Book Review: Rich Dad Poor Dad complete summary/By Abhishek Bhardwaj

Wanna Millionaire Read this book and implement this in your life

‘Rich Dad Poor Dad’ is a financial self-help book that helps you set the right relationship with money and wealth.

As Robert Kiyosaki (the author of this book) correctly mentions: –

“Most people never study the subject money. They go to work, get their paycheck, balance their checkbooks, and that’s it. On top of that, they wonder why they have money problems.”

The problems exist because these people lack the basics of financial education. Education that is not imparted in our schools.

If you really want to improve your outlook towards money, pick this book and read it cover to cover.

Doesn’t matter whether you are 25 or 52, this book has something for everyone.

I first read Rich Dad Poor Dad book when I was 20 years old and I owe my financial discipline and healthy financial habits to this one single book.

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Rich Dad Poor Dad Summary

Rich Dad Poor Dad Review

Challenging the stereotypes

Rich Dad Poor Dad Chapter Reviews

The final review

Rich Dad Poor Dad Summary

In this book, Robert Kiyosaki talks about his two dads; one is his biological father and other is the father of his friend Mike.

Robert’s father holds a PhD degree and goes to a 9–5 job. In Robert’s eyes, his own father is an epitome of a poor man; one who spends his entire life dependent on single source of income.

Contrary, his friend’s father happens to be a college dropout. However, he is always open to opportunities, has multiple sources of income and makes the money work for him (instead of working for the money). This personality epitomises the rich person for Robert.

However, that doesn’t mean that Kiyosaki frowns upon college education and is suggesting you to drop out. His only point is that formal education only teaches us how to make money but not how to manage and grow it.

The Rich Dad Poor Dad book draws out from the financial wisdom that Robert received from his “Rich Dad” and from his “Poor Dad”.

Rich Dad Poor Dad Review

This book emphasises the importance of passive income and making money work for you instead of you working for money.

Right from the beginning, the book succeeds in captivating the reader.

That’s because it’s written from the perspective of a middle-class person and how he sees the rich people around him.

If you are from the same middle-class socio-economic background, you can’t help but getting glued to this book.

Robert strongly believes that our education system does not teach us financial literacy.

We are never ever taught about investments and how to generate income from our assets.

Majority of the people are trained to work for someone throughout their life and adopt contentment.

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Challenging the stereotypes

This book will help you debunk your most common notions related to money and wealth.

For example, consider the following excerpt

Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.

This book does excellent work in challenging your thinking about how to make your money work for you.

Few Rich Dad Poor Dad quotes that deeply inspire me are:

Rich people invest in assets while middle class acquire liabilities. And they spend their life in a myth that they have an asset. E.g. A house is never an asset as long as you are living in it. Only if you buy a property and rent it out, it is your asset.

How much money you keep with yourself does not matter at all. What matters is how you are making this money grow.

The greatest asset we have is our skill set and we should always keep investing in it.

Earning power comes with knowledge and not your degree.

Take responsibility of your financial future.

It is very important to build your own safety net rather than living in dismal of old age, without any pension and or financial aid.

Learn financial discipline and curb wasteful or impulsive expenditure.

Don’t be afraid of losing. Being broke is temporary, being poor is eternal.

Lastly, don’t work for money. Let the money work for you.

Rich Dad Poor Dad Chapter Reviews

Chapter 1: Rich Dad, Poor Dad

In the first chapter, Robert Kiyoski introduces us to his Rich Dad & his Poor Dad.

He explains how he and his best friend try to make money using illegal methods and how his friend’s father Mike (also referred to as the Rich Dad) foils their plans. In this entire sequences, he shares the necessary financial education with them and the entire journey in the lesson is around escaping the rat race.

The Poor Dad in the story refers to his biological father who holds a PhD, but is stuck in a 9 to 5 job.

Chapter 2: The Rich don’t work for money

In this chapter, the Rich Dad teaches Kiyosaki why not to work for money.

He goes on to explain how rich people recognize opportunities in life and grab them while the poor ignore them as they are too busy running after money for sustenance and security.

Poor and middle-class work under fear and greed as they are not taught to take risks but stay in comfortable salaried jobs.

Chapter 3: Why teach financial literacy

It’s critical to differentiate between assets and liabilities, and that’s what is taught in Chapter 3.

The Rich Dad lays emphasis on the importance of financial literacy because, without it, even the rich can lose their fortune. That happens because of their bad financial decisions and poor financial habits.

The rich who continue to get richer do so by investing in assets and keeping their liabilities to a bare minimum. On the other hand, the poor remain poor because they pile up their liabilities and do not purchase assets.

An asset is something that generates cash flows, appreciates in value and has a market. Conversly, liabilities cost you money, don’t earn and income and shrink in value over a period of time.

An insightful keynote of the chapter is that it is not about how much you make.

What makes you truly rich is defined by how much you can retain.

Chapter 4: Mind your own business

In this chapter, the Rich Dad explains why you should not mind your employer’s business. That’s because it is not yours.

If you want to be financially free, you should strive for ways to build your own business and become your own boss.

Also, the author stresses the importance of building assets, example stocks, bonds, real estate, royalties, mutual funds, etc. Anything that generates a cash flow is an asset.

Chapter 5: The history of taxes and the power of corporations

The focus of this chapter is on how the rich use corporations to protect and enhance their assets while the poor and middle class get manipulated.

It is all about the investment game where the rich understand the corporate structure and use all the legal means to minimize their tax outgoes.

The business owners first earn, spend, and then pay taxes while the poor and middle class first earn, pay taxes, and then spend.

In this chapter, Kiyosaki encourages readers to attain financial IQ by learning about investing, strategies, accounting, and law.

Chapter 6: The rich invent money

Kiyosaki believes that each person is born with the talent which sometimes gets suppressed because of fear and self-doubt.

He expresses that not always smart people get ahead in life but adventurous and bold too.

In order to get financially ahead, one has to tap the opportunities and take the risks. One should not sit and wait for the opportunity to come to them.

Chapter 7: Work to Learn, Don’t Work for Money

In this chapter, Kiyosaki explains that in order to develop financial freedom, an individual needs certain skills.

He cites an example of a woman with a Masters Degree in English Literature but when Kiyosaki himself suggests her to learn how to sell and market, she gets offended.

The author stresses the need to learning how to manage people, systems, and cash flows if one is serious about getting rich.

Therefore, selling, marketing, and communication is very important to be financially successful.

Chapter 8: Overcoming Obstacles

In this chapter, Kiyosaki explains the five personalities that hamper human beings: fear, cynicism, bad habits, laziness, and arrogance.

He believes that it is normal to have fear but how you handle it is what actually matters. After all, getting rich is more of a psychology game rather than a skill game.

One should focus on rewards than the problems coming in the way.

Chapter 9: Getting Started

This chapter gives tips on building personal wealth.

If you want to get rich, you must find a reason to motivate you which is greater than your current reality. Continuous hunger to learn is very important.

Also, he suggests that people should choose their friends carefully and should not hesitate to be friends with people who talk about money as there are great lessons to learn. This is contrary to what was taught to Kiyosaki by his Poor Dad: that talking about money is not good and one should stay away from such people.

Chapter 10: Still want more? Here are some To Dos

In this final chapter, Kiyosaki offers great insights into creating personal wealth.

He encourages people to keep looking for new ideas, experiences, and keeping the learning curve alive by taking courses, attending seminars, and learning from other successful people in the industry.

After all, the more you learn, the more you can earn and action always beats inaction.

The final review

Rich Dad Poor Dad is one of the classics in the field of wealth management.

This book has helped me a lot and there is no denying the fact that it is mind-set shifting and thought-provoking book.

If you want to set your money basics right, you simply can’t afford to miss reading this book.

Cheers to your success!!

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