October 22


Rich Dad, Poor Dad: 7 Things You Should Know!

Review: Rich Dad Poor Dad

Review: Twenty Years Later, Rich Dad, Poor Dad

Rich Dad, Poor Dad was a personal finance book that Robert T. Kiyosaki published in 1997. It has sold over 40 million copies worldwide and is a favorite covering topics like Money, Social Security, and Personal Investments.

Many people enjoyed this book and have taken Robert Kiyosaki’s advice regarding personal investments.

There has been a lot of change in the financial sector over the past 20 years. It would be fascinating to see if some of Kyosaki's predictions were correct.

This Rich Dad Poor Dad review will examine this personal finance book and see if it lives up to its title.

This guide will help you understand the basics of personal finance and wealth creation.

You'll also find answers to some of the most common questions about Rich Dad Poor Dad, and financial freedom in general.

You'll also see how others have built their internet marketing businesses to more than $40,000 per month mostly passively.

Because it used some of the same skills, but in a more powerful and lucrative way, this system made them swear off stock investments and conventional real estate.

Kiyosaki is a divisive figure. You either love or hate him.

Simple Dollar's review of Kiyosaki’s work has, for example, a lot of personal prejudices, which can be a little unfair.

You'll be able to see a book's assessment based on other people's business experience.

Rich Dad should not be viewed as a list of entrepreneurial activities but as a general start.

Robert Kiyosaki outlines six key principles throughout his book.

These are the differences between his "poor" father (his biological dad) and the "rich" father who taught him how business works and how to become wealthy and successful.

  • The wealthy don't work hard for the money; they get rich from the money.
  • Financial literacy is a valuable skill
  • Taking control of your affairs, also known as "Minding Your Own Business"
  • Corporations and Taxes
  • Wealth is created by the wealthy.
  • Learn to not work for money
  • Poor dad, rich dad

Summary of Chapters/Sections

Rich Dad Poor Dad contains eleven chapters, including an introduction. The book's first six lessons and chapters are the most important.

This review will cover the Intro and 7 chapters. Its good and bad points.

  • Introduction
  • Chapter 1: The Rich don't work for money
  • Chapter 2: Why Teach Financial Literacy
  • Chapter 3: Mind Your Own Business
  • Chapter 4: The History of Corporations and Taxes
  • Chapter 5: How the Rich Invent Money
  • Chapter 6: Learn to Work - Don't Work For Money
  • Chapter 7: Overcoming Obstacles
  • Introduction

    Robert Kiyosaki was the author of Rich Dad Poor Dad. He had two significant father figures in his childhood.

    Kiyosaki was born to his "Poor Dad", a brilliant and educated man.

    Poor dad believed he had to study hard, get good marks, and find a job. Despite these seemingly positive traits, the poor father did not become financially secure.

    His "Rich Dad", was actually his best friend’s father.

    His work ethic was the same as his dad's, but there was a twist.

    Rich Dad believed that financial education was something that should be taught. He understood early on that money should work for you and not vice versa.

    He dropped out of eighth grade and became a millionaire by making money work for himself.

    The story is told through Kiyosaki’s perspective on how Rich Dad made his money and the bad financial decisions Poor Dad made.

    The Rich Father, Poor Dad book's chapters 1-6 make up almost two-thirds. They cover the most important lessons Rich Dad taught him.

    Chapter 1: The Rich don't work for money

    Many people misunderstand the title of this chapter as implying that only the wealthy work.

    In fact, the opposite is true.

    Instead of viewing the chapter title "The Rich don't work to Make Money," Kiyosaki actually meant "The Rich don't work for money ."

    It's worth noting, however, that this part emphasizes the word "money" in a totally different way.

    It is a fact that wealthy people work hard but in a different manner to the majority of people.

    Rich people and those who want to be rich work hard and learn every day how money can work for them.

    Rich Dad said, "The middle and poor work for money." The wealthy have money to work for their benefit.

    Kiyosaki also noted that a job is only a temporary solution to the long-term challenge (or problem) of creating wealth and financial freedom.

    Chapter 2: Why Teach Financial Literacy?

    Rich Dad Poor Dad Chapter 2 illustrates the difference between an asset or a liability.

    Chapter 2 shows you how much money are you losing and how much you're keeping.

    Assets have a value that generates income or that appreciates and can be easily bought and sold in an existing market.

    • Income is generated by assets
    • Assets appreciate

    Liabilities can also drain your bank account because you have to pay the associated costs and fees.

    This phrase caused a lot of controversy for Kiyosaki when Rich Dad Poor Dad was first introduced in 1997.

    Because a residential home is not considered an asset until it appreciates enough to pay the ownership costs.

    Renting property is a good asset, as it can generate enough passive income to offset operating and financing costs.

