Rich Woman, Kim Kiyosaki | About | Rich Dad (2024)

FAQs

What is Rule #1 in Rich Dad Poor Dad? ›

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.

Rich Dad, Poor Dad has some good advice about investing in income-generating assets and avoiding unnecessary spending. The book is dismissive of investors who play it safe and build wealth through mutual funds and 401(k)s. You don't have to take huge risks to become financially independent.

Lesson 1: The Rich Don't Work for Money

“The poor and the middle class work for money. The rich have money work for them.” Life pushes everyone around. Some people figure out how to learn from being pushed around.

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.

2. The more you give, the more you receive.

Kiyosaki's 90/10 rule says this: 90% of people earn only 10% of the world's money. The secret to being part of the wealthy minority, he says, lies in positioning yourself to have low income and high expenses.

However, amidst his success, Kiyosaki has received much criticism for his financial advice, with some claims questioning the legality of his methodology. Cited as a “get rich quick” scheme, Kiyosaki has been investigated by CBC Canada and WTAE USA news channels.

Some of Kiyosaki's advice is downright contradictory. For example, Kiyosaki says poor people have a common bad habit called dipping into savings. He writes The rich know that savings are only used to create more money, not to pay bills. A few pages later, Kiyosaki writes Use assets to buy luxuries.

He believes that leveraging debt is a key driver of his wealth because of the tax advantages it provides. Kiyosaki goes on to critique the common financial advice of living debt-free, as popularized by financial expert Dave Ramsey, saying, “And my friend Dave Ramsey says 'live debt free. ' Well, you're an idiot.

Rule #1: You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know. It is rule number one. It is the only rule.

Can a 14 year old read Rich Dad Poor Dad? ›

This book is awesome for teens and the author has shared his personal experience when he was in school and a very practical guide. Must read this!

The three types of income are earned, passive, and portfolio. Poor people focus on earned income whereas rich people focus on passive and portfolio income. The two best ways to generate income are through real estate investing and through the stock market. Specialization is for people focused on earned income.

The love of money is the root of all evil." The lack of money is the root of all evil. Robert Kiyosaki, Rich Dad Poor Dad: What the Rich Teach Their Kids About Money - That the Poor and the Middle Class Do Not!