03/06/2025
I had heard about Rich Dad Poor Dad by Robert Kiyosaki for a long time, but I never got around to reading it. Then one day, I saw the 20th Anniversary Edition and decided to finally see what the hype was about. I expected just another personal finance book, but what I got was a complete shift in how I think about money, wealth, and financial independence.
The book contrasts the money mindsets of Kiyosakiâs two father figuresâhis Poor Dad (his biological father, a highly educated man who struggled financially) and his Rich Dad (his best friendâs father, a businessman who understood wealth-building). Through their lessons, Kiyosaki reveals how the rich think and act differently about money compared to the poor and middle class.
Here are seven lessons that really stuck with me:
1. The Rich Donât Work for MoneyâThey Make Money Work for Them. One of the biggest mindset shifts was realizing that the rich donât just earn money; they invest and make money work for them. While most people rely on a paycheck, the wealthy focus on acquiring assets that generate passive income. This made me rethink the importance of building income streams instead of just working harder.
2. Financial Education Is More Important Than a High Salary. Kiyosaki emphasizes that financial intelligenceânot just earning moreâis what makes people rich. Many high earners still struggle financially because they donât know how to manage or invest their money. This made me realize that learning about money is just as important as making it.
3. Assets vs. LiabilitiesâKnow the Difference. Rich Dadâs simple definition of an asset is something that puts money in your pocket, while a liability takes money out. Many people think their house, car, or lifestyle purchases are assets, but in reality, they are liabilities that drain their wealth. This lesson changed how I see my spending habits.
4. The Poor and Middle Class Work for MoneyâThe Rich Build Systems. The poor and middle class rely on jobs and salaries, while the wealthy build businesses, investments, and systems that generate income whether they work or not. This reinforced the idea that financial freedom comes from owning income-generating assets, not just working harder.
5. Taxes Favor the Financially Educated. Kiyosaki explains how the rich legally use businesses, real estate, and investments to minimize taxesâwhile employees and small business owners often pay the most. This made me realize that understanding the tax system is a powerful financial tool.
6. Fear and Comfort Keep People Trapped in the Rat Race. Many people stay in jobs they donât like because they fear financial insecurity. Kiyosaki warns against letting fear control financial decisions, encouraging people to take calculated risks and seek financial independence instead of just job security.
7. Start Small, But Start Now. One of the most practical lessons is that anyone can begin their wealth-building journey, no matter where they are financially. The key is to start learning, investing, and making smarter money choices todayânot waiting until it's "the right time."
BOOK: https://amzn.to/4ik9npR
You can also get the audio book for FREE using the same link. Use the link to register for the audio book on Audible and start enjoying it.
