People all over the world are finding it difficult to manage their finances due to a lack of knowledge.
In his book, Robert Kiyosaki shares his experience of learning about finance from two dads โ his father and his best friendโs father.
Despite being highly educated, Kiyosakiโs real father was not financially stable and had to drop out of school after eighth grade.
However, he became a millionaire by applying the financial knowledge he gained from the second dad. This bookโs teachings have helped many people manage their personal finances better, and it has become a bestseller.
I will provide you with more details about the lessons taught by Kiyosaki in Rich dad Poor dad.
Rich Dad Poor Dad Review 2025: About Rich Dad Poor Dad
Rich Dad Poor Dad, written by Robert Kiyosaki, remains one of the most influential personal finance books of all time.
It contrasts the financial philosophies of two father figures in Kiyosakiโs life: his own poor father, who adheres to conventional financial wisdom, and his best friendโs rich father, who teaches a radically different approach to money.
Through the lens of these two contrasting perspectives, Kiyosaki imparts lessons on wealth, financial freedom, and the mindset necessary to achieve financial independence.
Get Robert Kiyosaki Course Now Key Lessons from Rich Dad Poor Dad
1. Money and Work Mindsets
Kiyosaki begins by discussing his early life as a poor child attending a school with wealthy students. This experience exposed him to the financial divide between the classes, a theme that runs throughout the book.
A pivotal moment occurs when Kiyosaki, influenced by his rich dad, begins to understand that working for money is not the key to wealth.
Instead, he learns that the wealthy make money work for them. This lesson is summed up in the advice that โthe middle class works for money while the rich make money work for them.โ Itโs a core principle that shapes Kiyosakiโs financial philosophy.
2. The Importance of Risk and Entrepreneurship
A major turning point in the book is when Robert and his friend Mike decide to embark on an entrepreneurial venture.
Although their initial plan to extract nickels from lead fails, they learn invaluable lessons about taking risks and thinking outside the box.
Kiyosaki stresses that taking calculated risks, stepping outside your comfort zone, and relying on knowledge rather than a fixed salary are essential steps toward financial freedom.
Wealthy individuals understand the importance of leveraging their money and knowledge to create more opportunities, unlike those who rely on a paycheck.
3. The Concept of Financial Education
One of the most powerful lessons in Rich Dad Poor Dad is the importance of financial literacy. Kiyosaki criticizes the traditional education system for failing to teach financial independence or money management.
He believes that understanding how money worksโthrough taxes, investments, and financial marketsโis crucial to achieving long-term wealth.
This was evident when Kiyosaki learned about taxes at just nine years oldโa stark contrast to the conventional wisdom espoused by his โpoor dad.โ
4. Employee Mentality vs. Entrepreneurial Mindset
A standout moment in the book is when Kiyosakiโs rich dad teaches him that employees are often driven by fearโfear of losing their job, fear of not having enough money, or fear of the future.
This fear limits their ability to think creatively and take risks. In contrast, entrepreneurs are fueled by passion, curiosity, and a willingness to make mistakes and learn from them.
They view money as a tool to create opportunities, not as a goal to be chased. This mentality is crucial for anyone seeking to break free from the cycle of working for money.
5. Lessons from Failure
Kiyosaki also emphasizes that failure is a natural part of the learning process.
When he and Mike started a comic book library that eventually failed, they learned that failure isnโt the end, but rather a stepping stone toward success.
The important lesson was that by taking initiative and acting on their ideas, they learned what didnโt work, which is just as valuable as learning what does.
Rich Dad Poor Dad Book & Why Teach Financial Literacy?
In this chapter of the book, the writer talks about saving money. He says that it is not about how much money you earn, but it is all about how much money you save.
By saving money, he means acquiring assets and not keeping them locked in your bank account.
However, people who have low incomes do the exact opposite. They take liabilities thinking they are their assets and get stuck in the rat race. The more money they get, the more they spend, and thus, they have no money to invest in.
According to โHim,โ middle-class individuals work for three main groups:
1. The Company โ they contribute to making the owners and shareholders wealthier.
2. The Government โ a significant portion of their income goes towards taxes.
3. Banks โ middle-class people often have to deal with the expenses of bank mortgages and credit card debts.
The author explains that having assets will bring money to your wallet, while liabilities will take out your cash and slowly empty your wallet.
Therefore, he believes that people should have a financial education. In his book, he points out that many people around the world are educated but financially illiterate.
Without financial education, you risk failure in life. The author also provides examples of millionaire Americans from different professions who suddenly lost everything.
When you understand the importance of financial flow and learn to invest in valuable assets, you become financially literate in the true sense. This financial literacy is the starting point for your success.
