This post will summarize and review Robert Kiyosaki's bestselling book Rich Dad Poor Dad.
This popular financial publication will celebrate its 23rd anniversary in 2020.
But before we dive in
From living in Detroit's tiny apartment to San Fran's high-rise, I moved to San Fran to build and rank simple websites that bring in customers for small businesses like the tree care website next to me.
This is what you need to know:
Rich Dad changed my mind about seven years ago when I read this book. He helped me create internet real estate that pays me and my time.
I joined the below coaching program in 2014 and left my 9-5 life 7 months later.
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Biographical
Robert Kiyosaki
Robert's life has been interesting. He grew up in Hawaii, joined the military as a pilot helicopter, and then went on to start a business and write the #4 Persona Finance Book: Rich Dad, Poor Dad.
Numbers
Quick Facts
How many copies of Rich Dad Poor Dad were sold? What year was Poor Dad Rich Dad published? You have come to the right spot.
Summary
2 Sentence Summary
This super-short summary explains the essence of Rich Dad Poor Dad.
Core
9 Lesson Summary
This summary of Robert's 9 lessons for the rich is available as the Meat of Rich Father Poor Dad. It contains the following excerpts from Robert's 21st century bestseller.
Check out the In-Depth Summary for Rich Dad and Poor Dad
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Rich Dad Poor Dad Book Summary and Review [2020]
Summary of Two Sentence
Most people, even the educated, have financial problems. This is because they don't know how wealthy people acquired their wealth and continued to grow it.
Robert Kiyosaki explains how he learned the 9 wealth lessons from his friend's dad by comparing what his father (poor father) and his friend's dad (rich father) taught him.
Detailed Summary
Original publication: April 1997
Robert Kiyosaki's bestseller Rich Dad Poor Dad was a cult success.
Attracting fans from all walks of the globe who want financial education explained in layman’s terms.
You can capitalize on the comedy and drama that comes from hearing contradicting advice from two different authority figures
- A highly educated biological father, who made poor financial choices.
An "adoptive father"
The mentor he received from the wealthy father of a school friend was also his mentor.
Robert researched and explored common beliefs about money, which often encumber children as they grow up.
Robert looked at common myths surrounding careers and jobs, and contrasted the huge rewards of building businesses with the illusion of job security.
He defied the prevailing belief that capital is required to run a business.
He also rejected the outdated middle-class mentality about asset acquisition, and showed that liabilities are what you have been collecting all of this time.
If you are a parent,
It is important to read this book.
Rich Dad Poor Dad
Teach your children how to think about money.
So they can live a rich and financially secure life.
Who's Robert Kiyosaki?"
Millionaire Author (26 books, which includes the Cash Flow Qurant).
Serial Entrepreneur
Motivational Speaker
Inspirational Writer
Successful Franchise Owner
Becoming a wife
Robert Kiyosaki can be described in all of these words.
Before all the praises were heaped upon him,
Robert was a first-class son.
This leads us to his education.
Robert's Rise to Power
Born in Hilo, Hawaii in 1947,
Robert was raised in strict middle class homes by his father, a former high-ranking official at Hawaii's Board of Education.
His mother was a nurse.
The family belonged fourth-generation Japanese immigrants.
Robert was raised with three siblings. He immediately signed up for the U.S. Army. After high school, Robert enrolled in the Naval Academy.
He was a helicopter pilot during the Vietnam War.
He was discharged honorably from the military.
Robert has tried many business ventures, including selling T-shirts and surfer wallets.
Both of these ventures were unsuccessful.
Robert kept moving forward.
undeterred,
Knowing that his failures laid the foundation for his success was a good thing.
They taught him things he didn’t know.
Mindset Differences between Rich Dad and Poor Dad
Who is Robert’s Rich Dad?"
Robert's Rich Dad was the father to Robert's best friend Mike.
Rich Dad owned a superette (convenient shop chain), a construction firm, and many restaurants.
Robert was hired by him to work in his grocery store at ten dollars an hour.
Cleaning and completing errands.
