Review: Rich Dad, Poor Dad

One can go far just from reading from Robert Kiyosaki’s Rich Dad, Poor Dad series. The series takes its name from this first book. RK writes down to the reader so that anybody can understand what he’s saying. Since he illustrates his teaching with abundant stories, there’s a lot of fluff to someone like me. I just want the meat and go on. Here’s my summary of the book.

Introductory material says he has two fathers. His real father was poor but a boyhood friend’s father mentored him in the mysteries of finance. His stories contrast what ordinary people think (Poor Dad) versus what rich people think (Rich Dad).

Rich people don’t work for their money; they have their money work for them. In other words, passive income.

Assets are things that earn you money. If a thing costs you money each month instead of earning you money, it is a liability, not an asset. For example, you personal home is a liability, a necessary liability true but still a liability. If you rent a part of it out then that part becomes an asset.

Rich people own their own businesses. They may have a job but they have some income-producing activity on the side. Exception: top executives at major corporations.

Corporations reduce taxes. I got a lesson in that recently. I’ve got to start my own, even though I’m not rich and happy working for other CPA’s.

Use jobs as learning experience. Sales is a particular experience that you need. That is why he recommends Direct Marketing, if only to learn how to sell. The biggest problem there is fear of rejection and that can only be learned by doing.

There’s more but that’s what I got out of the book. The next book in the series is The Cash Flow Quadrant.