“Rich Dad Poor Dad” is a personal finance book written by Robert Kiyosaki and Sharon Lechter, which focuses on how to invest your money in the stock market. It’s been said that this financial classic helps people understand what they have in their hands and make more of it. The book is divided into two parts: “Cashflow Quadrant”, which explains four different types of wealth (financial, business, real estate/assets) based on where you are financially; and “The Rich Life Lifestyle Model”.
“Rich Dad Poor Dad” is a book by Robert Kiyosaki that discusses the differences between two types of people: Rich dad, who has financial intelligence, and poor dad, who does not. The book talks about the importance of financial intelligence in business and life. Read more in detail here: rich dad poor dad book pdf.
Do you want to read a Rich Dad, Poor Dad review? Is it worthwhile to read Rich Dad Poor Dad? Should you believe and put what the text teaches into practice?
The book purports to teach you the difference between working for money and making money work for you, as well as dispel the notion that being wealthy requires a huge salary.
However, it’s possible that it’s simply a hyped-up fraud.
This detailed evaluation will help you decide whether or not you should waste your time reading Rich Dad Poor Dad. Here you will find all of the answers.
Rich Dad Poor Dad is a book I’ve read a few times. So now you know all there is to know about this book.
I’ll also teach you how to reach financial success at the conclusion of this book review.
Key Takeaways from Rich Dad Poor Dad
I’ll go through the following points in my Rich Dad Poor Dad review.
What is the plot of Rich Dad, Poor Dad?
Rich Dad Poor Dad is a book that combines autobiography and personal experience to discuss the paths to being financially independent and affluent.
The author says that he will teach you things that we will never learn in school. Instead, he promises to be able to impart to you the information that the upper class passes down to their offspring in order for them to become and remain wealthy.
He uses his incredibly successful career as an investor and his ability to retire early at the age of 47 to back up his arguments.
Two significant dads affected the life of Robert Kiyosaki, the author of Rich Dad Poor Dad.
Poor Dad, Kiyosaki’s biological father, was a very brilliant and well-educated guy. Hard effort, he felt, will result in high grades and a meaningful career. Despite possessing all of these outstanding traits, the impoverished father was unable to earn a decent living.
The Rich Dad was Kiyosaki’s closest friend’s father. Rich Dad was a firm believer in financial education as a means of putting money to work for you. He was a firm believer in understanding how money works and putting it to work for you.
Rich Dad, despite being an eighth-grade dropout, became a billionaire as a result of his financial savvy.
Kiyosaki explains how Rich Dad gained money and what errors Poor Dad made in the book.
In the first six chapters, which make up about two-thirds of the book, Kiyosaki addresses six principles he acquired from his Rich Father.
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What is Robert Kiyosaki’s background?
Robert Kiyosaki was born in Hilo, Hawaii, to Japanese parents. Robert Kiyosaki is a successful investor and entrepreneur with an estimated net worth of over $80 million. Under the Rich Dad brand, his books have sold over 26 million copies throughout the globe.
Robert Kiyosaki is a multi-talented individual. He is a financial information activist, entrepreneur, investor, motivational speaker, and author.
He attended the United States Merchant Marine Academy after graduating from Hilo High School. He flew as a gunship pilot during the Vietnam War and was awarded the Air Medal as a graduate of the school.
After leaving the Marine Corps in 1975, Kiyosaki worked as a Xerox machine salesman. He went on to start his own company selling Velcro surfer wallets.
Although the firm was profitable for a while, it eventually went out of business.
Kiyosaki tried his hand at a company that certified rock band t-shirts in the early 1980s. In 1985, the company was sold.
Kiyosaki resigned at the age of 47 to pursue other interests after striving for almost a decade to attain success. Then, in 1997, he formed Cashflow Technologies, Inc. and climbed to prominence once again. Rich Dad and Cashflow are two of his brands that he manages via this organization.
Kiyosaki has invested in a number of other businesses in addition to operating Rich Dad and Cashflow Technologies Inc.
In 2002, he bought a silver mine in South America, and in 2003, he went public with a gold mine in China.
In his book, ‘Conspiracy of the Rich,’ he said that he planned to sell the copper mine to the public as copper prices and values improved.
Robert Kiyosaki started working with gold and silver coins when he was a teenager. His argument is that if you have a few dollars, you may acquire precious metal coins and therefore be prepared to face the “worst collapses in history.”
He claims to be a ‘gold bug’ because he owns many commodities, including silver and gold, to protect himself from any losses caused by the US dollar’s misprinting.
In addition, Kiyosaki is a real estate investor and owner. He spends a lot of money in real estate and has a lot of real estate development businesses, which is no secret. He works on a variety of property management initiatives around the nation.
Large housing complexes, hotels, and golf courses are among his holdings, as he disclosed in an episode of The Alex Jones Show in 2010. He has also made investments in a number of oil drilling businesses and oil wells, as well as a young solar company.
It should be mentioned, however, that the collapse of his firm, Rich Global LLC, which declared bankruptcy in August 2012, hurt him.
If you’re interested in learning more about Robert Kiyosaki, check out this YouTube video:
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Overview of Rich Dad, Poor Dad
This book is structured and written in a narrative format. The book is mostly tales with nuggets of claimed wisdom, rather than technical understanding and investing calculations.
He draws parallels between his biological father (an intellectual but financially unsuccessful man) and his friend’s father (an uneducated, but smart and wealthy father).
The novel follows Kiyosaki’s life as he learns from his wealthy father and rejects advice from his impoverished father (thereby eclipsing the typical working-class mindset).
However, several of the notions in this book are dubious, as I’ll explain in the following part. Now, let me tell you a little about each chapter.
Rich Dad, Poor Dad (Chapter 1)
In the first chapter, Robert Kiyosaki introduces us to his Rich and Poor Fathers.
Mike (also known as the Rich Dad), his friend’s father, foils his and his friend’s attempt to earn money via illicit methods.
He delivers crucial financial information to them throughout the sequence, with the main focus of the lesson being to break out from the rat race.
In the narrative, his biological father is referred to as “The Poor Dad” since he has a PhD but only works a 9 to 5 job.
Chapter 2: The wealthy do not labor for a living.
The Rich Dad explains Kiyosaki why he shouldn’t work for money at this point in the chapter.
He describes how the affluent take advantage of chances in life while the impoverished overlook them because they are too worried with survival and security to think about what they can accomplish.
People in the middle and lower classes are not educated to take chances, and they are forced to labor in protected, paid occupations out of fear and avarice.
Chapter 3: Why Should Financial Literacy Be Taught?
It’s critical to separate assets from liabilities, which you’ll learn how to accomplish in Chapter 3.
Even the affluent might lose their fortunes if they do not have financial literacy, according to Rich Dad. Because of their poor financial judgments and unhealthy habits, they lose money.
Those who continue to amass wealth do so by investing in assets and keeping their obligations to a minimal. The poor, on the other hand, stay poor because they do not acquire assets and accumulate obligations.
Assets are items that create income, increase in value, and have a market. Liabilities, on the other hand, cost money, do not generate revenue, and decline with time.
The major takeaway from this chapter is that it’s not simply about how much money you make. Your wealth is defined by your capacity to keep your assets.
Chapter 4: Take care of your own affairs
The Rich Dad outlines why you shouldn’t mind your employer’s business in this chapter. It doesn’t belong to you since it isn’t yours.
If you want to achieve financial independence, you should look into creating your own company and being your own boss.
The necessity of accumulating assets, such as stocks, bonds, real estate, royalties, mutual funds, and so on, is emphasized by the author. Anything that provides revenue is considered an asset.
The history of taxation and the dominance of companies (Chapter 5)
The affluent use the poor and middle class to safeguard and increase their holdings, which is a prominent subject in this chapter.
Essentially, the wealthy engage in an investing game in which they comprehend business structure and use every legal methods to reduce their tax burden.
The rich and middle class earn, spend, and then pay taxes, while company owners earn, spend, and then pay taxes.
The author advises readers to study investing and tactics, accounting, and legislation in order to improve their financial IQ.
Chapter 6: The Wealthy Create Money
As Kiyosaki puts it, we were all born with the capacity to perform the things we were meant to do, but we may all suppress that talent due to self-doubt and fear.
A person who is daring and adventurous is more likely to succeed in life than someone who is just clever.
Take advantage of possibilities and take risks to improve your financial situation. One should not sit around waiting for chances to come along.
Chapter 7: Don’t Work for Money, Work to Learn
In this chapter, Kiyosaki emphasizes that in order to be financially independent, one must have specific talents.
He offers the example of a lady with a master’s degree in English literature who takes offense when Kiyosaki suggests she learn to sell.
He emphasizes the need of understanding how to manage people, processes, and financial flows if one is serious about being wealthy.
As a result, selling, marketing, and communications are critical for financial success.
Overcoming Obstacles (Chapter 8)
Fear, cynicism, poor habits, sloth, and arrogance are the five personality characteristics that sabotage human progress, according to Kiyosaki.