Robert was nine years old when he first became aware of the entrepreneurial side of earning a living.
Robert complained about Robert's unfair treatment of not being paid for every hour worked.
His father, a wealthy man, asked him to work in return for business education.
Robert's poor dad?
Robert Kiyosaki was born to a highly educated father, a Stanford University professor who received a PhD on a full-ride scholarship.
He was a teacher and loved his job. Robert is to have the same kind of life that he has.
Rich Dad vs. poor Dad
Learn about the different Philosophies of Robert's Two Dads
Rich Dad
All evil stems from the lack of money
How do I get it?
You can learn a lot about the company you want to purchase.
You are the reason I am rich.
Financial risk management
Poor is permanent, but a broken heart is temporary.
Money is power
I pay my bills last
Total financial independence is what I believe in. I oppose any entitlement mentality as it leads to weak and financially dependent people
To create employment, I will teach you how to make strong financial and business plans.
Graduating is not the end of learning.
Poor Dad
All evil stems from the love of money
I can't afford it
You will be able to find a great company to work for if you put in the effort.
You are the reason I am rich.
Play it safe when it comes to money.
I will never be wealthy
It doesn't really matter how much you have in your pocket.
Our largest investment is our home, and it is also our most valuable asset.
First, pay your bills
I trust that the government will provide for my needs
Create a compelling resume to get a job.
To get a steady job, you must study hard at school
Robert's Reflection by Rich Dad
Robert's Mindset and How Rich Dad Influenced
Robert was influenced by his rich father's insightful, probing questions and practical training to reframe his success mindset. He began questioning everything.
From his parents' career choices,
To the taxation process
How financially intelligent people can avoid being highly taxed
Finally, it is wise to pursue higher education over continuing your training in business.
He learned one of the most important lessons for being a successful businessman by growing up this way.
Finding the courage to resist the tide.
After such reflection,
Robert was able to listen to his adoptive father.
The wealthy, independent entrepreneur
A decision that shaped his entire life.
His wealthy father taught him that money and financial education were forms of power.
If you are educated in handling money,
You can gain control over it and build wealth.
Robert discovered that American schools do not teach financial education.
It shows when well-educated graduates end up in deep debt.
They're not skilled in building wealth and have vowed to live a life of security.
Robert created a list in which he compared the opposing views of his father and mother.
Giving him an opportunity to weigh their opinions in a manner that was most beneficial to him.
A Book Review: 9 Lessons from Rich Dad Poor Dad
Lesson 1: The Rich Aren't Good for Money
People fear going bankrupt and so they apply for jobs that will enslave them to work to pay their bills.
Fear and greed are the only emotions that drive them.
The false security that comes with a job that pays a fixed amount every payday is
These people won't dare to venture out of their comfort zones to start a new business.
The Script of the Middle Class
Keep your child in school
Get good grades
Secure a job
Retirement with benefits
"Keep going to school, get good grades, find secure work, and retire with benefits."
This is the script that most parents have followed their whole lives.
They then make their children get excellent grades at school to ensure that they live up to the "script."
These people might, however, sometimes be open to admitting their discontent with such a mundane existence if they are asked.
They didn't follow the script before they did.
They might have had passions.
artistic desires,
Plans to travel around the globe
Plans that fell apart because of the fear of losing my money became more important than the desire for a fulfilling life.
Better to take advantage of opportunities to harness the power and potential of money.
Think with your emotions
It's not the other way around.
"Most people don't see these opportunities because it's too hard to find money and security.
Rich Dad
(p.62)
The job is a temporary solution to a long-term problem.
This is why the rich think differently about money .
They create opportunities for money and make it work for them.
Lesson 2: Money is a tool for the rich
A bankruptcy waiting to happen is when you acquire money without financial knowledge.
A person who hasn't been taught to budget and manage $3,000 can
He won't manage $3,000,000.
These stories are about lottery winners who spent millions of dollars on stupid stuff without planning.
You can learn how to make money your best friend and how to care for it so it doesn't need you any more.
This includes learning about investing, accounting, taxes, inflation, the law, and markets.
