+ Released over 15 years ago, we look at if Robert Kiyosaki’s Rich Dad Poor Dad is still relevant
Finally, we come to tackling one of the big boys. In personal development and wealth generating circles the two books that everyone has to read are “Think and Grow Rich” by Napoleon Hill and “Rich Dad Poor Dad” by Robert Kiyosaki. So as part of this journey I’m on, I had to read it.
Robert Kiyosaki frames the book like a novel, and tells the tale of him, his best friend Mike, and his experience growing up with two “dads” (although not in the modern sense). This ongoing narrative is engaging and makes the book eminently more readable, there are characters, conflict, and drama. Using the narrative Kiyosaki injects wealth generating parables into the reader’s brains.
The “Rich Dad” parables
The titular “Rich Dad” is Mike’s father, and the “Poor Dad” is Kiyosaki’s father. Both, he says, taught him a lot but the majority is focused on why his “Poor Dad” never became wealthy, despite his education, drive, and skill. The book has one main lesson to learn and it’s this:
Focus on investing in things that generate wealth (assets), and don’t buy things that cost you money (liabilities).
When you get a good job, people tend to buy a house, a nice car, and a massive TV. But these things do not generate wealth, you’ll spend tens of thousands of pounds on maintaining your house, repaying your car loan, and sit around watching your TV (which you’ll want to replace in five years anyway). This situation is what Kiyosaki calls “the middle class”, and is advice that the majority of people should know.
On the other hand…
Despite being a great read I did have some problems with the book. My first issue was with Kiyosaki’s position on tax, he seems to think that less taxation on corporations and the wealthy results in a stronger economy. Politically this feels a bit… off considering the massive income disparity between the wealthy and poor in the Western world, and that (in the UK at least) taxes are used to combat that.
My second issue with the book is that despite the great advice he gives, Kiyosaki doesn’t provide many examples of what kinds of assets people should be investing in, he simply says that you should be buying more of them.
Verdict: A great starting point, borrow it, reflect on it and look for something with more depth.
Want updates straight to your inbox? Join our mailing list (it’s on the right!)
Our free Financial Freedom Coaching group has hit over 1,000 members! Head over there for daily motivational advice, entrepreneur tips, and access to some of the UK’s best business minds.
If you found this article useful, be sure to share this article using the buttons on the side.