The book in one paragraph
Rich Dad Poor Dad was first published in 1997 by Robert Kiyosaki, co-written with Sharon Lechter. It contrasts two father figures from Kiyosaki's childhood in Hawaii. His "poor dad" was his own father: highly educated, a senior figure in Hawaii's education system, and a believer in good grades, a secure job and a paid-off house. His "rich dad" was the father of his best friend: a businessman without much formal education who built wealth by owning businesses and property. The book's argument is that the rich think about money differently: they buy things that produce income, use companies and tax rules to their advantage, and treat financial education as more important than a salary.
It became one of the best-selling personal finance books ever, with tens of millions of copies sold. It's also one of the most criticised, which we cover in our criticism guide.
Who the two dads are
- Poor dad worked hard, earned a good salary and still struggled with money. His advice: study hard, get a safe job with benefits, save, and avoid risk.
- Rich dad left school early, owned businesses and property, and taught the young Kiyosaki to make money work for him rather than the other way round.
The "rich dad" has never been publicly identified, and critics have questioned whether he existed as described or is a composite character. That doesn't change whether the ideas are useful, but it's worth knowing that the stories are told to make a point, not as verifiable case studies.
Lesson 1: The rich don't work for money
The book opens with rich dad paying the young Kiyosaki almost nothing to work in a shop, to teach him that a wage is a trap: fear (of not paying bills) and greed (for a bigger paycheque) keep most people working for money all their lives.
What it means in practice: treat your job as a way to fund and learn, not as your whole financial plan. Each pay rise should increase what you invest, not just what you spend.
The caveat: for most people, a stable income is the foundation that makes investing possible. The lesson works best as "don't rely only on a salary", not "a salary is bad".
Lesson 2: Why teach financial literacy?
This is the chapter behind the book's most quoted idea: an asset puts money in your pocket; a liability takes money out of it. The rich buy assets, the middle class buy liabilities they think are assets, and the poor have only expenses.
What it means in practice: look at each big purchase by its cash flow. A rental flat that earns more than it costs is an asset in Kiyosaki's sense. A car on finance is not.
The caveat: Kiyosaki's definition isn't the accounting one. We unpack the difference, and the famous "your house is not an asset" claim, in Assets vs Liabilities.
Lesson 3: Mind your own business
Your "business" here means your asset column, not your employer's business. Keep your day job, Kiyosaki says, but build a separate collection of income-producing assets alongside it: businesses that don't need you to run them, shares, bonds, property, royalties.
What it means in practice: pay yourself first into investments before lifestyle spending grows to absorb your income.
The caveat: this is one of the least controversial lessons. It's close to what mainstream advice calls "pay yourself first".
Lesson 4: The history of taxes and the power of corporations
Kiyosaki argues that employees are taxed first and spend what's left, while business owners spend first (on legitimate business expenses) and are taxed on what's left. He credits the rich with understanding tax law, using companies, and keeping more of what they earn.
What it means in practice: learn the tax rules where you live. Use tax-advantaged retirement and investment accounts, and get proper advice before setting up a company.
The caveat: tax rules vary hugely by country and change often. Some of the structures implied in the book are aggressive or don't apply outside the US. Treat this lesson as "understand tax", not as a set of instructions.
Lesson 5: The rich invent money
This lesson is about spotting opportunities others miss, and having the knowledge and confidence to act on them. Kiyosaki's examples involve buying property cheaply after a downturn and finding deals through financial know-how.
What it means in practice: the edge comes from knowledge and preparation, such as having cash ready when prices fall, not from luck.
The caveat: this is where the book is most criticised. Some of the deal examples rely on market conditions that rarely repeat, and "creative" deals can carry risks the book plays down.
Lesson 6: Work to learn, don't work for money
Rich dad tells Kiyosaki to choose jobs for the skills they teach, especially sales, communication, management and finance, rather than for pay or status. The highly specialised expert, he argues, is often worse off than the generalist who understands how businesses work.
What it means in practice: early in a career, a job that teaches you to sell, manage or understand money can be worth more than a slightly higher salary.
The caveat: this is strong advice for some people and risky for others. If you have dependants and no savings, the "learning" job still has to pay the bills.
So is the book worth reading?
Yes, as a book about mindset: it is good at changing how people think about salaries, assets and financial education, and that is why it still sells. It is weak as a manual: the specific tactics are thin, sometimes US-specific, and in places risky.
A sensible way to use it is to take the mindset from Rich Dad and the safety rules from Poor Dad. That combination is the idea this whole site is built on. See it applied to real decisions in our debates on investing and money and debt.
Sources
- Robert T. Kiyosaki with Sharon L. Lechter, Rich Dad Poor Dad (1997; 20th anniversary edition, 2017).
- Robert T. Kiyosaki, Rich Dad's Cashflow Quadrant (1998).
- John T. Reed's published critique of Kiyosaki's books, johntreed.com.