[{"@context":"https:\/\/schema.org\/","@type":"Article","@id":"https:\/\/moneydoneright.com\/passive-income\/real-estate-investing\/rich-dad-poor-dad\/#Article","mainEntityOfPage":"https:\/\/moneydoneright.com\/passive-income\/real-estate-investing\/rich-dad-poor-dad\/","headline":"Rich Dad, Poor Dad Book Summary and Review","name":"Rich Dad, Poor Dad Book Summary and Review","description":"When I was in high school, I read that mainstay\u00a0of American entrepreneurial lore\u00a0Rich Dad...","datePublished":"2018-03-21","dateModified":"2023-04-07","author":{"@type":"Person","@id":"https:\/\/moneydoneright.com\/author\/logan-allec\/#Person","name":"Logan Allec, CPA","url":"https:\/\/moneydoneright.com\/author\/logan-allec\/","identifier":4,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Money Done Right","logo":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","width":488,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/rich-dad-poor-dad.jpg","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/rich-dad-poor-dad.jpg","height":460,"width":1900},"url":"https:\/\/moneydoneright.com\/passive-income\/real-estate-investing\/rich-dad-poor-dad\/","video":{"@context":"http:\/\/schema.org\/","@type":"VideoObject","@id":"https:\/\/www.youtube.com\/watch?v=CMS86eBVovQ#VideoObject","contentUrl":"https:\/\/www.youtube.com\/watch?v=CMS86eBVovQ","name":"Rich Dad, Poor Dad Review: 3 Things I LOVE and 3 Things I HATE","description":"Rich Dad, Poor Dad by Robert Kiyosaki has become a go-to book for many would-be business owners and entrepreneurs.  I actually read this book as a teenager, and I believe it has its pros and cons.  In this Rich Dad, Poor Dad review I tell you three things I love about Rich Dad, Poor Dad and three things I hate.\n\nRich Dad, Poor Dad Book:\n\u27a1\ufe0f https:\/\/amzn.to\/3xJRNV3\n\nIRS Tax Relief:\n\u27a1\ufe0f Do you owe the IRS more than $10,000 in back taxes?  Email me at taxrelief@loganallec.com and let me know how much you owe by year.\n\nCool Stuff:\n\ud83d\udcb5 Chime $75 Bonus: https:\/\/moneydoneright.com\/chime\n\ud83d\ude97 Free Auto Insurance Quotes: http:\/\/go.moneydoneright.com\/gabi\n\ud83c\udfe1 Free Mortgage Refi Rates: https:\/\/moneydoneright.com\/credit-karma-home-mortgage\/\n\u26b0\ufe0f Free Life Insurance Quotes: https:\/\/moneydoneright.com\/quotacy-life\/\n\ud83d\udcb5 Free Personal Loan Quotes: https:\/\/moneydoneright.com\/upstart-invest\/\n\ud83d\udcbb Get Cash Back on Online Shopping: https:\/\/moneydoneright.com\/ebates\/\n\ud83d\uded2 Get Cash Back on Groceries: https:\/\/moneydoneright.com\/ibotta\n\nVideos:\n\u26fd Easy Way to Save Money on Gas: https:\/\/youtu.be\/Uw9Wb-tIl1A\n\ud83d\udcc8 11 Places to Get Free Stocks: https:\/\/youtu.be\/g2PNE74eyks\n\ud83d\udcb3 Best Credit Cards For 2021: https:\/\/youtu.be\/3EYNsjjVOTw\n\ud83d\udce6 7 Ways to Get Free Stuff: https:\/\/youtu.be\/o7CaiOPMhhA\n\ud83d\ude80 Review of My Favorite Stock Broker: https:\/\/youtu.be\/XNMhp9xeNq8\n\ud83d\udcb0 Free Millionaire Math Webinar: https:\/\/loganallec.com\/\n\ud83d\udc6a Our Family Vlog: https:\/\/youtube.com\/TheAllecFamily\n\nPrograms (Use Coupon Code YOUTUBE for 50% Off!):\n\ud83c\udf93 Prosper: https:\/\/www.loganeducation.com\/prosper\n\nFree Downloads:\n\ud83d\udcb8 75 Ways to Save an Extra $100 This Month: https:\/\/moneydoneright.com\/wp-content\/uploads\/75-Ideas-to-Put-an-Extra-100-in-Your-Pocket-Every-Month.pdf\n\ud83e\udd11 15 Referral Programs That Make Me Over $20,000 a Month: https:\/\/www.loganeducation.com\/15-referral-programs\n\nLogan Allec is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.\n\n#richdadpoordad #entrepreneur #entrepreneurship","thumbnailUrl":["https:\/\/i.ytimg.com\/vi\/CMS86eBVovQ\/default.jpg","https:\/\/i.ytimg.com\/vi\/CMS86eBVovQ\/mqdefault.jpg","https:\/\/i.ytimg.com\/vi\/CMS86eBVovQ\/hqdefault.jpg","https:\/\/i.ytimg.com\/vi\/CMS86eBVovQ\/sddefault.jpg","https:\/\/i.ytimg.com\/vi\/CMS86eBVovQ\/maxresdefault.jpg"],"uploadDate":"2021-06-21T19:46:11+00:00","duration":"PT14M50S","embedUrl":"https:\/\/www.youtube.com\/embed\/CMS86eBVovQ","publisher":{"@type":"Organization","@id":"https:\/\/www.youtube.com\/channel\/UCQ9WUXlSuLlbi5BLkgtEUEA#Organization","url":"https:\/\/www.youtube.com\/channel\/UCQ9WUXlSuLlbi5BLkgtEUEA","name":"Logan Allec","description":"Logan Allec is a CPA and the founder of Choice Tax Relief, which specializes in helping people with their IRS and state tax