The better you understand complex financial concepts, the more you will be able to use them.
The more successful your business will be, the better.
To have a solid financial foundation, you need to be able to distinguish between an asset or a liability.
- An asset puts money in your bank account.
- A liability takes the money out.
Find out more about The Wealth Triangle
Lesson 3: Rich People Own Their Business (Assets).
Most employees work for others than themselves, which is why they can enrich their employers and the owners of their companies.
Then they pay their taxes to government.
Then they pay the bank that mortgaged their home.
If you are a member of a financially challenged family,
They didn't find themselves in that position overnight.
Financial poverty is the result of poor financial decisions made throughout your life.
If you are:
Every day, we work to make someone else's dreams come true.
Reporting to a boss every month is a way to make a profit for the company.
The only source of income for professionals is their job.
Rich people,
On the other hand,
Use their assets to generate multiple income streams.
Types Of Real Assets
Businesses run by managers (other people)
Mutual funds
Bonds
Stocks
Notes (IOUs).
Real Estate
Royalties from music, books, and patents
Any income-producing item (#cashflowisking).
To foster a sense o community among employees, companies use all sorts of positive slogans.
But the bottom line is us
They all want you to work them to the bone, until you're done with the workweek.
You are tired and worn out.
To a parking lot full of other similarly miserable souls
Thankful for two days of freedom from the grind and work.
Instead of climbing the corporate ladder in pursuit of a raise to increase your income, focus on increasing your chances of securing a better salary.
Instead, focus on increasing your asset collection.
The Key Takeaway
Take care of your businessGet a better understanding of your assets
They should be your sole focus.
Do not waste your time making your boss more wealthy and your company more profitable.
They won't lift one finger if you are hurt or need to pay your bills.
It's important to be smart about it.
You can keep your job, but you should continue to grow your asset portfolio.
Avoid spending money on debts.
Many young couples end up in debt when they use credit cards to purchase items that they don't require or can afford.
This is why most schools fail to graduate their students.
To address the gap in financial education that makes kids credit-hungry, it is necessary to overhaul the education curriculum.
Lesson 4: Corporations are for the Rich
Taxes were initially enacted only for wealthy citizens.
But as the government bureaucracies got bigger and required more funding,
The middle class was subject to taxes
However, the wealthy found loopholes to their problems and set up corporations to manage them.
The rich have an unfair advantage in knowing how corporations work, so they can rule the middle class.
The Benefits of Corporations
Taxed less than personal
Additional Tax Deductions
Protection against Lawsuits
Corporations are more tax-efficient than individual workers, which helps protect the wealthy.
Certain expenses can be deducted from the tax liability of corporations.
You can save even more money for your company.
You want every dollar to multiply and give birth to more money so you can quit your 9-5 job, and instead focus on your business.
To protect yourself against lawsuits, read up on business law.
Because corporations have large pockets, they can be a target for lawsuit-happy people.
Robert Kiyosaki
(p.154)
To protect your hard-earned income and keep it, it is prudent to use multiple layers of legal protection.
Lesson 5: Wealthy People Have High Financial Intelligence
Every person has enormous potential.
Each person is gifted with a talent or skill that is more advanced than others.
However, self-doubt or insecurity can get in the way. We settle for unfulfilling jobs that don't cause too much disruption.
Once you have left the safety of the academic gates,
To succeed, a person must rely on more that his academic degrees.
Synonyms for Financial IQ
inner resolve
guts
bravado
Sixth sense
This is something more
When called upon and used liberally in daily dealings,
It is what makes the difference between an awful future and one that is amazing.
To unlock more opportunities in your future, you need to improve your financial intelligence.
The world is always changing. Secure careers of yesterday are being replaced by automated systems or young, hungry graduates.
Kiyosaki created and launched a financial education video called Flashflow 101 to help his students understand complex financial concepts and learn about investment terms.
Here's a quick summary of the Cashflow Board Game.
It was first released in 1996, and it was very popular that year.
Lesson 6: Rich Work to Learn
You can learn salesmanship and negotiating skills.
