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Book Review: Rich Dad, Poor Dad

Rich Dad, Poor Dad

"Physical exercise improves health, mental exercise improves wealth,
laziness destroys both."


Imagine going to work tomorrow and telling your boss that this will be your last day, or better yet, just stop showing up completely.

Some may call that irresponsible; others may call that a drastic measure; but for some, it is a viable option after reading the "Best Selling" book Rich Dad, Poor Dad by Robert Kiyosaki (photographed to the right).

Don't get too excited, this book isn't going to show or tell you how to make a million dollars tomorrow, but why would it? If someone could tell you how to make a million dollars tomorrow then everyone would be doing it and your million dollars would be useless.

Rich Dad, Poor Dad takes a different approach. It will describe a way of doing, a mentality, if you will. Once you adopt the mentality described in this book you won't need someone to tell you how to become rich.


The title will seem misleading to a lot of readers because the person he describes as his Poor Dad is his real father who has a very high level of education, makes a lot of money working for the government, but is enslaved in the "rat race".

On the other hand, his Rich Dad is actually a friends' dad who has almost no education in the form of college, but is very business-minded and goes on to become one of the richest men in Hawaii while being completely reliant upon himself

As the storyline progresses, the author will contrast and compare the lifestyles of both his Rich Dad and his Poor Dad and express his difficulties in choosing which footsteps he will follow in. He talks about his struggles, his learning experiences, and explains why he chose the way he did.

"Remember the Golden Rule. He who has the gold makes the rules."


Major Lessons

The author presents lessons which he discusses throughout the book:

The rich don't work for money

The importance of financial literacy

Minding your own business

Taxes and corporations

The rich invent money

The need to work to learn and not to work for money


Themes in Rich Dad, Poor Dad

One theme that's apparent in this book is that for an individual to be wealthy, he must aim to own the system or means of production, rather than work for another individual. The author stresses that there is obviously something confining about being an employee; it shuts the mind to other possibilities and it stunts initiative.

Financial intelligence is the most powerful asset. By studying the precepts of accounting and investing, the author believes that individuals will be able to see the difference between an asset and a liability; in fact it is the more concrete application of learning what's right and what's wrong. Generating a string of expenses is wrong, building assets is right.

Unlike individuals who earn and then pay taxes on what they earn, corporations earn, spend what they want to spend, and pay taxes on what's left. Corporations, therefore, hold a certain degree of power. The rich know how to use this power, the poor don't.

The author also believes that true luxuries are experienced when they are the outward manifestations of intelligent investing and asset building. He cites the example of his wife purchasing a Mercedes Benz because it was the car she liked and worked hard to be able to purchase it. The author cautions however about keeping up with the Joneses and getting into debt because of this human frailty.

The book's theme reduces to two fundamental concepts: a can-do attitude and fearless entrepreneurship. The author highlights these two concepts by providing multiple examples for each and focusing on the need for financial literacy, how the power of corporations contribute to making the wealthy even wealthier, minding your own business, overcoming obstacles by not fostering laziness, fear, cynicism and other negative attitudes, and recognizing the characteristics of humans and how their preconceived notions and upbringing hamper their financial freedom goals.


"The trouble with the rat-race is that even if you win, you're still a rat."

This book is a mind altering and life-changing experience, but only if you are open-minded to change. If not, you will most likely throw this book in a pile of other "get rich" books you have already read and not acted on. I personally give this book a 10/10.

Reference / Image Credits:
WikiSumarries
Success Magazine, phonono



  1. lucyinthesky saidTue, 09 Dec 2008 15:42:59 -0000 ( Link )

    This is great book review! The title has always caught my eye. After reading your major points about the books, I think I’ll have to give it a read. There are a lot of really good points you mentioned. Looks like a good book I can give to my dad for Christmas!

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  2. amit_wadhwa saidFri, 30 Oct 2009 10:27:50 -0000 ( Link )

    A must read book..I have read it long long back but I think I should read it again once more…

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