Is Rich Dad Poor Dad Legit? Why You Need to Read it!

Is Rich Dad Poor Dad Legit? Why You Need to Read it!

So much hype around one book, yet also great controversy. Many investors claim that this is one of the books that changed their lives for the better. Yet, just a few months ago in this article it claims that the Author, Robert Kiyosaki’s company went bankrupt. So, is Rich Dad Poor Dad legit?

Let’s start by addressing the controversy.

The Controversy (#Drama)

I for one will start by saying that I have read the book, many times actually. I think it is fantastic! However, some of the other business practices of the “Rich Dad Poor Dad” umbrella I find less than ethical.

Let’s set the stage, the year was 2012, a young Joe Six Pack was attending his first ever real estate conference as his net worth just crossed $0 into the positive side, just a bit richer than a newborn baby. The guest speaker was one of the contestants from “The Apprentice” TV show who was giving a Powerpoint on all the wealth she had created by using Real Estate.

At this point it was essentially a late night info show, just in real life. However, here is where the pitch comes, they stand in front of the room and say there is only a certain amount of space left for the masterclass, and there you will learn all the secrets of real estate! Just fork over $500.

Even as a youngster, I knew this was an emotional pitch, and didn’t take part. However, I witnessed about 50 people jump out of their seats, run to the back and take out some plastic to follow their dreams of becoming rich, by making someone else rich.

Run to learn the “secrets” of real estate. Is Rich Dad Poor Dad Legit?

Money better spent

According to the article I linked above, there is also a 3rd mastermind class for $45,000! I’m sure you learn all the real secrets there, /sarcasm. While I do feel bad because so much information is available online, and was even then back in 2012. I feel like this is a very misleading way of running a business because as I have done, most of the information can be found online or in books that don’t cost $45K.

Maybe there is some value to the $45K course, however, I feel like for $100 you can get about 10 used books that will provide more value. Or for that $100 buy a membership to your local real estate club and learn and meet with folks that are actually doing it.

The Book Review

That being said, I would recommend you stay away from the seminars, as they provide little value and their intentions are ill. However, if you look at the title, I call the book a must read, why?

The book is a relatively easy read and is really a mindset changer. When I read the book, the proverbial lightbulb went off in my head of how to invest/become wealthy. It has for others who I know as well, they now have an understanding of how to become wealthy.

Is Rich Dad Poor Dad Legit? Maybe not the company, but read the book!

Many investors credit this as being one of the most influential books in their careers. While short on actionable advice, this provides a psychological shift to understanding how the wealthy think.

The book is a fictional story about a young boy who has a biological father (poor dad) and a friend’s dad who he admires (rich dad). Essentially it is comparing the two, and their outlooks and beliefs about money; and the correlation to their financial situation.

While I won’t ruin the story, I do want to go in-depth on a few of the lessons Kiyosaki puts forward in his book “Rich Dad Poor Dad” which makes the book a must read for anyone interested in personal finance.

The Rich Don’t Work for Money

Kiyosaki makes a fantastic point here that is a game changer. In fact, I find myself thinking about this quote quite often. In the story, Kiyosaki tried the point out the mindset that differs between those who get rich, and those who stay poor.

It is funny/sad that many of his examples stay relevant across time. The book I have was copyrighted in 1997, it is about to be 2021, and all the stories and examples still seem relevant to me.

One example he uses is how the “poor” cling to a meager “paycheck” and the hopes of “job security and a 3 week vacation” every year. They essentially work to buy things and never get ahead because they don’t have the right mindset. Then, they blame the wealthy instead of looking inside to see how they could do better with money.

Rich Dad Poor Dad is legit! This unfortunately is too many people’s retirement plans.

What do the Rich work for?

The Rich, Kiyosaki writes, work for assets. What is an asset? I define an asset as something that puts money in your pocket every month- it produces income.

The Rich do not work for boats, a big house, cars, fancy vacations, etc. That is for the middle class or those in debt! The Rich work to acquire assets, those assets pay for their lifestyle.

Whether those assets are real estate rental income, stocks, equity in a business, loan income, starting their own business or side hustle, or even Youtube channel! These are all examples of things that the rich would work for.

Examples of how to apply this lesson

If I were to work for 1 year without pay starting a business, but after that year I now owned a brand that was bringing in income every month; I would have just worked for an income producing asset.

Or even if you have a W-2 job, you are taking a good chunk of your income and investing it automatically in stocks- you are following this principle! You technically aren’t working just for money, you are working to exchange that money for ownership in public companies that will innovate and grow and will reward you financially without your continued efforts.

When you are working, you are essentially trading your time for currency. What you do with that currency depends on what type of mindset you have. Most everyone starts out as a W-2 employee working some sort of job. Kiyosaki argues that the wealthy use that time to move towards being self-employed or an investor.

Hopefully she is writing down her investments after a hard day’s work!

Mind Your Business

Another one of Kiyosaki’s points in that folks should “Mind Your Business.” What he means by that is that everyone is a business! You, reading this, you are a business! You have assets and liabilities!

Whether you have a job as a firefighter, teacher, UPS driver, janitor, etc. you should mind your business. You should be paying attention to where you money goes. You should have some sort of business on the side.

Whether it mean investing in stocks, real estate, a side-hustle, making a podcast, etc! You should be working on owning assets that make you wealthy. Just because you have a W-2 doesn’t excuse you from the opportunity to create great wealth for yourself and your family.

Financial Struggles

I really like this quote from the book on page 75. “Financial struggle is often the result of people working all their lives for someone else.” That quote resonates with me, and this is why one needs to mind their own business!

I learned when I read this book that I have to own assets. Not wait until I am 67, when hopefully Social Security is still there and I can live poor the rest of my days.

Rich Dad Poor Dad shows that you need to trade your time for assets- not a new car.

Is Rich Dad Poor Dad Legit?

I very much recommend to read Rich Dad Poor Dad, the original book, along with his follow up book Rich Dad Poor Dad: Cashflow Quadrant. If you search online you should be able to pick them up for $20. Also- check out your local library!

If you are looking to start the new year with some financial education. Maybe, you are just starting and trying to figure out this financial mindset thing. Or maybe, you just need to re-visit some of the lessons to refresh like I do.

Usually once every year or two I re-read the original book. I usually always end up with new insights, or refresh my perspective on what I am doing and if I can do it a different way. There are many more insights than what I have put on this post. It may impact you in a different way depending on our situation.

That being said, I would not recommend any other seminar or training product from Rich Dad the company. I have had a bad experience with them, but gained much more from those two lifechanging books.

Our local library is doing contactless pickup/drop off. Education can be free!

What do you think? Let me know in the comments below what you think of the Rich Dad Poor Dad books!

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