“Money is not the goal.  Money has no value.  The value comes from the dreams money helps you achieve” – Robert Kiyosaki


Rich Dad Poor Dad is one of my favorite books on personal finance. Scratch that, it is  THE book on personal finance. I am going to highlight what I think are the most important points of the book, I think it is worth going through and actually reading through the book for yourself.  I am a firm believer that your mindset dictates your net worth, not the money itself.  Robert Kiyosaki does an excellent job of pointing out limited beliefs and barriers you should be aware of and then points you in the right direction.

My 3 key takeaways from the book are

Stop Slaving for Money

Getting your finances under control begins with understanding the differences between your wants and your needs. Unfortunately, this step is overlooked repeatedly because of the simplicity of it.  I love this way the bible puts it: “the love of money is the root of evil”. Getting money for the sake of having money is unnecessary and foolish when you step back and look at the big picture.  Kiyosaki goes on to explain that money is not something you just have, it’s simply a tool to get something else. That something else could be rent money, a down payment on a home, or money being saved up to finally start the business you wanted.

For the next month, question everything you buy.  Honestly ask yourself whether you need it or not.  The line can get blurry because it’s easy to mistake our wants for things we believe we need.  Rich dad Poor Dad does a good job of helping you differentiate the two. By understanding the things that you need and spending less on the things that you want, you’ll be setting the foundation necessary to get set financially.

Understand where you are now and where you want to be on the matrix

When you start to work for money, you end up one part of the matrix Kiyosaki introduces in his book.  There are two ways you can earn money: Passively or Actively.  When you earn money actively, the amount you make depends on something you do.  An example of this is having a job.  When you earn money passively, you could take the whole year off in Mexico on vacation and still be earning money.  An example of this would be when an artist makes money earning royalties every time a radio station plays their song.  From there you have four different types of people.  You can be an employee, which means you work for your money at a job.  You can be self-employed, which means you have a business, but you’re the only that works it as well.  You can be a business owner, which means that you own a system which helps you leverage your own growth.  And the last step would be to become an investor, which is where your money does all the work for you.  Investors use their money, to invest in businesses or the stock market, which then makes money for you.

Develop your financial literacy

Financial worries can simply come from not understanding them.  There are different aspects to finances you can learn, such as: accounting, history, taxes etc. The main thing to understand is: like anything you want to master, you must continue to learn and practice to get better at handling your finances.  That’s the just the way it is.

One of the key takeaways from this book is the understanding of how the rich think about money and how the poor think about money.  The rich buy assets that make money for them therefore taking care of their liabilities.  The poor buy assets they “think” are assets (cars, houses, clothes) and those liabilities drain them of their main asset “cash”.  This process puts them in a never ending circle of working just for their liabilities, never to actually build their assets.


One thought on “Rich Dad Poor Dad Takeways

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