Rich Dad, Poor Dad Review: Best and Worst Advice (2021)

FinMasters content is release. When you purchase through referral links on our site, we earn a commission. Advertiser disclosure rich Dad, Poor Dad is one of the most celebrated books in all of personal finance. Though it came out in 1997, it ’ sulfur hush a # 1 Best Seller on Amazon in 2021. Many of today ’ s most popular finance gurus cite it as the inhalation for their success .
I wanted to see what all the ballyhoo was about, so I grabbed a transcript of the script, tear through it ( it ’ s a reasonably quick learn ), and compiled my thoughts for you here .
This Rich Dad, Poor Dad review will take a search at Robert Kiyosaki ’ s real lessons in this book ( not good the ones he uses as names for his chapters ) and help you decide whether it ’ s worth reading.

A Rich Dad, Poor Dad Summary

right from the jump, Rich Dad, Poor Dad surprised me with its style and narrative framework. I expected more technical insight and investment mathematics, but the book primarily consists of anecdotes that hold nuggets of ( supposed ) wisdom of solomon for the reader to absorb as if through osmosis .
Kiyosaki ’ south stories revolve around and contrast the lessons he received from his biological father ( the educated but financially unsavvy poor people dad ) and his supporter ’ mho salesman forefather ( the uneducated but cagey, rich dad ) .
The bible winds through Kiyosaki ’ s animation and the reader witnesses him learning from his rich dad and rejecting the advice of his poor dad ( which represents rising above the typical propertyless mentality ) .
The book explains basic wealth generation in an apprehensible and inspirational way, and it ’ s a firm enough introduction to these concepts ( at least for its time ). however, it has issues that make its stream relative respect questionable .
Rich Dad Poor Dad book cover ❗️ Important Note: Do not take this book ’ south recommendations or any of my opinions on them as investment or tax advice .

Robert Kiyosaki’s Best Advice

I ’ ll starting signal this Rich Dad, Poor Dad review with what I think Kiyosaki does well. chiefly, he makes some solid cardinal fiscal suggestions in an easily digestible manner .
The ideas might seem a act shallow and apparent to anyone already engaged in entrepreneurship or induct, but they can be heavy if it ’ s your inaugural exposure to them. Let ’ s take a attend .

1. Learn Personal Finance (And Teach It to Your Kids)

While this is a pretty obvious suggestion, it ’ s however a meaning one. The book does a bang-up job of showing the lector how meaningful it is to learn how to manage your money. That means saving a high percentage of your earnings and putting the money to work in profitable investments .
Kiyosaki says : “ It ’ s not how much money you make. It ’ s how much money you keep. ” You have to keep your spending down as your income goes up and invest the difference in assets, not liabilities .
While his definitions of assets and liabilities might not follow generally Accepted Accounting Principles, it ’ randomness practical : assets put money in your scoop, and liabilities take money out of it .
He supports learning to cut your taxes, studying account, and mastering save, then teaching all these skills to your children. I love all of these ideas, and I ’ thousand glad his presentation of them resonates with indeed many .

2. Find Ways to Escape the Rat Race (Make Your Money Work For You)

not only does Kiyosaki cover the fundamental best practices for personal finance, but he besides does a great job of painting an inhale picture of their end goal : fiscal independence, retirement, security, being ample, or whatever you want to call it .
I ’ ve constantly believed that people sincerely begin to understand the significance of their personal finance decisions when they realize that they constitute a journey that can culminate in holding enough wealth that function becomes optional .
Kiyosaki makes escaping the fink subspecies using investments or a self-sufficient clientele sound glamorous and inspirational. I ’ megabyte grateful for anything that gets people to plan for a better future .

3. Master Your Emotions Regarding Money

This one international relations and security network ’ t a personal finance message that you ’ five hundred typically see today, but I like it a draw. Money is a enormously aroused emergence for many people, and we could all credibly benefit from understanding why it makes us feel however it does .
People often let their emotions sabotage their finances or let their finances upset their emotional submit. They might have a concern of investing, insecurity over their job, or a need for the latest and greatest gadgets .
He urges readers to face their fears, cynicism, laziness, bad habits, and arrogance when it comes to money. That seems like an arbitrary number of aroused issues, but I like the sentiment .

4. Develop a Broad and Valuable Skillset

In a capitalistic club, having a hardheaded and marketable skillset is the key to making money. If you can provide tangible value that people are willing to pay for, you ’ ll constantly be able to support yourself .
Kiyosaki recommends learning to manage money, lead teams, build systems, and close sales. More than that, he suggests that people cultivate a habit of continuing to learn throughout their careers so that they never stagnate .
He argues that people can improve their situations most effectively if they keep an open mind, learn from their mistakes, and keep better. It ’ s a valuable moral and one of the best in the book .

Robert Kiyosaki’s Worst Advice

now that we ’ ve covered the beneficial stuff, what follows is my rich Dad, Poor Dad criticism. I hate to say it, but there ’ randomness more to talk about here than I ’ five hundred like .
honestly, Kiyosaki strikes me as a reasonably typical guru. His position and tone throughout the reserve both rub me the wrong way. For exercise, he comes across american samoa merely a little besides obsessed with the stereotyped persona of a rich and herculean serviceman.

