Is ‘Rich Dad Poor Dad’ a Must-Read or a Must-Avoid? Our in-depth review to see if it’s worth reading.
Robert Kiyosaki’s “Rich Dad Poor Dad” has been a best-selling personal finance book for decades, with the book even claiming to be “the #1 personal finance book of all time!” But, is it really worth reading in 2023? Because let’s be honest, time is money!
In this article, we’ll examine the book’s main ideas in more detail and consider why personal finance fans still find it to be a worthwhile read. Numerous people may relate to the story, which is one of the reasons why the book has become so well-known. Here, we assess whether it is actually worthwhile to read.
The Key Concept of “Rich Dad Poor Dad”
At its core, “Rich Dad Poor Dad” is a book about the difference between assets and liabilities. Kiyosaki argues that many people, like his “poor dad,” live beyond their means and acquire liabilities. Examples of liabilities would be credit card debt and mortgage payments. On the other hand, Kiyosaki’s “rich dad” focuses on acquiring assets. Assets include real estate and investments that generate passive income and provide financial security. In this way, your money works for you, instead of you working for it.
Why “Rich Dad Poor Dad” is Still Worth Reading in 2023
“Rich Dad Poor Dad” by Robert Kiyosaki remains a classic in the personal finance genre for a reason. The book’s focus on the difference between assets and liabilities is a fundamental concept that is just as relevant today as it was when the book was first published. Additionally, the book’s emphasis on financial education and taking control of one’s own financial future is a message that resonates with readers of all ages and backgrounds.
Criticisms of “Rich Dad Poor Dad”
While “Rich Dad Poor Dad” has its supporters, there are also those who criticize the book and its author. Some critics argue that the book does not provide enough concrete advice or actionable steps for readers to take to improve their financial situation. And some question the validity of the author’s own wealth… if he lived the principles he espouses in the book.
The Rich Dad, Poor Dad series is a novice-level introduction to financial sense and wealth creation; however, many people say it is highly unlikely, by itself, to lead to the creation of any sort of meaningful and lasting financial change. Wealth is not created by knowing. It’s created by doing.
The Controversy Surrounding Robert Kiyosaki’s Wealth
One potential concern for readers of “Rich Dad Poor Dad” is the question of whether or not Robert Kiyosaki truly lived the principles he espouses in the book. According to some sources, there is little documentation to prove that Kiyosaki was actually wealthy before publishing the book. However, it is important to note that the book is not an autobiography but rather a collection of personal finance lessons and experiences.
The Best Parts of Rich Dad Poor Dad
One of the best parts of “Rich Dad Poor Dad” is the contrast it draws between the author’s “poor dad” and “rich dad.” One represents traditional, conservative views on money and wealth, such as the importance of job security and benefits, while the other, a more entrepreneurial, unconventional approach to building wealth. This contrast helps readers to understand and appreciate the different perspectives on money and wealth.
the book’s popularity is also due to its relevance. Though it came out in 1997, it’s still a #1 Best Seller on Amazon in 2023. There doesn’t seem to be a finance guru out there who hasnt read the book.
Most importantly, the best part of the book is its emphasis on financial education and the importance of understanding the difference between assets and liabilities. The book presents the idea that building wealth is about acquiring assets that generate passive income and provide financial security. You should have more money invested in assets and less money tied up in liabilities.
It’s all about growing assets, not liabilities! Since this is the resonating key message here, let’s drill down a bit on assets.
Types of Assets Rich Dad Poor Dad
“Rich Dad Poor Dad” emphasizes the importance of understanding the difference between assets and liabilities. One of the key concepts in the book is the idea that building wealth involves investing in a variety of different asset classes. Some of the most popular types of assets mentioned in the book include paper assets such as stocks, bonds, mutual funds, and retirement accounts. Additionally, the book also touches on other types of assets, like real estate and small businesses. Understanding the different types of assets and how to invest in them is a crucial part of building wealth.
Difference between assets and liabilities
In “Rich Dad Poor Dad,” Robert Kiyosaki emphasizes the importance of understanding the difference between assets and liabilities when it comes to building wealth. Assets are things that put money in your pocket, such as rental properties, investments, and businesses. On the other hand, liabilities are things that take money out of your pocket, such as car loans, mortgages, credit card debt, and school loans.
According to Kiyosaki’s principles, building wealth is about acquiring assets that generate passive income — to have your money work for you so you can live your life freely.
So, is Rich Dad Poor Dad worth reading?
100% YES. Rich Dad Poor Dad is a finance staple that continues to be worth reading in 2023. It provides the basic building blocks for the psychology of money and depicts how to understand the relationship between money and time in a simple and effective way. It offers a contrarian financial view that is highly relevant and will make you wiser as an entrepreneur. Rich Dad is also quite motivational and inspirational, which is a plus.
My Personal Experience With Rich Dad Poor Dad
By Joanna Golden
As an entrepreneur, Rich Dad Poor Dad was a game-changer for me.
This book altered my mindset about money and how I should go about becoming wealthy.
Even as far back as elementary school, I was a money-hungry kid, I loved making money however I could and delighted in watching my money grow. Thus, it was quite natural that in high school, I stumbled across Rich Dad, Poor Dad by Robert Kyosaki.
This was a book about entrepreneurs, investing, and passive streams of cash flow, but it was really a bold new perspective on money.
Though at the time I didn’t know about half the financial terms mentioned, I knew I was reading something important. The book crystallized my thinking on money and the rich. It was a financial paradigm shift and provided a framework and end goal for my love of business. After reading Rich Dad Poor Dad, I felt a structured outline had been formed for what was needed to achieve wealth.
Suddenly, I had a purpose and a plan.
I would seek to acquire cash-flowing assets to build income streams. I’d have enough income streams to pay for what I wanted and get out of debt. I needed these income streams to be passive, increasing my quality of life and freeing up time so that I could live my life on my own terms.
Once the picture came into focus, I set out to learn as much as I could about real estate so I could get my feet wet. I stumbled across thebiggerpockets.com website, an essential hub for learning about real estate for beginners.
I’d spend my commute to New York City devouring information and taking notes. I wanted to make my first real estate purchase in an intelligent way.
I purchased my first duplex five years ago, then a year later my second, then my third. Was it all easy and straightforward? Hell no. There have been some highs, like a recent building doubling in price when I sold. And some lows, such as dragging evictions and costly fixes that wipe out profits. The ups and downs are not for the faint of heart, but the learning experience is always the most valuable aspect of the journey. And ultimately, it’s all good fun
In February, I resigned from my corporate job. I am currently focused on learning a new skill — through real-life experience — about buying and building businesses. The saying “give a man (or woman!) a fish and he eats for a night, but teach a man how to fish and he eats forever” is vital for any entrepreneur. If I can learn what it takes to build a cash-flowing business, I can learn to identify why any other business would be profitable to buy.
Throughout my life and now, as I venture into new endeavors, Rich Dad Poor Dad has been my bible, the foundation of my financial journey. The book’s key principles are what I have always used to navigate all important business decisions. More importantly, Rich Dad Poor Dad set the context in which I think about how I will be using my precious time.
Key Takeaways from Rich Dad Poor Dad
- The rich make their money work for them; they do not work for money.
- Financial education is the greatest asset you will have
- Don’t work to earn money; work to learn
- Know the difference between assets and liability and collect assets.
- Reduce your spending as much as possible
- Reinvest the profits you make
- Financial intelligence is just as important as traditional intelligence
- Building a portfolio of income-generating assets is crucial for financial success
- Creating multiple streams of income is key to achieving financial freedomKey Quotes
Key Quotes From Rich Dad Poor Dad
Here are a few great quotes from the book Rich Dad Poor Dad:
- “In school, we learn that mistakes are bad and we are punished for making them.” Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. “If we never fell down, we would never walk.”
- “There is a difference between being poor and being broke.” Broke is temporary, poor is eternal.”
- “Winners are not afraid of losing, but losers are. Failure is part of the process of success.”
- “Assets put money in your pocket, liabilities take money out of your pocket”
To listen to the full free audiobook of Rich Dad Poor Dad:
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Conclusion
Overall, “Rich Dad Poor Dad” is a book that offers valuable insights and information for anyone looking to improve their financial literacy and take control of their own financial future. It also offers a contrarian financial view of money that is highly relevant. Rich Dad Poor Dad will make you wiser as an entrepreneur.
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