Rich Dad Poor Dad

About the Author

Robert T. Kiyosaki is an investor, entrepreneur, and educator whose perspectives on money and investing challenge conventional wisdom. He has single-handedly influenced tens of millions of people worldwide to rethink their financial habits and attitudes towards money. Known for his straightforward, irreverent, and courageous style, Kiyosaki's insights have earned him a reputation for speaking truths that many find uncomfortable but necessary.

Kiyosaki's rise to fame began with the publication of his book Rich Dad Poor Dad, which became the longest-running bestseller on all four lists that report to Publisher's Weekly. It has sold over 40 million copies worldwide, reflecting its significant impact. Kiyosaki argues that the traditional advice of getting a good job, saving money, getting out of debt, investing for the long term, and diversifying is outdated and flawed. His work focuses on financial education and the empowerment of individuals to take control of their financial futures.

Main Idea

Rich Dad Poor Dad is a personal finance book that contrasts the financial philosophies and practices of Kiyosaki's two "dads"—his biological father (Poor Dad) and the father of his best friend (Rich Dad). The book's main premise is that the conventional path of securing a job, saving money, and retiring comfortably is flawed. Instead, Kiyosaki advocates for financial literacy, understanding how money works, and making money work for you through investments in assets rather than liabilities.

The book presents six main lessons that Kiyosaki learned from his Rich Dad, which serve as guideposts for achieving financial independence and wealth.

Table of Contents

1. The Rich Don’t Work for Money
2. Teaching Financial Literacy
3. Mind Your Own Business
4. The History of Taxes and the Power of Corporations
5. The Rich Invent Money
6. Work to Learn—Don’t Work for Money

Lesson 1: The Rich Don’t Work for Money

In the first lesson, Kiyosaki emphasizes that the rich do not work for money; instead, they make money work for them. This lesson was imparted to Kiyosaki when he and his friend Mike asked Mike’s father, Rich Dad, to teach them about money. Rich Dad agreed and offered them a job at one of his small grocery stores for a meager wage of $0.10 per hour. After weeks of frustration and feeling undervalued, Kiyosaki learned that most people spend their lives working for others, believing that earning more money through raises and promotions will solve their financial problems.

"The poor and the middle class work for money. The rich have money work for them." – Robert T. Kiyosaki

This mindset, according to Rich Dad, is a trap known as the “rat race,” where people are motivated by fear and greed. They work hard for money, but the more they earn, the more they spend. The way out of this trap is to change the way we think about money. The rich focus on building assets that generate income independently of their labor.

Lesson 2: Teaching Financial Literacy

Kiyosaki's second lesson focuses on the importance of financial literacy. He argues that financial education is essential for building and sustaining wealth. Many people earn large sums of money only to lose it all due to a lack of financial literacy. Rich Dad taught Kiyosaki that to be rich, one must be financially literate.