Rich Dad Poor Dad Summary

Rich Dad Poor Dad Summary

Robert Kiyosaki’s Rich Dad Poor Dad was initially publicized in 1997 and suddenly ended up being a must-read for people hooked in investing, dollars, and the worldwide economy. Rich Dad Poor Dad Pdf the publication has been interpreted into dozens of languages, sold worldwide, and has turned into the number 1 Personal Finance book ever.

Study well in school, and then get a higher education,” – parents instill in their children. They sincerely wish them happiness and believe in the viability of this formula without thinking about how often it does not work. For a long time, the school does not know that a person needs to feel independent and thriving in the modern world. Parents cannot prepare for real life either, for the simple reason that they do not know the rules of the game necessary for financial well-being. Even most business schools do not teach these rules but only teach to reduce costs and raise prices, which leads companies and entire economies to collapse. 

Rich Dad Poor Dad Pdf To Download Click The Link Given At The End:

Having received a red diploma, you can have the worldview of a poor man, which means a predetermined loss in life. Of course, there is nothing wrong with an excellent classical education – it is also necessary. But it is not enough for real prosperity, but only enough for what the author Robert Kiyosaki calls “rat race” – work for the State or a company, the pursuit of high salaries, which are spent on taxes, bills, loans, purchases. To get out of this vicious circle, you need financial literacy and ingenuity. 

Robert Kiyosaki was lucky – he had two excellent teachers at once, who offered him different views on social status, wealth and poverty, attitude to work and other vital aspects of prosperity. Poor Dad taught him to look for a high-paying job with many social benefits. And Rich Dad taught me about financial independence and understanding how money works. And it was the advice of Rich Dad that helped Robert to become a wealthy man, retire early and live exclusively on the acquired assets. 

In his book, Robert Kiyosaki shares the knowledge he learned from Rich Dad and his rich life experiences. He talks about what, unfortunately, is not taught either in school or in the family:

  • Why we confuse Assets and Liabilities.
  • Why is it essential to be able to work for free?
  • What is financial IQ?
  • Why you have to pay yourself first and then your creditors.
  • Why failure is no less valuable than victory.
  • How to become financially independent.

It’s hard to resist the temptation of high wages or illusory stability. But you want to get out of the vicious circle of “rat race”? Then read Robert Kiyosaki’s advice and honestly tell yourself if you are happy with your life and anticipated future. If not, then stop working for money and let the cash start working for you. 

Rich Dad Poor Dad

Robert Kiyosaki is lucky. No, he did not get a large inheritance, and he was not born into a wealthy family. But he had two Popes at once. One is his father, an educated and respected person who worked for the State all his life and achieved a lot, becoming the head of the Hawaii State Department of Education. But despite his honest work and high position, he never had financial independence and left behind many debts and unpaid bills. 

Another Pope – the father of the author’s best friend – built his empire practically from scratch, possessing financial literacy, ingenuity and life wisdom. The secret of the financial failure of one and the success of the other lies primarily in their way of thinking.  

What Poor Daddy Said What Rich Dad Said
If you study well, you will have the opportunity to find work in a reliable company.If you study well, you will have the opportunity to acquire a reliable company.
Never risk your money.Learn to control risks.
Never discuss financial matters during a family
breakfast, lunch, or dinner.
It is helpful to discuss finances at the family table.
I have children, so I cannot save money.I have children, which means that I simply have to get rich.
The rich must pay taxes to help the poor.Taxes are paid by those people who work, and they are spent on people who create nothing.
Your own home is the most significant and
most reliable investment.
The house you live in is not an investment.
Bills pay bills first.Must pay bills on time, but last.
A pension and various benefits provided
by the State and the employing company are the
necessary help and reliable support in the present and the future.
You need to rely only on yourself and your financial awareness.
I am not destined to be a rich man.I think and act like a rich man.
I can not afford it.I am looking for ways to afford it.
Money is not essential.The one who has the money has the power.
It’s essential to be able to write brilliant resumes to get a high-paying job.It is essential to draw up competent business plans so that other people get a job for you.
I am unable to create savings.I do not save. I invest.

 Robert Kiyosaki listened to both of them with respect. But he early understood how important it is to choose the right one whose life position is closer to him and whose path he wants to go. The author chose the Rich Dad worldview and never regretted it. Even a superficial knowledge of the Rich Dad principles outlined above would be enough to achieve a lot in life, but Robert has come a long way to not only learn them but also make them his own.

If you want to get rich, don’t work for money.