Fear is normal, he feels, but how you deal with it is crucial. After all, becoming wealthy is more of a psychological than a talent game.
Rewards should be prioritized above hurdles in a person’s life.
Getting Started (Chapter 9)
The goal of this chapter is to provide you with some advice on how to increase your own wealth.
You must discover a driving force greater than your existing circumstances in order to become wealthy. It is critical to have a thirst for knowledge.
He also advises that you choose your acquaintances wisely and that you should not be frightened to befriend people who are enthusiastic about money since you will learn a lot from them. This was in direct opposition to Kiyosaki’s Poor Dad, which taught that talking about money was bad and that we should avoid it.
Chapter 10: Do you still want to know more? Here are a few things you should do.
As he wraps off this last chapter, Kiyosaki gives some excellent suggestions on how to build personal wealth.
He urges people to always seek to learn new things by attending seminars and courses and learning from successful folks in the business.
It is commonly acknowledged that the more one learns, the more one may earn, and that action always wins out over passivity.
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Rich Dad Poor Dad Myths: 9 Misconceptions
1. There are flaws in the educational system
Robert discusses the flaws in our old educational system many times throughout the book.
According to Robert, the educational system is primarily meant to develop workers, which might have a detrimental influence on businesses. Financial literacy isn’t discussed much in school.
This is something with which I disagree. There are no flaws in the educational system. It plays a critical role in ensuring that everyone contributes to the growth of society in various ways. Doctors, nurses, engineers, accountants, and manufacturers are all needed.
Robert seems to be unaware of the fundamental concept of division of labor. In order to thrive, society needs be varied. The world does not need a large number of entrepreneurs.
Robert seems to transfer his own business values or desires onto the school system, mistakenly claiming that it is defective. Society will not be able to operate efficiently if the educational system just focuses on entrepreneurship.
2. Your main residence is not a valuable asset.
The majority of individuals today regard their main house to be an important asset. According to Robert, a residence is not an asset since it does not create positive cash flow.
Despite the fact that the value of rental properties has decreased, Robert claims that good cash flow implies that you will continue to generate money month after month. Home values, on the other hand, do not necessarily rise.
This does not sit well with me. Your main property should also be considered an asset since you may sell it at any time. Also, if you bought your house for a modest price, you may be able to benefit greatly from the growth in home value when the market rises. It makes no sense to handle your property as if it were a burden.
3. Develop a diverse range of skills
The foundation of capitalism is having a marketable skill set that is both practical and marketable. You must deliver actual value that people are ready to pay for in order to be financially viable.
Kiyosaki advises developing processes, managing money, and leading teams to be successful in business. He also highlights the value of developing a habit of studying a diverse set of abilities.
While I think that learning is vital, I do not believe that developing a wide skill set is necessary. Mastering one talent takes a long time. As a result, learning many abilities at the same time is impossible. You won’t be able to earn any money if your talent is just average.
As a result, I believe it is preferable to concentrate on only one high-paying specialty.
4. Employees are bankrupt and destitute
Despite the fact that I love the independence of being self-employed, this is not an option for everyone. It is possible to love your work and earn a lot of money at the same time. In several professions, such as medicine, law, and accounting, there are numerous high-earning workers.
Those who labor for others, on the other hand, are teased by Kiyosaki, who claims that they are typically poor and miserable. This is very skewed.
Kiyosaki seems to overlook the dangers and drawbacks of owning a company. In fact, businesspeople are more likely to go bankrupt than workers. Of course, there are techniques to minimize risk, but if your company provides items or services, there will always be dangers.
I’m in business myself, so don’t let me dissuade you from doing so if you’re interested. Actually, owing to the internet, there are several risk-free methods to start a company. At the conclusion of this review, I’ll tell you more about this business opportunity.
5. Academic learning isn’t worth anything
Academic and conventional learning are undervalued by Kiyosaki. Academic learning is, in fact, crucial.
We sometimes overlook the fact that academic disciplines help us acquire a variety of crucial talents. Academic courses have an impact on both our brains and our lives.
Many questions, concerns, and fears plague us throughout our lives. Most of these issues may be answered using academic areas such as science, math, geography, and so on. Through academic research, we may also obtain a better understanding of science’s wonders. Many of these miracles are scientific rather than mystical, as we discover.
We answer a lot of logical questions in academic disciplines like math and physics, and this prepares us for the real world where we have to address some of our everyday difficulties rationally. We may avoid many situations in life that might otherwise be unpleasant if we solve things rationally.
Robert also said, strangely, that accounting may be the most essential topic in the world if you want to be wealthy in the long run.
