Book Review: Rich Dad Poor Dad by Robert Kiyosaki

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“Rich Dad Poor Dad” by Robert Kiyosaki is a captivating book that offers a fresh perspective on wealth and financial education. Through a blend of personal anecdotes and practical money advice, Kiyosaki presents a compelling argument.

According to the author, the path to wealth is not commonly taught in schools or emphasized in society. He contends that the wealthy possess a distinct financial knowledge that they pass on to their children, which is often inaccessible to the rest of us. To support his assertions, Kiyosaki shares his own journey as an investor, recounting how his success allowed him to retire at the age of 47.

If you’re considering whether to read this book, this review aims to provide you with all the information you need to make an informed decision about investing your time in it.

Without further delay, let’s delve into the details of “Rich Dad Poor Dad.”

Key Insights

Lesson 1: Invest in assets to make your money work for you.

The author, Robert Kiyosaki, emphasizes the stark contrast between the mindset of the rich and the less well-off when it comes to money and investments. Instead of squandering their income on trivial indulgences, the wealthy invest a portion of their earnings into various assets, allowing those assets to generate income on their behalf.

As I immersed myself in the pages of this insightful book, I embarked on a journey alongside Robert, who, in his youth, lacked an understanding of the term “asset.” It was through the guidance of his friend Mike’s father, the rich dad, that Robert’s perspective began to shift. The rich dad unveiled a fundamental distinction: the rich purchase assets, while the less affluent tend to acquire liabilities, often mistaking them for assets. He explained that assets are anything that adds money to one’s wallet, whereas liabilities drain money away.

An eye-opening example the rich dad provided was the notion of a house as an asset. Many people perceive homeownership as a symbol of wealth and security, but in reality, a house can be one of the biggest liabilities one can have. When buying a house with a mortgage, it entails laboring for decades to pay off the loan and the accompanying property taxes, depleting precious financial resources.

The rich dad highlighted two critical reasons why a house bought with a mortgage is a liability. First, it guarantees a substantial monthly expense for the next 30 years, draining money from one’s income. Second, those 360 mortgage payments could have been directed towards more lucrative assets that generate income and contribute to wealth accumulation. This revelation illuminated the true nature of assets and liabilities, reshaping my perception of what constitutes financial success.

In essence, the rich dad distilled his wisdom into a simple statement: to attain riches, one must identify true assets and invest in them. Conversely, a preoccupation with acquiring liabilities will hinder any possibility of achieving wealth. This paradigm shift was profound, as it exposed the fallacy of associating financial prosperity solely with a high salary or material possessions.

Rich dad further elucidated the disparity between the financial habits of the poor, the middle class, and the rich. He emphasized that individuals with lower incomes often allocate their earnings to immediate expenses like rent, taxes, and food. Meanwhile, the middle class faces similar financial obligations while shouldering additional liabilities such as mortgages, school loans, and credit card debt.

In stark contrast, the rich rely on the income generated by their assets to cover their expenses, leaving them with surplus funds to reinvest. Whether it be stocks, bonds, or rental properties, their investments yield increased income, perpetuating a cycle of wealth accumulation. This stark contrast in financial behavior underscores the importance of minimizing liabilities and expenses to free up resources for asset acquisition.

The resounding message I took away from Rich Dad Poor Dad is that by keeping my liabilities and expenses low, I can redirect the remaining funds towards investments in assets. This shift in mindset enables my money to work for me, leading to long-term financial independence and the potential for significant wealth accumulation.

Lesson 2: Always mind your own business.

The conventional wisdom we often hear is to focus solely on our jobs in order to build wealth. However, Kiyosaki emphasizes the importance of “minding your own business.”

Initially, I found myself questioning this concept. How can I afford to invest in assets if I don’t have a job providing a stable income? Is money supposed to magically appear out of thin air? But Kiyosaki quickly addressed my concerns. He wasn’t suggesting that I quit my day job abruptly; rather, he encouraged me to shift my mindset and start prioritizing my own financial growth.

“Minding your own business” doesn’t mean interfering in other people’s lives. In this context, it means taking charge of your personal finances and generating income for yourself, in addition to your employer. It means building a portfolio of assets that can create wealth for you instead of relying solely on promotions, bonuses, and raises.

There’s a fundamental distinction between our profession and our business. Our profession refers to the work we do to meet our daily expenses and maintain our lifestyle. It’s what we do to pay the bills and put food on the table. It may come with a job title like “restaurant owner” or “sales manager.” On the other hand, our business is where we invest our time and money to grow our assets.