Examples of Liabilities Commonly Owned by Middle-Class People:
- Car loans
- Mortgage
- School loans
- Credit card debt
- Bank loans
Examples of Liabilities Commonly Owned by Rich-Class People:
- Shares
- Real estate
- Stocks
- Bonds
- Intellectual property
- Notes
The Chapter is Summarized in Three Points; the Resulting Outcome is As Follows:
- The rich people will buy assets.
- The poor people will only have expenses.
- The people who belong to the middle class only buy liabilities, and they misunderstand them as assets.
One of the major rules explained in this chapter is to learn the difference between liabilities and assets.
Mind Your Own Business:
In this section of the book, the author clarifies the distinction between a profession and a business. For instance, if you work as an accountant, you are an employee of a company, and you do not own it.
If you wish to improve your financial situation, you need to put in more effort than simply working for someone else. To achieve this, you should focus not only on increasing your income but also on building your assets.
Robert Kiyosaki, the author of the best-selling book Rich Dad Poor Dad, suggests that investing in real estate is one of the best ways to create wealth.
This is because real estate is an asset that doesnโt require constant management like other investments. Once you buy a property, you can just leave it and let it appreciate over time.
However, if you decide to sell your home, itโs important to work with a reputable company that will provide you with a competitive cash offer.
The History of Taxes and the Power of Corporations:
According to him, corporations save a lot of taxes.
The speaker clarifies that corporations are not a group of people but a legal document that helps in tax-saving and asset protection.
He explains that corporations can be used to earn money, make expenses, and pay taxes on the remaining amount. However, individuals pay higher taxes because they often donโt invest in the right assets.
The Rich Invent Money:
In this chapter, the author encourages everyone to embrace boldness.
He argues that, in the real world, boldness often trumps intelligence. Boldness involves taking calculated risks and not allowing fear to govern your decisions.
The author also highlights the plight of people who possess great talent and ideas but struggle to monetize them. He emphasizes that the human mind is our most powerful asset, and with the right training, it can create immense wealth.
He is quite right. Many people can do nothing despite having many ideas due to their fear. To increase your wealth, you will have to enhance your financial IQ, he says.
Work to Learn โ Donโt Work for Money
In this chapter, the author discusses the importance of learning new things.
He points out that many individuals fail to progress in their lives because they donโt acquire new knowledge and skills, which restricts their career and personal growth.
The author stresses that we must continuously update ourselves as technology advances, and having a single skill may not be adequate to achieve our aspirations.
What Are The Main Differences Between the Rich and The Poor Dad, As Per The Book?
Poor Dad said that rich people should be paying more taxes.
Rich Dad said if you produce taxes, it will reward you.
Poor Dad asked him to study hard so that he could find a job in a good company.
Rich Dad asked him to study so that he could buy a good company.
Poor Dad told him that he couldnโt become rich because he had children.
Rich Dad told him that he became rich because he had children
Poor Dad would be asked not to talk about money and business during dinner.
Rich Dad asked him to do the exact opposite.
Poor Dad would ask him not to take the risk.
Rich Dad, on the contrary, told him to manage the risks.
Poor Dad told him that the house was an asset, while Richโs dad told him it was a liability. Poor Dad: Pay your bills first.
FAQs
What is 'Rich Dad Poor Dad' about?
Rich Dad Poor Dad is a book that contrasts the financial philosophies of the author's two father figures. One dad is rich in knowledge and attitude towards money (Rich Dad), while the other struggles financially (Poor Dad). The book offers insights on investing, real estate, creating wealth, and financial independence.
What can I learn from 'Rich Dad Poor Dad'?
You can learn the importance of financial education, the difference between assets and liabilities, why acquiring assets is key to wealth, and the power of passive income. The book emphasizes thinking like an investor rather than a consumer.
Is 'Rich Dad Poor Dad' suitable for beginners in finance?
Yes, it's highly recommended for beginners. The book uses simple language and real-life examples to explain complex financial concepts, making it accessible to everyone, regardless of their financial background.
Does 'Rich Dad Poor Dad' offer practical advice on getting rich?
While it offers foundational financial principles and mindset shifts, it's more about changing your perspective on money and investing rather than providing step-by-step investment strategies.
Are there any criticisms of 'Rich Dad Poor Dad'?
Yes, some critics argue that the book lacks specific financial advice and overly simplifies complex financial concepts. Others caution readers to research further before making financial decisions based on the book alone.
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Conclusion: Rich Dad Poor Dad Review 2025
This book is a bible for those who dream about becoming financially free and getting rid of their debts and liabilities.
So, if you want to become rich and increase your financial IQ, I recommend that you read this book and apply it practically in your life.
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