6. Investing in real estate is the most effective way to get wealthy.
The whole book is on how to get wealthy.
Robert, on the other hand, appears to be too focused on real estate, which frustrates me. True, real estate investment may be a lucrative method to accumulate money, but it is not for everyone.
Although there are various advantages to investing in real estate, Kiyosaki seems to suggest that it is a certain method to get wealthy. It’s just like any other company in terms of operations. Failure is unavoidable, and success requires a combination of knowledge, experience, and luck.
In truth, real estate investment is difficult and carries a high level of risk. There are alternative methods to get wealthy without putting your money at danger. At the conclusion of this review, I’ll tell you more about this chance.
7. Take care of yourself first.
Kiyosaki recommends paying yourself first, which he defines as your savings. However, I do not quite agree with this.
Don’t get me wrong: I believe in prioritizing savings, but you shouldn’t pay yourself first and risk stiffing your creditors, ruining your credit score, and accumulating fines and interest. Pay off your creditors and basic living expenditures first, then put money away for savings, and then reverse engineer the balance of the budget.
If you consistently pay yourself first and overlook your obligations, you may become bankrupt.
8. To be wealthy, you must become an entrepreneur.
According to Kiyosaki, you must be an entrepreneur to get wealthy. I don’t agree. Personally, I don’t believe that everyone is made out to operate a business, and I know several individuals who have amassed large fortune without owning a company.
9. Minimizes the danger of an investment
Dad is a wealthy man. In every chapter, Poor Dad minimizes the hazards of investing. According to Robert, once you recognize your dangers, you must be willing to accept them. Understanding risk is the first step in managing it. Even if you understand risk, you won’t be able to avoid it.
To apply risk management approaches and tactics, you must first understand where your risk comes from while investing. However, there are always certain dangers. Purchasing stocks, real estate, and other assets all have hazards.
As a result, I don’t advise individuals to invest unless they have a substantial chunk of money on hand. You may also establish a risk-free side business, which I will tell you about later, to produce a huge quantity of money.
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Rich Dad, Poor Dad: Is It a Scam?
Rich Dad Poor Dad is not a rip-off, in my opinion. There are a few useful tidbits. It is not, however, a bible for financial success.
You will not get wealthy just by reading this book. Actually, you won’t learn anything useful from this book. It’s more about having a wealthy attitude. You will not be taught a business concept that you can use to start making money right now.
Many observers have chastised Rich Dad Poor Dad for a number of misunderstandings raised in the book. Some of the numbers in the book are exaggerated.
Some commenters have also suggested that Kiyosaki’s “Rich Dad” narrative is fictitious. To make it more compelling, Robert seems to make it look like a true tale. This is a clever strategy, but some individuals may see it as a ruse or unethical practice.
Furthermore, Kiyosaki gets a lot of his money for real estate investment through his book Rich Dad, Poor Dad and associated seminars. He may not have had enough money to invest and become a great investor if he hadn’t written the book that brings in so much money.
My point is that he didn’t get his investment funds from a firm, but rather from a book that went viral throughout the globe.
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Pros and Cons of Having a Rich Father and a Poor Father
Pros and Cons of Having a Rich Father and a Poor Father
- It’s true that putting money into assets will provide a higher return.
- Budgeting and cost management are recommended.
- Mentions the benefits of real estate investment over other sorts of assets.
- Emphasizes the significance of continuing to think and learn.
- The emphasis is on having a wealthy attitude.
Cons of Rich Dad Poor Dad
- Because Kiyosaki’s success stories were unique to his circumstances, it may be impossible to replicate them.
- Several portions of the book are likewise missing in depth, making application of the principles covered more challenging.
- People who wish to follow the crowd rather than think for themselves are demonized.
- Dad is a wealthy man. You won’t receive any real business advice from Poor Dad since it’s purely a motivational book.
- Robert does not teach you how to establish a company and make money.
- As previously said, there are a few misunderstandings.
Rich Dad, Poor Dad: The Final Word
Many people advise entrepreneurs, particularly those who are just starting out, to read Rich Dad Poor Dad. It does, however, have several flaws.
I get the impression that he addresses a lot of contentious issues. That, I believe, is why it is so popular. People like reading novels that are controversial.
Some of what Robert Kiyosaki says should be taken with a grain of salt. He has a tendency to project a lot of his own values or preferences, which may or may not be true for everyone.
The book has a few useful tips, but it isn’t as comprehensive as today’s personal finance blogs.
I don’t want to disappoint anybody who considers Rich Dad Poor Dad to be the Holy Grail of personal finance, but it is not a book I would suggest to someone searching for money management advice.