At the age of nine, watching the lives of better-off classmates, Robert Kiyosaki and his friend Michael realized that they wanted to be rich. And they need money, not in the distant adult future, but right now. However, one desire is not enough, and the guys understood that they needed a mentor. Poor Robert’s dad abandoned this mission, honestly admitting that he did not understand enrichment laws, and advised him to contact Michael’s father. The latter, in his words, was a talented and promising businessman. So in Robert’s life, in addition to Poor Dad, Rich Dad also appeared. 

It should be noted that Rich Dad did not look like a rich man – he lived in a very modest house and drove a reasonably inexpensive car. However, he owned several shops, restaurants, warehouses and a construction company. Rich Dad agreed to teach the kids how to get rich and offered them a job in one of his little shops to get started for a paltry 10 cents an hour. 

For weeks, the children worked hard on Saturdays, dusting cans. All this time, resentment was ripening in them – they worked for a pittance, but at the same time, Rich Dad taught them absolutely nothing. Then the boys decided to revolt and came to demand a promotion. The children gave an ultimatum – either they leave, or their salaries are raised. 

 Rich Dad’s first lesson. He explained to the kids precisely what they are doing for most adults — poor or middle class. If their salaries are not enough, they either come to ask for a raise or quit searching for a higher-paying job. And some stay to work for a pittance, fearing to lose what they have. They are all driven by fear and greed. 

Fear and greed drive people into the rat race. “Rat Race” is tireless work from call to call to the state or company owners, receiving a salary for this work, which is almost entirely spent on paying bills, taxes, loans, expensive purchases, and educating children. Then the person looks for a higher-paying job, but his needs also increase, the circle closes again, and the rat race continues. 

You have to not only be rich but also think like a rich person. Otherwise, the money will not last long. How many lottery winners were soon left with nothing!

What could the children do if any of their decisions – to leave, stay, get a pay rise – was a dead end? Rich Dad’s advice sounded paradoxical – he offered the boys to work for free, which would allow them to open their minds to new earning opportunities and not be fixed on the number of wages. 

And so it happened, Robert and Michael, after observing the work of the store, asked the store’s suppliers to give them unsold comics to be recycled and opened a library for peers. It allowed them to earn much more than Rich Dad could have paid them; in addition, their new library business did not even need their presence – the boys hired their peers as a librarian, and they continued to work in the store. So the guys learned that the rich do not work for money and that potential and initiative, freed from fear and greed, are more important than a high salary. 

If you feel trapped in a rat race, the best thing you can do is stop and reevaluate your actions. If something does not work repeatedly, maybe it makes sense to do something else?

Why financial education is important

Rich dad believed in teaching financial literacy from childhood. Unfortunately, the school teaches anything but not how to properly manage money. As a result, most adults know no more about money than children. Moreover, this applies even to those for whom finance is a profession. Otherwise, all accountants and financiers would be wealthy. Because different aspects of financial literacy are essential, it is necessary to be able to count numbers and understand their history. 

Improve Your Financial IQ: 

  • Study accounting to thoroughly understand the underside of any business. Accounting can be described as a rational aspect of a business.
  • Learn to invest. Investment can be described as the creative aspect of a business.
  • Study the market, learn more about how it lives – about supply and demand.
  • Study the law. His knowledge will help you pay taxes effectively for yourself and always act within the law, which will protect you from legal proceedings. 

Why increase your financial IQ because accounting is not the most exciting activity globally, and it also takes a lot of time and even money to increase the level of financial literacy? Primarily to have a choice and get rid of fear. The modern world is constantly changing, and most people are intimidated by this. Oil prices are falling, financial crises are raging, and there are massive layoffs. If you are a straw in this ocean, then, of course, it will be scary and uncomfortable. 

Financial literacy allows you to control the situation yourself and benefit from even the most challenging economic conditions. So, during the economic crisis of the 1970s, Robert’s fortune not only did not suffer but also multiplied many times over. He bought real estate at low prices from a bankruptcy law firm and then sold it for more, but at a price below market, so there were many buyers. Thus, he earned a large sum in a short time. 

Of course, what worked in one situation, time, country, and legal space may not be applicable in other conditions. But this is just one example of how financial literacy allows you to see things that others do not notice and make the most of the opportunities.

Financial IQ provides a basis for further action, allows you to take risks with confidence. Wealthy people are usually brave people, but their courage is based on awareness. In addition, they are not afraid to make mistakes because they perceive the mistake not as a loss but as a lesson.  It is another drawback of traditional school education – children are taught not to make mistakes, but it is by making mistakes that they learn the world.

Robert Kiyosaki: Study the movement of financial flows,

 Acquire assets 

The main rule of success: if you want to get rich, buy Assets. It is an important lesson Rich Dad taught Robert. At the same time, it is imperative to understand how Assets differ from Liabilities. The asset brings you money. Liabilities eat up your money. 

