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Rich Dad Poor Dad: A Book Review
We’re excited to share a review of one of our absolute favorite personal finance books, Rich Dad Poor Dad!
Be sure to check out our “books” section to find lists and reviews of other books you may enjoy!
Let’s get started!
How to Get this Popular Book:
A few ways to get a copy of this book include:
- Audiobooks: Don’t have time to sit and read? It is common for millionaires to learn on the go. While in the car, heading to work or taking the kids to appointments, listen to this book in bite-sized pieces!
- Ebooks: Is holding a paperback book too 1990’s for you? Ebooks are an awesome alternative, because they are cheaper than the regular book, and can be read on your phone, computer, tablet, and iPad.
- Buy the Book: One great benefit of Amazon is that you can find tons of books for cheap. This book is one of them! Check out the used section. You can usually get a copy of this book for pennies!
- Library: Are you strict on budget and don’t want to spend to buy this book? Good for you! 😊 This book is extremely popular, so check to see if it is currently available for free at your library!
Who is Robert Kiyosaki?
A visionary. An entrepreneur. An investor. A leader. A speaker.
Those are just a few descriptors that fit within Kiyosaki’s daily life.
He is the author of many financial books, and even has helped create games, such as the cashflow app, that easily teach families and friends about money.
But, what caused him such success?
Robert Kiyosaki had a unique upbringing that shaped his mindset around money.
His father studied at prestigious universities, gaining excellent knowledge. His other “dad”, his best friend’s father, did not even finish the middle school. The rich dad and the poor dad.
As described in this book, he learned from both “dad”s. He learned about making money, education, assets, cash flow, investing…yet both men had completely opposite views!
As he continued to grow up, he learned, adapted, and grew to understand what it truly takes to become good with money.
Kiyosaki took his experience and knowledge and created a fulfilling life, where he is able to teach and help others along their financial journeys.
Book Summary
Many agree that Rich Dad Poor Dad is the best option for beginners amongst all personal finance books.
What makes his book so popular is Kiyosaki’s ability to simplify concepts, and relate with everyone.
Rich Dad Poor Dad is a book you’ll want to read again and again!
Check out this post with 15 unique quotes from Rich Dad Poor Dad!
Chapter Analysis:
Each chapter is actually set to be a “lesson”. If you have the “study session” version of this book (you can get it here), then this can help you quickly review main points later on.
Lesson 1: The Rich Don’t Work for Their Money
Ever heard of passive income? If you’re a frequent flier over on this blog, you should know what that is!
This chapter dives into explaining how the rich view cash flow, education and spending.
For example, take the following quote: “A nice car and a nice house don’t necessarily mean you’re rich or you know how to make money”.
We see plenty of poor and middle-class individuals trying to spend hefty amounts of money to “look” rich.
This dense chapter is a story of Kiyosaki’s learning about how making money really works. Contrary to modern assumptions, he learns about the reality of how financial success is more about behavior than about education.
This chapter is a fascinating take on learning about money, from the perspective of a young boy, and it is ground-breaking for many readers.
Lesson 2: Why Teach Financial Literacy?
Understanding money is something that isn’t taught in traditional schools, but can dictate living with wealth or in debt.
In this chapter, Kiyosaki stressed the importance of education; but, not the typical education you’d assume.
Our greatest asset is our minds. The way to financial success is through learning about finances. Seems easy enough, right?
Unfortunately, without proper guidance from teachers in school, and without any required classes in college regarding personal finance, nearly all learning about money is left to the individual.
This chapter is a critical read. You’ll learn about cashflow, assets, and liabilities. The concept of cashflow is one that the layperson may not understand, but can mean success or failure.
As stated in the book, “More money won’t solve your problem”, you’ll learn about why the rich get richer, and why the poor get poorer!
Lesson 3: Mind Your Own Business
Many concepts of this book go far against the current status quo.
This chapter is an example of just that.
If you are someone who truly, truly, believes that life is about going to school, to get a job, to work 45 years of your life, then to retire, then this chapter may be difficult to read.
Kiyosaki writes: “Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities.”
Don’t go buying a large liability (examples: a boat, a vacation home) if you don’t have an income stream that will be able to pay for it. Instead, purchase things that will make money for you.
As a tie-in to Lesson 2, this lesson is about diving deeper into being trapped in a lifestyle of debt…and how to escape!
Lesson 4: The History of Taxes and the Power of Corporations
I know. The title of this lesson alone is boring.
But, remember, this book is written in easy-to-understand terms!
Check out this great quote from this lesson:
“The poor and middle class don’t have the same resources. They sit there and let the government’s needles enter their arm and allow the blood donation of begin. Today, I am constantly shocked at the number of people who pay more taxes, or take fewer deductions, simply because they are afraid of the government.”
This lesson explains the difference between being a business owner, and being an employee of a business.
