The 'Secret' Lessons of the Rich, Revealed
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Fast Facts
Book type:
Self-help personal finance
Ideal for:
Those looking to generate passive income
Cost:
$11.51 for paperback on Amazon
Translations:
Available in 51 languages
Additional products:
Offers financial coaching
One of the most popular personal finance books, "Rich Dad Poor Dad" was initially published in 1997. It focuses on revealing the "secrets" about what the rich teach their kids about money that middle and lower-class families are not privy to. This popular finance book made a splash when it was first published and remains a top resource today, though its subject matter is a bit divisive.
Such an outrageous bestseller, "Rich Dad, Poor Dad" has spawned off into investing classes, and its author, Robert Kiyosaki, leads several personal finance shows and events.
"Rich Dad, Poor Dad" can teach you quite a bit about growing your cash reserves — if you’re willing to put in the work and do some extra research on your own. Here’s everything you need to know about "Rich Dad, Poor Dad," including its main benefits, drawbacks, and alternatives to consider.
In this article
What is 'Rich Dad, Poor Dad?'
"Rich Dad, Poor Dad" began as a book by Robert Kiyosaki in 1997. It focuses on the story of two dads in the author’s life, his own father and a friend’s richer father, who taught him the basic fundamentals of his financial education.
In it, Kiyosaki explores myths the middle class believes will make them rich and help them towards financial freedom. It focuses on working towards passive income to grow your assets, a key investment strategy rich people often employ.
This book has sold over 32 million copies, published in more than 51 languages, and distributed in over 109 countries. It's been on the New York Times bestseller list for more than six years and has even been endorsed by Oprah Winfrey.
Its success also led to many seminars by Kiyosaki for readers looking for more advice.
Related: Best Personal Finance Books of 2023
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How does 'Rich Dad, Poor Dad' work?
There are a few key tenants of "Rich Dad, Poor Dad" and nine chapters. The chapters include:
- Chapter 1 - The Rich Don’t Work for Money
- Chapter 2 - Why Teach Financial Literacy
- Chapter 3 - Mind Your Own Business
- Chapter 4 - The History of Taxes and the Power of Corporations
- Chapter 5 - The Rich Invent Money
- Chapter 6 - Work to Learn — Don’t Work for Money
- Chapter 7 - Overcoming Obstacles
- Chapter 8 - Getting Started
- Chapter 9 - Still Want More? Here Are Some to Dos
There are several studies and activities throughout the book, as well. Overall, the book focuses on the idea that the rich invest their money in assets first and then use excess money to purchase luxury items. Concentrating on buying assets rather than tangible things is a major tenant. These assets include real estate, business assets, and paper assets, such as mutual funds and other stock market assets.
Real estate investing is one of the key examples of financial independence and is used throughout the book to show how owning assets, like rental properties, can lead to passive income streams to help grow your money reserve. Becoming a business owner and diversifying your investments are also key tenants.
Perhaps the most controversial idea in this motivational book is that working hard for money often doesn’t lead to financial rewards. While you may be able to own a house and raise a family, you’ll likely be indebted to your biweekly paychecks. If you seek financial independence, however, you’ll want to be able to grow your assets (and your personal property does not count as an asset in this book) to expand your wealth potential.
Related: Assets That Appreciate in Value
Features of 'Rich Dad, Poor Dad'
Investing classes
A variety of free training courses are available on the website "richdad.com" focused on wealth. From real estate to stock to personal finance to cryptocurrency. But the catch (there's always a catch) is, that you have to register, and both in the classes and subsequent follow-up emails, you will be bombarded with sales pitches for more products that cost money.
For those inspired by the messages and training provided by Kiyosaki, it may lead to spending money and finding purpose. For others, the over-the-top sales can be a bit too much.
Personal finance shows
Kiyosaki hosts several online seminars and shows, which can be found on richdad.com. You can listen to the "Rich Dad, Poor Dad Show," where Kiyosaki brings in guests to discuss ways to invest, entrepreneurship, and more.