If you want to discover a new way of looking at things, you may want to read it. However, don’t expect to get wealthy as a result of reading this book.
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Make Passive Income Online as an Alternative to Rich Dad Poor Dad
Dad is a wealthy man. Poor Dad just concentrates on having a wealthy attitude and does not teach you how to attain financial success in a step-by-step manner. Robert Kiyosaki recommends investing in real estate, but the difficulty is that it demands a lot of money up front. You can’t make any investments if you don’t have a lot of money.
Furthermore, Robert Kiyosaki pushes individuals to create businesses while ignoring the reality that doing so includes risk. So, what are your options?
Before you make any investments, let me offer one of the finest and simplest methods to create additional money. This strategy is risk-free since it requires no financial investment. All you need is some information and some time.
In fact, this company concept enables me to earn enough passive income to be able to leave my work.
Affiliate marketing is the term for this. With affiliate marketing, you can operate your company for absolutely little money and earn a constant passive income without having to worry about paying for advertisements. It’s a legitimate company where you earn money by assisting others.
You may do it as a side hustle if you have a full-time job. This is how I started, too.
So, where do you go to learn about affiliate marketing and grow your business?
I’d advise you to start with the most recognized affiliate marketing network, Wealthy Affiliate, which teaches you the genuine techniques of making money with free visitors. Wealthy Affiliate is a one-stop shop for starting an affiliate marketing company from the ground up.
It provides you with a free account (including a free website) as well as complete SEO (free traffic tactics) training, allowing you to begin affiliate marketing right away without spending any money.
However, how much money can you make with Wealthy Affiliate?
A Wealthy Affiliate student who is 21 years old was able to make $7,395 in only one week, which equates to more than $1000 each day…all while employing free traffic sources.
Wealthy Affiliate has been around for 15 years, and there have been several success stories throughout that time. Here are some more inspirational success stories from Wealthy Affiliate members to offer you additional examples.
What is the best way to join Wealthy Affiliate?
Wealthy Affiliate offers a very straightforward price structure. It offers both free and paid membership options.
If you’re interested in learning more about Wealthy Affiliate, you can join up for a free starting membership by clicking here (no credit card required). You may choose to be a free member for an indefinite period of time.
As a starting member, you’ll get immediate access to the community, live chat, over 500 training courses, two classrooms, networking, comments, one free website, and the keyword tool. You may take advantage of all of these benefits without spending any money.
So I highly urge you to create a free account and check it out for yourself.
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Frequently Asked Questions about Rich Dad Poor Dad
1. Is it true that affluent dad, poor dad works?
Dad is a wealthy man. If you want to get wealthy by reading this book, Poor Dad does not work. True, Kiyosaki may motivate you to increase your assets or maybe start your own firm. But, as I previously said, there are hazards involved, and you must first have the necessary information before making any money.
Dad is a wealthy man. Dad doesn’t bother to educate you the technical or operational aspects of the business. It’s nothing more than a motivating book. As a result, you won’t be able to earn extra money as a result of it.
2. How did Rich Dad Poor Dad come to be?
The book recounts Robert’s experiences growing up with two fathers: his own and a wealthy friend’s, and how both men affected his financial and investment decisions. However, I believe this narrative is purely fake.
3. Is it worthwhile to read Rich Dad Poor Dad?
The narrative of Rich Dad Poor Dad isn’t particularly lengthy. So, if you’re serious about reading it, you’ll be able to complete it in a few days. Robert Kiyosaki does present some fascinating thoughts in the book that are worth your time to consider.
Despite the fact that I do not agree with all he says, I find him to be a highly inspirational individual. You will be motivated to ask yourself numerous questions regarding personal finance and how to become wealthy after reading this book. However, the book does not provide you with specific instructions for achieving financial success.
4. What is Robert Kiyosaki’s source of income?
Kiyosaki, a lifetime investor, speaker, and real estate investor, amassed eternal fortune with his Rich Dad Poor Dad series of books.
The majority of his income comes from seminars held by persons who have paid to utilize his company’s brand in marketing.
So, like many other gurus, Robert Kiyosaki makes money by teaching others how to earn money.
5. Is Kiyosaki worth a billion dollars?
Robert Kiyosaki is a multimillionaire, but not a billionaire. As of 2021, his net worth is expected to be $100 million.
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The “rich dad poor dad read online” is a book that was written by Robert Kiyosaki. It is about how to make money in the world of business and investing. The author has two books, rich dad poor dad and cashflow quadrant.
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