This post may contain affiliate links. Please read my disclosure for more information.
Robert Kiyosaki’s Rich Dad Poor Dad stands as a classic in personal finance, challenging conventional beliefs regarding money, education, and wealth creation.
In this New York Times Bestseller, Kiyosaki reveals essential money lessons he learned from his biological father, referred to as “Poor Dad,” and his best friend’s father, known as “Rich Dad.”
In this book review, we will tell you more about the book, the key takeaways and whether you need to read it.
What is Rich Dad Poor Dad About?
As the book cover says, Rich Dad Poor Dad “will explode the myth that you need to earn a high income to become rich.”
It is intended to help you see and understand how to think about money in ways that help you to become rich. And, that it isn’t necessarily about working 10 hour days all your life.
By telling the story of the “Rich Dad” (Kiyosaki’s best friend’s father) and the “Poor Dad” (Kiyosaki’s biological father), he reveals some important lessons about personal finance and building wealth.
In the book, the poor dad is an educator who worked hard all his life but struggled financially, was essentially broke and never got ahead.
In contrast, the rich dad was an entrepreneur who became one of the richest men in Hawaii where they lived by his understanding of money and how to use it to make more money.
He focused on income generating assets, while the poor dad focused on a job. The lesson of this personal finance book is to find financial success you need to emulate the rich dad!
Here are some of the best passive income books you need to read as well.
Click here to buy the book on Amazon.
No products found.
Invaluable Lessons From Rich Dad Poor Dad
Managing your finances intelligently holds greater significance than the amount of money you earn. Cultivating financial intelligence begins by reshaping your how you think about wealth and money.
The affluent accumulate assets, which generate income, while the middle class and poor often mistake liabilities for assets.
Becoming truly prosperous necessitates a blend of financial knowledge and wisdom. Knowledge emanates from formal education, whereas wisdom stems from real-world encounters.
Here are some book highlights and key lessons:
#1 The Importance of Investing
“The ‘Rich Dad’ passionately advocated for the power of investment in achieving financial success.
He taught Kiyosaki the importance of not just saving money, but also making money work for you. This is where investing becomes crucial – it’s not merely about wealth preservation, but rather wealth growth.
Robert Kiyosaki adeptly removes the fear associated with investing through relatable anecdotes and simplified explanations.
While some critics argue that the book oversimplifies intricate investment principles, its straightforward approach successfully serves as a beginner’s entry point to building wealth.
Investment strategies are key for financial success. Roberty Kiyosaki actually made a lot of money himself with real estate investing.
Our Favorite Money App
Acorns: Set up your savings to automatic and get it invested to grow at the same time! Get a $10 bonus!
#2 Work To Learn – Don’t Work For Money
In this chapter, Robert discusses the importance of focusing on learning rather than solely earning money from a job.
According to Robert’s example of the rich dad, it is crucial to not only work diligently but also to educate yourself and develop skills that can contribute to growing assets and generating passive income in the future.
According to the example of the rich dad, many individuals become overly fixated on the salary and benefits provided by their jobs.
As a result, they fail to enhance their financial intelligence or acquire tangible assets and don’t learn how to build wealth.
Consequently, they spend four decades working tirelessly but fail to accumulate assets or true financial success by the end. Ultimately, their reliance is solely on Social Security or a company pension.
They are trained merely to work for money, without harnessing the potential of having money work for them. Rich people by contrast use their money to make more of it