    Chapter 3: Mind Your Own Business

    Two major points are made in this chapter.

    • Repay your financial obligations, aka debts, and then start to invest in income-worthy assets as soon as you can.
    • Maintain strong financial health by investing your money as much as you can in assets

    Kiyosaki explains that many people confuse their occupation with business.

    They work for another company all their lives and make more.

    Unfortunately, many people only realize this after it is too late. For those stuck in the never-ending race to be first, it can be difficult to shift to a new mindset.

    One of my favorite quotes is:

    "The main reason that the majority of the middle and poor are financially conservative is because they don't have a financial foundation. They must hold on to their jobs and be safe. They cannot afford to take chances ."

    Chapter 4: The History of Taxes and The Power Of Corporations

    Rich Dad Poor Dad is a motivational book. It is important to remember this. This is Kiyosaki’s main intent. He does not offer financial advice.

    Kiyosaki, for instance, recounts how he bought a Porsche using pre-tax dollars and considered it a business expense.

    An investor might be subject to an IRS audit if he or she purchases a luxury high-end automobile.

    The arguments in this chapter, however, are not about Porsche. They focus on how to play this game smart.

    The wealthy understand the power of tax codes and company structures, and they use all legal avenues to reduce their tax burden.

    Compare the tax payments of corporations and investors (e.g., C Corps or S Corps) to those of the majority.

    Owners of corporate-structured businesses:

    1. Earn
    2. Spend
    3. Pay taxes


    1. Earn
    2. Pay taxes
    3. Spend

    It is important to note that workers for other companies spend after taxes, while owners make and spend before taxes are paid.

    According to Kiyosaki's definition of "Financial Intelligence", there are four components to Chapter 4. These include accounting, investment strategy, and market law.

    As Rich Dad Poor Dad teaches, awareness of tax and legal benefits is an important part of establishing long-term wealth.

    "For example, a corporation may pay expenses before it pays taxes. However, an employee is taxed first, and must pay the remaining expenses. . . Corporations offer legal protection against lawsuits. A lawsuit against a wealthy person is often met with legal protection. Often, the wealthy person finds that they do not own anything in their own name. They have control over everything but they [personally] don't own anything em>

    Chapter 5: How the Rich Invent Money?

    Inventing money means creating new ways and transactions that others are not able to do.

    Chapter 5: Rich Dad Poor Dad identifies two types of investors

    1. People who are able to allow developers or fund managers to manage their money can purchase investment packages. This is the most popular method for purchasing ETF shares and investing in crowdfunding enterprises to purchase the property.
    2. Professional investors manage their investments and seek out deals in the market. They also engage specialists for daily monitoring. Professional investors share three things in common:
    • Recognizing possibilities that others have missed
    • Raising investment funding
    • Collaboration with other intelligent people

    Here's one of the most memorable closing remarks in this chapter:

    "Some people believe that real estate deals are not available where they are, however there are many prime opportunities that go unnoticed." Most people don't have the financial skills to see the potential ."

    Chapter 6: Work To Learn - Don't Work For Money

    Poor father was bright, very well educated, and worked for money because he wanted job security.

    The Rich Dad is the exact opposite. He became a millionaire by learning.

    Kiyosaki's words:

    I recommend that young people seek work for the skills they will acquire, rather than the money they earn. Before they choose a profession, consider what skills they would like to have before becoming trapped in the Rat Race em>

    In reality, Kiyosaki did exactly that. After completing his undergraduate degree, Kiyosaki enlisted in the Marines to acquire the essential business skills of leadership management.

    He did not allow his fear of rejection to get in the way of his Marines service. So he applied for Xerox, became one of the top five salespeople at the company, and left to start his own business.

    Rich Dad's Chapter 6, Poor Dad, outlines the combination of managerial skills necessary for company success.

    • Cash flow management
    • System management
    • People management

    Chapter 7: Overcoming Obstacles

    The Poor dad begins by emphasizing the fact that fear management is the main difference between poor and rich people.

    This is one of five major obstacles to financial independence.

    • Fear
    • Cynicism
    • Laziness
    • Bad habits
    • Arrogance

    Even though they have financial literacy, many people still struggle to establish assets that generate large cash flows.

    These barriers were too much for them.

    Is Rich Dad or Poor Dad Worth Reading?

    Rich Dad Poor Dad is here to inspire you to create your unique financial independence path.

    The book is not meant to be a universal solution.

    It provides a solid foundation on which to build wealth and achieve your goals through real estate investments.

    There are many good points in the book

    Flawed Educational System

    Robert repeatedly mentioned that our current education system is severely flawed throughout the book.

    The education system is designed to help employees, but it can also impact entrepreneurs negatively.

    Kiyosaki states that he doesn't advocate that people avoid higher education. He suggests that it is not supportive of "street intelligence."

    Financial literacy is not taught in schools and is only taught at the most basic levels. It is not taught in schools.

    The result is that the middle and poor are in debt. If millions of people need financial or medical assistance, Medicare and Social Security may run out of money in the United States.

    Inflation continues to increase faster than education costs. The flaws in the education system are becoming more apparent.

    Robert's statements on the subject are spot-on.

    Being An Entrepreneur Is Less Risky.

    It is believed that owning your company is riskier than working for another business.

    However, the truth is that running a business develops self-reliance and independence that you won't get from being under someone else.

    It is sad to say that the system makes more dependent people today's "cradle-to-grave" mentality.

    Until they start their own business, many people view risk as something to be afraid of. After that, "risk" becomes more of a "challenge."

    Your primary residence is not an asset.

    The main residence is generally considered an asset over many years.

    Robert disagrees with this. Robert argues that your primary residence is not an asset as it doesn't generate any positive cash flow.

    This was confirmed by the collapse of the housing bubble.

    "Rich people acquire assets. The middle and poor acquire liabilities but think they are assets ."

    You can still make money every month if you focus on positive cash flow even though the rental properties are less valuable.

    Robert says in his book that property values don't always rise.

    Kiyosaki also believes that investing in business opportunities that generate cash flow to pay off your "doodads," is a smart move.

    This is a great way to look at buying toys.

    What is an Asset or Liability?

    "An asset is money that I have in my pocket." A liability is anything that takes money from my pocket ."

    Many critics of Kiyosaki claim that this statement is not in line with general accountability norms. Robert acknowledges this.

    Many fail to realize that cash flow is the key to success.

    "Wealth" is the ability to live for as many days in the future.

    Recommendations about the Book

    Multiple reports claim that Robert's "Rich Dad", as he is called, was just an image or character.

    Although this is true, it's possible that the majority of personal finance books are fiction. The book "Wealthy Barber" is a good example.

    Robert presents his book as non-fiction, which is a claim that some people make. However, most people agree with Robert.

    It is strange that John Reed's website critiques Robert's work and simultaneously sells his own.

    Robert underestimates risk in his investment recommendations.

    Although this is partially true, he advises that you fully understand your assets before you jump in.

    Robert says that investment is only safe if you don’t fully understand and know what you’re doing.

    Book Review: Summary

    This book is highly recommended, especially for new businesses. However, there are some issues.

    In retrospect, many of the themes he covered stand the test of age.

    But, you should treat it with some salt.

    You should read it if you want to be more than just a salaried employee. The wealthy put their money where it is most useful, such as in real estate deals.

    These 2 books are essential for anyone who decides to read his works.

    • Rich Dad, Poor Dad
    • The Cashflow Quadrant of Rich Dad

    His other books are basically a repeat of those two. You don't need to attend his workshops.

    These personal finance books are a must-have in any library. Their content will help you have a different mindset than the norms.

    Steady Calls is the #1 Recommendation for Making Money Online in 2021

    Our review team discovered a program that is top-notch in the real estate industry!

    It's digital, but not real estate.

    Rich Dad, Poor Dad touches a bit on real estate but doesn't go into too much detail. You need multiple properties to make good money in real estate.

    Who has the capital to do that?

    What if you were to go local?

    Local Digital Real Estate will allow you to receive service requests from multiple websites at all hours of the day, from people willing to pay a lot for what you have to offer.

    One YouTube video featured a host who said that it wasn't about making lots of money on one website, but about making small amounts of money on many different websites.

    Think of it as...

    Imagine if you could make a steady stream of income by renting 10 units to tenants that you could rent for anywhere between $750-1,000 per month.

    Passive income is $7,500 to $10,000 per month.

    What if you invested in 100 rental units?

    Instead of spending $Millions on building houses and apartment complexes, you can spend just a few hundred dollars to create websites.

    These websites will then be ranked in search engines for the specific home-based services customers are looking for.

    Next, offer your lead generation system for local business owners looking for customers. They will pay you for this information.

    And then...


    You have just built a Digital Real Estate Investment Empire which could potentially earn you 4-5 figures per month in passive income without having to spend a dime on advertising.

    You will be competing with thousands, if certainly millions, of other digital real estate sellers who sell the SAME product and to the SAME customers.

    After the training program is complete, you will have access to a Facebook Group where you can ask any questions.

    Contrary to traditional real estate where you might only make $9,000/year (before expenses), you could get 5-10X that.

    Digital Real Estate is a great way to make more money. Your profit margins are between 85 and 90 %..., and it's RESIDUAL! You can do it!

    This means that you are making money every month, regardless of whether you visit the office.

    It doesn't matter if you sell a house...

    You probably have many questions. So, check out How to Create Digital Real Estate Assets and Start Building YOUR Digital Real Estate Empire!


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