You can also use this skill to convince others to see the value in any product that you offer. This is another tool from your arsenal of high-value abilities.
School Skills VS Life Skills
Robert stresses in the 6th lesson the importance of Life Skills and School Skills.
School Skills
Writing
Accounting
Typing
Investing
Histories
Life Skills
Selling
Leadership
Public Relations
Management of People
Flexibility
Unfortunately, great talent doesn't suffice to make it happen.
There are many talented people who are underpaid.
Also, you need to improve your skills. The most important upgrade is the ability to market.
Public relations is another important skill.
Anyone who is looking to grow a business that requires attention from others can use even the most basic skills, such as writing compelling ad copy.
You will be able to understand a lot of different problems if you learn a little of it.
Find work that provides many learning opportunities.
not just rote assembly-line duties.
Lesson 7: The Rich Train their Mindset
These five emotions can make it difficult to build a successful asset portfolio.
Mindset Development
Fear
Cynicism
Laziness
Bad Habits
Egotism
Every venture is fraught with fear, but how you deal with it is what really matters.
People have a real fear of losing their money and will do anything to make sure they don't lose it.
Do not let fear of losing your money derail your deep desire for wealth and a life full of abundance.
Be determined to win and learn from your mistakes and failures.
Use them to fuel your drive to achieve your goals.
Our minds can become so cruel and cynical, negative, and whiny. We focus on the possible catastrophes that might happen if things aren't done a certain way.
Keep your eyes open and not let your mind wander.
It is important to be disciplined and to only focus on the steps that will help you reach your goals.
Avoid people who amplify the "noises” in your head.
A cynical mind is the result of unchecked fear.
A cynic is never victorious.
A little bit of greed can cure Laziness.
Robert Kiyosaki
(p.262)
Your desire to have a better lifestyle for your family and yourself can be used as motivation to get off the couch and back at the office.
You must also discipline your mind to ensure it can endure long periods of mental effort.
Active minds encourage active bodies to keep working despite exhaustion.
Ask yourself "What's in the deal for me?" to unlock that creative part within your brain that can offer solutions and suggestions for every problem.
If your outlook is negative and cynical, this part of the brain will not work.
Don't let your habits control your behavior.
Self-investment is the number one habit you should cultivate.
"If I pay myself first I become financially stronger, mentally, and fiscally."
Robert Kiyosaki
(p.267)
Arrogance is the combination of ego and ignorance.
People who use arrogance to cover their ignorance about a topic are quite common.
However, ignorance should not be a reason to stop learning about the subject.
How To Educate Yourself in 2020
Find an expert
Read a book
You can search the subject online
The information superhighway, also known as the internet, is at our fingertips.
There is no reason to be ignorant.
Lesson 8: How to get started
Every person is a financial genius.
Some are asleep.
To summon your genius forth
Robert shares his 10-step method to help you recognize God-given opportunities.
Robert's 10 Steps:
1.
Power of Inspiration: Find a reason that is greater than reality.
2.
Daily practice your power of choice (Power of Decisions).
3.
Take care of your friends (Power of Association).
4.
Master a formula and learn it (Power of Association).
5.
Take Care of Yourself (Power of Self-Discipline).
6.
The Power of Good Advice: Experts You Can Pay to Guide You
7.
Keep in mind the long-term return
8.
The Power of Focus: Assets to Purchase Luxuries
9.
The Power of Myth: Study the People You Admire
10.
Give back what you've learned (The Power of Giving).
Lesson 9: Robert’s Process for Continuous Growth
Robert Kiyosaki, in the last chapter of Rich Dad, outlines his five-step process for continuous growth.
Robert’s Cycle for Continuous Growth
Keep an eye on what's working and what's not
Discover new ideas, strategies and tactics
Get guidance from experienced experts
Learn about Educational Opportunities
Put New Education into Action
Since 1997's original Rich Dad Poor Dad,
Robert Kiyosaki continued to create his wealth by investing in real estate and building digital assets.
The Pros and Cons for Rich Dad Poor Dad
Here's a summary of Robert K.'s Best Sellers.
