Rich Dad Poor Dad is a book released in April 2000 by Robert Kiyosaki. Robert aims to increase the financial intelligence of the reader by showing you practical ways of how to make your money work for you, essentially becoming financially independent. This is shown through various methods such as investments, Real Estate (Properties) and owning different businesses.
The three main characters are:
- Poor dad – educated up to PHD level but was not street wise
- Rich dad – very little education up to year 8, but was very street wise
- Robert – the spectator who learns lessons from both but only takes in rich dad’s traits
Robert compares his ‘poor dad’ to the millions of fathers who encourage their sons to achieve in school so they could get a good job with a good company. Poor dad believed in the outdated principles of working hard, saving money, and not buying material things which can’t be afforded. He believed that having a good job with a solid company is what one should aspire for which leaves him to be disappointed when his son leaves the large company he was working for. He measured his success through the fact he had a PHD, even though he struggled financially. Robert stated that the poor dad would disregard the fact that he was struggling by making statements like “money doesn’t matter”. The poor dad was “trapped in the rat race” as he continued to work just to pay the bills and never made any progress financially. He cared more about the perks of working at the firm such as job security, holidays and promotions rather than the actual job.
Robert states in the book that around the age of 10 years old he realised that the mannerisms of the ‘rich dad’ made sense to him more than his own ‘poor dad’. Instead of being content with his current lifestyle avoiding the purchase of the finer things and living payday to payday, the rich dad inspired Robert to ask “how can I afford this?” He explained how he was paid a low wage by the rich dad when he went to work for him, which led him to feel angry but also changed the way he thought about life. It made him realise that to be ahead, working for yourself instead of others was the way forward. The rich dads’ attitude towards money was based on the saying “the lack of money is the root of all evil”
The book is centred on “secrets” given to Robert by the ‘rich father’ which I will go into detail in Part 2.