One Sentence Summary
Rich Dad Poor Dad is a must-read non-fiction book for anyone wanting to increase their understanding of finance, financial literacy, as well as the distinctly different attitudes to money between the wealthy and the poor and middle class.
Book Genre
Rich Dad Poor Dad is classified as a personal finance, self-help, non-fiction book.
Main Topic of the Book
This book is focused on encouraging readers to increase their own understanding of finance and to become financially literate, using the differences between the wealthy and the poor – and their attitudes towards money and wealth – as a prominent theme and ongoing exploration.
Key Ideas
The main ideas of Rich Dad Poor Dad can be broken up into the following points:
- Financial literacy is a key to success – the key message from Robert Kiyosaki is that financial literacy is essential to achieving success. This is evidenced through the key idea of increasing understanding around money as well as an understanding of the different ways the wealthy ‘play’ with money that the poor and middle class do not.
- Risk taking is rewarding – for Kiyosaki, the key to gaining wealth lies in taking risks, as well as learning from failures. Risk-taking is something the wealthy are willing to do, whereas the poor and middle class are fearful of it.
- Start early – throughout the book, Kiyosaki emphasizes the importance of starting early when ‘playing’ with money. This applies particularly to retirement planning.
- There is more than one road to wealth – Kiyosaki explains that there are more than one roads to reaching financial independence and, ultimately, wealth.
Main Parts of the Book and a Short Summary
Rich Dad Poor Dad is split into nine parts as follows;
- Part 1: The Rich Don’t Work for Money – this first part discusses what it means to be rich and the different ways to make money. Kiyosaki explains that the wealthy don’t work for money, but rather they have their money work for them.
- Part 2: Why Teach Financial Literacy? – this part continues to look at wealth and explains why money education is more important than financial education. The importance of self-discipline and commitment is also discussed.
- Part 3: Mind Your Own Business – Kiyosaki looks further at the concept of owning a business and the distinct advantage this provides. Kiyosaki also looks at the mentality that those who may be understandably scared of taking risks need to adopt.
- Part 4: The History of Taxes and the Power of Corporations – Kiyosaki looks at the power of corporations and here looks at the costs – and benefits – of owning a business. He explains that by understanding how the wealthy ‘play’ with taxes, the reader can become more enlightened.
- Part 5: The Richest Man in Babylon – this part looks further into the idea of ‘investor control’, as opposed to ‘worker control’. Kiyosaki explains how unlearning some conventional ‘truths’ can benefit the reader.
- Part 6: Overcoming Obstacles on the Road to Wealth – in this part, Kiyosaki explains that getting rich is not something accidental but it is something that requires the application of certain principles and also how to go about ‘playing’ with money.
- Part 7: Getting Started – in this section, Kiyosaki explains in more detail how to select investments such as real estate and why these can provide additional income. He also looks at using a team and some of the common, accessible investments that he personally uses.
- Part 8: Making It Happen – here, Kiyosaki explains how to measure success and different strategies that can help the reader reach those goals. He also looks further into the principles of intelligent investing.
- Part 9: Building Your Financial Team – in this final part, the importance of having a good team to help you with investments and to support you in achieving your financial goals is stressed. Key strategies and practical suggestions are provided.
Key Takeaways
Rich Dad Poor Dad gives readers insights into how the wealthy build and keep their financial success and how the platforms that support these people are accessible to all. Inspecific terms, there are key takeaways in terms of building a financial team, selecting wise investments, developing self-discipline, understanding the power of corporations and taxes, taking risks, and other skills related to financial literacy.
Author’s Background and Qualifications
Robert T. Kiyosaki is a renowned businessman, author, and speaker, with extensive experience in investing and real estate. He has written several books, all revolving around the same themes of investing, financial literacy, and understanding wealth and success.
He is also the founder of the Rich Dad Company, a private financial education company, and the ‘Cashflow’ board game.
Target Audience
The target audience for Rich Dad Poor Dad are those who are interested in the financial aspects of wealth and those who want to gain a better understanding of money management, investment, and financial literacy.
Publisher and First Publication Date
Rich Dad Poor Dad was published by Warner Books and initially released in April 2000.