Rich Dad Poor Dad – Book Review

It is important to keep educate yourself. Stephen Covey calls it Sharpen the saw.

To do this, I follow seminars and/or webinars, read books and blog posts from fellow DGI’s. This to gain new insights and of course learn something new.

I read a lot of books, all kind of books. From biographies, management books to of course financial books. I really enjoy reading. This joy I hope to give to my kids! Reading books opens up a whole new life and you enrich yourself with new knowledge. What a great gift!

In my 2016 goals I wrote that I will read at least one book every quarter. And I will share my new knowledge with you, my readers. This to keep the snowball of knowledge rolling.

Here is the second book review for Polliesdividend.




Rich Dad Poor Dad – By Robert T. Kiyosaki

Rich Dad Poor Dad, the #1 Personal Finance book of all time, tells the story of Robert Kiyosaki and his two dads – his real father and the father of his best friend, his rich dad – and the ways in which both men shaped his thoughts about money and investing. Robert Kiyosaki explains in his book how to escape from the “rat race” and achieve Financial Independence.

Most of us hear from our parents to go to school, get high grades and then get a good job, right? Wrong! In his book Robert Kiyosaki explains that our education system is the number one cause of why so many people struggle financially. We learn to work for money, but not how money can work for us. This is why the majority of people gets trapped in work to pay their bills and are chasing paychecks all their life.

The book shows how the rich don’t work for money, but let money work for them. The rich acquire assets rather than liabilities. Kiyosaki stresses the importance of being able to differentiate between an asset and a liability. He states that in order to be truly wealthy, your asset column must be robust and able to offset your living expenses. He explains that most people believe a higher income will make them rich, but in reality, a strong asset column will. Higher incomes often lead to higher expenses, higher taxes, and more debt.


Key lessons

The 6 key lessons from the book:

  1. Rich don’t work for Money
    A clear statement from Kiyosaki: “The poor and middle class work for money. The rich have money work for them.”
    This is the first lesson Robert and his friend learnt from his Rich dad.
    He explained to them that most people want to feel secure with their money, so passion doesn’t direct them; fear does. It’s certainly easier to work for money, but it is not safer. You’ll get much more security by investing your time to create assets that generate money, rather than only getting paid for your hourly labor. Learning how to do this is the course of study to become rich.Rich Dad’s Lesson: Let money work for you, instead of working for money.
  2. Learn financial literacy
    Financial literacy is something that is not taught in schools, even in finance classes.

    The poor and middle class don’t become rich because they buy liabilities that they think are assets. The difference is simple, but profound: assets create income, and liabilities create expenses. Assets move cash into your pocket; liabilities move cash out.For example, most people think of a house as an asset. By the accounting definition, it is, but in reality, your home results in cash moving out of your pocket – the mortgage payment, insurance, property taxes, and, worst of all, the missed opportunities from having your money stuck in your house instead of available to work for you. Instead of pretending your house is an investment, acknowledge it as an expense. If you want a house (or a bigger house than you already have), first create assets that generate enough cash flow to pay for the liability that a house is.Rich Dad’s lesson: learn the difference between an asset and a liability and think how to create income-generating assets
  1. Mind your own business
    The poor and middle class spend most of their time and energy working for other people: their company (a paycheck), the government (taxes), and the bank (their mortgage and other loans). This is not the way. Robert Kiyosaki teaches us to focus on our own asset column. You can keep your day job, but put your money in assets. Don’t spend all your salary. Pay yourself first and save some amount on a monthly basis. Put this money in your asset column. And once a dollar is in your asset column, never take it out! When you want to buy a liability, first buy an asset that generates enough cash to cover the liability.Rich Dad’s lesson: Along with your day job, start some business on the side.
  2. The History of taxes and power of corporations
    The author delves into the origin of the income tax and the age-old battle between the rich and those who want to take money from the rich. What is important is the where that history has brought us in the present day: the rich play the game smarter, legally avoiding taxes, while the middle class foots the bill for most of the government’s spending.Robert Kiyosaki advises us to talk to businessmen and investment bankers to learn businesses. Reading and understanding of financial statements is a must to understand how a business operates.Rich dad’s lesson: how rich people protect themselves from heavy taxes? Their secret: Corporations, an individual is taxed before expenses; a corporation is taxed after expenses.
  1. Rich Invent Money
    According to the author, you have two choices:
    -1 Work hard, pay taxes, save anything left over, and get taxed on the savings
    -2 Take the time to develop your financial intelligence and harness the power of your brain to create assets

