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book review of the book rich dad poor dad

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Rich Dad Poor Dad - a quick book summary and review

Jeff Rohde

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

Rich Dad Poor Dad

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.”

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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.”

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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

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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.

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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

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

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

by Holistic Leave a Comment | Filed Under: Wealth Management

book review of the book rich dad poor dad

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

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

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

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

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

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

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

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

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

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.

Related stories

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."

book review of the book rich dad poor dad

  • Main content

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:

Rich Dad Poor Dad Summary

Table of Contents

Video Summary

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

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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

book review of the book rich dad poor dad

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!

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book review of the book rich dad poor dad

Book Review: Rich Dad Poor Dad – Robert Kiyosaki

September 1, 2018 thespreadsheetdad.

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

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

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

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

The rich don’t work for money
The importance of financial literacy
Minding your own business
Taxes and corporations
The rich invent money
The need to work to learn and not to work for money

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

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

book review of the book rich dad poor dad

Our education system is flawed

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

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

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

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

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

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

What is an Asset?

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

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

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

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

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

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

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

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

Thanks for reading.

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

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A Transformative Dive into Wealth Mindsets: Review of 'Rich Dad Poor Dad'

As I eagerly open the pages of Robert Kiyosaki's bestseller, "Rich Dad Poor Dad," I'm hit with an instant wave of anticipation. Much like my experience with James Clear's "Atomic Habits," it's clear that this isn't just another personal finance book; it's a journey into shifting paradigms and embracing new ways of thinking. Today, I'll take you through an in-depth review of this influential book, exploring its core lessons and impact.

The Power of Perspective: The Core Premise

"Rich Dad Poor Dad" is centered around the idea of contrasting views of money and wealth. Kiyosaki presents his own father, a highly educated but financially insecure man, as the 'Poor Dad,' and his friend's father, a business owner with a keen eye for investments, as the 'Rich Dad.' The portrayal of these two individuals reveals two starkly contrasting attitudes towards wealth, serving as the driving force behind the lessons encapsulated in this book.

Kiyosaki's ability to juxtapose the perspectives of these two pivotal figures in his life paints a vivid picture of how our upbringing and education shape our views on money and influence our financial futures. The main take-home message is not about how much money one earns, but how one manages, invests, and grows it.

Shaking Up Financial Education: A Journey into Wealth Building

A critical focal point of "Rich Dad Poor Dad" is the examination of our traditional education system. Kiyosaki fervently argues that formal education often falls short in preparing us for financial success. Schools teach us to strive for job security and a steady paycheck rather than fostering a mindset of wealth creation and financial independence.

The 'Rich Dad' instills in young Kiyosaki the value of financial intelligence and the merits of entrepreneurship. He learns that financial security isn't about earning a high salary, but building and leveraging assets. Conversely, the 'Poor Dad' represents the traditional, and arguably outdated, pathway to success: excel in school, get a good job, save for retirement, and hope for the best.

This paradigm shift, from seeking employment to creating business opportunities, is a thread that runs throughout the book. Kiyosaki emphasizes the importance of financial education and the cultivation of business acumen as crucial elements to achieving financial freedom.

Invaluable Lessons: A Look at the Key Takeaways

Financial literacy: the golden goose.

At the forefront of Kiyosaki's teachings is the importance of financial literacy . The book stresses that wealth building begins with understanding the basic principles of finance. It's not just about earning and saving, but about how to grow your money.

Understanding the difference between assets and liabilities, and how they impact your wealth, is a cornerstone of Kiyosaki's philosophy. Assets put money in your pocket, while liabilities take money out. It’s a simple yet powerful concept that urges readers to focus on acquiring income-generating assets rather than accumulating liabilities.

The Importance of Investing

The "Rich Dad" was a fervent advocate for investing. He taught Kiyosaki that while saving money is important, it's equally crucial to make your money work for you. This is where investing comes into play. It's not just about preserving your wealth, but growing it.

Through relatable anecdotes and simplified explanations, Kiyosaki takes the fear out of investing. While some criticize the book for oversimplifying complex investment principles, the simplistic approach serves as an effective entry point for beginners.