Additional programs include "Millennial Money," "Rich Dad CryptoVerse," Rich Dad Stockcast," and exclusive online events. Kiyosaki's most recent, "Knowledge is Power," aired his action plan for today's economy.
Financial coaching
Real estate, stock trading, and personal finance coaching for beginners, experienced, and advanced are also available. These online courses often feature mastermind sessions with blueprints and bonuses. These are touted as being $2,000 to $8,000 in value but are often slashed as a special deal with more "affordable" coaching listed for hundreds rather than thousands. (Whether they ever actually change the "sale" remains to be seen.) Success stories are available to review, highlighting those who did well in the programs.
Cashflow Clubs
The CASHFLOW Game is literally a board game aimed at teaching investors how to grow their investments, so the cash flow eventually outperforms living expenses. Kiyosaki says the original game allowed players to become teachers, and everyone could learn from each other using play money, not real money.
Readers loved the game so much, that they began to create CASHFLOW Clubs to play together in cities around the globe.
While Kiyosaki created the game, he had no idea the clubs were formed until a journalist told him. He loves the concept and promotes joining, but gives the same warning we do: The game is meant to teach members how to grow financially. If someone attempts to sell you a service or tool, be wary and make sure it isn't a scam, particularly if members want to turn the game into real money pooling as a means of crowdfunding. Be cautious.
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How much does 'Rich Dad, Poor Dad' cost?
While courses can run into the thousands, you can still buy "Rich Dad, Poor Dad" on Amazon for $11.51 for a paperback edition, $7.34 for mass market paperback, a Kindle ebook for $6.82, or as an audible book as part of your Amazon subscription.
This book is also available in other formats and from Walmart and Barnes and Noble, but will typically cost under $20.
Who is 'Rich Dad, Poor Dad' best for?
Anyone looking for passive income generators
If you’re tired of not earning enough and serious about growing your income, this book may help generate new ideas on how to get started. It offers great advice on diving into a new business, planning and preparing, taking steps, and key examples in the real estate industry.
Those interested in real estate investing
Although this isn’t technically a real estate investment guide, it’s rich with examples of how to operate successful rental businesses and invest in real estate in general. If you’re looking for financial advice, or tips, or simply want to learn about someone else’s experience in the market, you might find this book helpful.
Young adults expanding their financial literacy
This book aims to teach readers how money is made by promising to make you more financially intelligent, especially since most education systems do not teach financial basics. Even if you aren’t looking to become a business owner, you’ll likely gain financial insights from this book to learn how to make your money work.
Inspiring entrepreneurs
Since this book focuses on growing assets, with one of its key takeaways noting you should invest in your own business ventures, it’s a great toolkit for those entering entrepreneurship. It also explains why starting your own business can sometimes be less risky than continuing to work your 9-to-5.
Who shouldn’t use 'Rich Dad, Poor Dad?'
Beginners looking for actionable next steps
While this book is flush with examples, it can be hard for novices to know what to do after digesting its contents. It’s a solid self-help book for personal finance but doesn’t quite deliver on what aspiring readers should do specifically to get started with this strategy. The courses may offer those steps but at a price.
Related: 8 Millionaire Habits to Adopt Today
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Pros and cons
Pros
- Offers a guide map to financial independence. While Kiyosaki doesn’t offer a paint-by-numbers approach to building wealth, his ideas inspire readers ready to jump into his notion of investing in assets. If you have a creative mind and are relatively well-versed in the economy, you’ll be able to follow the author’s map for financial success.
- The personal narrative is compelling. This book tells the author’s tale of what he’s learned and how he’s applied this knowledge to grow his wealth. His point of view is strong and his examples are easy to follow since they’re pulled from his real life.
Cons
- It was written 25 years ago. I’ll admit that the basic theories in this book still remain true, but how you can invest and make money passively has changed tremendously in the digital age. There are now faster ways for you to create more revenue streams than ever before that won’t require you to invest directly in real estate or a business.
