Rich Dad Poor Dad Review And Summary: The Book may just captivate your interest to consider getting out of the 9:00 – 5:00 job.
Undeniably, just reading Rich Dad Poor Dad may help to change your mindset about money and wealth. So, what happens if you should read the entire book? Seriously, it can spur you to take action.
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“An investment in knowledge pays the best interest.” (Benjamin Franklin)
In case you have an interest in Rich Dad Poor Dad A Summary of the Book is what this post is about. Chiefly, the book focuses on how you can:
- “Stop working for money and let money work for you.”
- “Get financially literate.”
- Find ways to “invest in assets, not liabilities.”
To point out, this Rich Dad Poor Dad book is one of Amazon’s Best Sellers. That is to say, it ranks #148 in Books, #7 in Parenting Books, and #16 in Personal Finance Books.
Rich Dad Poor Dad has been around for more than 20 years. Forthwith, it leads the pack of Personal Finance Books. Being #1 in this category it remains a top seller of all time right across the globe. Moreover, there are many translations in more than 50 different languages.
Discover Rich Dad Poor Dad: A Summary Of The Book
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Product: Rich Dad Poor Dad
Author: Robert T. Kiyosaki
Cheapest Place to Buy: Amazon
Mass Market Paperback: 336 pages
Publisher: Plata Publishing; Second edition (April 11, 2017)
Star Rating: 4.6 out of 5 stars
Referring to the rich dad as his friend’s dad, and the poor dad as his own, the author reflects on the influence of these men in his life. Specifically, Robert’s thinking about money and how to invest changed.
Even though a big salary can be attractive, he points out that it does not have to make you rich. Instead, if you want to garner riches, you need to put your money to work for you. And this is how it can grow.
Reading this book can change your perception of what is financially possible. Moreover, it conveys an outlook that can transform how you pursue opportunities. Some people read this book, follow the suggestions, and experience success. As a result, they change their financial future.
However, others take the suggestions with a grain of salt. Matter of fact, if you don’t understand the book you can continue with the same way of life. That is to say, you go to your job, pay expenses and go deeper with liabilities. End result is that you don’t really create any wealth.
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Called the Best Financial Advice Book
After reading this book, many readers conclude that it is one of the best financial advice books. More than 17 years ago, I received a free copy of this book in the mail. After reading it, my financial vision changed. Needless to say, for the better.
Of course, anyone who wants to work towards financial freedom may find this book useful. Most likely, you’ll enjoy the story. Seriously though, there are some principles to copy from this book. No doubt, you may just want to re-evaluate your finances.
Some Key Notes From the Book
Here are some key things to consider from the book.
- Though money has power, financial literacy is more powerful.
- People who fall in the poor and middle-class category work for money.
- Rich people make money work for them.
- Use your emotions to think.
- Invest in assets: They put money in your pocket.
- Beware of liabilities because they take money out of your pocket.
- Do not put your failures to rest. Identify them and learn from them.
- Show charity to others and give of your time, knowledge, or money. In return, giving will come back to you.
Reading the first 10 chapters, you can learn lessons relating to:
- Having the mindset to earn wealth
- Making money work for you
- How you can follow the model and create a plan that can ultimately make you rich
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Improve Your Financial Literacy With This Book
Chiefly, Rich Dad Poor Dad gives ideas that can set the groundwork for you to grow financially. So if you want to improve your financial literacy, and how to invest this book is a good read.
Rest assured that the advice in this book is very practical. Keep in mind that you can rethink your decisions and emotions about money. Nearly every chapter offers new insight into how you can improve your finances.
How you think and feel about money is key to changing your financial situation. No doubt, this book is a perfect tool to help you do just that. Undeniably, Kiyosaki’s advice and tactics work for him. Indeed, they can work for others too.
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What You Can Learn From the Book
- Poor Dad’s Belief and Rich Dad’s Assets
Being that the poor dad’s focus is from the traditional old school, it does not create wealth in many cases. Robert Kiyosaki’s point of view shows that the Poor Dad is bogged down in the old school’s belief. That is to say, he goes to school/college, graduates, and secures a job with great perks. Usually, the benefits include retirement with a pension.
On the other hand, the Rich Dad favors being knowledgeable about money and wealth. Additionally, the author encourages a stockpile of property from which you can earn money. Also, you exercise your own individual reasoning.
