Rich Dad Poor Dad Summary: Robert T. Kiyosaki

Rich Dad Poor Dad Summary

Rich Dad Poor Dad Summary provides a free book summary, key takeaways, review, top quotes, author biography and other essential points of Robert T. Kiyosaki’s book. It shows us what the rich teach their kids about money that the poor and middle class do not!

About the Book

Robert T. Kiyosaki is a best-selling author. He has created an empire of books on financial advice. The names of many of his famous books have the phrase “Rich-Dad.” In this book Rich Dad Poor Dad, CPA and consultant Sharon L. Lechter joins Kiyosaki. Together they offer lessons in the way of a literary see-saw. That is, he had two fathers. His birth father was poor yet educated. And his 2nd father was rich and self-made. Both taught him lessons which were bought from their individual experiences and nature. One was a loser who died owing huge sums. But, the other was a bold winner. He left money for his family and charities upon his death. The opposite nature of the two men offers the journey which Kiyosaki travels. And through this, he teaches readers about financial planning.

Rich Dad, Poor Dad sometimes comes across as a windy tale. Kiyosaki explains about himself at various ages. He offers word-to-word accounts of the teaching moments from both fathers. These at first look baffling but later deep. The rich father speaks in riddles. Also, he hides his real intent. For young Kiyosaki this is confusing. But, Kiyosaki’s mistakes make him understand the real purpose of his rich dad. The book may get old quick, but he fills pages with that. By nature, Kiyosaki’s a hokey storyteller. And he pads his guidance. But, he isn’t a best-selling author for nothing. The text is simple with many punch lines.

“In school, we learn that mistakes are bad, and we are punished for making them. Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk.”

Structure of the Book 

Every chapter acts as an independent lesson. It logically links to the lesson which follows. In fact, you can read just one chapter. And you’ll learn a lot by using its teachings. Plus, it’s not necessary to read the chapters in order. Instead, you may read in any order given what you want to learn. Kiyosaki keeps every chapter brief and to-the-point. Note that he isn’t writing for the ones with high knowledge of the market. Instead, he’s writing for low-to-middle-class income groups for whom the market looks complex. He wants these people to understand their finances better. And ultimately build a secure financial system for themselves.

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Rich Dad Poor Dad Summary

Money Is a Tool

In this text, the author doesn’t talk in fables. Instead, he explains what one must do with money and why. He wishes people to adopt a new and empowered mentality. Kiyosaki urges people to see money as a tool. It doesn’t matter if they’ve little or a lot. He doesn’t hate the $100 investor. His career exists to convince people that they’ve enough to make their money work for them. He states that money isn’t magical. Or even disposable. Instead, money is a prop. It’s a tool that allows you to control the situations of your life. With this device, you can gain financial freedom. But, only if you understand and use some basic principles. 

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Buy Assets

Kiyosaki explains the difference between a liability and an asset. Plus, he urges people to buy assets. No matter how small or what they’re. If you can buy an asset whose value may grow, buy it. But don’t buy a new car or TV. Or an expensive dinner or a new suit. Instead, find an asset you’re sure will increase in value. And then, buy it before you waste your money on something unworthy. Because nothing else matters. Buy assets. Then, hold onto them till it’s time to sell. Or, keep them until you find an even more valuable asset to invest.

Think Beyond the Surface of Any Business Story or Situation

You should read all the stories till their end. Because only then will you know how to use Kiyosaki’s lessons. The payoff shows a conclusion you mightn’t reach yourself. Kiyosaki has a gut for choosing descriptive yarns from the business world. These tales further his idea of using natural intelligence to understand money’s working. Most of these tell you to think above the surface of any business situation. Why? Because another tale is waiting under the headline. Kiyosaki urges to start seeking the hidden meaning. Once you do this, you’ll begin grasping new ways to apply and multiply money.

For example, Kiyosaki explains the story of Ray Kroc, founder of McDonald’s. Ray asks a bunch of business school grads to tell what business he’s into. Everyone’s answer was – hamburgers. But, Ray tells them he’s not into hamburgers business. Instead, he’s in real-estate. He sells franchises. And these franchisees buy the land where McDonald’s outlets sit. Because of this, McDonald’s holds very valuable street corners in the US. And, also around the world.   

Make Your Money Work for You Instead of You Working for Your Money

The author urges freedom of money, mind, and profession. He believes day-jobbers in corporate life are stuck. His concerns are the same about schooling. Because he fears that studying one trade dooms people to working in that trade lifelong. He feels that money should work for people to make more money. Kiyosaki warns against trading one’s time for cash. But, only unless you can invest and grow it.

To Be a “Have” and Not a “Have-Not,” You Should Incorporate

Kiyosaki has a class awareness hard to find in modern day authors. He wants readers to know that the “haves” dominate the “have-nots.” In fact, the “haves” dress the financial system to their advantage. Kiyosaki doesn’t show this situation as a moral crime. Instead, he presents it as a fundamental truth of life. And each investor should understand this fact before investing. He urges people to apply this. This chapter long section makes some things very clear. Notably, in the US, firms enjoy considerable benefits in accounting, tax and investing. This also includes protection from legal suits.

