Book Review:
Book Title: Rich Dad Poor Dad by Robert T. Kiyosaki
Authors: Robert T. Kiyosaki and Sharon Lechter.
It advocates the importance of financial literacy, financial independence and building wealth through investing in assets, real estate investing, starting and owning businesses, as well as increasing one’s financial intelligence. The book has been translated into 51 languages and sold over 40 million copies worldwide.
The book is written in a conversational style and uses simple anecdotes to illustrate complex financial concepts. Kiyosaki contrasts his own father, a highly educated man who always struggled with money, with his friend’s father, a high school dropout who became a successful businessman. Kiyosaki argues that the difference between the two men was their financial education.
Rich Dad Poor Dad has been praised for its ability to make complex financial concepts accessible to a wide audience. The book has also been credited with helping many people to achieve financial success. However, the book has also been criticized for its oversimplification of complex financial issues and its promotion of risky investment strategies.
Overall, Rich Dad Poor Dad is a valuable resource for anyone who wants to learn more about personal finance and building wealth. The book is easy to read and understand, and it provides a number of practical tips and advice. However, it is important to keep in mind that the book is not a complete financial education. Readers should do their own research and consult with a qualified financial advisor before making any investment decisions.
Here are some of the key takeaways from the book:
- The rich don’t work for money, they make money work for them. This means investing in assets that generate income, such as real estate, businesses, and stocks.
- Financial education is essential for building wealth. Kiyosaki argues that schools do not teach children about money and how to manage it. It is up to individuals to educate themselves about personal finance.
- There are four main financial quadrants: E (employee), S (self-employed), B (business owner), and I (investor). Kiyosaki argues that the B and I quadrants are the best way to build wealth.
- It is important to start small and reinvest your earnings. Kiyosaki recommends investing 10% of your income each month.
Overall, Rich Dad Poor Dad is a good book for people who are new to personal finance and investing. It provides a basic understanding of key concepts and motivates readers to take action. However, it is important to keep in mind that the book is not a complete financial education. Readers should do their own research and consult with a qualified financial advisor before making any investment decisions.
Breeze through:
Chapter 1 The Rich Don’t Work for Money
Robert Kiyosaki introduces his two fathers: his own biological father (the “poor dad”) and the father of his best friend (the “rich dad”). He shares how their different mindsets and approaches to money shaped his financial education.
Kiyosaki’s poor dad was a highly educated man, but he always struggled with money. He believed in working hard for a paycheck and saving money. Kiyosaki’s rich dad was a high school dropout, but he became a successful businessman. He believed in making money work for him.
Kiyosaki learned two key lessons from his two fathers:
- The rich don’t work for money, they make money work for them.
- Financial education is essential for building wealth.
Chapter 2: Why Teach Financial Literacy?
Kiyosaki argues that financial literacy is essential for building wealth. He explains the difference between assets and liabilities, and why it is important to focus on acquiring assets.
Assets are things that put money in your pocket, while liabilities are things that take money out of your pocket. Kiyosaki encourages readers to invest in assets that generate income, such as real estate, businesses, and stocks.
Chapter 3: The Rich Don’t Work for Money
Kiyosaki expands on the concept of making money work for you. He explains the importance of investing in assets that generate income, and how to create multiple streams of income.
Kiyosaki also discusses the importance of financial intelligence. He argues that financial intelligence is more important than traditional education in terms of achieving financial success.
Chapter 4: Mind Your Own Business
Kiyosaki encourages readers to start their own businesses. He explains the benefits of owning a business, and how to start a business on a shoestring budget.
Kiyosaki also discusses the importance of financial education for entrepreneurs. He argues that entrepreneurs need to understand the basics of finance in order to be successful.
Chapter 5: History of Taxes and the Power of Corporations
Kiyosaki discusses the history of taxes and the power of corporations. He explains how the rich use corporations to reduce their tax burden.
Kiyosaki also encourages readers to learn about taxes and how to use corporations to their advantage.
Chapter 6: The Rich Invent Money
Kiyosaki discusses the importance of creativity and innovation in building wealth. He explains how the rich often invent new products and services to create new sources of income.
Kiyosaki also encourages readers to think outside the box and come up with their own creative ways to make money.
Chapter 7: Work to Learn, Don’t Work for Money
Kiyosaki argues that it is important to work to learn, not work for money. He explains that the most valuable asset you have is your education.
