“Rich Dad Poor Dad” by Robert T. Kiyosaki
Book summary:


This business novel, tell the real life experience of Robert himself, growing up with two fathers, one rich and the other poor.

He relates how both men shaped his life and thoughts about money and investing. From this book you will learn that you don’t need to earn high income to be rich and rich people don’t work for money, but makes money work for them.

Five big lessons

-The poor and the middle-class work for money.

-The rich have money work for them.

-It’s not how much money you make that matters.

-It’s how much money you keep.

-Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.

-Financial aptitude is what you do with money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you.

The single most powerful asset we all have is our mind.

Lessons from the book


-The Rich Don’t Work for Money

-Mind Your Business

-The Rich Invent Money

-Work to Learn

-Dont Work for Money

Quotes of worth from the book

Illiteracy, both in words and numbers, is the foundation of financial struggle.

Peoples lives are forever controlled by two emotions: fear and greed.

So many people say, Oh, I’m not interested in money. Yet they’ll work at a job for eight hours a day.
More money seldom solves someone’s money problems.

Intelligence solves problems and produces money.

You must know the difference between an asset and a liability, and buy assets.

“An asset puts money in your pocket. A liability takes money out of your pocket.”

There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.

Money often makes obvious our tragic human flaws, putting a spotlight on what we don’t know.

Thinking that a job makes you secure is lying to yourself.

Cash flow tells the story of how a person handles money..


Most people dont understand why they struggle financially because they don’t understand cash flow.

Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.

The number-one expense for most people is taxes.
Higher incomes cause higher taxes. This is known as bracket creep.

The fear of being different prevents most people from seeking new ways to solve their problems.

A person can be highly educated, professionally successful, and financially illiterate.

Many financial problems are caused by trying to keep up with the Joneses.
“Once you understand the difference between assets and liabilities, concentrate your efforts on buying income-generating assets.”

Wealth is a persons ability to survive so many number of days forwardor, if I stopped working today, how long could I survive?

The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.

The rich focus on their asset columns while everyone else focuses on their income statements.

The problem with simply working harder is that each of these three levels takes a greater share of your increased efforts.

You need to learn how to have your increased efforts benefit you and your family directly.

Financial struggle is often directly the result of people working all their lives for someone else.

The mistake in becoming what you study is that too many people forget to mind their own business.

They spend their lives minding someone else’s business and making that person rich.

To become financially secure, a person needs to mind their own business.

Financial struggle is often the result of people working all their lives for someone else.

The primary reason the majority of the poor and middle class are fiscally conservative which means, I cant afford to take risks is that they have no financial foundation.

One of the main reasons net worth is not accurate is simply because, the moment you begin selling your assets, you are taxed for any gains.

A new car loses nearly 25 percent of the price you pay for it the moment you drive it off the lot.

Keep expenses low, reduce liabilities, and diligently build a base of solid assets.

For people who hate real estate, they shouldn’t buy it.

The best thing about money is that it works 24 hours a day and can work for generations.

An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.

A true luxury is a reward for investing in and developing a real asset.

A corporation earns, spends everything it can, and is taxed on anything that is left. Its one of the biggest legal tax loopholes that the rich use.

Garret Suttons books on corporations provide wonderful insight into the power of personal corporations.

Often in the real world, its not the smart that get ahead, but the bold.
Games reflect behavior.

They are instant feedback systems.
Financial intelligence is simply having more options.

The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.

The world is always handing you opportunities of a lifetime, every day of your life, but all too often we fail to see them.
Simple math and common sense are all you need to do well financially.

The problem with secure investments is that they are often sanitized, that is, made so safe that the gains are less.

It is not gambling if you know what you’re doing. It is gambling if you’re  just throwing money into a deal and praying.

Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.

Great opportunities are not seen with your eyes. They are seen with your mind.

You want to know a little about a lot was rich dads suggestion.

Job is an acronym for Just Over Broke.

Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race.

Education is more valuable than money, in the long run.

The reason so many talented people are poor is because they focus on building a better hamburger and know little to nothing about business systems.

The most important specialized skills are sales and marketing.

To be truly rich, we need to be able to give as well as to receive.

Giving money is the secret to most great wealthy families.

The primary difference between a rich person and a poor person is how they manage fear.

For most people, the reason they don’t win financially is because the pain of losing money is far greater than the joy of being rich.

Failure inspires winners. Failure defeats losers.

Real estate is a powerful investment tool for anyone seeking financial independence or freedom.

A great property manager is key to success in real estate.

The most common form of laziness is staying busy.
Rich dad believed that the words I cant afford it shut down your brain. How can I afford it? opens up possibilities, excitement, and dreams.

Whenever you find yourself avoiding something you know you should be doing, then the only thing to ask yourself is, Whats in it for me? Be a little greedy. Its the best cure for laziness.

There is gold everywhere. Most people are not trained to see it.

Real assets are categorized by:

-Income-generating real estate
-Notes (IOUs)
-Royalties from intellectual property such as music, scripts, and patents
-Anything else that has value, produces income or appreciates, and has a ready market

Financial IQ is made up of knowledge from four broad areas of expertise:


-Understanding markets
-The law


Two main vehicles to achieve financial growth:

-real estate
-small-cap stocks.

The main management skills needed for success are:

-Management of cash flow
-Management of systems
Management of people

Five main reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow.

-Bad habits

Three different types of income in the world of accounting:

-Ordinary earned