I recently picked up a copy of “Rich Dad Poor Dad” by Robert Kiyosaki while shopping for a wireless mouse at Wal*Mart. I had heard of the book many times and even watched some YouTube videos about the basic concept- but had never read the actual book.
Having now just finished my copy ( a cozy 5×7’ paperback version ) , I wanted to jot down my thoughts on the things Mr.Kiyosaki talks about in his book and put it up here on the bug out kit as sort of a book review.
This website is all about being prepared. Mr.Kyosakis’ book does an excellent job of preparing an individual for some of the more basic functions and ideological challenges one faces when attempting to assert individual financial freedom.
It also answers some very common questions about the nature of wealth & the psychology behind the use and control of money. Every chapter is full of pearls of financial wisdom ; many wrapped in vivid and easily remembered metaphors and allegory form.
Rich Dad Poor Dad is an autobiography about a young man in Hawaii ( Kiyosaki ) and his good buddy “Mike” who experienced a paradigm shift in the way they interacted with the world at an early age when they were bullied and ostracized from their peers for being “poor”.
Kiyosaki lived right on the line between a rich community and a poor community and because of that he had to attend elementary school in a much more prosperous neighborhood than his own. This caused him to start thinking about what he could do to make money – and with his buddy “Mike” as his first business partner, they attempt to cast their own nickels out of lead only to find out from Kiyosakis’ father that it’s illegal to do so.
Kiyosaki’s father “a.k.a Poor Dad” is a highly educated academic and school teacher with excellent work ethic. However, he was financially illiterate by choice of virtue.
He would say he didn’t care about money, would avoid talking about it; considering it rude to do so. His father had the view that a man should study hard and get a degree so he could get a good job at a stable company. Kiyosaki realized early on that even though his “Poor Dad” made very good money – his expenses always seemed rise to meet his earnings and he could never be financially free.
Kiyosakis’ father sends the two boys to Mike’s father – a.k.a “Rich Dad” so they can learn more about how to make money; since he was good at it and a prominent entrepreneur in the area. This is where Kiyosaki’s lessons really begin.
Rich dad spends a few months paying the two boys a dime a piece per hour for a few hours a week to help clean up a local convenient store. At first they love it and buy comic books to read and enjoy themselves, but they get fed up and eventually quit. Rich dad reveals that was part of the lesson. He wanted to teach them a different way to think about the real nature of money and value. He eventually convinces them to work for free at the store – promising they will learn how to become rich.
Shortly afterwards; the boys make a deal with the store’s comic book supplier to take the old comics off their hands for them. They open a “comic library” in their garage and charge neighborhood kids money to come read the comics. This becomes their first actual business – and a lesson that they would both remember for their lifetimes – “the rich don’t work for their money, because they make their money work for them.”
This lays the groundwork for Mr.Kiyosaki as he grows up to compare and contrast himself and his views with those of his dad and his friends dad – both respectable, educated, hard working men with two very different views on the world and how to navigate it. He drops many “red pills” such as the truth of negative interest rates & “saving” fiat, the 2008 housing market crash & the real reason the wealthy are able to pay less in taxes than the average earned income worker.
Kiyosaki learns the fundamentals behind the mental discipline and psychology of success through his experiences. The book has helpful although small illustrations of cash flow charts showing the differences between a “poor” person , a “middle class” person and a “wealthy” person; as well as defining all those terms excellently without offense.
He lays out a carefully crafted and logically sound argument that what keeps an individual poor is the same thing that keeps an individual wealthy – the thoughts in their head. That is what separates winning from losing – the mentality and the choosing.
We choose to be poor or we choose to be wealthy. One option takes a lot of effort and energy – and the other just kind of comes naturally to most people (a.k.a the people stuck in the “rat race” – even good, educated, highly paid people like Kiyosaki’s “poor dad”). People like “Rich dad” in the book and also in the real world are winners because they are not afraid to lose. Losing is a path toward becoming better and winning. Those who avoid failure also avoid winning. This is a running theme in the book.
This book was written as a first hand escape manual from poverty. It shows people how they really can be wealthy if they choose to walk the path less traveled. You just have to have the guts to be willing to take the first step on that less travelled path. Sure, you will stumble and fall sometimes. But at the end of that journey; you’ll be as thankful for your failures as you are for your success’s.
If you’re at all interested in this kind of thing ( I’m sure you are if you’ve made it this far ) then go ahead and do yourself a huge favor and buy the book. I didn’t even cover 1/20th of what’s in the book in this review; and I’ve seen many YouTube videos and short notes of the book and after having now read the book I can say there is way more value in the book than some cliff notes video. It has short study sections after each of the 9 chapters; with room for notes and personal reflection. This is going on my bookshelf and I can see myself re-reading it sometime down the road or passing it on to a friend.
Thanks for reading my book review of “Rich Dad Poor Dad” by Robert Kiyosaki! 🙂