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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.
- Kiyosaki, Robert T. (Author)
- English (Publication Language)
- 336 Pages – 04/05/2022 (Publication Date) – Plata Publishing (Publisher)
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.
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#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.
Reading is a useful skill for both a businessman and someone who wants to improve their personal finances and is one way to increase the financial intelligence Robert Kiyosaki teaches about.
If you want to find other books that teach about financial literacy, you can can check out the FictionMe platform. You can see it here and familiarize yourself with the service library. The storybook reading app has many books for financial education and more.
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#3 Mind Your Own Business
An entire chapter of the book is devoted to this issue. Robert compares the opposing attitudes of his two dads towards being an employee versus owning their own business.
According to his poor dad, success lies in obtaining a good education to secure a stable, well-paying job and climbing the corporate ladder.
The emphasis is on avoiding risks and investing in one’s career by acquiring additional qualifications, skills, and degrees. A stable job is all you need to secure your financial future.
In contrast, the rich dad believed in building one’s own business. It is not in spending one’s life working to enrich others like most middle class people do.
Instead, one should take charge of their income by owning businesses that generate money, rather than relying solely on a job that provides a paycheck.
#4 Thinking Outside the Box
Kiyosaki was motivated by Rich Dad to explore alternative routes to success and tackle financial obstacles with a creative mindset.
Rich Dad stressed the significance of discovering innovative problem-solving strategies when it comes to personal finance and creating financial independence.
#5 Pay Yourself First
One of the fundamental financial principles in this personal finance book is prioritizing paying yourself first before other obligations.
However, as we’ve mentioned this doesn’t mean focusing on a job that pays you. Work on how you can pay yourself from passive income.
#6 Continuously Improve Financial IQ
Kiyosaki advocates ongoing learning and personal development in the field of personal finance. By consistently improving your financial literacy and IQ, you equip yourself to make informed money decisions.
Ongoing financial education is key to helping you build wealth.
#7 The Rich Invent Money
According to Robert’s rich dad, while most people work for money, the rich make money work for them.
The poor and middle class tend to acquire liabilities they believe are assets, such as houses and cars. However, assets put money in your pocket, while liabilities take money out.
The rich focus on acquiring assets and often employ creative financing to accelerate asset acquisition. For instance, they purchase cheap, rundown foreclosed homes and take out loans to buy them.
After fixing them up, they rent them out, creating income-producing assets. The rent covers the mortgage payments, generating cash flow without requiring additional money from the rich individual’s pocket.
As their assets grow, the rich concentrate on purchasing even larger assets that generate more cash flow, enabling them to grow richer quickly.
In contrast, the poor and middle class generally stick to steady jobs, buying liabilities instead of investing in assets that could make their money work for them. So they struggle to achieve financial independence.
So just to recap this important lesson: Rich people acquire assets while poor and middle class acquire liabilities.
#8 Overcoming Obstacles
Most individuals encounter mental and emotional barriers that hinder their pursuit of entrepreneurship and asset acquisition.
Robert addresses the common fears that impede people from following the footsteps of the rich dad and achieving financial independence.
From a young age, Robert recognized that conquering self-doubt played a decisive role in achieving financial success.
Believing in one’s own abilities instills the courage to embrace risks and embark on the journey of entrepreneurship and investment.
Other obstacles encompass the fear of losing money, the fear of failure, perfectionism, greed, arrogance, and laziness.
The affluent, however, compel themselves to confront these fears and emotions, actively engaging in investment despite roadblocks. They refuse to let these hindrances deter their progress.
About The Author Robert Kiyosaki
Robert Kiyosaki, a successful real estate and business investor, has authored 19 books primarily focused on investment philosophies.
Growing up in Hawaii, Robert Kiyosaki started his career in the merchant marines and later worked as a salesman for Xerox. Initially, Robert ventured into selling “surfer wallets”, which proved to be unsuccessful.
He then owned a t-shirt company that ultimately went out of business, leaving him with no money.
However, Robert persevered and became a millionaire by working as a motivational speaker and investing in real estate. At the age of 47, Robert was able to retire due to his success.
Robert Kiyosaki self published “Rich Dad Poor Dad ” in 1997, which laid the foundation for subsequent books exploring the concepts discussed in this book.
Did you know you can write and publish a book just like Robert Kiyosaki? You can even write a novel online, especially now since AI tools can help you do it faster.
Robert’s unique blend of independent financial thinking and motivational tone has made his book one of the most renowned in the field of personal finance.
Other related books include “Rich Dad’s Guide to Investing” and “Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom”.
Who Should Read It?
Rich Dad Poor Dad should be on the reading list of anyone feeling trapped in the endless cycle of working solely for money but never getting ahead.
It challenges conventional wisdom about earning, saving, and investing, making it a must-read whether you’re living paycheck to paycheck or already involved in the stock market. For personal finance wisdom, this informative book is a must-have in your financial education.
Readers aspiring for a comfortable retirement, passive income generation, and financial freedom will discover immense value in Rich Dad, Poor Dad.
This book also serves as an invaluable resource for parents wishing to teach their children sound money management practices.
Although some practical investment experience would be beneficial, Kiyosaki presents the concepts in an accessible manner for most readers.
By keeping an open mind, anyone can gain a wealth of knowledge from Rich Dad Poor Dad, regardless of their current financial situation.
Rich Dad, Poor Dad Reviews
Overall the online book reviews are good. On Goodreads, the overall book review and rating is 4.12 stars out of five.
Over 270,000 ratings and reviews are 5 stars. And on Amazon, the overall ratings are 4.7 out 5, showing a positive book review overall and a recommendation by many people to read it.
The whole point of this Rich Dad Poor Dad review is to tell you whether it is worth reading or not! It is.
I was amazed by Robert Kiyosaki’s perspective on money and investing when I first read Rich Dad Poor Dad.
Even though the book was written in the 90s, the lessons on escaping the “rat race” and breaking free from monetary dependency are timeless.
If you want to increase your financial literacy, you have to have this personal finance book on your shelf. So absolutely a positive book review!
Here is a recap of some key takeaways from the book:
Focus on assets, not liabilities. Rich individuals acquire assets that generate income, whereas the middle class and poor tend to spend their money on liabilities.
Become financially literate. Dedicate time to learning about money management, accounting, investing, markets, and the law. Acquiring financial intelligence is crucial for building wealth.
Mind your own business. Gain control by starting a business and making investments, rather than depending solely on a paycheck.
Make money work for you. Passive income and asset appreciation are key to growing your wealth through capital gains and cash flow.
Retire rich, not poor. Master the art of investing early on, so you’re not solely reliant on savings accounts and social security.
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