Robert Kiyosaki’s journey towards financial success illustrates this concept perfectly. When he was young, his poor dad advised him to find a secure, well-paying job. However, his rich dad encouraged him to start buying assets. Robert chose to follow the advice of his rich dad. At the age of nine, he opened his first business, renting out comic books to the neighborhood kids and collecting the money while others did the work.

As Robert grew older, he also worked a day job. He put in long hours as an employee of large companies like Xerox and Standard Oil of California. However, he always kept his expenses and liabilities low, investing the remaining portion of his salary into income-producing assets. This approach allowed him to build a substantial portfolio that would generate wealth for him in the long run.

By minding his own business, Robert Kiyosaki achieved financial independence. He realized that his assets were like his own employees, working for him and generating income even while he slept. This shift in mindset transformed his financial situation and ultimately led to his wealth.

If we aspire to become rich, we must adopt the same attitude. Relying solely on a salary, even with promotions and bonuses, won’t likely make us wealthy. However, our salary can serve as a means to acquire assets that will enrich us.

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3. The wealthy skillfully navigate the tax code and legal system to outsmart the systems meant to regulate them.

After reading “Rich Dad Poor Dad” by Robert, I couldn’t help but be captivated by a powerful lesson that resonated deeply with me. It all started with a disagreement between Robert’s rich dad and his admiration for the legendary Robin Hood. As a child, I, too, found myself enthralled by the tale of Robin Hood and his band of Merry Men, believing him to be a noble hero fighting for justice. However, Robert’s rich dad presented a different perspective that completely changed my understanding.

According to rich dad, Robin Hood and his actions were not to be celebrated. He attributed the fantasy of Robin Hood to the creation of a tax system he despised. While Robin Hood took from the rich to give to the poor, the government attempted to do the same. But rich dad argued that the reality was far from achieving its intended goal.

In rich dad’s eyes, the burden of taxation ultimately fell upon the middle class, not the wealthy. The rich, being resourceful and well-informed, possessed the means to deflect taxes through various sophisticated tools. One such tool was the establishment of corporations. Unlike individuals, corporations could spend pre-tax dollars and were only taxed on the remaining profits after expenses.

This distinction was eye-opening. Imagine if we, as individuals, were only taxed on the portion of our income we didn’t spend! The rich utilized corporations to shield their assets and evade taxes that burdened the middle class and the poor.

Yet, the advantages of corporations didn’t end there. When a corporation fails and is unable to repay its debts, the owners bear the loss of their investment, but their personal belongings remain protected. On the other hand, as individuals, if we default on a loan, we may face the arduous process of selling our possessions, declaring bankruptcy, and dealing with the consequences.

Corporations provide the rich with the ability to reap significant financial rewards while minimizing personal risks. Through their understanding of the tax code and legal system, they remain one step ahead, maneuvering through the intricacies designed to rein them in.

The lesson I derived from this insightful perspective is invaluable. It illuminated the importance of financial literacy and knowledge of the systems that govern wealth and taxation. By expanding my understanding of the tax code and legal frameworks, I can navigate the terrain more effectively, ensuring that I too can create wealth and protect my assets. It reinforced the need to continuously educate myself and stay informed about the ever-changing dynamics of finance and economics.

Lesson 4: Starting early, setting goals, and building financial intelligence are essential steps on the path to personal wealth.

Robert Kiyosaki emphasizes that the journey toward personal wealth can begin at any point in life, but the earlier we embark on this path, the greater our chances of success. As I reflect on my own life, I realize that time is a precious asset. By starting early, we allow ourselves more time to leverage the power of compound interest, make informed investment decisions, and learn from our experiences.

The first step outlined by Kiyosaki is to honestly appraise our current financial situation. This involves taking a close look at our income, expenses, and financial obligations. By being honest and realistic about our financial standing, we can gain a clearer understanding of what we can afford and what we need to prioritize. This means making responsible choices and not indulging in desires that are beyond our means. It’s important to remember that financial success is built on a foundation of honesty and discipline.

Setting goals is the next crucial step. Once we have a clear understanding of our financial situation, we can establish realistic and measurable objectives. These goals provide us with a sense of direction and purpose. For instance, if owning a luxury car like a Mercedes is a dream, we can set a timeline to achieve it. Kiyosaki’s wife, Kim, waited patiently and eventually bought her Mercedes using earnings from their apartment buildings. This example illustrates the power of setting goals and working toward them persistently.

The third step involves investing in our financial intelligence. Kiyosaki highlights the importance of continuous learning and gaining knowledge about money and investments. By improving our financial literacy, we can make informed decisions and navigate the complex world of finance with confidence. This investment in our minds is the greatest asset we have.