- Let Your Money Work For You
Following this further, Robert Kiyosaki asserts that even if you work to earn a salary, the ultimate goal should be financial freedom. For this reason, you need to put your money to work for you. And so, you’ll gain wealth.
All in all, the book tells you how rich people “Don’t Work For Money. Instead, they let “Money Work for Them.” Matter of fact, their riches don’t come from high salaries, but rather from the purchase of assets.
Know How to Differentiate Assets From Liabilities
When you buy assets, you can keep your money. But with liability, you lose your money. Therefore, you should know how to differentiate assets from liabilities. Indeed, this makes it easier for you to start your wealth building.
- Cut Back on Expenses and Avoid Liabilities
Notably, the assets you purchase should generate income. With this in mind, wealthy people cut back on expenses. Not to mention that they avoid liabilities. Forthwith, they have more money to spend on assets.
At the same time, there are those who are not getting richer because they are paying for the expenses they incur. Surely, this includes liabilities. Hence, these people do not see any or very little financial growth.
Further on, Kiyosaki suggests that you need to stay away from anything that can cause a loss of finances. Whether this is short-term or over a period, it’s wise to avoid them.
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- Investment Or Liability
Typically, when many people purchase a house they consider it an investment. Granted that the house has a long-term mortgage, it can be a misleading expenditure. Actually, you can consider it a liability.
Then again, you may also have additional home expenses each month. So renting out the rooms in your house and even the garage can help to offset your expenses. Point is that, you can channel that money into other assets to build wealth.
Similar to paying the mortgage for a house, monthly payments for a car are also a liability. Likewise having the service of certain electronics that you need to maintain. Once you are making monthly installments on something, it adds up to losing money.
In Pursuit of Wealth
- Pursue Financial Education
One thing to keep in mind is the importance of financial education. When you are knowledgeable about how finances work, you are in a better position to solve the problems you may come across.
Chiefly, you can expand your financial knowledge in:
“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.” (Robert T. Kiyosaki)
- Grow Financially With Assets
Obviously, assets add to your financial growth. Even when you are sleeping or on vacation, you can earn from your assets.
Important assets to keep in mind are:
- Real Estate that can generate an income
“Real estate is a powerful investment tool for anyone seeking financial independence or freedom.” (Robert T. Kiyosaki)
- Paper Assets like stocks, bonds, and notes
- Own businesses that people can supervise instead of you
- Royalties like those from patents, writing scripts, and music
- Things that increase in value
- Products that have a high demand
More About Assets and Cash Flow
- Purchase Assets First
Equally important to note is that wealthy people purchase assets first. Repeatedly, they’ll reinvest their surplus cash flow in more assets. Last, of all, they may buy luxuries that they see as rewards for their investment.
- Work to Gain Assets
Rich people do not work to earn money. Instead, they work to gain assets.
- Importance of Cash Flow
More far-reaching is your cash flow. Significantly, this is even more than your net worth. While you can replenish your cash flow continually, you can’t really do so with your net worth. Once you use your net worth it goes.
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- Comparing the Rich, Middle Class and the Poor
When you compare the rich, middle class, and the poor, only the wealthy make their money “work for them.” Those who are poor always have expenses. Most notable is that those in the middle class tend to purchase liabilities. As a matter of fact, they believe that these are their assets.
Educate the Kids
- Teach Kids About Money
Instead of depending on schools to teach kids about money, parents and caregivers can contribute to their financial literacy. Therefore, they can show kids the spotlight on how they can become successful financially.
- Don’t Let Opportunities Pass: Go After Them
When favorable prospects come your way, you should really go after them. Foremost, is that your specific objectives matter. Certainly, not the opinion of others.
To emphasize, “One size does not fit all.” Not everyone will agree with Kiyosaki’s ideas. Albeit, when you see an opportunity, take action, grab the baton and run with it.
- One Caveat
Accordingly, the book does not give step-by-step directions on how to change. Rather, Kiyosaki sheds some light on several ways that you can gain wealth.
Notwithstanding the criticism about Rich Dad Poor Dad, the popularity of the book remains largely undiminished. Overall, I highly recommend this book to anyone who wants a change in their financial situation.
So I hope that this Rich Dad Poor Dad A Summary has given you a boost. From little kiddos to adults, you can definitely find this book helpful.