Mind Over Money: Mastering Your Mindset

One of the most profound insights from "Rich Dad Poor Dad" is the focus on mindset. The 'Rich Dad' believed that fear and ignorance are the greatest barriers to success. To achieve financial freedom, one must overcome the fear of losing money and the ignorance of how money works.

Beyond the Pages: The Wider Impact of 'Rich Dad Poor Dad'

The influence of "Rich Dad Poor Dad" extends far beyond its pages. The book's simplicity, relatability, and the tangible change it promises have resonated with millions worldwide. It's not just about becoming rich; it's about attaining financial independence and security, and the peace of mind that comes with it.

Critics may argue that Kiyosaki's concepts are overly simplistic, lack detail, or are overly optimistic. However, the strength of "Rich Dad Poor Dad" doesn't lie in intricate financial advice, but in sparking an interest and curiosity about personal finance. It's a stepping stone, guiding readers towards further financial learning and independence.

Why 'Rich Dad Poor Dad' is Worth Your Time

In conclusion, "Rich Dad Poor Dad" is more than just a book – it's a wake-up call. It's a guide that prompts you to challenge your preconceptions, redefine your relationship with money, and take a proactive role in your financial future. Like the lessons in "Atomic Habits," the teachings from "Rich Dad Poor Dad" can lead to profound shifts in thinking and behavior.

In essence, it's about empowerment. It's about giving you the knowledge, and more importantly, the mindset needed to achieve financial freedom. While it's just the beginning of your financial education, it's a significant step towards taking control of your financial destiny. Your journey towards financial independence can start with "Rich Dad Poor Dad." So, pick up the book, open your mind, and let your journey begin.

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Robert Kiyosaki – Rich Dad, Poor Dad Book Review

book review of the book rich dad poor dad

One of the best books I've come across on financial education has been Rich Dad, Poor Dad by Robert Kiyosaki .  I've since become a huge fan of Robert Kiyosaki and have read many of his other books and watched a lot of videos of him.  In this book review, I want to share some of the most important lessons that I've learned from Rich Dad, Poor Dad.

Become Financially Educated

This is one of the biggest things I've taken from Robert Kiyosaki.  He says most people spend years in school but learn nothing about money or finances.  He stresses how money is something learned at home and is usually taught by your parents, not through the school or education system.  We all need to take it upon us to become financially educated and literate.

One of the reasons the rich get richer, the poor get poorer, and the middle class struggles in debt is because the subject of money is taught at home, not in school.  Most of us learn about money from our parents.  So what can a poor parent 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 mind-set.  It was learned while the child was young. Money is not taught in schools.  Schools focus on scholastic and professional skills, but not on financial skills.  This explains how smart bankers, doctor and accountants who earned excellent grades in school may still struggle financially all of their lives.

One of my favorite segments of the book is when he talks about learning as much as possible and developing your skill sets in different areas.  To learn areas such as sales, marketing, communication, management, etc… and how valuable they are.

He tells a story about how he was interviewed in Japan by a woman.  This woman was an extremely talented writer and had written many novels, however, none of them had cracked the best-seller list.  When Robert was talking to her, he asked her why doesn't she learn sales?  She says “Oh, I hate sales.  I don't want to be one of those people” and she goes on and on.

Robert Kiyosaki said , “There's a reason why I'm a best-selling author instead of a best-written author.”

The lesson from that is to learn to sell.  Sales is a valuable asset and will get you far.  You could write the best book in the world, but if you can't sell it, then what's the point?  This is something I can definitely relate to, as I publish a lot of books on Kindle and it all comes down to the marketing of the books.

Have Money Work For You

Most people  WORK FOR MONEY , instead of having money  WORK FOR THEM.

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

Most people spend their lives going through school and getting an education so that they can  WORK FOR MONEY.   They spend all their time working for someone else.  For example, they work for a paycheck and are making the owner/shareholders richer.  Then they work for the government, which takes its share from their paycheck before they even see it.  And of course, the harder they work and more money they make, the more of it is taken from the government.  And finally, they work for the bank to pay off their mortgage and credit card debt.

Instead, acquiring assets that produce income is a way of having money work for you.  Examples are passive income (real estate), portfolio income (stocks, bonds, etc…), or businesses.  Part of the reason why I'm so big into online marketing is that I've been able to create automated streams of income through it.  Check out my blog post on how to make passive income .

