Rich Dad Poor Dad Book Summary

Combining autobiography and personal advice, Rich Dad, Poor Dad (1997) outlines how you can become financially independent and wealthy. The author argues that what he teaches in this New York Times best seller are things we’re never taught in society, and that what the upper-class passes on to its children is the necessary knowledge for getting (and staying) rich. As evidence to support his claims, he cites his highly successful career as an investor and his retirement at the early age of 47.

About the Author

Robert Kiyosaki is an investor and entrepreneur with an estimated net worth of over $80 million. His Rich Dad brand has published more than 15 financial self-help books, which have sold over 26 million copies worldwide.

Rich people don’t work for money

Before we get to the famous financial lessons, we’re going tell you a story. The story of 9-year old Robert Kiyosaki. 

It begins in the 1950’s. Robert and his friend Mike were curious boys with big ambitions: When they grew up, they wanted to become rich and make a lot of money. But just how they were going to accomplish that they didn’t actually know. So, after a failed attempt to produce coins from melted toothpaste tubes, the boys decided to get some advice. They asked their dads how they could start becoming rich.

You might be able to guess what Robert’s own well-educated but “poor dad” replied: “Go to school, study, and find a good job.” It’s familiar advice – but it’s pretty misguided. 

If you follow guidance like this, you’ll spend your entire life breaking your back to increase your pay, while others – the government, bill collectors, and your bosses – take most of the reward.

In other words, Robert’s poor dad might as well have said, “Go and join the rat race, the endless routine of working for everyone but yourself.” 

Now, lots of people still follow poor dad’s mantra – but many do it out of a sense of fear, a powerful sense of distress at the idea of violating the expectations that society drills into us. A good job is what leads to wealth, we’re told, so we study hard as kids and work even harder as adults. The result? We may be avoiding poverty, but we’re certainly not growing any wealthier.

But there are some people who don’t teach that mantra to their kids – people who know how money is created, increased and maintained. Rich people, in other words – people like Mike’s father, the rich dad who became a financial mentor to both boys. 

So what did Mike’s dad suggest? At first, nothing. He made a deal with the young Kiyosaki, offering to teach him what he knew about money if the boy would work for him at the measly rate of 10 cents an hour. 

Robert agreed – but after a few weeks of being underpaid, the boy returned to his “rich” dad, seething with anger and ready to quit. “You’ve exploited me long enough,” he said, “and you haven’t even kept your promise. You taught me nothing about money in all those weeks!” 

But there it was: his first lesson, delivered by his new mentor with a slight smile. Robert Kiyosaki had just learned that life often pushes you around. And he’d learned that working for money does not make you rich. Which is why: Rich people don’t work for money.

Lessons From The Book

1

Rich people don’t work for money

2

Educate yourself about finances, identify real assets, and invest in them

3

Mind your own business: make money for yourself, not your employer

4

By understanding the tax code and the legal system, the rich stay one step ahead of the systems designed to rein them in.

5

Most of us aren’t given a financial education

6

Get yourself a financial education by following three steps: assess your current situation, set financial goals, and finally build the financial intelligence to reach them.

7

Financial intelligence and courage allows the rich to “invent” money in any situation

8

Instead of playing it safe, try investing your money in stocks, bonds or tax lien certificates.

9

Don’t just work to earn – working to learn is much more important.