Review of Rich Dad Poor Dad and Applying the Rich Dad Principles


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review of rich dad poor dadRich Dad Poor Dad is a best selling financial education book by Robert Kiyosaki. This post is a comprehensive review of Rich Dad Poor Dad from the perspective of a young, budding entrepreneur making his way in the information age. Throughout Rich Dad Poor Dad Kiyosaki expressed the lessons he learned from having two dad’s. One “dad” was his mentor who was actually his best friends father. Robert’s “rich dad” was a successful entrepreneur and real estate investor and his “poor dad” was a successful educator in the state of Hawaii. This article will serve both as a compelling review of Rich Dad Poor Dad and also as a journal of how I’ve personally applied the teachings of Kiyosaki and Rich Dad Poor Dad in my own life and business to attain financial freedom. Click here to visit Richdad.com and learn more about Kiyosaki and his other resources.

I received a great deal of value from the simple concepts taught in Rich Dad Poor Dad. Many that I will explain in detail in this post. Probably the biggest thing I personally took from the book was that we all receive advice about money and living a happy and fulfilled life. The problem is that many of us receive this advice before we are old enough to know better and that we need to evaluate who this advice is coming from. What do we want out of life? And do the people who we get advice from have what we want? It would not make much sense to receive marriage advice from someone who has never been married, right? So what sense does it make to receive financial advice from people who are not good with money? However, these people are happy to pass their lack mentality and negative ideas about money and financially successful people on to their children and yours.

In Robert’s first book, “Cash Flow Quadrant”  he illustrates the 4 ways people earn money in western society.

review of rich dad poor dadThe idea, Kiosaki states is to transition from the left side of the quadrant, the “employee” and “self employed” quadrants to the right side or the “big business” or “Investor” side of the quadrant. This graph really illustrates the way people get paid in western society. The people on the left side of the quadrant work for money and other people while the people on the left side of the quadrant have money and people working for them. The people on the left side pay through the nose in taxes while the people on the right get significant tax breaks. As an employee or self employed person when you stop working you stop making money. This is a problem. And these people often only get paid from one source of income. Another problem the average employee or self employed person faces because if something happens to that one income stram that can be financially devastating.

Review of Rich Dad Poor Dad – Financial Advice

We all receive advice about money from parents, teachers, religious leaders, other family members, friends and authority figures. The problem with this is that many of us receive financial information and advice from people who were not very good with money. They are happy to pass their beliefs on to you. That is why, for many of us, when we decide to become financially successful it requires a great deal of reprogramming ourselves.

Robert explains that there are different sets of advice given to rich, poor and middle class people. The common advice given to the poor is that “the state” will provide through government programs like welfare and social security. So even if you fail with money you are pretty much ok. This is becoming less and less true since the government is pretty much broke. Poor and middle class people alike are taught that the path to freedom is go to school, get a good job and save for retirement with a diversified portfolio of stocks and mutual funds. Middle class people are taught to invest but they receive different investment advice than the rich. Rich people typically invest to win while middle class people typically invest, “not to lose.” They play it safe since their risk factor is usually low.

I think its safe to say that the advice many of us receive of “go to school, get a good job, live below your means and save for retirement” is failing people left and right. Yet millions are still blindly following this advice expecting things to magically go back to where they were in the 1980’s or 90’s. This is one of the major points Robert Illustrates in Rich Dad Poor Dad. His poor dad followed the traditional model. He had a masters degree. He had a good job as an educator. Yet he died in poverty. His rich dad taught him to invest in cash-flow assets such as real estate. They would play Monopoly when Robert and his best friends were children so they could learn about investing in real estate with little green houses and little red hotels. He taught him to take risks and that the path to freedom is the path of the investor and entrepreneur.

Review of Rich Dad Poor Dad – Personal Experience

Rich Dad Popr Dad was one of the first books I was exposed to when I started out as an entrepreneur almost 3 years ago. I started taking financial education seriously and it really opened my eyes to some of the harsh realities we face as a society and how the traditional model is failing millions of good people. The gap between the rich and the poor in America and around the world is shrinking. And we have the power to choose which side we want to be on weather we realize it or not.

I’ve also learned in my own journey of financial education and reading Kayosaki and other financial authors that there is basically two types of education. Traditional education and self education. Traditional education like high school and college and traditional institutions of learning teach you how to get a job. Its a system designed for the industrial age. However, we are no longer in the industrial age. We are in the information age or the digital age. The other type of education is self education. And while a traditional education can make you a living, a self education can make you a fortune.

Review of Rich Dad Poor Dad – Which path is right for you?

You cannot learn about investing, selling or being an entrepreneur through any type of traditional means. This knowledge only comes to you if you seek it. Read books from successful financial authors like Kiyosaki and others. Find mentors who have what you want and model them. Work on expanding your means rather than just living below your means. Determine which financial vehicle you want to pursue. Do you want to learn how to invest in real estate or the stock market? Do you want to learn sales and marketing?

The financial path I’ve chosen to pursue is sales and marketing. I have multi-millionaire mentors who have very successful online businesses in both affiliate marketing and network marketing. Robert also champions network marketing as a path for ordinary people to receive real world business training and financial success. Average people can get started in a network maketing company for a few hundred dollars and have the potential to earn millions. It is a very team environment and you have others who are financially tied to your success. I believe it truly is the business of the 21st century and its a way to surround yourself with positive successful people who are not afraid to pursue more out of life. In Robert’s book that he co-authored with Donald Trump, “Why We Want You to Be Rich” Robert explains that you should find a company not so much based on the product but rather the training program associated with the company.

Regardless of weather you are currently invoved in network marketing or you weighing your options to create financial freedom in your life, I can help. Click here to access free training on how to become a proficient online marketer and simultaneously combine affiliate marketing and network marketing for both upfront income and long term cash flow in a very team oriented entrepreneurial environment.

Thank you for taking time to read this review of Rich Dad Poor Dad. I hope you will get as much value from reading it and other Kiyosaki books as I have. If you took something of value from this post please share it with your social media audience via the above links.