He describes his rich dad as a charismatic male man of few words, with power behind his statements and smiles. rich dad is improbable, blunt, and constantly closure deals. He doesn ’ t do things like the other guys, and he ’ randomness pretty smug in his superior cognition .

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full-bodied dad and his lessons besides come off as manipulative to me. He pulls the protagonists ’ strings purportedly to teach them esoteric lessons excessively complex to be put into mere words .
The book precisely feels like it ’ s selling me something, and salesman gurus are by far my least favorite. here are some of the specific ideas the book tries to sell to the subscriber that I don ’ triiodothyronine like .

1. You Should Start a Business and Get Rich Because Employees are Broke and Miserable

As person who truly loves being freelance, I hate to admit this, but it ’ s not the right path for everyone. If you ’ d preferably not branch out on your own, that ’ s absolutely fine. There are batch of people who enjoy their jobs, make good or big money, and save responsibly .
But Kiyosaki has a habit of putting down anyone who works for person else and suggesting that employees are broadly broke and dysphoric. They precisely don ’ metric ton get it .
His poor people dad ( already an contemptuous title ), who worked a traditional job, couldn ’ deoxythymidine monophosphate possibly understand what his fat dad understand thanks to all his business achiever .
not alone does Kiyosaki fail to address the risks and downsides to occupation ownership, but he besides suggests some definitely-not-okay tax strategies using commercial enterprise entities. For case, he proposes using a corporation to write off vacations as control panel meetings or withhold health cabaret expenses. Those moves can get you into much more disturb thsan they ’ re worth .

2. Academic Learning isn’t Valuable (Rich People Don’t Need It)

Kiyosaki besides has a bad substance abuse of downplaying the value of academic education and traditional teach. He seems to believe people who follow the general wisdom of solomon end up like his poor dad : highly educated but ineffective and stressed about their money. fat people learn lone by doing or from living life .
For model, rich dad says : “ All besides much business schools train employees to become sophisticate bean-counters. Heaven forbid a bean counter takes over a business. All they do is look at the numbers, fire people, and kill the business. ”
ironically, he promptly contradicts that claims, later saying : “ Accounting is possibly the most confusing, boring capable in the world, but if you want to be deep long-run, it could be the most authoritative subject. ”
As an officially licensed and certified bean-counter, possibly he equitable hurt my feelings, but I don ’ metric ton think then. Kiyosaki besides glorifies rich dad ’ south barbarous and unusual education methods, which included giving kids the dumb treatment for weeks at a time while they work below minimum wage until they can ’ t take it anymore .
Because that ’ s how life sentence teaches : “ It just sorta pushes you about. ”

3. Invest in Real Estate! It’s the Best Way to Get Rich!

At this point, you ’ ve credibly noticed that many of his “ worst lessons ” have something to do with getting rich. That ’ s a significant separate of what struck me as amiss about this book .
Getting deep international relations and security network ’ thymine actually the bespeak of personal finance. possibly I need to “ overcome my cynicism, ” but I broadly don ’ triiodothyronine hope guru who toss that bible around. Kiyosaki does it a act besides much for my comfort, and his hint strategies for creating said riches aren ’ t constantly great either .
chiefly, it bothers me how strongly he doubles down on actual estate. Investing in real estate can be a capital way to build wealth, but ( like self-employment ) it ’ s not for everyone. It ’ south besides not a requirement for a successful and diversify portfolio .
There are benefits to real estate invest, but Kiyosaki borders on implying that it ’ s a sure direction to get ample cursorily or inescapably. In reality, it ’ s a business like any other. There are ineluctable risks involved, and it takes cognition, experience, and fortune to succeed .

4. Jump Off Cliffs and Build Parachutes On Your Way Down

last but not least, we have one of my biggest pet peeves in the whole ledger. Kiyosaki legitimately suggests that you pay yourself first gear ( meaning your savings ) even if that comes at the price of paying your creditors, even if one of those creditors is the Internal Revenue Service !
Rich dad says : “ So you see, after paying myself, the coerce to pay my taxes and the other creditors is indeed great that it forces me to seek early forms of income. The pressure to pay becomes my motivation. I ’ ve worked supernumerary jobs, started early companies, traded in the neckcloth market, anything barely to make certain those guys don ’ deoxythymidine monophosphate startle yelling at me [ … ] If I had paid myself last, I would have felt no press, but I ’ five hundred be broke. “
Don ’ thyroxine get me wrong, I ’ thousand all for prioritizing save, but paying yourself first shouldn ’ triiodothyronine mean risking stiffing the people you owe money, wrecking your credit score, and racking up fees and sake. You pay your creditors and all-important survive expenses first, then you set aside your savings, and then you reverse engineer your remaining budget.

Is It Worth Reading Rich Dad, Poor Dad?

I don ’ t want this to upset anyone who considers the koran to be the Holy Grail of personal finance, but I couldn ’ thyroxine recommend Rich Dad, Poor Dad to person who asked me how to start managing their money better, let alone person who already has some have .
The script has a handful of positivist lessons, but there ’ randomness nothing more fundamental in it than what you could find in the average personal finance web log these days. It ’ second chiefly about divine guidance, and there are places to get your inspiration these days without a side serve of Kiyosaki ’ s more troublesome ideas .
Do you agree with this review of Robert Kiyosaki’s Rich Dad, Poor Dad? What are your thoughts on this book? Let us know in the comments below!

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