To build financial intelligence, Kiyosaki suggests various approaches. For instance, stepping out of our comfort zone and working for a network marketing company can help us overcome the fear of rejection and develop essential sales skills and self-confidence. Moreover, we can dedicate our spare time to enrolling in finance classes, attending seminars, and reading books on the subject. For example, I’ve joined the Rich Dad Poor Dad seminar to gain knowledge about investing. Last but not least, we can network with experts in the field who provide valuable insights and mentorship.

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Lesson 5: Embrace risk as a catalyst for financial growth and success.

Another lesson that has truly resonated with me is the importance of embracing risk. It’s all about breaking free from the safety net of traditional banking and exploring avenues that have the potential to generate substantial wealth.

In the past, I always played it safe with my money, content with keeping it in basic checking and savings accounts. While this may provide a sense of security, it limits the growth and opportunities for financial success. The author suggests venturing into investments such as stocks or bonds, which may be considered riskier but offer the possibility of exponential wealth accumulation.

Initially, the idea of investing in stocks seemed intimidating. The thought of potentially losing my hard-earned money was daunting. However, “Rich Dad Poor Dad” taught me that by avoiding risks, I was also forgoing the chance to make significant returns. This realization motivated me to step outside my comfort zone and embrace the world of investing.

Even if you’re not ready to dive into the stock market, there are other investment options available. Real estate and tax lien certificates, for instance, can provide long-term wealth growth. Tax lien certificates, with their higher interest rates ranging from 8 percent to 30 percent, far surpass the meager returns of a savings account.

Certainly, it’s important to acknowledge that the potential for higher returns comes with increased risk. There is always the chance of losing the entire investment when dealing with stocks. However, it’s crucial to recognize that by not taking any risks at all, we guarantee ourselves a lack of substantial returns.

Lesson 6. Work to learn, not just to earn.

“Rich Dad Poor Dad” has taught me that true wealth is not only measured in monetary terms but also in knowledge and personal development.

Robert’s poor dad, who was highly educated and believed in the conventional path to success, saw his steady and well-paying job as the ultimate achievement. However, his rich dad, despite having less formal education, understood that there was more to wealth than a secure career. Rich dad congratulated Robert when he decided to quit his job after just six months and join the Marine Corps to learn how to fly.

Rich dad recognized that Robert’s intention was not to pursue a steady salary but rather to acquire knowledge and skills. He believed that having a broad base of knowledge was crucial for making money. While poor dad believed in specialization, thinking that focusing on a single field would lead to riches, rich dad emphasized the importance of knowing a little about a lot.

In the academic world, specialization is often valued and rewarded. The higher you go, the narrower your area of expertise becomes. Doctors, for example, tend to specialize in specific fields upon graduating. However, poor dad’s specialization did not significantly boost his earnings. On the other hand, rich dad, who never finished eighth grade, possessed a wide range of knowledge.

To instill this mindset in Robert and Mike, rich dad encouraged them to work in various departments of his business empire. They gained experience in restaurants, construction, sales, marketing, accounts, and reservations. The purpose was not to find a single career field but to equip them with diverse skills and knowledge necessary for wealth creation.

This lesson has changed my perspective on work and education. Instead of solely focusing on earning a paycheck, I now realize the importance of continuously learning and expanding my skill set. Rather than limiting myself to a single area of expertise, I am inspired to explore different fields and acquire a broad range of knowledge.

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1. A Masterclass on Financial Education

There’s a transformational power in books, and “Rich Dad Poor Dad” is no exception. One of the things that struck me the most was how author Robert Kiyosaki redefined the whole concept of financial education. Sure, we go through school learning a bunch of things, but how many of us truly understand money, wealth, and investing by the time we graduate? Not many, I bet.

Kiyosaki argues that the real deal breaker in achieving financial freedom is getting a proper financial education. There’s a quote in the book that really sticks with me: “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.” That’s just pure wisdom! I appreciated how he constantly stressed the importance of upgrading our financial knowledge. I guess it’s safe to say that my journey to financial enlightenment pretty much started with this book.

2. The Beauty of Paying Yourself First

Here’s another concept that struck me hard: “Paying yourself first.” Now, this idea was a total game-changer for me. The poor and the middle class work for money, Kiyosaki says, but the rich? They have money work for them. This was my wake-up call to the reality that saving and investing should be a priority, not an afterthought.

Sure, it might mean giving up a few luxuries in the short term, but the long-term benefits? Totally worth it. This lesson was a gentle but firm push towards responsibility, urging me to make conscious decisions about my money. And let’s be honest, the feeling of watching your investments grow because you chose to pay yourself first? Priceless!

3. A Clear and Engaging Writing Style

Last but not least, I absolutely adore Kiyosaki’s writing style. It’s straightforward, engaging, and so easy to understand that even a complete financial novice could grasp the concepts. This book proved that you don’t have to use big, fancy words or complicated jargon to discuss money matters.