debt.","logo":{"url":"https:\/\/yt3.ggpht.com\/43_VKqrbO06RGMcxfdQbDXosrkVRq1yf5QgSQEiR4ILUGWV9fJtTh0o2ftYMYqVo6PwnEOPRdg=s800-c-k-c0x00ffffff-no-rj","width":800,"height":800,"@type":"ImageObject","@id":"https:\/\/www.youtube.com\/watch?v=CMS86eBVovQ#VideoObject_publisher_logo_ImageObject"}},"potentialAction":{"@type":"SeekToAction","@id":"https:\/\/www.youtube.com\/watch?v=CMS86eBVovQ#VideoObject_potentialAction","target":"https:\/\/www.youtube.com\/watch?v=CMS86eBVovQ&t={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"},"interactionStatistic":[[{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=CMS86eBVovQ#VideoObject_interactionStatistic_WatchAction","interactionType":{"@type":"WatchAction"},"userInteractionCount":2189}],{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=CMS86eBVovQ#VideoObject_interactionStatistic_LikeAction","interactionType":{"@type":"LikeAction"},"userInteractionCount":192}]},"about":["Real Estate"],"wordCount":1405,"articleBody":"When I was in high school, I read that mainstay\u00a0of American entrepreneurial lore\u00a0Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!\u00a0in which author Robert Kiyosaki urges the American middle class to disdain their safe, secure jobs with benefits and pursue entrepreneurship and investing in order to eventually escape the dastardly rat race. \u00a0?And since this book has inspired millions of people to follow their financial dreams, and since this entire website exists to promote the financial success of both its owner and its readers, I thought it prudent to share my thoughts on Kiyosaki’s magnum opus.Table of ContentsToggleThe GoodThe BadMy TakeWhen You Do Leave Your Job, Do So Strategically, Not Just Because You Read a Book.The GoodTo its credit, Rich Dad, Poor Dad\u00a0has some fine financial gold nuggets that should be taught in American schools and homes, but they simply aren’t, and Kiyosaki does a great job of pounding these home.Below are some great quotes from\u00a0Rich Dad, Poor Dad:Know the Difference Between an Asset and a Liability.You must know the difference between an asset and a liability, and buy assets. An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket.This is a real gem, and one that I wish everybody understood. When I see people my age bragging about their fancy cars and clothes on social media, I just want to shake my head. What\u00a0they should be bragging about are their assets, but sadly, very few of them have accumulated any.It’s OK to Make Mistakes.In school we learn that mistakes are bad, and we are punished for making them. Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk.The fear of failure is deeply embedded within our psyche. \u00a0As soon as we know what a mistake is, we fear making one!In ancient times, failure at a task could mean being cast out of your tribe, which was essentially a death sentence. \u00a0And humans today instinctively carry that anxiety with them.But it’s OK to make mistakes.This isn’t an excuse to be reckless, but it is an encouragement to think positively about your mistakes\u00a0\u2014 “what can I learn from my mistakes?”\u00a0\u2014 rather than negatively about them\u00a0\u2014 “I’m such a failure!”.Net Worth Is More Important Than Net Income.It’s not how much money you make. \u00a0It’s how much money you keep.Maximizing your income is merely\u00a0a means to an end, and that end is maximizing your net worth. \u00a0Your income is merely a handmaid of your net worth.Side note: I track my net worth using Personal Capital. \u00a0If you are not sure what net worth is, please read this article.So at the end of the day, yes, there is a lot of good stuff in Rich Dad, Poor Dad.And\u00a0I have listened to enough people far more successful than I am who took life-changing risks as a result of reading Rich Dad, Poor Dad, and they are in a much better place today than they would have been had they spent the next 30 years in a cubicle.Check out my video for full review of Rich Dad, Poor Dad BookThe BadBut for every millionaire who left the corporate world after reading Kiyosaki’s work, there are\u00a0dozens of people for whom Kiyosaki’s message led to a path of ruin.With no savings, plan, or viable product or service, they quit their jobs, thinking by doing that they would magically figure it all out and “escape\u00a0the rat race,” only to find out that they had no idea what they were doing.And I can’t help but think they were encouraged down this path by these not-so-great Rich Dad, Poor Dad quotes:It’s OK to Be Reckless When You’re Young.Rich dad\u00a0thought it best to go broke before 