A review on Robert T. Kiyosaki's book Rich Dad Poor Dad for Prof Ed book review Developmental Learning

1. A Book Review on
“Rich Dad Poor Dad”
By Robert T. Kiyosaki
KRISTOFFERSON C. SOLAMIN
PILGRIM CHRISTIAN COLLEGE
PROFESSIONAL EDUCATION
SEPTEMBER 27, 2015

2. The Author
The “Rich Dad Poor Dad” series was written by author Robert T. Kiyosaki, born in Hawaii, a
Japanese-American businessman and financial literacy advocate. His books were centered on the idea
of financial freedom and financial success through investing, real estate, owning a business rather be
an employee. Robert T. Kiyosaki proposed that owning high value assets that produce cash flow and
generate passive income, to improve one’s finance status, he also suggests on financial literacy to
increase one’s financial intelligence to attain these financial goals.
His success on the “Rich Dad Poor Dad” book series generated at least 26 million copies in 2006.
He founded Cashflow Technologies which marketed the “Rich Dad Poor Dad” book series and other
brands associated with the name.
The Book
The book “Rich Dad Poor Dad” was about two dads that the author Robert Kiyosaki,
consistently look upon into when the author needed advice. These two dads very much influenced
major decisions that the author made in his lifetime. Through out the book, the comparison between
the rich dad and the poor dad was consistent; they were compared based on life changing decisions,
financial practices, principles, and attitudes towards acquiring wealth and managing the business of
money.
Chapter 1
The story starts off with the author, Robert T. Kiyosaki, and his childhood friend, Mike. Mike was his
childhood friend and his father was the “Rich Dad” and the author’s was the “Poor Dad”. It was early in
their childhood that the two boys were taught how to work for money. Mike’s father, the Rich Dad,
hired Mike and Robert to work under Him on his grocery store but for more than way below the actual
pay. They were taught the value of hard labor, low income and long hours of work. The two boys were
at their young age, wanted more than the income substantiated by working on Mike’s father’s grocery
store. They felt the lessons of self worth and valuing the self. It was here that the first lesson in the
book was stressed “work for your money” and get out of the “RAT RACE”. It simply proposes that
instead of working for the day to earn a living, it implies that you need to make people work for you
and make a living.
Chapter 2
Thought; “the only thing that life does is push you around”, the chapter talks about taking risks. Since
most people are taught to save and not take unnecessary risks, the individual person generally, works
for the money. The author implicates that the one of his life lessons was that “THE RICH DO NOT WORK
FOR THEIR MONEY”. The person individual failed to see this notion relevant because every person
works for money and security. While the rich take risks for their money to work for them, the common
individual works for money, the person individual failed to take risks that are presently unnecessary,
they are caved-in in their comfort zones that the future they see is not opportunities but failure to
understand complicities of life because of fear to take risks.

3. Chapter 3
Chapter 3 discusses how Mike and Robert have gone as young adults on their path as career driven
individuals and have been quite success in their fields. Mike has inherited the family business and has
managed it and grown the family business much like his father, the Rich Dad before him did. Robert
has an insightful career and now has interests in investing his retirement money. The chapter sums it
up that once you have money, it is best that you need to be smart with your money. The author
emphasizes on building a strong ground in dealing with investment, the difference between asset and
liabilities, and how to control your assets to generate income.
This chapter also puts emphasis on financial independence, the essence of enjoying your money. This
chapter of the book stresses the importance of acquiring assets as passive income to generate cash
flow that will not put stress on liabilities or debts. Keeping the liabilities at bay while building assets, to
build up cash flow and minimizing the costs of keeping these assets without depleting your assets,
specifically money.
Chapter 4
The chapter discusses the concept of investing on real estate, and stocks. The author also stresses the
importance of self-sufficiency in handling one’s finances. The author discussed in this chapter the
ability and the skill needed to be financially independent. Self-sufficiency is the key to success. An
individual should strive to take calculated risks in achieving financial literacy to increase one’s intellect
on their finances. One way of building and acquiring assets is to invest on real estate and stocks
because they are liquid, and the value of these assets tends to increase overtime and they are easy to
liquidate or sell. The author also proposes to each individual to be more open and embrace new ways
to create passive income, this type of income work for you, other than you working for the income.
Chapter 5
This chapter stresses on the significance of corporations versus the common individual in terms of
managing taxes. The point being stressed here is that the vantage point of corporations in terms of
taxation mechanisms.
Chapter 6
The chapter envelops into creating opportunities not to wait for it. The author stresses the significance
of doubting the self and the innate abilities because of fear into the unknown. Opportunities are
sought and created not to wait for it to happen. The author also proposes that to have a good vantage
point in business, an individual need to have to invest on people, people that can contribute more into
the objectives of your business, to hire people a lot better and more skilled than the individual and tap
their abilities to suit your needs in your undertaking.

