Rich Father, Poor Father is a 1997 book written by Robert T Kiyosaki, shared with Sharon Lechter. He argues for the importance of family financial education, financial independence, building wealth by investing in assets, starting and owning businesses, and increasing financial intelligence to improve business skills.

It is a well-written motivational book that could help many people look at their expenses differently and learn how to invest the money they earn.

About the book

“Rich Father, Poor Father” is written in the style of a set of parables, obviously based on Kiyosaki’s life.
The “rich father” is the father of his friend, who has amassed wealth through entrepreneurship and investment, while the “poor father” is claimed to be Kiyosaki’s own father, whom he says has worked hard all his life, but has not never achieved financial independence.
There is no evidence that the rich father, the man who gave Kiyosaki all his advice on how to get rich, ever existed.

Who is Robert Kiyosaki

Robert T Kiyosaki is the best-selling international writer, but also an investor and entrepreneur specializing in mining and real estate, as well as an educator.
He has published more than 12 books, including the Money Quadrant and the Investment Guide, in which he focuses on financial literacy.
Robert has changed the way tens of millions of people around the world think about money and investing and has become a global advocate for education and financial freedom.

The success of Rich Father, Poor Father

“Rich Father, Poor Father” has been translated into 46 languages ​​and is available in 97 countries and has sold over 26 million copies worldwide.
The book was published in 1997 and has been in the top of the famous New York Times for almost six years. Also, since 2000, it has dominated the bestseller lists in Asia, Australia, South America, Mexico, South Africa and Europe.

Book structure The book

is divided into two parts. The first part is about coaching: psychology, thinking and terminology. Kiyosaki tells his story, using the example of “poor father” – a father with a higher education, and “rich father” – the father of a friend, an entrepreneur.
In the coaching part there are a lot of useful, interesting and instructive tips, starting from understanding the terms: active and passive. Kiyosaki has their own definition:
“An asset is what brings money into your pocket. A liability is what takes money out of your pocket. ”
The second part is that those who do not take risks do not drink champagne. Quoting Kiyosaki:
“I do not advise anyone to do what I do. Examples are just examples. If the opportunity is too complex and I can’t understand the investment mechanism in depth, then I refuse it. In my opinion, for financial prosperity, elementary math and common sense are enough. “

Summary and main ideas

This story is about a man who was raised by 2 fathers: biological and spiritual. Robert’s father was a scientist who respected the views of socialism, but acted like a poor father.
The rich father was named by the author the father of his childhood friend, who taught boys from an early age to earn money and develop financial intelligence. The fusion of the two points of view of the fathers raised in the author a major businessman who shared his secrets in the book.
First, Robert Kiyosaki explains to the reader what the main difference is between the poor and the rich. In his opinion,
“The poor and the middle class work for money. The rich make money to operate independently. “
To understand exactly how money should work, you need to divide your spending into assets and liabilities and clearly understand the difference between them. Liabilities are payments for a mortgage loan, a consumer loan, credit cards – that is, expenses that do not bring you additional income. The assets are the ones that bring you money in your “pocket”.
For example: real estate, which are used as a business tool, intellectual property, etc. The cash flow of a wealthy person is as follows: expenses go to the asset column, offering and creating additional income.
Representatives of the middle class have to constantly struggle with financial difficulties, because the main source of income is the salary. As wages rise, so do taxes.
Such people consider that their main asset is the house, but, according to the author, this opinion is wrong, because it is better to spend money on investments that generate income, than to buy a house. Robert does not say that buying a home is not necessary at all, but he wants people not to put too much emphasis on their property.
The author also draws attention to the fact that it is important not how much money you earn, but how much you can save. This is one of the most important aspects of financial literacy.
For example, people who have received a huge inheritance from a distant relative do not always become rich because they are accustomed to high expenses.
The paper also writes about the most important secret of the rich – corporations. These are the ones that help him not to give large sums of money to the state in the form of taxes.
Corporate owners earn money first, then spend it and pay taxes only at the end, because personal expenses are recorded as corporate expenses. At the same time, people who work for corporations earn money, pay taxes, and only then spend money on themselves.
Employees receive a salary, collect taxes and try to make a living from what is left.
Robert tells the reader that the majority of the population who pay taxes to the state are the poor and the middle class, and the largest amount is paid by teachers, doctors, and his poor father. In any case, people who know how to earn financial sources will always find a legal way not to pay extra to the state.
The bestseller also mentions the 5 main reasons that prevent people from creating large cash flows: fear, laziness, lack of faith in strengths, bad habits and arrogance.
The author of the book asks us to see the opportunities around us and to consciously assume the deliberate risks. Some people suffer more from the loss of money than from the joy of wealth, and this fear of loss distinguishes the poor from the rich.
If you see that your work does not bring you pleasure or good money, then you should not be afraid to decide to leave and do something completely new.
“Changing jobs cannot be justified in terms of material benefits, but in the end, the skills you gain will bring you a lot more money.”
After all, the rich are not always the smartest, but the bravest.
Kiyosaki also emphasizes that you need to gain experience in order to have financial information, advising young people not to choose a job based on salary, but a place where they can learn something.

It is best to work in completely different fields – the narrower your specialization, the higher the risk of working for a small salary. Be open to new ideas, because “gold is everywhere, not just all people have learned to observe it.”
Thus, Kiyosaki asks you to invest in yourself, in your knowledge: “The strongest asset we have is our mind, and the favorable areas are – Accounting, Investment, Market Understanding, Legislation.”

Worth reading this bestseller

There are divided opinions regarding Kiyosaki’s bestseller and only you can decide whether it is worth reading or not.
Critic John T. Reed said: “Rich Dad, Poor Dad contains wrong advice, a lot of bad advice, some dangerous advice, and virtually no good advice. It contains many errors and many extremely unlikely reports of events that would have taken place. ”
Another review by Rob Walker states, “Rich Dad, Poor Dad is one of the coolest financial consulting books I’ve ever read.”

Where you can find the book

The work can be found in bookstores, including online, at a price of 22 lei. You can also buy it second hand, but with no less than 15 lei.
For those who read online, the paper is available audio in Romanian: