Introduction
Rich Dad Poor Dad book written by Robert T Kiyosaki, first published in 1997, was an early work on financial education. This article reviews the book, offering honest insights. With 9 chapters, it educates readers about finance and planning their financial future. Even after 25 years, the book remains popular..
Robert T. Kiyosaki, an entrepreneur and investor, is passionate about financial education. He co-founded The Rich Dad Company, a financial education firm and creator of the CASHFLOW games.
Key points of the book
- This book explores two contrasting mindsets, termed “Rich Dad Poor Dad”. The author’s father earns well but struggles financially, referred as “Poor Dad”, while his friend’s father lacks stable income yet leads a better lifestyle due to his mindset, referred to as “Rich Dad” in the book.
- Rich Dad Poor Dad is a bestselling book on financial education. Author Robert shares his personal financial journey and insights, which have benefited millions, if not billions, of readers.
- This book focuses on how one’s thought process shapes their fortune. Beyond hard work and dedication, mindset determines financial outcomes. Its 9 chapters outline steps to reshape thinking and take action for a secure financial future, prompting reflection on current saving, spending habits, and future planning.
- Everyone should have multiple income sources, investing earnings so money works for them. While the poor and middle class work for money, the rich make money work for them—a concept introduced in Chapter 1, The Rich Don’t Work for Money
- To become rich, one must first understand the difference between assets and liabilities. Investing earnings into assets builds wealth. A house is not an asset. The rich prioritize their asset columns, while others focus on income statements.
- Chapter 4, The History of Taxes and The Power of Corporations, focuses on taxes and corporations, primarily within the US tax system. As a result, readers from other regions may find it less relatable.
- A key difference between poor and rich mindsets lies in priorities: the poor seek job or income security, while the rich focus on continuous learning. Working to learn leads to wealth, while working solely to earn maintains poverty. In reality, boldness often triumphs over intelligence.
- The Primary difference between a Rich person and a Poor person is how they manage fear. There are five key reasons why financially literate individuals may still fail to build abundant assets. These include:
- Fear
- Cynicism
- Laziness
- Bad habit
- Arrogance
- This book provides strategies to overcome the five fears discussed earlier.
- The book concludes with key Do’s and Don’ts recommended by the author, including:
- Stop doing what you are doing
- Look for new ideas
- Take classes, read and attend seminars
- Learn from history and think big
- Action always beats inaction.
Conclusion
This book seems more relevant to Western countries, as its tax systems and government policies may not align with those in Asia or Africa. I believe it benefits readers in the US, UK, or Europe more, with other financial education books being better suited for Asian or African audiences. You could purchase this book onamazon.
Other Books Review
- Ikigai – by Hector Gracia & Francesc Miralles
- Think and Grow Rich – by Napoleon Hill
- Let’s Talk Money – by Monika Halan
- The Psychology of Money – by Morgan Housel
- Man’s Search For Meaning – by Viktor E. Frankl
Disclaimer: The views expressed in this article are solely my own after reading the book. It is not intended to offend anyone. Any resemblance to actual persons, living or dead, is purely coincidental. This article is neither sponsored nor endorsing anyone. The link mentioned here is an affiliate link. If you’re interested in reading this book along with me, buying it through the affiliate link is a great way to support me!
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