Hilo. In New York, he attended Kings Point Merchant Marine Academy. Following graduation, Robert turned down a well-paying position with Standard Oil to join the Marine Corps as a helicopter pilot during the Vietnam War.

Following his military duty, Robert went to work for the Xerox Corporation. His wealthy father advised him that the key to every successful firm is sales.

Robert rose to become Xerox’s top seller. His entrepreneurial instinct took over from there. He and his brother founded the company Rippers. Rippers was the first firm to commercialize the nylon and Velcro “surfer” wallet.

Robert and his wife, Kim, invented and launched the CASHFLOW board game in 1996 to teach people about money and investing creatively and excitingly.

In 1997, Robert published Rich Dad and Poor Dad, and they established The Rich Dad Company. The book and the board game are now more popular and relevant than ever.

Robert has written 27 books. He has appeared as a featured guest on media channels all around the world. He is the podcast host of the Rich Dad Radio Show, a world-renowned speaker, and a life-long learner.

10) Conclusion

This book questions your thought process. Robert Kiyosaki has talked about overcoming obstacles, and how to get started, and there’s a to-do list also that he provides.

Rich Dad Poor Dad is available in multiple languages for readers. The first step before handling your finances is to improve your financial literacy. One of the best ways to improve financial literacy is by reading books.

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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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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."

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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. 

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."

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Rich Dad Poor Dad

What the rich teach their kids that the poor and the middle-class do not.

" Rich Dad Poor Dad is a starting point for anyone looking to gain control of their financial future." | USA TODAY

Why Should You Read Rich Dad Poor Dad ?

Explodes the myth that you need to earn a high income to become rich —especially in a world where technology, robots, and a global economy are changing the rules

Challenges the belief that your house is an asset —as millions of people learned first-hand wehn the housing bubble burst and the sub-prime mortgage fiasco raged

Explains what to teach your kids about money— so they can be prepared for the challenges and opportunities of today's world and enjoy the rich life they deserve

Reminds us why we can't count on the school system to teach or kids about money— and why this critical life skill is more important today than ever

Teaches why acquiring and building assets can be more important to your future than a big paycheck —and the tax advantages investors and business owners enjoy

""It is a fact that schools are mostly designed to produce employees and not employers of which I myself was a proof that I thought of job, security,avoid risks, and hated talking about money. Detailed description about difference between assets and liabilities was best part."

Sainath R., Amazon reviewer

"One of the best financial advice books I have ever read. I highly recommend anyone who is looking to work towards financial freedom to read this book. Liabilities take money out of your pocket. - Don't bury your failures. Recognize them and learn from them. Overall, I would definitely recommend this book and know I will be referring many people in my life to read it."

Adam H., Amazon reviewer

"I plan on reading this book at least three more times over the next 20 years so I can keep all info fresh in my mind. People always ask me about success. I tell them to read this book...whats crazy is that they don't read it."

Ilive4him24, Amazon reviewer

One of the reasons the rich get richer, the poor get poorer, and the middle class struggles is debt is that the subject of money is taught at home, not in school. Most of us learn about money from our parents. So what can poor parents tell their child about money? They simply say, “Stay in school and study hard.” The child may graduate with excellent grades, but with a poor person’s financial programming and mindset.

Summary of Rich Dad Poor Dad

The rich don't work for money.

Learn the mind-melting truth behind how the rich live a life of luxury while the poor and middle-class languish at jobs they hate earning barely enough money to cover their daily expenses.

Why teach financial literacy?

Answer: Because financial education isn't taught in school.

Uncover the truth behind the saying "it's not how much you make but how much you keep" that makes people rich.

Mind your own business

Just because you have a profession, doesn't mean it's your business. Financial struggle is often the direct result of people working all their lives for someone else. Discover the difference to live a life of abundance.

The history of taxes and the power of corporation

Was Robin Hood a saint or a crook? How you answer that question could explain your financial status. Understand why it's the poor and middle-class that pays the most in taxes and how to pay taxes like the rich instead.

The rich invent money

It's not the smartest who get ahead but the bold. Discover your genius and convert fear into power and brilliance.

Work to learn—don't work for money

The world is full of highly educated people. Perhaps you're one of them. But getting good grades in school doesn't necessarily equate to a rich life. Uncover the one skill that can make or break your financial life.

Overcoming obstacles

There are five primary obstacles that limit people from achieving the life they desire.

Getting started

Utilize the financial genius hidden within yourself to layout your plan to financial freedom. Follow the 10-steps within this chapter to discover where to search for hidden treasures buried right before your eyes.

