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Rich Dad Poor Dad – Summary & Book Review

Rich Dad Poor Dad Book Summary and Review
Written by Aakif

Rich Dad Poor Dad is a long (241 pages) financial self-help book, published in 1997 and written by Robert Kiyosaki. The author basically teaches how to attain financial independence and success. Let us quickly go through the short summary and review of Rich Dad Poor Dad.

Rich Dad Poor Dad’s Summary, Review & Explanation

Rich Dad Poor Dad advocates for financial literacy. The book primarily teaches readers how to build wealth. It explains how a person’s financial success is largely determined by his mindset and the financial education he receives.

Who are Rich Dad & Poor Dad in the book?

Rich Dad Poor Dad is based on the author’s own experiences of growing up with two fathers. One is his biological father, who was highly educated but struggled financially. The second one is his best friend’s father, who was less educated but earned great wealth through real estate investments.

In the book, Kiyosaki refers to these two fathers as his “poor dad” and his “rich dad,” respectively in order to give us financial education.

Use of Anecdotes in the Book

In the book, Kiyosaki frequently uses anecdotes and lessons from his rich dad to contrast with the financial advice he received from his poor dad.

He argues that his poor dad’s approach to money, which stressed the importance of formal education and a steady job, is ultimately limiting and leads to financial insecurity.

In contrast, his rich dad’s approach, which focused on building passive income streams and increasing financial knowledge, allowed him to achieve financial freedom.

Concept of Financial Intelligence

Kiyosaki introduces the concept of “financial intelligence” in the book. He defines financial intelligence as the ability to understand and manage one’s financial situation.

He argues that financial intelligence is a more important factor in financial success than formal education or job title.

Furthermore, he explains that it is always essential to seek out additional sources of financial education in order to increase one’s financial intelligence.

Key Components of Financial Intelligence explained in Rich Dad Poor Dad

Kiyosaki identifies several key components of financial intelligence in Rich Dad Poor Dad. They include;

  • Understanding how money works
  • Knowing how to manage money
  • Having a financial plan
  • Being financially literate

Throughout the book, Kiyosaki encourages readers to increase their financial intelligence in order to take control of their financial lives and build wealth.

Key Principles for Financial Success explained in the Book

In Rich Dad Poor Dad, Kiyosaki outlines several key principles for building wealth and achieving financial success. Some of them are;

  • Having a wealth-building mindset as one’s beliefs and attitudes about money can have a significant impact on their financial success.
  • Attaining financial education, as the traditional education system does not adequately prepare people for financial success.
  • Building multiple sources of passive income that do not require active effort to maintain. He explains that this is a more reliable way to achieve financial security than relying on a single job or salary.
  • Saving and investing a portion of income in order to grow their wealth over time.

Overall, Rich Dad Poor Dad aims to challenge readers’ preconceived notions about money. Moreover, it encourages them to take control of their financial futures by building wealth through investments and entrepreneurship.


Frequently Asked Questions (FAQs)

Is Rich Dad Poor Dad worth reading?


To be honest, Rich Dad Poor Dad has received mixed reviews. It has also been the subject of criticism from some financial experts.

Some people have found the book to be helpful in understanding the principles of personal finance and wealth-building. On the other hand, others have found the advice to be simplistic or even misleading.

In short, it depends on your personal goals and interests. If you are looking for practical advice on managing your finances and building wealth, there are many other books that may be more suitable.


What are the six lessons in Rich Dad Poor Dad?


The six lessons from “Rich Dad Poor Dad” are:

1) Focus on building wealth through your own business or investments, rather than working for someone else.

2) The wealthy focus on building passive income streams, such as rental properties or dividend-paying stocks, rather than trading their time for money through a job.

3) The most successful people are those who are constantly learning and growing, rather than just working for a paycheck.

4) Building wealth requires patience and long-term thinking, as compound interest can turn small investments into large sums over time.

5) The wealthy often create new sources of income and wealth by identifying opportunities and solving problems, rather than relying on traditional sources of income.

6) Building wealth requires knowledge about financial concepts such as investing, taxes, and risk management.

Read More: Book Summaries & Reviews

About the author

Aakif

A versatile human being with a passion for reading and writing - always striving for growth, living in the moment but trying to keep pace with the evolving world.

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