Kiyosaki encourages readers to invest in themselves and their education. He believes that the best investment you can make is in yourself.
Chapter 8: Overcoming Obstacles
Kiyosaki discusses the common obstacles that people face on their journey to financial success. He explains how to overcome these obstacles and achieve your financial goals.
Kiyosaki also encourages readers to persevere and never give up on their dreams.
Chapter 9: Getting Started
Kiyosaki provides some practical tips on how to get started on your journey to financial success. He encourages readers to start small and take action.
Kiyosaki also reminds readers that the best time to start investing is now.
Chapter 10: Conclusion
Kiyosaki summarizes the key lessons from the book and encourages readers to take action to achieve their financial goals.
Kiyosaki believes that everyone has the potential to become wealthy. He encourages readers to educate themselves about money and investing, and to start taking action today.
I hope this summary is helpful. Please let me know if you have any other questions.
Key takeaways from each chapter:
Key Takeaway from Chapter 1
The rich don’t work for money, they make money work for them. This means investing in assets that generate income, such as real estate, businesses, and stocks.
Kiyosaki contrasts his own father, a highly educated man who always struggled with money, with his friend’s father, a high school dropout who became a successful businessman. Kiyosaki argues that the difference between the two men was their approach to money. His poor dad believed in working hard for a paycheck and saving money. His rich dad believed in making money work for him.
Kiyosaki encourages readers to adopt the mindset of the rich dad and focus on acquiring assets that generate income. This will allow them to build wealth over time and achieve financial freedom.
Here are some specific takeaways from the chapter:
- The rich focus on assets, while the poor focus on liabilities.
- Assets put money in your pocket, while liabilities take money out of your pocket.
- Financial education is essential for building wealth.
- You need to learn how to make money work for you.
If you want to achieve financial success, you need to shift your focus from working for money to making money work for you. Invest in assets that generate income and build your wealth over time.
Key take aways from Chapter 2
- Financial literacy is essential for building wealth. Kiyosaki argues that schools do not teach children about money and how to manage it. It is up to individuals to educate themselves about personal finance.
- The difference between assets and liabilities is crucial to understand. An asset is something that puts money in your pocket, while a liability is something that takes money out of your pocket. Kiyosaki encourages readers to focus on acquiring assets and avoiding liabilities.
- The rich invest in assets that generate income. This means buying assets that produce cash flow, such as real estate, businesses, and stocks. When you invest in assets that generate income, you are making your money work for you.
Here is a table that summarizes the key differences between assets and liabilities:
| Asset | Liability |
| Puts money in your pocket | Takes money out of your pocket |
| Generates income | Costs money to maintain |
| Appreciates in value over time | Depreciates in value over time |
Some examples of assets include:
- Real estate
- Businesses
- Stocks
- Bonds
- Intellectual property (e.g., patents, copyrights)
Some examples of liabilities include:
- Consumer debt (e.g., credit card debt, student loans)
- Auto loans
- Mortgages
- Taxes
Kiyosaki encourages readers to focus on acquiring assets and avoiding liabilities. This is the key to building wealth and achieving financial freedom.
Key take aways from Chapter 3
The key takeaways from Chapter 3 of Rich Dad Poor Dad are:
- The rich don’t work for money, they make money work for them. This means investing in assets that generate income, such as real estate, businesses, and stocks.
- It is important to create multiple streams of income. This means having multiple sources of money coming in, so that you are not reliant on just one source of income.
- Financial intelligence is more important than traditional education. Kiyosaki argues that financial intelligence is the ability to understand and manage money effectively. He believes that financial intelligence is more important than traditional education in terms of achieving financial success.
Kiyosaki provides the following analogy to illustrate the importance of creating multiple streams of income:
Imagine you have a bucket with a hole in it. You can keep pouring water into the bucket, but it will never fill up because the water is leaking out. This is like working hard for money, but not investing it in assets that generate income. The money is just leaking out through your expenses.
If you want to fill the bucket, you need to plug the hole and add more buckets. This is like creating multiple streams of income. When you have multiple streams of income, you are able to fill your buckets and build your wealth over time.
Kiyosaki also emphasizes the importance of financial intelligence. He argues that financial intelligence is essential for making sound investment decisions and building wealth. Financial intelligence includes the ability to understand financial statements, calculate risk, and make informed financial decisions.