If kids show an interest in business, it’s a good idea to read this book with them. Whether they want to start a lemonade stand or sell homemade cookies, they can learn about cash flow and how to reinvest.
Best of all, you can enjoy invaluable content from this author.
Remember: “Keep expenses low, reduce liabilities, and diligently build a base of solid assets.” (Robert T. Kiyosaki)
You are a big online shopper like myself. Amazon has the best price on this Rich Dad Poor Dad book. I hope you enjoyed the review and if you have any questions about this book or want to share your personal review, leave a comment below.
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From the Author’s Biography
“Rich Dad Poor Dad ranks as the longest-running bestseller on Publisher’s Weekly Report List. Namely, these are:
- The New York Times
- Business Week
- The Wall Street Journal
- USA Today
Additionally, USA Today also recognizes it as the #1 “Money Book.” This recognition happened for two years, one after the other. Notably, “it is the third longest-running “How-to Best Seller of All Time.”
In 2005, Robert was inducted into the Hall of Fame Top 25 Authors on amazon.com.
Think and Grow Rich Mass Market Paperback – May 12, 1987: By Napoleon Hill
This is a Brilliant, Life Changing Book. Not only does it encourage you to believe in your abilities, but also to be persistent. Undoubtedly, this is one of the top “Self Help” books.
Today, the underlying lessons from this book are highly relevant to life. Such valuable ideas speak spiritual truth and give wisdom you never imagine.
Once you read this book and stick to the philosophies of popular business minds like Thomas Edison, Henry Ford, and Dale Carnegie, you’ll want to keep it forever on your bookshelf.
Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth: By T. Harv Eker
Here is an excellent book where you can emulate successful people. Anyone who has never had a mentor or a parent to talk about how to build wealth, how to pursue opportunities, and personal development will find this book helpful.
Rather than pushing investment and how to manage your money, this book focuses on how to balance your finances. Even having a splurge account is a concept that you can implement. By the way, you won’t feel guilty when you spend the splurge money because you have set aside a budget to invest, save, and give back.
Assuredly, this book can change your life and your business if you follow the steps. Even if you come from a poor family, this book can boost your interest in financial success.
How to Win Friends & Influence People: By Dale Carnegie
Rest assured that the strategies in this book are helpful and you can apply them in all aspects of life. Especially for people who do not have the charisma and the communication skills, this is an easy and engaging read.
Though this book is ideal for anyone, those who are in sales and management may find it very beneficial. For instance, there are lessons that can influence how you:
- Interact with people
- Motivate people
- Win people over to your way of thinking
- Avoid criticizing, condemning, and complaining about others
- Show appreciation in a meaningful way
- Genuinely help people
- A smile can make a difference
- Remember the names of people when you meet them
- Listen to others and give praise where it’s due
- Talk with others about their interests when they share them
- Make others feel important and do it in a meaningful way
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8 thoughts on “Rich Dad Poor Dad Review And Summary”
Reading rich dad poor dad was a real eye opener for me and I also read his Cashflow quadrant as a result.
Kiyosaki took a lot of heat after saying your house is not an asset. I was sad to see a lot of people learn that lesson the hard way during the financial crisis of 2008.
I definitely don’t want to make that mistake and plan on buying my future house with passive income instead of active income.
You certainly a good plan for using passive income.
Thanks for the review. I have read the book and in general I think it is very valuable. It is already quite old though. Do you think it is still state-of-the-art?
Though this book is old, it is still very relevant today.
I consider rich dad poor dad as the book that changed my thinking on how I look at money. It gave me a clear understanding of the type of life I would like to live. Understanding assets and liabilities is one of the best things you can do for yourself according to Robert Kiyosaki. If you can create assets and drastically reduce your liabilities then you would experience riches beyond your wildest dreams. It is the best book ever and I have not yet seen anyone that read this book without their thinking drastically changing. This was a masterpiece by Kiyosaki and even after so many years, the book is still considered as one of the best books on wealth that was ever written.
Good to know you that you found this book helpful.
OMG! I have this book , I bought about 10 years ago, read it ,but didn’t understand much. No, I understood technically but could not get physically. You inspire me to read this book again and try one more time jump from middle class to rich class. I know it won’t come in one year but I will give myself more time. Also , I have R. Kiyosaki’s 4 more books, I really need to sit down and read….
Hope you’ll get the chance to read this book soon. It can definitely be a financial game changer for you.