Rich Dad Poor Dad Book Review


7.0 Starting Point

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You get what is mentioned on the cover page. Robert Kiyosaki narrated his success story from two contrasting world views: one from a rich entrepreneurial dad who asked Robert to take risk early in life; and another one from a poor (“conventional”) not so successful dad who valued highly a secured job.

Robert touched a wide range of topics. Below are some of my selections (most likely biased):  1. Passive income – let money work hard for you. In order to achieve financial freedom, everyone needs to start exploring alternative income sources early on. 2. Happiness is relative – when Robert went down to absolutely nothing with his wife, $50 was enough to bring heaven on earth. (Who can resist the temptation of a finger licking good Kentucky fried chicken!) I found reaching the bottom of absolutely nothing is a common trial many successful people went through. Yet the pure thought of it is beyond dreadful. 3. Job security is a fallacy – The system is created to catering to majority people, then by definition that is for the “normal”, the mass and the ordinary. It starts right from the education system, where people were trained with skills and the mentality to be employees or E class (as referred by Robert). Job security is a very fragile thing that if one founds himself without a job at their senior years, it would be too late to fix the problem.

Robert also talked about how tax code is actually favorable to entrepreneurs and how to legally reduce tax expenses. He also went against the accounting orthodox that primary residence is an asset. In his view, since the residence drains cash flow, it is a liability (which actually makes a lot of sense).

The book is largely based on his own experience so it is far from a universal approach to success. So, like many financial self help book, I read this book with quite a lot of salt. I am a believer that everyone needs to find his own path to fulfilment (money? sounds too cheap, no?). This book is a good start.

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