Rich Dad, Poor Dad by Robert Kiyosaki is one of the most renowned personal finance books of the past hundred years. Here’s my summary of the book and its key lessons.
You can buy Rich Dad, Poor Dad on Amazon here.
Rich Dad, Poor Dad: My Top 5 Lessons
- When you want to buy something, make multiple lowball offers to several sellers. Someone will take you up on one of them.
- The path to getting rich is buying income-producing assets.
- The rich recognize and capitalize on opportunities when they arise. They do not wait.
- Most people aren’t playing to win. They’re playing not to lose. But the rich play to win.
- When someone has something you want, buy them lunch and ask them how they got it.
Rich Dad, Poor Dad: 50+ More Lessons
People who avoid failure also avoid success.
It’s best to go broke before you’re 30. Then you still have time to recover.
Rich people have diverse experiences and learn about many diverse topics. Poor people learn a lot about just a few things.
Unless someone is used to changing, it can be hard for them to change.
McDonald’s thrives not because it’s great at making hamburgers, but because it’s great at building systems.
The world is filled with talented poor people. They will remain poor for as long as they don’t understand money.
You can be smart, but if you have a poor person’s mindset, you’re toastLife doesn’t teach with lectures. It teaches by pushing us around.
Don’t believe others are the problem. Believe you are the problem, because you can always change yourself.
The poor work for money. The rich have money work for them.
It’s not how much money you make. It’s how much money you keep that matters.
If you want to be rich, you need to be financially literate.
Assets put money in your pocket. Liabilities take money out of your pocket.
The poor respond by working harder, never asking themselves if what they’re working on makes sense.
The poor stay poor because their taxes and expenses increase with their wages. Without having revenue-generating assets, they can never get ahead.
The key to wealth: as your income increases, buy more revenue-generating assets.
Wealth is the number of days into the future you can survive with your current financial setup.
Wealth is the luxury to take risks.A business that requires you to run it is not an asset – it’s a job.
The rich buy luxuries last. The poor buy luxuries first.
Income taxes were at first only levied against the rich, which is why the masses voted them in. Then they became levied against everyone, and take the biggest toll on the poor.
Corporations are advantageous because they allow you to pay your expenses with pre-tax dollars – whatever your marginal income tax rate is, you get that discount on everything that you buy.If your tax rate is 33%, every dollar you earn from January to April goes to the government, not to you.
The corporation is the biggest secret of the rich – the poor are afraid of corporations, but the rich embrace them.
The #1 thing that holds us back is a lack of self-confidence.
It is not the smart that get ahead, but the bold.
Many people wait for the right opportunity to come their way, but can’t capitalize because they don’t have enough money to act on it.
The wealthy recognize and seize opportunities when they arise. They do not wait.
Opportunities come in different flavors every day of your life – they’re always there, but they’re never the same as yesterday.
To create wealth, you need to be able to recognize opportunities in all different areas.
Wealth is a function of recognizing and capitalizing on opportunities.
There are 5 reasons for not having a healthy asset column: Fear, Cynicism, Laziness, Bad Habits, Arrogance.
The only people who have never lost money are poor people. All rich people have lost money.
Losing is the precursor to winning in all areas of life.
Most people aren’t playing to win. They’re playing not to lose.
To become rich, you should focus your investments, not balance them.
It’s not a lack of knowledge that keeps people from making sound investments. It’s an excess of fear and doubt.
Don’t tell yourself you can’t afford it. Ask yourself how you can afford it.
Smart investors catch waves before they are popular – they don’t jump onto trends that are already mainstream.
You become what you study, so be careful what you spend your time thinking about.
Working hard for your money is a caveman way of living.
People without discipline become agents of those who do.
Pay yourself first even if you don’t have enough – the external pressure from debt collectors will force you to get creative and find ways to generate more income.
Your assets (your savings) must be vehemently defended from your desire to dip into them to pay for liabilities.
Rich people hire people who are better than them in an area and pay them well.
What causes people to blow their money is not having the self discipline to keep it.
When you are short of something (money, love, friendship, a smile), give it away and it will come back to you tenfold.
Your world is a mirror of your self.
If you want to learn more, teach. You’ll be amazed at the number of lessons you learn and distinctions you gain.
If you take your income and put it into expenses, you will be poor. If you take your income and put it into liabilities, you will be middle class. If you take your income and put it into assets, you will be rich.
Your profession is how you work for money. Your business is how your money works for you.
The way to get rich is to mind your own business by owning assets, otherwise you’re working for your employer (income from a job), the government (taxes on that employment income), and the bank (mortgage on your house in your liabilities).
When someone has done what you want to do, buy them lunch and ask them questions about it.
When you want to buy something, make a lot of lowball offers. Someone will take you up on one of them.
Profit is made when you buy, not when you sell.