Rich Dad Poor Dad Review

Top Recommended Investment Books

Book Title: Rich Dad Poor Dad
Author: Robert T. Kiyosaki
Publication Date: April 1997


"Rich Dad Poor Dad," written by Robert T. Kiyosaki, presents a compelling narrative that contrasts the financial philosophies of his two "dads"—his biological father (the poor dad) and the father of his best friend (the rich dad). Through this dual perspective, Kiyosaki explores the differing attitudes towards money, work, and investment, highlighting the importance of financial literacy and education. This book is particularly relevant for finance professionals and individuals seeking financial independence, as it challenges conventional beliefs about money and offers insights into building wealth through smart financial strategies and investments.

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07/16/2024 06:18 am GMT

Content Summary

Key Concepts:

  • Contrasting Financial Mindsets: Kiyosaki illustrates the stark differences between his poor dad's conservative, risk-averse approach to money and his rich dad's proactive, entrepreneurial mindset. The poor dad emphasizes traditional education and job security, while the rich dad advocates for financial education and investment in assets.
  • Financial Education: The book underscores the significance of financial literacy, criticizing the traditional education system for its lack of practical financial training. Kiyosaki argues that understanding money management, investments, and the economy is crucial for financial success.
  • Assets vs. Liabilities: A central theme in the book is the distinction between assets and liabilities. Kiyosaki defines assets as anything that puts money into your pocket, while liabilities take money out. This simple yet profound concept is foundational to his financial philosophy.
  • Entrepreneurship and Investment: Kiyosaki emphasizes the importance of entrepreneurship and investing in real estate and businesses as means to achieve financial freedom. He encourages readers to think creatively and take calculated risks to grow their wealth.

Core Topics:

  • Personal Finance Education: Kiyosaki criticizes the lack of financial education in schools and emphasizes the need for individuals to educate themselves about money, investments, and financial planning.
  • Investment in Real Estate: The book highlights real estate as a key investment vehicle. Kiyosaki shares personal anecdotes and strategies for leveraging real estate investments to build wealth.
  • Building and Managing Assets: Readers are encouraged to focus on acquiring and managing assets that generate passive income, such as rental properties, stocks, and businesses.
  • Understanding Financial Statements: Kiyosaki provides a basic introduction to reading and understanding financial statements, emphasizing their importance in assessing the health of investments and businesses.
  • Mindset and Attitude Towards Money: The book delves into the psychological aspects of wealth-building, advocating for a mindset that embraces opportunity, innovation, and continuous learning.

Through these concepts and topics, "Rich Dad Poor Dad" serves as a foundational text for those looking to rethink their approach to money and develop strategies for financial independence.

Critical Analysis


  • Simplified Explanation of Complex Financial Concepts: One of the book's primary strengths is its ability to break down complex financial ideas into simple, easy-to-understand concepts. Kiyosaki's use of straightforward language and relatable anecdotes makes financial education accessible to a broad audience, including those with little prior knowledge of finance.
  • Encourages Proactive Financial Education and Self-Improvement: "Rich Dad Poor Dad" emphasizes the importance of continuous learning and self-improvement. Kiyosaki advocates for taking control of one's financial education, encouraging readers to seek knowledge outside of traditional educational institutions and to be proactive in their financial planning.
  • Inspires Entrepreneurial Thinking and Investment in Assets: The book encourages readers to adopt an entrepreneurial mindset and to view money differently. By focusing on the acquisition of income-generating assets, Kiyosaki provides a roadmap for achieving financial independence and wealth. His emphasis on real estate and business investments offers practical insights for those interested in these areas.


  • Lack of Specific, Actionable Financial Strategies: While "Rich Dad Poor Dad" is strong on philosophy and mindset, it often falls short on providing detailed, actionable financial strategies. The book outlines the importance of investing in assets and understanding financial statements but does not delve deeply into specific methods or tools for achieving these goals.
  • Overemphasis on Real Estate as the Primary Investment Vehicle: Kiyosaki's personal success in real estate heavily influences the book's content, leading to an overemphasis on this investment type. While real estate can be a lucrative investment, the book does not sufficiently explore other investment options, such as stocks, bonds, or mutual funds, which could diversify and balance an investment portfolio.
  • Potential for Misinterpretation by Readers Without Foundational Financial Knowledge: The book's simplified approach, while a strength, can also be a drawback. Readers without a solid foundation in financial principles may misinterpret some of Kiyosaki's advice, potentially leading to poor financial decisions. For instance, the concept of taking on debt to invest in real estate may be risky for those without a deep understanding of market dynamics and risk management.

Comparative Analysis:

  • Comparison with Other Personal Finance Books:
    • The Millionaire Next Door by Thomas J. Stanley and William D. Danko: This book contrasts with "Rich Dad Poor Dad" by emphasizing frugality and traditional saving methods as keys to wealth accumulation. While Kiyosaki focuses on bold investments and entrepreneurship, Stanley and Danko highlight the importance of disciplined saving and modest living.
    • The Total Money Makeover by Dave Ramsey: Ramsey's approach is more conservative and methodical, focusing on debt elimination and gradual wealth building through disciplined budgeting and saving. Kiyosaki's more aggressive, risk-tolerant philosophy provides an alternative perspective that complements Ramsey's principles.
  • Kiyosaki’s Approach Compared to Traditional Financial Advice:
    • Traditional financial advice often stresses the importance of saving, job stability, and retirement accounts like 401(k)s and IRAs. Kiyosaki challenges these notions, promoting financial independence through entrepreneurship and investments in assets that generate passive income. His approach offers a fresh perspective for those looking to break away from conventional financial paths.

Overall, "Rich Dad Poor Dad" provides valuable insights into financial independence and wealth-building, despite its limitations. It serves as a motivational primer that encourages readers to rethink their approach to money and invest in their financial education.

Notable Quotes

  1. "The love of money is the root of all evil." The lack of money is the root of all evil.
  2. "It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."
  3. "The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth."
  4. "The poor and the middle-class work for money. The rich have money work for them."
  5. "Financial freedom is available to those who learn about it and work for it."
  6. "Workers work hard enough to not be fired, and owners pay just enough so that workers won't quit."
  7. "The primary difference between a rich person and a poor person is how they manage fear."
  8. "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."
  9. "The more a person seeks security, the more that person gives up control over their life."
  10. "There is a difference between being poor and being broke. Broke is temporary. Poor is eternal."


"Rich Dad Poor Dad" by Robert T. Kiyosaki offers a thought-provoking perspective on financial education and wealth-building through the contrasting financial philosophies of Kiyosaki’s two "dads." By emphasizing the importance of financial literacy, differentiating between assets and liabilities, and encouraging entrepreneurial thinking, the book presents a unique approach to achieving financial independence.

Despite its shortcomings, such as the lack of specific actionable strategies and an overemphasis on real estate, "Rich Dad Poor Dad" remains a highly recommended read for finance professionals and anyone interested in improving their financial situation. The book’s simple, relatable explanations make it accessible to readers at all levels of financial knowledge, and its core messages about proactive financial education and investment are timeless.

Final Thoughts:
"Rich Dad Poor Dad" has had a significant impact on the personal finance genre since its publication, inspiring millions to take control of their financial destinies. Its enduring popularity speaks to the effectiveness of Kiyosaki's principles and the universal appeal of his message. For those seeking to challenge conventional financial wisdom and explore new avenues for building wealth, "Rich Dad Poor Dad" is an invaluable resource.


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