The important thing here is that you don’t have to desire to be an entrepreneur or business owner to get anything from this chapter.
Lesson 5: The Rich Invent Money
This lesson is dedicated to helping the reader understand how to learn more about money. It takes time, and it takes dedication.
Kiyosaki continues to emphasize that our biggest asset is our brains.
Our financial education is what will make you rich.
For example, have you ever made an investment in a stock or fund that you did not understand? You may have seen a video on it, or read one article, but did you understand how it worked, it’s history, what the potential risks and rewards were?
Interested in learning how to invest without spending any money? Check out one of our favorite free apps here!
Financial literacy is critical for financial success.
Take this quote as an example:
“Money-which isn’t real, by the way, but just what we agree it is-isn’t our greatest asset. Our mind is. Train it well. Millions can be made from nothing more than ideas and agreements.”
If you have any desire to reach financial freedom, to pay off all your debts, to be wealthy, or to retire early, this lesson is an amazing way to learn how to create a life like no one else.
Lesson 6: Work to Learn-Don’t Work for Money
For anyone older than the millennial generation, this lesson could be a difficult one.
Kiyosaki had written a book titled, “If you want to be rich, don’t go to school”.
Wow. That seriously goes against everything our schools, teachers, and parents tell us to do.
Americans grow up with the emphasis to do good in high school, so you can get into a good college, graduate with a degree, and work for a business.
Kiyosaki says otherwise.
People work to pay bills, right? We work in fear of losing our jobs, so we all work for businesses, and look forward to retiring in a few decades.
But, listen to this concept: Kiyosaki suggests you go to work to learn. Learn about how the business works. Learn about sales. Learn about management. Discover different styles of leadership. Learn new skills.
Post-WWII, no one skipped from job to job. It was about job security.
In this lesson, you will discover multiple examples of how, and why, this new way to learning is beneficial. It just might be the information you need to expedite your financial journey!
Lesson 7: Overcoming Obstacles
“Everyone has the fear of losing money; the difference is how you handle fear and losing. The primary difference between a rich persona and a poor person is how they manage that fear”
If there is any chapter to read (okay, really though, they’re all great), then this is it.
This lesson goes over how to get over fear, cynicism, laziness, bad habits, and arrogance regarding money.
Any of that sounds familiar? If not, you’ll be surprised how you can relate. And, you will discover what exactly is your problem with not being abundant with your finances!
By this point in the book, you will have read through plenty of amazing examples, expanded your view on money, and probably have thought a lot about what you’ve been taught regarding finances.
But, this lesson is the kick in the booty that we all need.
Instead of spoiling all of the secrets that Kiyosaki has to offer in this lesson, we’ll leave this one to you. 😊
Lesson 8: Getting Started
This is where the readers, who really aren’t interested in transforming their lives, drop off.
This is where Kiyosaki gives you a step-by-step guide to changing your financial life.
This lesson is where the author pulls together all of the lessons that were taught within each chapter, and summarizes how to implement them in your own life.
For example, Kiyosaki explains how to choose friends carefully. He teaches to not listen to those who are frightened about money, and to rid of those who are arrogant and critical about taking risks.
He also teaches about self-discipline and how to pay yourself first, rather than paying yourself after all expenses are dealt with. It is a fascinating concept that is worth the read!
This lesson goes over 10 different important lessons that are necessary to follow, if you are serious about your financial journey!
Should You Buy It?
I’ve outlined a few reasons why I would/not recommend purchasing this book:
- YES: This book is written for everyone. Popular due to it’s ease to read, Rich Dad Poor Dad is relatable to people of all social classes, education, and age. It is an amazing gift to high schoolers, or a great recommendation to your parents. Even if the reader only takes one piece of advice from this book, it will be worth it!
- YES: If you want to retire early or grow significant wealth. Being rich isn’t a bad thing, it’s about how you manage your money that makes you a better or worse person. This book lays down critical, foundational concepts that are stepping stones to building a life of financial success. You do not need to desire to be an entrepreneur to benefit from this book. It is all about changing your mindset and behavior around money!
- NO: If you are willing to consider radical ideas. Kiyosaki offers suggestions that contradict with what is taught in our culture. And, that’s okay. Having an open mind is the most important aspect when reading this book. If you find yourself to be too closed-minded, you may want to start with another book that will get you ready to learn how to reach financial success.
Okay, Let’s Summarize!
- Rich Dad Poor Dad is a popular book for a reason. It is a fun read, and is absolutely transformational.
- This book explores a vast amount of topics, so no matter your age or education background, you will be able to relate.
- If you have any desire to retire early, grow wealth, build up assets, have multiple streams of passive income, or build your own business, then you’re in luck! This book is a foundational necessity for everyone who is ready to make a change in their lives!
Have you read this book? We’d love to hear about your experience, down in the comments below!