To do's

The key to becoming rich isn't found in philosophies but taking action. To help you get started in the right direction, follow this step-by-step checklist.

" One of the best financial advice books I have ever read. I highly recommend anyone who is looking to work towards financial freedom to read this book. I enjoyed the story line and am taking several principles of the book seriously as I re-evaluate my finances. I'll list several of my key takeaways from the book below: - Money is one form of power, but what is more powerful is financial education - The poor and the middle class work for money. The rich have money work for them. - Learn to use your emotions to think, not think by your emotions. - Assets put money in your pocket. Liabilities take money out of your pocket. - Don't bury your failures. Recognize them and learn from them. - Be charitable and give. You can give of your time, knowledge, and money. Give and you shall receive. Overall, I would definitely recommend this book and know I will be referring many people in my life to read it."

"My friends have been telling me for years that I needed to read this book. I'm so thankful I finally did! This book made me rethink my decisions and emotions about money and nearly every chapter, though some parts were repetitive, offered new insight and ways to consider finances, even down to how, as a business owner, I should be paying myself first and then the bills.

EVIP Customer, Amazon reviewer

"I resisted buying this for years, and now I wish I'd read it 10 years ago... E ngaging and practical. It could have saved me a lot of heartache and a terrible financial decision that has cost me greatly over the years. I've now given this as a gift to others. "

Eric H., Amazon reviewer

"We are trained to think about only a few ways to keep a roof over our heads or feed our families when, if you have the determination and patience, there are many ways to do that AND spend time with your family doing the things you love. This book pointed me in the direction of freedom and I have shared it with as many people will listen. "

David H., Amazon reviewer

Rich Dad Poor Dad Author

Robert Kiyosaki, author of Rich Dad Poor Dad - the international runaway bestseller that has held a top spot on the New York Times bestsellers list for over six years - is an investor, entrepreneur and educator whose perspectives on money and investing fly in the face of conventional wisdom. He has, virtually single-handedly, challenged and changed the way tens of millions, around the world, think about money.

In communicating his point of view on why 'old' advice - get a good job, save money, get out of debt, invest for the long term, and diversify - is 'bad' (both obsolete and flawed) advice, Robert has earned a reputation for straight talk, irreverence and courage.

Are You Cash Savvy or Cash Strapped?

Rich dad has helped millions of people around the world increase their financial iq and boost their monthly cash flow — now it’s your turn., take rich dad's investment iq quiz for your next step toward financial freedom..

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Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! Mass Market Paperback – August 16, 2011

• Part of series Rich Dad
• Print length 274 pages
• Language English
• Publisher Plata Publishing
• Publication date August 16, 2011
• Dimensions 4.25 x 0.25 x 7 inches
• ISBN-10 1612680011
• ISBN-13 978-1612680019
• Lexile measure 860L
• See all details

Product details

• Publisher ‏ : ‎ Plata Publishing; 1st edition (August 16, 2011)
• Language ‏ : ‎ English
• Mass Market Paperback ‏ : ‎ 274 pages
• ISBN-10 ‏ : ‎ 1612680011
• ISBN-13 ‏ : ‎ 978-1612680019
• Lexile measure ‏ : ‎ 860L
• Item Weight ‏ : ‎ 3.99 ounces
• Dimensions ‏ : ‎ 4.25 x 0.25 x 7 inches
• #1,768 in Introduction to Investing
• #1,773 in Budgeting & Money Management (Books)
• #56,091 in Reference (Books)

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FINAL THOUGHTS ON Rich Dad Poor Dad

Newton Cordeiro

About the author

Robert t. kiyosaki.