Acquire Assets, Not Liabilities

robert kiyosaki rich dad poor dad

Rich people acquire assets.  The poor and middle class acquire liabilities, but they think they are assets.

Here are more examples of assets that Robert Kiyosaki recommends we acquire:

  • Businesses that do not require your presence.
  • Mutual Funds
  • Income-generating real estate
  • Notes (IOU's)
  • Anything that produces income or appreciates or has value.

A liability is anything that is an expense or depreciates in value.

Own a Corporation  

Another great thing Robert talks about is the tax advantages of owning a business.  He mentions how a corporation can do so many things that an individual cannot.  Like pay for expenses before it pays taxes.

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.

A fantastic summary he has for it is:

The Rich with Corporations

1. Earn 2. Spend 3. Pay Taxes

People Who Work for Corporations

1. Earn 2. Pay Taxes 3. Spend

In this book, there are tons of other nuggets of gold like the ones I mentioned above.  Everything I covered here is just the tip of the iceberg.  I hope you enjoyed this Rich Dad, Poor Dad review and take the next step to further your financial education.

To find out more about Rich Dad, Poor Dad by Robert Kiyosaki , click here .

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book review of the book rich dad poor dad

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.

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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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Book Summaries

Rich dad poor dad summary: key takeaways & review.

Senior Content Marketing Manager

March 8, 2024

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

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

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

Let’s get started.

Rich Dad Poor Dad Book Summary at a Glance

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

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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.

Difference between Rich Dad and Poor Dad

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

Book Cover of Rich Dad, Poor Dad

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.

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Track your expenses and have a clear overview of all business expenses within a period using ClickUp

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

Take high-risk financial decisions, but weigh the costs against benefits using this simple template by ClickUp

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? 

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Rich Dad Poor Dad Book Summary, Review, Notes

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

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

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

Table of Contents

What is being said in detail.

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

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

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

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

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

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

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

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

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

Introduction

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

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

Chapter One 

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

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

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

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

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

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

Chapter Three – Lesson Two: Why Teach Financial Literacy?

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

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

Chapter Four – Lesson Three: Mind Your Own Business

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

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

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

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

Chapter Six – Lesson Five: The Rich Invent Money

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

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

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

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

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

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

Chapter Eight – Overcoming Obstacles

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

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

Chapter Nine – Getting Started

Chapter 9 offers ten steps to awaken financial genius:

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

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

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

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

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

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

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

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

Most Important Keywords, Sentences, Quotes

Introduction.

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

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

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

Robert Kiyosaki Quote

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

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

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

CHAPTER ONE 

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

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

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

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

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

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

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

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

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

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

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

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

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

CHAPTER THREE – Lesson Two: Why Teach Financial Literacy?

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

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

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

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

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

Robert Kiyosaki Quote 2

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

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

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

CHAPTER FOUR – Lesson Three: Mind Your Own Business

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

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

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

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

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

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

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

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

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

CHAPTER SIX – Lesson Five: The Rich Invent Money

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

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

Robert Kiyosaki Quote 3

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

“Financial intelligence is simply having more options.”

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

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

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

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

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

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

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

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

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

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

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

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

CHAPTER EIGHT – Overcoming Obstacles

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

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

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

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

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

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

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

CHAPTER NINE – Getting Started

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

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

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

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

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

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

“Copying or emulating heroes is true power learning.”

Robert Kiyosaki Quote 4

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

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

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

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

EPILOGUE 

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

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

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

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

Book Review (Personal Opinion):

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

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

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

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

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

Rating : 9/10

This Book Is For:

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

If You Want To Learn More

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

How I’ve Implemented The Ideas From The Book

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

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

One Small Actionable Step You Can Do

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

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

Rich Dad Poor Dad -Robert Kiyosaki -Summary Infographic

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Rich Dad Poor Dad by Robert T. Kiyosaki

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Rich Dad Poor Dad Summary

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

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  • 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

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

rich dad poor dad 3d image

" 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

book review of the book rich dad poor dad

""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 standing by a private jet in an airplane hanger

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.

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book review of the book rich dad poor dad

book review of the book rich dad poor dad

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.

book review of the book rich dad poor dad

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book review of the book rich dad poor dad

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.