People cannot get rich because they confuse the concepts of Assets and Liabilities. For example, many consider the house they live in to be an asset and a good investment of capital. But in fact, this is a liability because it does not bring you Income but only increases expenses (taxes, insurance payments, interest payments, maintenance). Credit cards, cars, etc. are also Passive, which requires constant spending and falls in price (the moment you leave a new car from a car dealership, it becomes cheaper by almost a quarter). 

An overabundance of information leads to the fact that people often complicate things so much that they cannot figure them out. Rich Dad did his best to explain to boys how money and cash flows work with simple schemes.

Cash flow patterns

4.1 Movement of money among poor people (Salary – Expenditure) 

  •  Income (salary)
  • Assets
  • Expenses (food, taxes, utility bills, vacation, etc.)
  • Liabilities

 When poor people’s Income grows, Expenditures usually automatically begin to rise. They start spending more money on recreation, food, clothing. 

4.2 Money flow in the middle class (Salary – Liabilities – Expenses) 

  • Income (salary – Employer)
  •  Assets
  •  Expenses (taxes – Government, food, loans, clothing, leisure, etc.)
  • Liabilities (apartment or house where you live, car, loans and credit cards – Bank)

People who have more money buy a house, furnish it, buy cars, take out loans. Along with the acquired Liabilities, Expenses also grow:

  • New property taxes appear.
  • Interest is paid on loan.
  • Car insurance is paid.
  • Money is spent on maintaining the property, which may fall in value.

It means that you need to earn even more – welcome to the new circle of the “rat race.” 

4.3 The movement of money from a rich person (Assets – Income) 

  • Income  (profit from stocks, bank interest, etc.)
  • Assets (securities, real estate for rent, a business that does not require your presence, etc.)
  • Costs
  • Liabilities

 Rich people cut Liabilities and Expenses while increasing Assets. It is the Assets that are the item of their Income, not the salary. It is the reason for their financial independence. Rich people first provide themselves with Assets and only then acquire their dream car or luxury home. Poor people do the opposite – they immediately go into debt and buy an expensive car, which further increases their expenses.

Start working for yourself

As you can see from the schemes presented in the last chapter, the middle class usually works for the Employer (enriching the owner of the company), for the State (paying taxes) and for Banks (paying off loans for large purchases). If you want to break out of the “rat race” and become rich – start working for yourself! It is precisely what Rich Dad himself did and advised his young followers to do, and this is precisely what Robert Kiyosaki did in the future.  

  1. When starting to work for yourself, choose the areas of activity that are interesting to you
  2. Learn to separate your profession and your business. You can not leave hired work, but at the same time have your Assets and invest your salary in them. You can be a bank clerk (your profession) but still, buy and sell real estate (your business). It is what Robert did at the beginning of his journey – he worked in a large corporation and at the same time was engaged in the acquisition of Assets. Self-employment does not necessarily mean starting your own company. Not everyone can create a new business from scratch – and not everyone is interested.
  3. Improve your financial literacy and learn how to optimize your tax payments.

Experience is more important than stability

Poor Dad advised Robert Kiyosaki to strive up the chosen career ladder persistently. Rich Dad argued that it is beneficial to change jobs as often as possible and expand their horizons and specialization. 

The surrounding reality proves that Rich Dad is right – there are so many talented but needy narrow specialists in the world who have relied on one horse. How many unique athletes, earning millions during the prime of their careers, eked out a beggarly existence after their graduation because they simply could not do anything else in life. 

Even a creative person, such as a brilliant artist or writer, can benefit from mastering related professions or gaining skills to sell and advertise their work successfully. For example, it is difficult to say what Andy Warhol would have achieved if he had not yet had the talents of self-production in addition to his creative abilities.

In addition to your primary profession, which you are interested in and which you plan to continue to pursue, it is essential to learn how to manage different processes and systems in your life. Among other things, you need to control the movement of money, managing people, managing yourself and your time.  

And do not forget that the modern world is the world of information. It is essential, and it is bought and sold. It means that you need to be curious, not stop getting an education and not be lazy to learn about the world. 

What prevents people from being rich, according to Robert Kiyosaki

Fear of failure and loss 

Fear is natural – no one likes to lose money, rich or poor. But you need to learn to face your concerns and treat failure differently. The one who does nothing does not fail, which means that the poor person loses a priori. 

The great inventor Thomas Edison said: “I did not suffer defeat. I just found 10,000 ways that do not work.” And he added: “The surest way to success is to try all the time again.” 