Pros
UNDERSTANDABLE - This book is so simple and clear that even a thirteen-year-old could understand the lessons. Robert makes use of anecdotes to explain the complex ideas he is going to be discussing.
IMPACTFUL. This book changed the way I saw careers. It made me question whether I chose a job that was safe or my passion for being a business owner.
ENLIGHTENING - Even a brief discussion on assets and liabilities can change your mind and help you to cut down on credit cards. These ideas are very sensible and enlightening, but they weren't discussed in school.
Yuvraj Wadhwani, a Quora member, explains how Rich Dad Poor dad changed their lives over several years.
Cons
SPAMY MARKETING. As an extra to buying this book, Richdad, Kiyosaki’s financial education company Richdad, will bombard your email with many offers. These marketing emails can become annoying and repetitive. These 3-day seminars are another way to sell you a $50K mentorship package.
IMAGINARY RICH DAD? Investigative journalists have also revealed that Robert might be using the "rich dad” in the book as a way to communicate the message of financial independence better.
LEGAL PROCEEDING: Robert was also sued by his coauthor for financial breaches. Robert signed a deal to market his book with Amway, an MLM company, and made it mandatory reading for its members.
MURMURS of FALSE TEACHINGS Many financial experts also opposed Robert's teachings, stating that the advice he gave was completely wrong and could lead to financial sabotage.
Reddit Member Shares Their Experience:
Conclusion
How to own digital assets that pay me consistently every month
(Currently, $52K per Month of Passive income).
Robert Kiyosaki's book was very influential for me in 2014.
Since then, I have been obsessed with finding a way to make my money work for me or to be able to earn passive income while I sleep.
I tried multi-level marketing, affiliate marketing & even some real estate investing courses...
However, I had very little knowledge about internet marketing at the time.
I also didn't have enough money to buy real estate.
Thanks to my preserverance , I found a lead generation business model that met all my requirements.
It's simple.
We create and rank simple websites on Google. Additionally, we rent these properties to local businesses.
To get all the leads or phone calls that this site generates each month, my client pays me $2000 per Month.
The best thing about my business is the fact that I can target 100 different niches, and each city is a new market.
Imagine building just 10-15 sites, and you can make $10K per Month.
These sites don't need much maintenance once they are ranked. It's easy to leave them alone, and they will continue making money.
Scalability is therefore insane.
In 2014 I joined the lead generation coaching program. Today, I have over 75+ digital lead-gen assets.
My income increases every year because I no longer trade my time for money.
I just invest my money in building more properties, so I'm putting money to work for me.
My focus is on increasing the number of lead-generation properties, and my income keeps rising.
Thanks to Rich Dad
I won't ever return to the old way of working an hourly job while saving for retirement.
Guys, they say that money cannot bring happiness. But I disagree.
Perhaps it's not all about how much you make...
However, how to make money... is a crucial factor in your overall happiness.
Another example is this site I created back in 2014. It still pays me today.
All I need to do each month is to go to my mailbox and pick up my checks.
It feels amazing to still be getting paid for the 6 years of work I did.
This made me happier.
This picture shows that I have been receiving checks from the same company since 2015.
Are you saying that I am happier today if I don't have work every day to pay the bills?
You will have more freedom to live your life if you have assets that pay the bills.
Freedom equals happiness. It's as simple as that
You could argue that money doesn't bring happiness, but I would argue that how money is made will determine your happiness.
This skill of lead generation will allow you to generate passive income that can change your life faster than investing in real estate.
The truly wealthy have many assets that make money.
"The Long-Term Rich Build Their Asset Colon."
Robert Kiyosaki (p.137).
Why not also create digital assets?
You can't take them away, but you know what?
A client may decide that he no longer wants the leads (rarely happens), or that he wishes to retire.
It's all fine. I will find another company in my area to take the leads.
This means that as long as the digital asset is mine, I will be paid monthly on it.
Because leads are the most valuable thing for small businesses.
They die without leads
It is the lifeline of any business.
The best place to get leads is to have your site ranked #1 on Google. (Click the button below for more information)