A quote from Rich Dad Poor Dad (2024)

FAQs

What is the message of the rich dad and the poor dad? ›

The most important lesson from Rich Dad, Poor Dad is that financial literacy is crucial to financial success. He argues that school education fails in this regard and needs to effectively teach financial literacy, including the basics of financial management and wealth building.

The size of your success is measured by the strength of your desire; the size of your dream; and how you handle disappointment along the way.

Rule 1: The poor work for money. The rich put their money to work. Do you 'live to work, or work to live? ' This is one of the basic concepts 'Rich Dad, Poor Dad' sheds light on.

Robert Kiyosaki of 'Rich Dad Poor Dad' Critiques Schooling: 'I Found Out By Cheating, I Was Preparing Myself To Do Well In Business' — Adds That School Teaches People How To Just Be Employees Not Entrepreneurs.

The titular "rich dad" is his best friend's father who accumulated wealth due to entrepreneurship and savvy investing, while the "poor dad" is claimed to be Kiyosaki's own father who he says worked hard all his life but never obtained financial security.

'Rich Dad, Poor Dad' was a catalyst. It didn't just influence my finances; it rippled through my life. It's like you step into a river, and the current gently carries you along, revealing new sights and experiences. I restructured my financial portfolio, diversified my investments, and even changed my career path.

The book is based on Kiyosaki's personal experiences with his two fathers - his biological father (poor dad) and his best friend's father (rich dad). The book provides a guide to financial literacy and teaches readers about the importance of financial education, creating wealth, and achieving financial freedom.

Poor dad said he couldn't invest because he had no money. Rich dad said “invest your time when you have no money.” In most circ*mstances, people have no time to invest.

Kiyosaki's philosophy about money is simple: You don't need to have a high income to become rich. Instead, he says, the key to building wealth lies in two things: Building a portfolio of passive income-generating assets.

What is the main point of lesson 4 Rich Dad Poor Dad? ›

In lesson 4 of “Rich Dad Poor Dad,” the author discusses the concept of “work to learn, not to earn.” He argues that many people focus too much on earning a high salary and not enough on learning valuable skills and gaining knowledge.

The poor and the middle class work for money. The rich have money work for them. There is always risk, so learn to manage risk instead of avoiding it. Going into our fear and confronting our greed, our weaknesses, our neediness is the way out.

Rule No. 3: Be Aware of Tax Liabilities and Focus More on Passive Income. Portfolio income, also known as capital gains, is one of the key conventional avenues for building wealth, but profits from these kinds of investments are taxable.

It categorizes people into four quadrants - Employee (E), Self-Employed (S), Business Owner (B), and Investor (I). Traditional financial practices often focus on the E and S quadrants, encouraging people to seek employment or self-employment for income.

Then once they get a paycheck, greed gets them salivating over all the things money can buy. They spend the money thinking it can buy joy, but the joy is short-lived. Soon they have money problems, and fear drives back in. This cycles endlessly, even as their paycheck increases – this is the Rat Race.