Who is Robert Kiyosaki?
Robert Kiyosaki is a best-selling author, investor, and businessman. One of his companies, the Rich Dad Company, provides lessons on personal finance and entrepreneurship using books, games, and other tools. Rich Dad Poor Dad was the first book in his best-selling series, of the same name, on Personal Finance. The series of books have sold over 40 million copies globally and been translated into dozens of languages.
Rich Dad Poor Dad highlights the differences between the lessons that Robert received growing up by his 2 “dads”, on the topic of money. His “rich dad” was the father of a best friend of his, while his “poor dad” was his biological father. Robert describes how they viewed money and personal finance differently, and how it ultimately shaped their careers and their lives.
Robert also describes his experience as an entrepreneur and investor. In our review of Rich Dad Poor Dad by Robert Kiyosaki, we will show the importance of the lessons he received growing up. These lessons are not taught in schools but are invaluable to anyone who wants to succeed as an entrepreneur or investor. Therefore, Kiyosaki and his company have become strong advocates for financial education to be prioritized more in schools.
Review of What You Will Learn In Rich Dad Poor Dad?
Robert Kiyosaki has organized this book into each of the lessons taught by his “rich dad”, and the stories that shaped his early career as an employee and investor. Some of the key takeaways include:
The importance of finding a mentor or someone who has done what you want to accomplish.
“Having two dads offered me the choice of contrasting points of view: one of a rich man and one of a poor man.”Kiyosaki, page 1
Schools teach us how to earn money but do not teach us how to multiply it.
When you work for an employer, you are compensated in the form of earned income. While earned income is just one of the several types of income streams you can have, it is the only one that the public school system teaches us about. This lack of financial education is why most people reach adulthood financially illiterate.
“The poor and the middle-class work for money, the rich have money work for them.”Kiyosaki, page 11
The difference between an asset and a liability.
Many of us have heard that our house is our biggest asset. After all, much of the American dream is the desire for homeownership. Unfortunately though, in most cases, your house is actually one of your biggest liabilities. Rich Dad Poor Dad offers the most simple and accurate definitions for these two principles:
“An asset puts money in my pocket. A liability takes money out of my pocket.”Kiyosaki, page 64
“Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.”Kiyosaki, page 61
The importance of identifying and improving your cash-flow pattern.
“Cash flow tells the story of how a person handles money.”Kiyosaki, page 71
You can go all your life without gaining any financial education. It is imperative that schools teach financial literacy.
A person can be highly educated, professionally successful, and financially illiterate.”Kiyosaki, page 77
The history of taxes and the power of corporations.
“It is the knowledge of the legal corporate structure that really gives the rich a vast advantage over the poor and middle class.”Kiyosaki, page 109
Final Verdict: 9.9/10
If you want to become financially literate and escape what Kiyosaki calls “the rat race”, then this book is a must-read. This is the first book that comes to mind when friends ask me where they can learn more about investing. That’s because, to comprehend the importance of investing, one must leave behind the lessons of our respective “poor dads”. In other words, the common adages on the subject of money that simply do not work for building wealth.
Rich Dad Poor Dad highlights the flaws in our current education system and the importance of financial education. This and the rest of the books in the series serve as an invaluable guide to financial freedom. If you aspire to build multiple income streams, become an entrepreneur, earn passive income, grow an investment portfolio, etc. then read this gem. You can get yourself a copy here.
If you enjoyed this book review, you’ll enjoy our others here!