If you want to achieve financial success, you need to focus on developing your financial intelligence and creating multiple streams of income.
Here are some tips for getting started:
- Learn about the different types of investments and how to evaluate them.
- Start small and invest regularly.
- Reinvest your earnings to grow your wealth over time.
- Create multiple streams of income by investing in different types of assets, such as real estate, businesses, and stocks.
- Continue to educate yourself about personal finance and financial intelligence.
Key takeaways from Chapter 4
The key takeaway from Chapter 4 of Rich Dad Poor Dad is that owning a business is one of the best ways to build wealth. Kiyosaki argues that businesses are powerful assets that can generate significant income and allow you to control your own financial destiny.
Kiyosaki provides several reasons why owning a business is a good way to build wealth:
- Businesses can generate passive income. This means that a business can continue to generate income even when you are not actively working on it. This is in contrast to a job, where you only earn money when you are working.
- Businesses can appreciate in value. Over time, a successful business can become worth more than you paid for it. This can provide you with a significant capital gain.
- Businesses offer tax advantages. Businesses can take advantage of a number of tax deductions and credits that are not available to individuals. This can help you reduce your tax burden and increase your profits.
Kiyosaki also encourages readers to start their own businesses, even if they have limited resources or experience. He argues that anyone can start a business with a little hard work and determination.
If you are interested in starting a business, Kiyosaki recommends the following:
- Choose a business that you are passionate about and that you have some knowledge of.
- Start small and reinvest your earnings to grow your business over time.
- Surround yourself with mentors and advisors who can help you succeed.
Building a successful business takes time and effort, but it is one of the best ways to achieve financial freedom.
Key take aways from Chapter 5
The key takeaway from Chapter 5 of Rich Dad Poor Dad is that the rich understand and use corporations to their advantage. Kiyosaki explains how corporations can be used to reduce tax liability, protect personal assets, and raise capital.
One of the main benefits of corporations is that they are taxed separately from their owners. This means that business owners can pay a lower tax rate on their income by passing it through their corporation.
Corporations also provide liability protection for their owners. This means that if the corporation is sued, the owners’ personal assets are protected.
Finally, corporations can be used to raise capital from investors. This can be helpful for businesses that need to grow quickly or that need to finance large projects.
Kiyosaki encourages readers to learn more about corporations and how to use them to their advantage. He believes that corporations are one of the most powerful tools that the rich use to build and protect their wealth.
Here is a summary of the key benefits of corporations:
- Tax reduction
- Liability protection
- Capital raising
If you are serious about building wealth, it is important to understand how corporations work and how to use them to your advantage.
Key takeaways from Chapter 6
- Work to learn, don’t work for money. Kiyosaki argues that it is important to invest in your education and develop skills that will allow you to generate income. He encourages readers to focus on acquiring assets that generate income, rather than simply working for a paycheck.
- The rich invent money. Kiyosaki believes that the rich are not afraid to take risks and try new things. They are constantly looking for new ways to generate income and build their wealth.
- There are four quadrants of cash flow: E (employee), S (self-employed), B (business owner), and I (investor). Kiyosaki argues that the B and I quadrants are the best way to build wealth. This is because businesses and investments can generate passive income, which means that you can continue to earn money even when you are not actively working.
Kiyosaki encourages readers to move from the E and S quadrants to the B and I quadrants. This can be done by starting your own business or investing in assets that generate income.
Here are some tips for moving to the B and I quadrants:
- Start small and reinvest your earnings to grow your business or investment portfolio over time.
- Surround yourself with mentors and advisors who can help you succeed.
- Don’t be afraid to take risks and try new things.
- Be patient and persistent. Building wealth takes time and effort.
Key takeaways from Chapter 7
The primary difference between the rich and the poor is how they manage fear. Kiyosaki argues that the rich are not afraid to take risks and fail. They see failure as a learning opportunity and as a way to grow their wealth.
- The rich don’t let fear stop them from pursuing their financial goals. They are willing to step outside of their comfort zone and take calculated risks in order to achieve their goals.
- There are five main obstacles to overcome on the path to financial success: fear, cynicism, laziness, bad habits, and arrogance. Kiyosaki provides advice on how to overcome each of these obstacles.