30. \u00a0You still have time to recover.Yuck.I couldn’t disagree with this statement more.It is extremely important to start building your assets as quickly as possible because your greatest advantage is time! \u00a0Come on, Robert!You Don’t Need Money to Make Money.The idea that ‘it takes money to make money’ is the thinking of financially unsophisticated people…Education and wisdom about money are important. Start early. Buy a book. Go to a seminar. Practice.The cold, hard truth is that unless you have incredible connections or are presented with some once-in-a-lifetime opportunity, you need at least\u00a0some money to make money.And I just love how he throws in “Buy a book” and “Go to a seminar,” which are conveniently enough the sources of his fortune.The Stuff You Learn in School Isn’t Important.Remember that anything important can’t really be learned in the classroom. It must be learned by taking action, making mistakes, and then correcting them. That’s when wisdom sets in.On the contrary, there is\u00a0some pretty important information that can be learned in a classroom.I find it a bit ironic that Robert surrounds himself with attorneys, accountants, and other professionals who learned their craft in a classroom, and yet he turns around and slams education like this.Also, like it or not, it’s by spending four years in a classroom, whether at a college, university, or trade school, that an 18-year-old with no real marketable job skills can transform into a 22-year-old who can demand a $60,000 or $100,000 or even $150,000 starting salary.And with that salary, he can dump money like crazy into paying down debt and investing in cash-flowing assets.My TakeI personally think the best route is a middle ground, which is what I am pursuing.Get your bachelor’s, get your master’s if your field requires it to progress (and be sure to refinance your student loans), and kick butt at what you do in order to maximize your active income while educating yourself on business as well as passive income sources, like stocks and real estate, investing wisely, and starting a business on the side.Dig Deeper: How 20-Something Me Bought a Fourplex in L.A. with Only $15k Out of PocketThe reality is that it’s a lot easier to set yourself up to fund your business and passive income sources making $200,000 a year, albeit at a slavish cubicle job, than making $20,000 a year at McDonald’s or \u2014 worse \u2014 making $0 a year at no job. But hey, at least you escaped the rat race!I’m actually quite happy to see that Kiyosaki himself is now advising this middle ground.If you’re familiar with Kiyosaki’s work, you know about his Cash Flow Quadrant\u00a0that features quite prominently in his early books.It is a quadrant with the letters “E”, “B”, “S”, and “I” in each of its corners. “E” stands for employee, “B” for business owner, “S” for self-employed, and “I” for investor.In Rich Dad, Poor Dad, Kiyosaki was big on poo-pooing the “E” and “S” quadrants, urging individuals “stuck” in those quadrants to pursue the “B” and “I” quadrants ASAP.But in later books, he actually recommends that individuals\u00a0not quit their day job immediately but rather go through all the quadrants and “keep your daytime job and start a part-time business” (Rich Dad’s Prophecy).Go figure.I personally think that he saw the damage that his initial messaging had on people who quit their jobs before finishing the last chapter of\u00a0Rich Dad, Poor Dad and\u00a0softened down his job- and education-abandoning message.Oh, and speaking of this point…When You Do Leave Your Job, Do So Strategically, Not Just Because You Read a Book.Before I quit my job, I made sure that I had these ducks in a row:Paid off as much debt as I could\u00a0while I still had a paycheck coming in every two weeksAccrued enough vacation days to get the maximum pay-out when I leftReceived my annual\u00a0401(k) match\u00a0from my employer because it vested at year-end.Completed as much continuing professional education for my CPA license on my company’s tab."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Passive Income","item":"https:\/\/moneydoneright.com\/passive-income\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Real Estate Investing","item":"https:\/\/moneydoneright.com\/passive-income\/\/real-estate-investing\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"Rich Dad, Poor Dad Book Summary and Review","item":"https:\/\/moneydoneright.com\/passive-income\/real-estate-investing\/rich-dad-poor-dad\/#breadcrumbitem"}]}]