Be proud not only of victories but also of defeats. Start acting as early as possible – explain this to your children because it is easier for young people to rise after failures and have more time to grow capital. But it’s never too late to start acting. Just remember the founder of KFC, who founded the business after retirement. If you still cannot overcome your fear of risk, don’t risk it – make a safe investment. Of course, the profit from them will be an order of magnitude less, but this is better than nothing.  

Laziness of mind

Laziness is not always lying on the couch. Most people who work in the office from morning until late at night, work on weekends and fill their free time with various hobbies are too lazy to think about getting rich. They portray the victim instead of taking life into their own hands. 

Change your attitude in life from the role of the loser to the part of the winner. Do not think that you cannot do or receive something, but think how you can do or accept it. Rational egoism will help to cope with the laziness of the mind. 

Imagine how you want to see your life without limiting yourself in fantasy. We were taught from childhood to think about others first, but there is nothing wrong with the fact that you will think about yourself and your well-being. 


Avoid neighbors, colleagues, friends, and the media who talk about financial crises, desperate situations and bad times, especially if this is the opinion of incompetent people. All these warnings and intimidation paralyze your will, as they paralyze the will of the majority. Doubting people are engaged in criticism (both of others and themselves), while confident people are involved in the analysis. 

Believe in yourself and do not do “like everyone else.” The rich do not follow the crowd and do not act like everyone else because you will never come to the goal first by following everyone. Opportunities appear all the time; some leave, others come. So do not rush for the outgoing options (they may already be exhausted), but look for new ones. So does Robert Kiyosaki.

Bad habits

It seems that habits are a reflection of our life, but rather, our life reflects our habits. One of the bad habits, unusual for the rich and typical for the poor: first to pay others, and only to ourselves. The middle class primarily pays the bills of creditors and the State, incredibly proud of their accuracy and law-abidingness. They are less concerned that they have almost no money left to invest in their future after that. Therefore, for the poor, the cash flow ends up in the Expenditure column. 

Thought-rich people first “pay themselves” and secure their interests by investing in Assets and business development and only paying others. They also produce their bills on time (they don’t need problems with the tax office or the bank). And if they have no money left for it, they seek to find new sources of Income, which gives an additional incentive to use financial ingenuity. Therefore, for the rich, the cash flow moves cyclically from the Income column to the Assets column and vice versa. 

Another bad habit of the poor is that they take money from their savings to pay bills. The rich only use their savings to make money. 

Ignorance and Overconfidence

It is a dangerous cocktail. There is nothing wrong with self-confidence, but built on a flimsy foundation of financial illiteracy will not create a substantial building of economic well-being. Bragging, big words, and bravado are evil allies on the road to wealth.

You can be brilliant in one thing, but lose to those who have superficially mastered a lot and can navigate in different ways.

What you need to become rich

Strong motivation. Think about what bonuses wealth brings – freedom, health, secure old age, more time with your family. 

The art of making choices. Being rich is a choice, being educated is a choice, being aware is a choice, taking risks is a choice. To work out of fear is to deprive yourself of choice. 

Ability to learn quickly. Everything is changing so rapidly that now you have to know very soon. Open the consciousness of new information. In the modern world, one cannot live only by what was given by the school and higher education. Don’t stop – explore related areas, attend various courses, educate yourself, look for new ideas, communicate with people who understand the areas you need. 

Self-control. What does it mean? Do not spend your entire salary on things that you cannot afford, and even more so, do not get into debt because of them. Plan your time efficiently. Despite being busy, find time for education and health. Always pay yourself first, but don’t create debt. Do not give in to pressure from others and remain true to yourself. 

Friends to learn. In no case do we urge you to choose friends based on material wealth? But each friend teaches you something. Don’t ask prosperous friends for money or work. Ask for advice. 

Help from experts. Surround yourself with professionals. Learn to manage people who are more intelligent than you (at least in their specific area). Competent advisors – agents, brokers, consultants, accountants – will help you earn and save an order of magnitude more money than you spend on their services, so don’t save on them. Your advisors should share your business interests and be practitioners rather than theorists. 

Ability to benefit from everything and find Assets everywhere. The founder of the McDonald’s empire, Ray Kroc, relied not only on the popularity of his fast-food restaurants and the quality of the sandwiches sold there but also on the real estate that houses the restaurants of this famous franchise. 

Role models. In business, it is pretty helpful to create idols for yourself. The fact that someone has reached the heights you are striving for will inspire and allow you to believe in yourself. Authorities help you realize the reality of your dreams. Their biography and their thoughts can teach you a lot. 

Ability to share. Be generous – share knowledge, money, time. If you do this unselfishly, then the fantastic laws of life will return your funds and efforts in abundance.

 Robert Kiyosaki himself possessed these qualities.

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