Fear: Kiyosaki argues that fear is the biggest obstacle to financial success. He encourages readers to face their fears head-on and to learn from their mistakes.
Cynicism: Kiyosaki defines cynicism as a negative attitude towards life and towards the possibility of financial success. He encourages readers to be optimistic and to believe in themselves.
Laziness: Kiyosaki argues that laziness is another major obstacle to financial success. He encourages readers to be proactive and to take action towards their financial goals.
Bad habits: Kiyosaki believes that bad habits, such as overspending and procrastination, can hold you back from achieving your financial goals. He encourages readers to develop good habits and to stick to them.
Arrogance: Kiyosaki defines arrogance as overconfidence and a lack of willingness to learn from others. He encourages readers to be humble and to be open to learning from others.
Kiyosaki believes that by overcoming these five obstacles, you can achieve your financial goals and achieve financial freedom.
Key take aways from chapter 8
- There is gold everywhere, but most people are not trained to see it. Kiyosaki argues that there are many opportunities to build wealth, but most people are not trained to recognize them. This is because they are conditioned from a young age to work for someone else, spend their earnings, and resort to borrowing when they fall short.
- To build wealth, you need to develop your financial intelligence. This includes understanding the different types of investments, how to evaluate them, and how to manage your money effectively.
- The rich focus on acquiring assets that generate income. This means investing in assets such as real estate, businesses, and stocks. When you invest in assets that generate income, you are making your money work for you.
Kiyosaki provides several tips for getting started on the path to financial success:
- Educate yourself about personal finance and investing. There are many resources available, both online and in libraries.
- Start small and invest regularly. You don’t need to have a lot of money to start investing. Even small amounts of money can add up over time.
- Reinvest your earnings. This will help your wealth grow over time.
- Choose your friends carefully. Associate with people who are financially successful and who can teach you about money.
- Don’t be afraid to take risks. Calculated risks are essential for building wealth.
Kiyosaki also emphasizes the importance of having a positive mindset and believing in yourself. He believes that anyone can achieve financial success if they are willing to work hard and learn from their mistakes.
Chapter 9 Key takeaways
- Take action now. Don’t wait until you have all the money or all the knowledge to start investing. Start small and learn as you go.
- Invest in yourself. The most important investment you can make is in your own education and financial intelligence.
- Surround yourself with positive people. Associate with people who are financially successful and who can teach you about money.
- Don’t be afraid to fail. Failure is a natural part of the learning process. The important thing is to learn from your mistakes and keep moving forward.
Kiyosaki also provides a specific action plan for getting started on the path to financial success:
- Stop doing what is not working. Identify the things in your life that are holding you back from achieving your financial goals.
- Look for new ideas. Read books, attend seminars, and talk to people who are financially successful.
- Find someone who has done what you want to do. Learn from their experience and get their advice.
- Take classes, read, and attend seminars. Continue to educate yourself about personal finance and investing.
- Make lots of offers. The more offers you make, the more likely you are to get a yes.
Kiyosaki reminds readers that the best time to start investing is now. Don’t wait until it’s too late. Take action today and start building your wealth.
Chapter 10 Key takeaways
The key takeaway from Chapter 10 of Rich Dad Poor Dad is that you need to take control of your financial future. Kiyosaki argues that the traditional education system does not teach people about money and how to manage it. This means that many people are financially illiterate and are not equipped to make sound financial decisions.
Kiyosaki encourages readers to take responsibility for their own financial education and to take the necessary steps to achieve their financial goals. He provides a number of tips and resources to help readers get started, including:
- Reading books and articles about personal finance and investing
- Attending seminars and workshops on financial planning and investing
- Talking to a financial advisor
- Creating a budget and tracking your spending
- Investing in assets that generate income
Kiyosaki also stresses the importance of having a positive mindset and believing in yourself. He believes that anyone can achieve financial success if they are willing to work hard and learn from their mistakes.
Overall, the key takeaway from Chapter 10 of Rich Dad Poor Dad is that you need to take control of your financial future. Kiyosaki provides a number of tips and resources to help readers get started, and he encourages readers to have a positive mindset and believe in themselves.
Here is a quote from Chapter 10 that sums up the key takeaway:
“The rich don’t work for money; they make money work for them.”
This quote means that the rich focus on acquiring assets that generate income, rather than simply working for a paycheck.
