(and Other Things That Make Boomers Mad)
Intro: The Book That Turned Personal Finance Into a Soap Opera
Robert Kiyosaki’s Rich Dad Poor Dad is one of those books people either swear changed their life… or roll their eyes at because it oversimplifies. But love it or hate it, it’s a financial literacy gateway drug.
The setup is geniusly simple: Kiyosaki grew up with two “dads.”
- Poor Dad: His biological father — highly educated, worked a steady job, believed in climbing the career ladder.
- Rich Dad: His friend’s father — less formally educated, but financially savvy, believed in entrepreneurship, investing, and making money work for you.
The contrast between these two worldviews forms the book’s spine. And through this story, Kiyosaki delivers a philosophy that has launched a million side hustles, real estate empires, and, yes, cringey “financial freedom” YouTube channels.
Let’s break it down Substack-style: funny, clear, and maybe a little savage.
Part 1: The Two Dads, Two Mindsets
Kiyosaki frames life as a tale of two philosophies:
- Poor Dad’s Rules:
- Go to school.
- Get good grades.
- Find a secure job.
- Work hard until retirement.
- Your house is your biggest asset.
- Rich Dad’s Rules:
- School teaches you to be an employee, not wealthy.
- Focus on financial education.
- Don’t just work for money — make money work for you.
- Assets pay you, liabilities drain you.
- Entrepreneurship and investing beat job security.
This isn’t really about his dads. It’s about two competing mindsets. One plays defense. The other plays offense.
Part 2: Lesson One — The Rich Don’t Work for Money
Poor Dad said: “Work for a paycheck.”
Rich Dad said: “A paycheck makes you dependent.”
The rich don’t work primarily for wages. They acquire assets that generate income — rental properties, businesses, stocks.
Employees say: “I need a raise.”
Owners say: “How do I build cash flow?”
That’s the fundamental mental flip. Don’t think: “How do I earn more salary?” Think: “How do I acquire things that earn while I sleep?”
Part 3: Lesson Two — Financial Literacy Is Everything
Kiyosaki hammers a point: financial literacy matters more than formal education.
Most people don’t understand money. They think assets and liabilities are the same. They think being “high income” = being rich. Spoiler: it doesn’t.
His core distinction:
- Assets = put money in your pocket. (Investments, rental properties, businesses.)
- Liabilities = take money out of your pocket. (Mortgages, car loans, credit card debt.)
And here’s his mic-drop: Your house is not an asset.
Yes, it might appreciate, but until it’s generating cash flow, it’s a liability (mortgage, taxes, repairs). Boomers everywhere gasped.
Part 4: Lesson Three — Mind Your Own Business
Most people spend their lives working on someone else’s business. They give their best energy to their employer, then spend the rest maintaining liabilities.
Rich Dad’s advice: focus on building your own assets. Even if you work a 9–5, treat your investments as your “side business.” Grow that until it can support you.
This is why Kiyosaki pushes entrepreneurship and real estate so hard. They give ownership, not just wages.
Part 5: Lesson Four — Taxes and Corporations
One of Kiyosaki’s most controversial (but practical) points: the rich use corporations to shelter wealth.
Employees earn, get taxed, then spend what’s left.
Businesses earn, spend (expenses, investments), then get taxed.
Rich Dad taught Kiyosaki that corporations aren’t just legal entities — they’re financial shields. Employees pay the highest tax rates. Business owners and investors get breaks.
It’s not about cheating the system. It’s about playing by different rules.
Part 6: Lesson Five — The Rich Invent Money
Poor Dad saw money as scarce. Rich Dad saw money as abundant — if you’re creative.
Opportunities are everywhere if you can spot them:
- Flipping a property.
- Investing early in a business.
- Creating intellectual property.
Financial literacy + creativity = wealth. Not luck.
Part 7: Lesson Six — Work to Learn, Not Just to Earn
Poor Dad valued job titles. Rich Dad valued skills.
Kiyosaki urges people to take jobs not just for salary but for learning:
- Sales = learn persuasion.
- Accounting = learn financial systems.
- Management = learn leadership.
Each skill compounds into making you more effective at running your own ventures. It’s career as training ground.
Part 8: Overcoming Obstacles
Kiyosaki identifies five obstacles that stop people from achieving wealth:
- Fear — of losing money.
- Cynicism — listening to naysayers.
- Laziness — not taking action.
- Bad habits — like spending before saving.
- Arrogance — ignoring advice.
Notice these are psychological, not technical. Wealth is mostly mindset.
Part 9: Actionable Nuggets (aka, The Cheat Sheet)
If you strip down the book, you get a playbook:
- Buy assets, not liabilities.
- Invest early, reinvest profits.
- Start small, scale later.
- Don’t fear failure; treat it as tuition.
- Continuously educate yourself financially.
It’s not get-rich-quick. It’s get-smart-first, then get-rich.
Part 10: Criticisms and Reality Check
Critics say Rich Dad Poor Dad oversimplifies. Some even claim Rich Dad wasn’t real. And yes, not everyone can or should jump into risky real estate.
But the book’s real power isn’t technical advice. It’s mindset. It shakes people out of the “work hard, get a safe job” story. It makes them ask: Am I building assets, or just collecting liabilities?
And that shift alone can be life-changing.
Philosophy Underneath: Financial Freedom as Modern Survival
Harari (Sapiens) might say our ancestors hunted lions; now we hunt financial independence.
Kiyosaki’s philosophy boils down to: survival in the modern world = mastering money. The rich dad mindset isn’t about greed. It’s about control. If you don’t control your money, someone else will.
TL;DR (For the Scrollers)
- Two dads, two mindsets: Poor Dad (employee), Rich Dad (entrepreneur).
- Assets put money in your pocket; liabilities take it out.
- Your house is not an asset.
- The rich use corporations and taxes strategically.
- Work to learn skills, not just earn paychecks.
- Overcome fear, cynicism, laziness, bad habits, arrogance.
- Focus on financial education and building cash flow.
Or, meme version:
Poor Dad: Get a safe job.
Rich Dad: Buy rental properties.
You: Start a dropshipping store.