I found myself highlighting and scribbling notes almost obsessively, trying to soak up every bit of wisdom from each page. The clear, down-to-earth language made it so accessible that it felt like having a conversation with a wise friend, instead of reading a personal finance book. Kiyosaki took an intimidating subject and turned it into something relatable and even exciting.

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1. A Little Too Basic

“Rich Dad Poor Dad” is a book that I’ve seen on countless lists as a must-read for financial enlightenment. After reading it, I’m like, “okay, but…” The main issue I have is that the concepts feel too basic, especially for someone who already has a foundation in business and finance.

Being raised in a business-minded family, I found the lessons from Kiyosaki’s ‘Rich Dad’ pretty intuitive. Sure, it’s useful if you’ve never dipped your toes into finance. But if you’re like me, and you’ve already swum a lap or two in the business pool, it may not rock your world. It’s like taking a beginner’s course when you’re ready for advanced classes.

2. Not Much Meat on the Investing Bone

Now, don’t get me wrong, the storytelling is fun. But when it comes to practical advice, especially on investing, it felt a little sparse. I mean, yeah, the rich make their money work for them. Groundbreaking revelation, right? I feel like most people have already grasped that concept.

Then there’s the emphasis on real estate. Sure, swinging sweet deals when beachfront houses in Hawaii cost $18k must’ve been cool, but that was in the ’70s. Times have changed, Robert! What about us folks looking for hardcore, current investing knowledge? I was hoping for more substantial advice, rather than anecdotal tales that leave you hanging with, “So, what’s next?”

3. Skimpy on Risk Management

The book is all about pushing boundaries and taking bold steps towards financial freedom. That’s cool and all, but where’s the part about risk management? This book isn’t exactly a how-to manual, but the lack of focus on risk feels a bit irresponsible.

I mean, Kiyosaki is encouraging readers to leap into the world of investment, yet he doesn’t provide a parachute in the form of risk assessment advice. This, combined with the fact that he suggests attending pricey seminars (where we’d be the ones losing money, not making it), feels a bit contradictory to the whole idea of getting your money to work for you.

Sure, it’s a mindset shifter, but it leaves out some crucial information that would have made it a well-rounded financial guide. As a result, there’s a danger that beginners may take his advice too wholeheartedly, jump in too deep, and end up getting burned.


“Rich Dad Poor Dad” isn’t your typical finance textbook, filled with numbers and complicated equations. Nah, it’s more of a story. A story about two dads: one, a hard-working chap who just couldn’t break free from financial struggle, and the other, a savvy entrepreneur raking in the big bucks.

Over ten chapters, Kiyosaki dishes out some much-needed financial wisdom, covering everything from deciphering what the heck assets and liabilities are to why financial education is crucial. But here’s the thing that really sets this book apart: it’s not just about the ‘what’ but also about the ‘how’. It’s about shifting your mindset, challenging what you’ve always thought about money, and embracing the spirit of entrepreneurship.

And hey, don’t worry about getting lost in financial gibberish. Kiyosaki keeps it real with personal stories and relatable anecdotes that make the book more like a chat with a friend than a lecture. His passion for financial literacy is infectious, and you can’t help but feel charged up to grab the reins of your own financial future.

Sure, the book has its flaws. Some might argue it oversimplifies things or paints an overly rosy picture. But you know what? It’s the core message that counts, the one about taking charge of your financial destiny and getting educated about money. That’s a principle we can all get behind.

So, to sum it up, “Rich Dad Poor Dad” is a thought-provoking, inspiring read that will challenge you to rethink how you view money and wealth. It’s a blend of practical advice and mindset-altering ideas that could be just the ticket to steering your financial future in a new, exciting direction. Don’t just take my word for it, give it a read and see for yourself!

Rich Dad Poor Dad Quotes

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


The richest people in the world build networks; everyone else is trained to look for work.


‘I can’t afford it’ shuts down your brain. ‘How can I afford it?’ open up possibilities, excitement and dreams.


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


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

About The Author

As an investor, entrepreneur, and educator, Kiyosaki has made it his mission to challenge and change the way people around the world think about money.

His book, Rich Dad Poor Dad, has been a top-seller for over six years, and has even been named the #1 money book by USA Today for two years in a row. In it, Kiyosaki challenges the old advice of “get a good job, save money, get out of debt, invest for the long term, and diversify,” arguing that it’s not only obsolete, but flawed.

While his irreverent and straight-talking style may not be for everyone, it’s hard to deny the impact Kiyosaki has had on the world of personal finance.

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