"Rich Dad, Poor Dad" is Fiction

There are 2 types of income:

Active Income: You are trading time for money. In order to make money you must perform something. Every day you start from zero.

Passive Income: You do not have to be present to generate income. Things like real estate, stocks, bonds are sources of passive income. You are literally making money while sleeping.

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?”

According to Kiyosaki in his book "Poor Dad, Rich Dad", rich people do certain things poor people don't:

1. The rich buy assets (things that generate revenue like bonds), not liabilities (things that cost money like rent).
2. The rich become financial literate through experience, not by studying hard at fancy schools.
3. The rich learn to sell early on.
4. The rich manage fear better. They take more risks and don't play it safe.

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?

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.

“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.

“Great wealth builders focus on both saving money and earning more.”

1. Save on vehicles. Before buying a car, investigate vehicle reliability, pricing and financing.
2. Rent. Most rentals offer more flexibility in case you need to move. Also, not having the mortgage payment allows you to start saving earlier.
3. Don’t be a consumerist, buy only the things you really need.
4. Save a percentage of your income so you have more money to invest.
5. Work hard on your current work regardless of your feelings for it. It’s easier than finding a new great opportunity and may lead you into a promotion.
6. Educate yourself even if it doesn’t bring any immediate benefit, being educated opens new opportunities on the long run.
7. Invest in yourself and your marketing to open up new opportunities.
8. Being an entrepreneur is the best way to maximize your earnings, short of being an investor. Try it, even if it fails the learning from it will be invaluable in your next attempt.
9. Real estate won’t make you rich overnight, but it’s a solid strategy to increasing your network. 

• Being successful narrows our vision, making us rigid and averse towards change. The people who feel invincible and 'bullet-proof' after getting rich, usually do not stay rich.
• Humility, coupled with a healthy dose of fear, keeps us on our toes and prevents us from being complacent.
• Being open to change can make one's shift its business model, and pivot towards even greater success

Example: Netflix was a DVD rental service before pivoting into the world's biggest content streamer.

• Everything which is tangible began as a thought: Anything that you create in your mind and trust that it is possible, you can achieve.
• Win or quit, pick a side. Winners do not quit and quitters do not win.
• Our minds receive ideas from the universe. The universe feeds us with ideas constantly.
• If you have a burning desire for something, you can achieve it.
• Failures don't mean that you have failed.
• Have faith - an absolute certainty with no fear, that you will succeed.
• Implementing your idea is the most important step of achieving your dreams.

The idea of owning a suburban home was fed to Americans by people in power: Suburbia has always been suitable for industry.

Big houses = big appliances. This fed the coal, steel, and automaking industries. With it came cars and oil that made the postwar American suburb possible. It is all as much a creature of government as of the market.

The climate crisis and carbon dependency make potential homeowners reconsider the effects of suburban sprawl.

The September 11, 2001, terrorist attack and the market crash of 2008 sowed a sense of instability and propagated fears.