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This book about how to get rich sold more than 32 million copies-here are 5 essential lessons you need to know
Rich Dad, Poor Dad
"Rich Dad, Poor Dad" is a best-selling personal finance book, written by Robert T. Kiyosaki and Sharon L. Lechter.
It reads like an allegorical story about Robert Kiyosaki and his two dads : a “poor dad”, a highly educated college professor & the “rich dad”, a wealthy entrepreneur who owns dozens of businesses. Both dads offer conflicting advice on money.
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Key Ideas
Rich Dad, Poor Dad
"Rich Dad, Poor Dad" is a best-selling personal finance book, written by Robert T. Kiyosaki and Sharon L. Lechter.
It reads like an allegorical story about Robert Kiyosaki and his two dads : a “poor dad”, a highly educated college professor & the “rich dad”, a wealthy entrepreneur who owns dozens of businesses. Both dads offer conflicting advice on money.
“Poor dad” vs "Rich Dad" Mentality
The “Poor dad”, a stereotype for the regular salary man, believes that one should work for money as an employee at a stable job. This mentality can trap a person into working a job they don’t love, but is willing to stick with because they have to pay the bills.
The "Rich dad", an entrepreneur, thinks wealth comes from experience-based learning (learn on the job, by becoming an entrepreneur) and multiple income streams.
When the “poor dad” encourages working your way up the ladder, “rich dad” laughs and says, “Why not own the ladder?”
Key lessons for becoming a "Rich Dad"
According to Kiyosaki in his book "Poor Dad, Rich Dad", rich people do certain things poor people don't:
- The rich buy assets (things that generate revenue like bonds), not liabilities (things that cost money like rent).
- The rich become financial literate through experience, not by studying hard at fancy schools.
- The rich learn to sell early on.
- The rich manage fear better. They take more risks and don't play it safe.
SIMILAR ARTICLES & IDEAS:
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Key Ideas
“A person can be highly educated, professionally successful, and financially illiterate.”
Robert Kiyosaki
Financial Literacy Questions
A financially literate person should be able to answer these questions:
- How much are they earning after tax and after saving for retirement? Is it fair considering their education level and job title?
- Are they earning above sector median rates, below, or on par?
- How much goes to their retirement accounts?
- How much goes into their investments?
- What are the rates of return on their investments when benchmarked against an index like the S&P 500?
- What are their financial plans?
- Can they read a company's financial statement?
- Do they understand their tax benefits?
- Do they understand their retirement requirements?
- Do they have a plan for retiring?
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Key Ideas
"Rich Dad, Poor Dad" is Fiction
John T. Reed, a real estate investor, looked into the accuracy of Kiyosaki's best-selling book and found it inaccurate:
- The Rich Dad is most likely an invention. ...
"Rich Dad, Poor Dad" contains dangerous advice
According to John T. Reed the famous book is filled with bad advice:
Dangerous advice
- "If you're gonna go broke, go broke big"
- Convinces people that college is for suckers
Law-breaking advice
- Advocates committing a felony: have rich friends for trading stock based on non-public inside information, he says "That's what friends are for."
- Recommends tax fraud by deducting vacations and health club dues
- Brags about using a partner weasel clause in which his cat is his partner
Kiyosaki is making money from a personality cult
Many critics pointed out that Kiyosaki is selling a cult, not financial advice.
He is accused of tapping into the fantasies of the masses & being short on specifics, both attributes of religious cults.
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Key Ideas
Popular Personal Finance Books are Inspirational
Most of the popular finance books lack substantive advice on investing. They are inspirational & their core message is a good one: You are ultimately responsible for your own financial...
Rich Dad's Most Unconventional Idea
R. Kiyosaki's "Rich dad, Poor Dad" reads like a novel. The most shocking message of the book:
Don’t focus on your job or career. Think primarily about building personal wealth.
Rich Dad's Questionable Financial Advice
“With low interest rates, and an uncertain stock market, the old adages of saving and investing for the long term make no sense.”
It is what Kiyosaki recommends in his famous book, but saving and investing for the long term are exactly what most experts say you should do.