Rich Dad Poor Dad Summary: Robert T. Kiyosaki

Adopt a Few Basic Operating Principles

Kiyosaki wants people to follow and respect their natural intelligence. He believes that everyone can improve their financial condition. If only, they follow some basic operating rules. Also, people should be bold, disciplined and continue to learn. The rules are:

  • “Know the difference between an asset and a liability” – This is the most important principle as per Kiyosaki. Only buy assets that can generate income.
  • Incorporate to limit your risks – A company is a legal body which saves the rich. So, let it save you too.
  • Build your “financial intelligence” – He asks to hone four necessary skills. First, get to know financial numbers. Second, learn strategies to invest. Third, identify ways to benefit from demand and supply. And fourth, understand the laws around your money and follow them.
  • Heed the “principle of reciprocity” – What goes around comes around. Hence, if you desire sales, help others sell something first.
  • Take a job that expands your field or teaches you about money – A job you do only for pay-check will never let you gain financial freedom.

“Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.”

Why Is This Book Different? 

Other self-help books promote similar principles. But, this book Rich Dad Poor Dad is convincing and sincere. Kiyosaki doesn’t pretend that miracles happen, or life is easy. His tone may be folksy. But, his arguments have a purpose.

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Kiyosaki’s practical advice is obvious and useful. So much so that one may think why he bothers with two-dad tales. One reason is “two-fathers” is his brand. It’s the magnet that brings readers to him. The second reason is that comparing the two fathers is a literary tool. Hence, it makes Kiyosaki’s common sense easy to accept. But, there are another very important reasons. That is, without “two-dads” tales, each of his books would be 50 pages long. But even then, those 50 are more worth than the price of the other 200. Few authors tell you they’ll clarify complicated things and then really do. But Kiyosaki does it.

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Rich Dad Poor Dad Review

The book “Rich Dad and Poor Dad” is the creative book written by Robert T. Kiyosaki about the financial advisers. The book explains two categories of males in the society that are categorized by the author as the rich man and poor man. The personal finance book produced some critics but as mentioned in the book the book provides insightful about the difference between rich and poor dad. We personally liked the book due to its punch lines that he described the learning from the mistakes. We were inspired by the ideas demonstrated by the author and eventually ran to the conclusion of the book to find the finance perspectives of the author. The book really described efficiently about the cash flows and financial concerns. We have learned many lessons after reading the book written by Robert.

The summary of the book described convincing situations to gain financial freedom and the basic principles. The valuable assets are worth worthy of the investment. The author urged about the profession, mind, and freedom of money. After reading the arguments We agreed with the sentiments as described to be more valuable and spent on the work. We enjoyed the description of “The Simple Dollar” and the chapter showing the financial health of the individual was really great for paying off the debts and investment. The footsteps were frugal about the rich dad because there is a big difference between rich and poor dad. We did not agree with some points of Robert and found that book really collapses, in some ways he mentioned hamsters to all those who don’t share their point of views. The good part of the book was incomprehensible examples of specific behavior, for example, he described “Your Money or Your Life”.  The author mentioned certain fields related to financial freedom and the choice of words was really nice. “Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.”

Rich Dad Poor Dad Summary: Robert T. Kiyosaki

Rich Dad Poor Dad Quotes

“In school, we learn that mistakes are bad, and we are punished for making them. Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk.”

“Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.”

“You’re only poor if you give up. The most important thing is that you did something. Most people only talk and dream of getting rich. You’ve done something.”

“If you’re the kind of person who has no guts, you just give up every time life pushes you. If you’re that kind of person, you’ll live all your life playing it safe, doing the right things, saving yourself for something that never happens. Then, you die a boring old man.”

“I’d rather welcome change than cling to the past.”

“The love of money is the root of all evil.”

The lack of money is the root of all evil.”

“Emotions are what make us human. Make us real. The word ’emotion’ stands for energy in motion. Be truthful about your emotions, and use your mind and emotions in your favor, not against yourself.”

“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.”

“Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.”

“If you realize that you’re the problem, then you can change yourself, learn something and grow wiser. Don’t blame other people for your problems.”

“As I said, I wish I could say it was easy. It wasn’t, but it wasn’t hard either. But without a strong reason or purpose, anything in life is hard.”

Rich Dad Poor Dad Summary: Robert T. Kiyosaki

About the Author

Robert T. Kiyosaki’s many books on financial advice have titles with the word Rich-Dad. There are other bestsellers too. These include Retire Young, Retire Rich and Second Chance: For Your Money, Your Life and Our WorldSharon L. Lechter is a CPA and a consultant.

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Feedback

What do think about this Rich Dad Poor Dad Summary? We hope it can help you understand the ways of teaching your kids. Please feel free to share your thoughts with us!

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Best Selling Books

SaleBestseller No. 1
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
7,201 Reviews
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
  • PLATA
  • Robert T. Kiyosaki
  • Publisher: Plata Publishing
  • Edition no. 0 (04/11/2017)
  • Mass Market Paperback: 336 pages
SaleBestseller No. 2
Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
298 Reviews
Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
  • Trade Paperback
  • Robert T. Kiyosaki
  • Publisher: Plata Publishing
  • Edition no. 0 (04/03/2012)
  • Paperback: 471 pages

Last update on 2018-12-15 / Affiliate links / Images from Amazon Product Advertising API

2 COMMENTS

  1. Francis discussed the topic”Rich Dad Poor Dad Summary: Robert T. Kiyosaki” in a very efficient way. this is very interesting because he explained the story of Ray Kroc, who is the founder of the Mcdonals. the most loving point is people see money as the tool which is very right. And i love the quotes ” The lack of money is the root of all evil.”

  2. This summary of the book gives great insight to the thoughts of an author, who has been very important one in giving financial advice to people. Each chapter of the book is loaded with so much information to learn about managing your financial issues. The author’s views on failure is interesting that we “Failure is part of the success”, so never be afraid of it

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