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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

stock market crashes

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. 

warren buffet quotes

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. 

rich dad poor dad

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.”

robert kiyosaki quotes

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 quotes

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.”

rich dad poor dad quotes

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.”

robert kiyosaki quotes

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.”

golden rule

“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.”

robert kiyosaki quotes

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.”

rich dad quotes

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.”

rich dad poor dad

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.”

rich dad poor dad

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.”

rich dad poor 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

robert kiyosaki quote

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.

rich dad quotes

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.”

profit quotes

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.”

passive income quotes

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 .

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book review of the book rich dad poor dad

Book Review: Rich Dad, Poor Dad

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When I first discovered Rich Dad, Poor Dad , I was well into the last year of my residency. I couldn’t put it down, and I’m not exaggerating when I say that it completely changed my life. It was also probably the first non-medical book I had read since I was introduced to the works of Malcolm Gladwell during medical school.

The ideas presented in Rich Dad, Poor Dad aren’t particularly profound or fancy, but the concepts were entirely new to me. This is especially true of how the book taught me to think of money not as an end-goal, but as a tool for wealth creation.

Up until that point, I had thought that all I needed to do was to find the right job and I’d be set. After all, this was exactly the way I’d thought about getting into the right medical school, the right residency, and the right fellowship (haha).

But after reading this book, I realized that the concept of trading time for money just isn’t the smartest way to go through life. Your money should work for you—not the other way around. The author of Rich Dad, Poor Dad, Robert Kiyosaki, believes precisely that.

Here are some of his key concepts:

  • Being rich = freedom (As you’ll notice, this is a common theme in my blog)
  • Rich people make money work for them, while most everyone else works for money
  • Financial education is a key to success.

In regards to that last concept, Kiyosaki has a lot to say. For example, I just love this quote from the first chapter:

“Most people never study the subject [of money]. They go to work, get their paycheck, balance their checkbooks, and that’s it. On top of that, they wonder why they have money problems. Few realize that it’s their lack of financial education that is the problem.”

More key concepts:

  • Assets are things that produce cash-flow. You become wealthy by accumulating assets.
  • Wealth comes from having enough assets, which generate enough income to cover all of your expenses. That way, there is enough left over to invest in more assets.

A common criticism of this book is that while it is inspiring, by the time you reach the end of the book, you have no idea what the first step is. That’s actually fine with me. I believe everything starts with inspiration. What separates those that are successful from those that are not is that the successful people take that inspiration—and then they act on it. They do not let fear and never-ending analysis paralyze them (Kiyosaki calls this “analysis paralysis”).

This book awakened in me an almost insatiable appetite for financial books. Soon after reading it, I found myself tearing through book after book on personal finance, learning and absorbing all that I possibly could. As a result, I learned so much more than I would have otherwise. If nothing else, that alone is worth the price of the book.

book review of the book rich dad poor dad

Disclaimer: The topic presented in this article is provided as general information and for educational purposes. It is not a substitute for professional advice. Accordingly, before taking action, consult with your team of professionals.

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book review of the book rich dad poor dad

‘Rich Dad Poor Dad’ Author Robert Kiyosaki: You Should Never Say ‘I Can’t Afford That’

Best known as the author of “Rich Dad Poor Dad” — the No. 1 personal finance book of all time — Robert Kiyosaki has challenged and changed the way millions of people around the world think about money. He is an entrepreneur, educator and investor who believes the world needs more entrepreneurs. With perspectives on money and investing that often contradict conventional wisdom, Kiyosaki has earned an international reputation for straight talk, irreverence and courage, and has become a passionate and outspoken advocate for financial education. Kiyosaki is also the author of “Who Stole My Pension?” (co-authored with former SEC attorney and pension-fraud whistleblower Edward Siedle) and “FAKE: Fake Money, Fake Teachers, Fake Assets.”

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Recognized by GOBankingRates as one of Money’s Most Influential, here he shares the importance of educating yourself about finances, why he never says “I can’t afford it” and explains the noteworthy difference between “good” debt and “bad” debt.

What advice would you give your younger self about money?

Choose your teachers wisely. The most important piece of real estate we own is the six inches between our left ear and our right ear. I’d have told my younger self to be very careful about what ideas get planted in that piece of real estate.

Read More: 7 Key Signs You’ve Reached Financial Freedom

What is the best thing you did to improve your own financial wellness?