4. Chapter 7
In this chapter Robert T. Kiyosaki talks about enhancing the individual skills and develop financial
success. The need to enhance and develop other skills that are needed for financial success, other
skills that are not inline with an individual’s current school degree, a different field will only be
beneficial to the individual if he/she maximizes different skills and traits that an individual can maybe
lacking in other fields. The individual needed to know other skills in money management like
accounting, cash flow management, marketing and selling which beneficial if one goes to business.
Chapter 8
Robert T. Kiyosaki sights basic truths; arrogance, bad habits of people, cynicisms, fear and laziness
while it is a normal traits of man, the underlying difference is that “how to control and balance these
truths. The author also stresses the notion of “What’s in it for me?” That in every decision to make this
notion should be the first to ask one’s self, not out of greediness but out of perception into the future
of the decision being made and the action following the decision.
Chapter 9
The chapter give valuable insights, tips in how to build personal wealth. Robert T. Kiyosaki puts
emphasis on the individual’s purpose in living; he indicates that free will has something to do with your
motivation to be financially independent. Next, he encourages acquiring knowledge, knowledge that
would point to the direction of your future goals to be financially independent; he also encourages
learning multiple skills/fields that will help the individual to grow, he also suggests on choosing friends,
friends that influences individuals to “how to handle money” ”how to make money” “where to make
money” “when to make money”. Robert T. Kiyosaki also believes in the power of teaching, teaching,
others what you want to share will come as a blessing other than a curse.
Chapter 10
The last chapter encourages its readers to create ideas, opportunities and seek it. It explains the
financial rewards in taking risks and calculated decisions to improve one’s financial status. Financial
success depends on that individual that is smart to know the difference between assets and liabilities
and capitalize on it. By immersing on different fields and improving financial IQ the individual can
create wealth and be on the path to financial freedom.

5. Summary
The book Robert T. Kiyosaki wrote was his manifestation on “How to create financial freedom”. He
emphasizes on being productive with a single person’s financial IQ; Increased in financial IQ means
knowing how to use it to his/her benefit. Financial literacy if applied on the real world should make an
individual person financial status better. The author suggests taking full advantage of other people’s
skills and talents to enhance the goals you set in your undertaking, he also suggested to make do of
people who is better than you in other fields or far more intelligent and manage these resources to
achieve your set up goals.
Robert T. Kiyosaki stresses that an individual should not be content as an employee but by being, your
own boss. He stresses the importance of seeking other means to create income. He suggests that one
way is to build-up your current assets and make the expenses into a minimum low. In this way, you can
control your cash flow and manage your money more freely by bringing in cash flow and minimizing
liabilities, by building your asset based income, passive income, in terms of investments and other
money schemes that involve assets. He also put importance on preference of a more liquid asset like
real estate and stock options because these are assets that are more liquid and quicker to liquidate
than most assets and it tends to grow overtime.
Reflection
I think that financial freedom is about not having to worry about money you spend versus the bills that
you are paying and it depends on how you perceive success. The author’s approach was sound and
fundamentality good; he was basing these through experience in his lifetime. I think that it is ideal that
an individual has or is debt-free but actually very few people is debt-free. I also think that debts are
necessary. In a sense that by solidifying you’re assets or even acquiring one and building assets, a debt
or loan is necessary considering the current pay in workers wage and salary and other benefits. I think
that another way of building and solidifying your current status is to pay your debt on time and
managing it. By this, I mean building rapport and building your image positively by tediously paying
your debts, this is not easy when your cash flow is already shaky than it is. Businessmen do this
approach acquiring loans to invest and paying off the debt when they can. Investments come with
money, these money come from banks. Other success stories are inspiring but, how do we explain
people with business enterprise that are still considered poor and whose total income fall below the
poverty line and yet they work past working hours and in wee times in the morning and some few to
those who still manages to wake-up early in the morning and work.
I think that the author is a good story teller. The book is inspiring in its sense, the points pointed are
valid and simple to understand but the process does not guarantee financial freedom to all. It is only a
guide, food for thought. The individual perception when in play will hinder or trigger an individual to
take action.
Developing your learning does not necessarily make you rich, knowing a lot of things that not led to
financial freedom. I think that being frugal makes more sense than being suggested on the book of
Kiyosaki, I think that you can only invest when you are debt free and not worrying for the next bill to
show up in your mail.