- It’s insensitive at times. We can’t all invest and risk losing our money. Those with families, commitments, and financial liabilities may need to take less risky approaches, which this book may deem as a waste of time. While I like that it explains that the rich don’t necessarily work hard to gain wealth, it also seems to imply that working hard is useless — when it can actually be a characteristic that leads to innovation, growth, and success. It also criticizes going to college and gaining an education — and while his focus is on the steep cost of funding this venture, condemning the actual act does not often go over well with readers.
'Rich Dad, Poor Dad' competitors
'I Will Teach You to be Rich,' by Ramit Sethi
What I like about "I Will Teach You to be Rich" is that its approach is not the same basic formula you’ll get from most wealth-building books. Sethi focuses on how to build your rich life — a life that looks vastly different depending on your goals, values, and stage of life. Rather than shaming poor people, as some financial books tend to do, this book encourages you to envision your “richest” life. And the word rich does not necessarily equate to monetary wealth.
That said, there are still actionable tips for becoming debt-free, focusing on where and how to invest your money. It also doesn’t shame you for the way you spend your money and instead encourages you to build a plan and create money rules shaped around what you enjoy spending your hard-earned dollars on.
Like "Rich Dad, Poor Dad," it can ultimately change the way you think about money and financial freedom — but the mindset approach will likely appeal to more readers and is much more applicable in the modern world.
'Think and Grow Rich,' by Napolean Hill
This personal finance book is similar to "Rich Dad, Poor Dad" because it focuses on strategies for changing your mindset about wealth. Originally published in the 1930s (yes, you read that right) "Think and Grow Rich" contains advice that’s still applicable today, mainly as the economy leans toward a potential recession.
Hill focuses on "secrets" that the rich have passed on to him by Andrew Carnegie. And Hill went on to become successful in his own right through these methods.
While the actual financial strategies are nothing new to seasoned investors and financial junkies, psychological advice is the most helpful. Changing the way you think about money and wealth and planning, setting goals, and moving toward them are key themes throughout this book.
FAQs
Is 'Rich Dad, Poor Dad' a Self-Help Book?
"Rich Dad, Poor Dad" can be viewed as a financial self-help book. It offers personal finance advice and tips on how to shift your mindset to think more like those who already have wealth. It’s designed to help improve your individual life by making building wealth more accessible and thus could be classified as self-help.
Who are the two dads in 'Rich Dad, Poor Dad?'
In Kiyosaki’s book, the “rich dad” refers to a friend’s father who became rich by investing and becoming an entrepreneur. The “poor dad” refers to Kiyosaki’s biological father who did not amass wealth, but rather focused on working hard all of his life. That noted, Kiyosaki’s real father was actually upper middle class and had a Ph.D. The author's financial lessons from both of these role models are imparted throughout the book and help transition readers between different chapters and teachings.
What is John T. Reed’s analysis of 'Rich Dad, Poor Dad?'
John T. Reed has heavily criticized this book for its risky and poor financial advice, such as focusing on investing and not providing a clear path forward for readers. Reed has written his own investment strategy and personal finance books.
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The bottom line
"Rich Dad, Poor Dad" is a highly controversial personal finance book focusing on investing your money in assets to get rich. While investing is always risky, this book primarily lacks how to determine what makes a smart investment. Because of this, its advice can be dangerous or simply unhelpful to many readers. But, overall, its theories are interesting and will surely plant seeds of inspiration for many aspiring entrepreneurs.
That said, other, more modern personal finance books offer a better education in financial literacy, aren’t quite as demeaning towards hard work and education, and do not define the concept of wealth so rigidly.
Still, if you’re interested in earning passive income, this book can be helpful — but I wouldn’t recommend it as your only resource.
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Writer
Courtney Johnston is a freelance writer, specializing in finance, travel, and health. She has written for The Chicago Tribune, Benzinga, BestReviews, Mashvisor, Fundera, MoneyGeek, and The Culture Trip. She also teaches writing instruction at the University of Indianapolis. Courtney currently resides in Indianapolis.
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