For years, I attended investment seminars on a quarterly basis. Today I attend seminars daily on YouTube. Today I can access the best teachers on my schedule — and they teach for free.

What are some easy strategies or tools people can use to make sure they are thinking about their money smartly? 

I forbid myself from saying, “I can’t afford it.” I have disciplined myself to ask instead, “How can I afford it?” Asking myself how I can afford something opens and challenges my mind — to think. The words we say to ourselves and the words we believe are the most powerful forces in the world. In my experience saying, “I can’t afford it” is what poor people say. That is why they are poor. There is a difference, I’ve found, between “broke” and “poor.” Poor is a state of mind that we all have the power to change.

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What is the biggest mistake people make when it comes to managing debt?

Without financial education, most people don’t realize that there are two kinds of debt — good debt and bad debt. Good debt makes me rich and bad debt makes me poor. One skill set every investor must have is the ability to both understand debt and how to use debt to make them richer, not poorer. The average American is loaded with bad debt. That is the price of not protecting those six inches of real estate between your left ear and your right ear. Look for and take advantage of opportunities to get smarter about money…and how to use good debt.

Jaime Catmull contributed to the reporting for this article.

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This article originally appeared on GOBankingRates.com : ‘Rich Dad Poor Dad’ Author Robert Kiyosaki: You Should Never Say ‘I Can’t Afford That’

Robert Kiyosaki author of Rich Dad Poor Dad

book review of the book rich dad poor dad

  • Francisco Memoria
  • In #Bitcoin

book review of the book rich dad poor dad

Robert Kiyosaki, author of the best-selling personal finance book “Rich Dad Poor Dad,” has reignited discussions within the cryptocurrency community by reiterating his bullish stance on Bitcoin, predicting $BTC will reach $300,000 by the end of the year.

In a recent post on the microblogging platform X (formerly known as Twitter), Kiyosaki urged his followers to capitalize on Bitcoin’s current momentum saying it’s “on fire” and suggesting that the “biggest mistake” his followers can make “is to procrastinate.”

Kiyosaki, a vocal advocate for alternative assets, has long positioned Bitcoin, alongside gold and silver, as a hedge against economic instability and over the last three years he has been vocal about his skepticism towards the Federal Reserve’s policies.

He views these real assets as superior stores of value compared to traditional fiat currencies, like the U.S. dollar, which he believes are susceptible to devaluation. Kiyosaki has consistently advised his substantial social media following to shield themselves from that devaluation through these assets.

BITCOIN on fire. The biggest mistake you can make is to procrastinate. Important to start, even if only for $500. Next stop $300,000 per BC in 2024 — Robert Kiyosaki (@theRealKiyosaki) March 6, 2024

Kiyosaki’s latest price prediction comes at a time in which Bitcoin managed to climb back to its previous all-time high of $69,000 fueled by institiuional demand coming from spot exchange-traded funds (ETFs) and anticipation surrounding its upcoming halving event.

Bitcoin recently endured a correction that saw its briefly drop below the $60,000 mark before recovering, and it’s now trading close to the $67,000 mark.

Analysts remain cautiously optimistic about Bitcoin’s future, citing historical precedents, as reported, with one analyst comparing its current performance to that of the 2021 bull run, when BTC saw its price triple within three months of breaking its previous record.

Should history repeat itself, Bitcoin could potentially surpass $200,000 by June, which would see its total market capitalization top $4 trillion.

As CryptoGlobe reported large Bitcoin holders, often referred to as “whales,” are defying historical trends by  accumulating the flagship cryptocurrency  even as its price rises near record highs.

This whale behavior deviates from historical patterns, where these large investors typically buy during periods of lower prices and sell as prices rise. 

Robert Kiyosaki is a financial educator, entrepreneur, and the bestselling author of “Rich Dad Poor Dad,” a book that has become a cornerstone in personal finance literature since its publication in 1997. The book contrasts the financial philosophies of his “Rich Dad,” a savvy businessman, and his “Poor Dad,” a well-educated man with traditional views on money.

Through this juxtaposition, Kiyosaki challenges conventional wisdom about money, investing, and financial education. His work has sold millions of copies globally and has been translated into dozens of languages, making him an international authority on personal finance.

Featured image via Unsplash .

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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