Robert Kiyosaki, author of Rich Dad Poor Dad - the international runaway bestseller that has held a top spot on the New York Times bestsellers list for over six years - is an investor, entrepreneur and educator whose perspectives on money and investing fly in the face of conventional wisdom. He has, virtually single-handedly, challenged and changed the way tens of millions, around the world, think about money.In communicating his point of view on why 'old' advice - get a good job, save money, get out of debt, invest for the long term, and diversify - is 'bad' (both obsolete and flawed) advice, Robert has earned a reputation for straight talk, irreverence and courage.Rich Dad Poor Dad ranks as the longest-running bestseller on all four of the lists that report to Publisher's Weekly - The New York Times, Business Week, The Wall Street Journal and USA Today - and was named "USA Today's #1 Money Book" two years in a row. It is the third longest-running 'how-to' best seller of all time.Translated into 51 languages and available in 109 countries, the Rich Dad series has sold over 27 million copies worldwide and has dominated best sellers lists across Asia, Australia, South America, Mexico and Europe. In 2005, Robert was inducted into Amazon.com Hall of Fame as one of that bookseller's Top 25 Authors. There are currently 26 books in the Rich Dad series.In 2006 Robert teamed up with Donald Trump to co-author Why We Want You To Be Rich - Two Men - One Message. It debuted at #1 on The New York Times bestsellers list.Robert writes a bi-weekly column - 'Why the Rich Are Getting Richer' - for Yahoo! Finance and a monthly column titled 'Rich Returns' for Entrepreneur magazine.Prior to writing Rich Dad Poor Dad, Robert created the educational board game CASHFLOW 101 to teach individuals the financial and investment strategies that his rich dad spent years teaching him. It was those same strategies that allowed Robert to retire at age 47.Today there are more that 2,100 CASHFLOW Clubs - game groups independent of the Rich Dad Company - in cities throughout the world.Born and raised in Hawaii, Robert Kiyosaki is a fourth-generation Japanese-American. After graduating from college in New York, Robert joined the Marine Corps and served in Vietnam as an officer and helicopter gunship pilot. Following the war, Robert went to work in sales for Xerox Corporation and, in 1977, started a company that brought the first nylon and Velcro 'surfer wallets' to market. He founded an international education company in 1985 that taught business and investing to tens of thousands of students throughout the world. In 1994 Robert sold his business and, through his investments, was able to retire at the age of 47. During his short-lived retirement he wrote Rich Dad Poor Dad.

Customer reviews

• 5 star 4 star 3 star 2 star 1 star 5 star 74% 17% 5% 2% 2% 74%
• 5 star 4 star 3 star 2 star 1 star 4 star 74% 17% 5% 2% 2% 17%
• 5 star 4 star 3 star 2 star 1 star 3 star 74% 17% 5% 2% 2% 5%
• 5 star 4 star 3 star 2 star 1 star 2 star 74% 17% 5% 2% 2% 2%
• 5 star 4 star 3 star 2 star 1 star 1 star 74% 17% 5% 2% 2% 2%

Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.

To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.

Customers say

Customers find the story pleasant, hilarious, and hard to put down. They also say the book makes great points and teaches them to think differently about money. Readers describe the writing style as easy, insightful, and general enough to apply. They say the content is stimulating, interesting, and variety.

AI-generated from the text of customer reviews

Customers find the book makes great points and teaches them to think a bit differently about money. They say it raises awareness on financial intelligence, and is philosophical but practical. They also say the concepts learned give them a great foundation to start building wealth. Readers also mention that the book is exceptional, brilliant, and eye opening.

"... Assets create wealth . Seems like a fairly simple formula...." Read more

"...the long review but this little 10.00 book has literally changed my philosophy about money , made me thousands of dollars and more importantly will..." Read more

"... More philosophical but with many practical tips .. unique writing style .. definitely worth reading for people looking for financial freedom and..." Read more

"...He speaks with a lot of wisdom , and again, he makes real estate investing, stocks, and owning corporations and business sound very easy...." Read more

Customers find the writing style easy and insightful, laying things out simply. They also say the author articulates the ideas well. Readers also say it reads as a friend-to-friend conversation.

"...Overall the book was a simple read with an easy flowing storytelling style, and it filled my own head with plenty of food for thought!..." Read more

"...More philosophical but with many practical tips .. unique writing style .. definitely worth reading for people looking for financial freedom and..." Read more

"...I found myself easily going through the chapters. He writes with a very colloquial tone , friendly almost...." Read more

"...I still found Rich Dad, Poor Dad extremely helpful in laying things out so simply , clearly and easily understood...." Read more

Customers find the story pleasant, entertaining, inspirational, and interesting. They also say the book helps them lead a full, rich, and happy life.

"...Well written book, great narrative and insight , and definitely a life-changing type of a book...." Read more

"...No doubt about it, Robert Kiyosaki is a masterful storyteller . I imagine when he talks in person to audiences, they are spellbound...." Read more

"...This an interesting take of a successfully entrepreneur's life ...." Read more

"...This is the part I found most useful and enjoyable ...." Read more

Customers have mixed opinions about the length of the book. Some find it short and simple, while others say it's not a normal sized book.

"...When the book came, it was very small , a "Travel size" if you will. Other than that, great book!" Read more

"...Really enjoyed reading it —The author keeps it short and sweet ." Read more

"...The book was shorter than I expected and not as much educational info as I wouild have hoped...." Read more

"...They give you pointers, but they make it short and sweet . And the best part: It's FREE!..." Read more

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