    Your mind is your most valuable asset. So the second choice is the choice of the rich people. The idea behind this is that wealth takes a combination of financial intelligence and a little bit of guts.Rich Dad’s lesson: Learn how to manage risk. An Investment is not risky. Not knowing how to manage an investment is risky
  2. Work to Learn – Don’t work for money!!!
    One should learn to manage cash flows, systems and people. Continuous learning is the key.
    The author urges young people especially to “seek work for what they will learn, more than what they will earn.” Aim to learn a little about a lot instead of seeking specialization, because specialization is for employment, not for being rich. Instead, take the jobs you need in order to learn to manage cash flow, systems, and people. In particular, the author recommends that you be sure to develop the skills of communication, sales, and marketing, as those skills combine well with other skills, and are often necessary to create wealth.

    Rich Dad’s lesson:
    Act, manage risk, think big, think business, don’t be afraid to try and fail


Overcoming Obstacles

Mr. Kiyosaki lists the five reasons that even financially literate people may not develop their asset columns:

  1. Fear. Specifically, the fear of losing money.
  2. Cynicism. Cynicism comes from unchecked doubt and fear, and it is expensive
  3. Laziness. Usually, the laziest people are the ones who are busy. People stay busy in order to avoid problems they don’t want to face, or to avoid the work necessary to develop their ability to become rich – laziness by staying busy. Rich people have a desire that overcomes their laziness
  4. Bad habits. Our lives are more a reflection of our habits than of our education
  5. Arrogance. The author defines arrogance as ego plus ignorance. The solution is quite simple: education, specifically financial education


This book is very readable. The lessons are presented in story format, as the author talks and works with his rich and poor dads. I really enjoyed reading this book. Reading this book was time well spend. Thumbs up!




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Have you read this book? What do you think of the lessons from this book? Do you use them?


8 thoughts on “Rich Dad Poor Dad – Book Review

  1. Adam

    Nice summary. I just finished this a few weeks back and it’s so logical that it’s embarrassing sometimes. While it’s not easy to relate to Kiyosaki for me, and some things in his book made me just roll my eyes, your item 2 above really stuck with me and was well worth reading the book for. Redefining what an asset truly is is incredible and changes the game. Anyway, I recommend it as well. Thanks for the write up. It’s neat to see what others think about books.

    1. Team CF

      “I just finished this a few weeks back and it’s so logical that it’s embarrassing sometimes”

      So true, funny thing is that it is the mind set change that takes the longest. Took us a couple of years and a trigger with regards to the feeling of (temporary) freedom before it really sunk in.


    The greatest lesson here and most profound is “wealthy people buy assets not liabilities.”
    I remember years ago there was a book by Robert Allen I and everyone was excited about called “Nothing Down.” It was a real estate book on how to acquire real estate with little down payment. You let the renter pay the mortgage and you wait on the property to payoff and or the rent go up.

    The problem is you have a liability. No liquidity and the bank can and will come get it if you cannot hold it. I wish I had known this whole principle then . Just think you can buy a piece of American business and let it work for you.

    Keep these coming love them.


  3. Dividend Diplomats


    I LOVE this book and glad you loved it as well. Getting excited and motivated is what it’s all about and moving cash/savings into assets that produce cash flow, that’s what it’s about. Keep going, keep reading and keep writing.


  4. This Wifes Life

    I haven’t read the book, but really enjoyed reading your post. I like the way you’ve quickly outlined the lessons. Many of them I follow already, but it’ll take me some time before my money truly works for me. Twelve years to be exact :). Also very much believe in Step 5 with several side-hustles. Thank you for sharing!

    1. Pollie


      Thanks for stopping by and taking the time to write a comment. I really appreciate it.
      And thanks for your kind words!
      And I think you are on the right path. Keep it up!



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