Editors Reads Verdict
A book that has genuinely changed how millions of people think about money, assets, and the rat race. Controversial in its specifics but transformative in its mindset. Essential reading regardless of where you end up on the investing debate.
What We Loved
- Paradigm-shifting reframe of assets vs liabilities
- Highly motivating — drives readers to take money seriously
- Accessible language with no financial jargon
- The Rich Dad formula (buy assets, let them buy luxuries) is genuinely powerful
Minor Drawbacks
- Vague on specific investment strategies — intentionally so
- Some anecdotes are disputed by financial fact-checkers
- Can feel dismissive of education and employment
- Real estate advice may not apply in all markets
Key Takeaways
- → The rich don't work for money — money works for them
- → Assets put money in your pocket; liabilities take money out
- → Your house is not an asset (it doesn't generate income)
- → Financial literacy is not taught in school — you must pursue it yourself
- → The middle-class trap: earn more, spend more, never get ahead
| Author | Robert T. Kiyosaki |
|---|---|
| Publisher | Plata Publishing |
| Pages | 336 |
| Published | April 1, 1997 |
| Language | English |
| Genre | Personal Finance, Investing, Self-Help |
| Difficulty | Beginner |
| Best For | Anyone who grew up believing that a good job, a house, and a pension is the path to financial security — and wants to challenge that assumption. |
The Book That Started the Financial Literacy Conversation
When Robert Kiyosaki self-published Rich Dad Poor Dad in 1997, no mainstream publisher wanted it. By 2023 it had sold over 40 million copies in 109 countries. That gap between rejection and ubiquity tells you something important: the book says things about money that most institutions don’t want said.
Whether you agree with every claim Kiyosaki makes or not, the book’s central framework is genuinely valuable — and after 25 years, its core ideas have aged remarkably well.
The Two Dads Framework
The book is structured around a contrast between two father figures:
Poor Dad — Kiyosaki’s biological father: highly educated, hard-working, a government employee. His money advice: get a good education, find a safe job, work your way up, buy a house.
Rich Dad — his best friend’s father: never finished high school, built a business empire. His money advice: don’t work for money — make money work for you.
Whether these characters are literally true (Kiyosaki has been evasive on this) matters less than the lesson: the financial philosophy you inherit shapes your financial outcomes more than your intelligence or education.
The Asset vs Liability Distinction
The most important idea in the book — and possibly in all of personal finance — is Kiyosaki’s redefinition of assets and liabilities:
- An asset puts money in your pocket
- A liability takes money out of your pocket
By this definition, your home — which most people consider their biggest asset — is a liability. It costs money in mortgage payments, maintenance, and taxes. It only becomes an asset if it generates rental income.
The rich, Kiyosaki argues, spend their lives acquiring assets: rental properties, stocks, businesses, intellectual property. The middle class spend their lives acquiring liabilities they think are assets.
The Rat Race Concept
Kiyosaki’s “rat race” is a description of a trap most people live in: earn a salary, pay taxes, spend what’s left on mortgage, car, consumption — then need to earn more salary to cover more spending. Income goes up; expenses expand to match. The treadmill never stops.
The exit from the rat race is passive income exceeding expenses — a number that looks very different for different people, but that the book insists is achievable for anyone willing to develop financial intelligence.
What the Critics Get Wrong (and Right)
Critics point out that Kiyosaki’s specific investment advice is vague, that his real estate strategies aren’t universally applicable, and that some biographical claims appear embellished. These are fair points.
But they miss the larger achievement: Rich Dad Poor Dad changed the question millions of people were asking from “how do I earn more?” to “how do I build assets that earn for me?” That mental shift is worth the $10 price of the book regardless of every other debate about it.
Should You Read It?
Yes — with appropriate scepticism. Treat it as a motivational framework rather than a technical investment guide. Read it alongside The Psychology of Money for the behavioural layer, and The Intelligent Investor for the specific mechanics of investing.
Our rating: 4.4/5 — One of the most influential books about money ever written. Imperfect in the details, transformative in its framework.
Ready to Read Rich Dad Poor Dad?
Check the current price on Amazon.
Check Price on Amazon (paid link)Prices and availability are subject to change. See Amazon for current price.
Review last updated: