Rich Dad Poor Dad

Let’s be real for a second.

We go to school for 15+ years. We learn algebra, history, and how to dissect a frog. But we learn absolutely nothing about money.

This is why so many smart people—doctors, engineers, lawyers—struggle financially all their lives. They work hard, get paid, and then watch their money vanish into taxes, bills, and debt. They are stuck in what Robert Kiyosaki calls the “Rat Race.”

The rich don’t get rich by working harder; they get rich by understanding how money works. If you are tired of living paycheck to paycheck and want to understand Real Estate Investing, Corporate Tax Secrets, and how to build Passive Income, this guide is for you.

Lesson 1: The Rich Don’t Work for Money

“The poor and the middle class work for money. The rich have money work for them.”

Most people are ruled by two emotions: Fear and Greed.

• Fear of not having money makes us work hard at a job we hate.
• Greed makes us spend that money on things we don’t need (like a new iPhone) as soon as we get paid.

The solution is to stop trading your time for money and build systems that generate money while you sleep.

Lesson 2: Assets vs. Liabilities

This is the most important chapter. If you learn only one thing, let it be this. You must know the difference between an Asset and a Liability.

• Asset: Something that puts money in your pocket (e.g., Rental Property, Stocks).
• Liability: Something that takes money out of your pocket (e.g., Your house, car, debt).

The shocking truth: Most people think their home is their biggest asset. Kiyosaki says, “No, your home is a liability” because it costs you money every month.

Lesson 3: Mind Your Own Business

There is a difference between your “Profession” and your “Business.”

Your Profession is what you do 9-to-5 (e.g., Being a Banker). Your Business is what your assets do (e.g., Real Estate Investing). Start acquiring assets on the side instead of just working for a paycheck.

Lesson 4: Taxes & Corporations

The rich use Corporations to protect their money.

The Rich Formula: Earn Money -> Spend everything (Expenses) -> Pay Taxes on what is left.

By using a corporation, you can write off expenses like your car and laptop as “business expenses” before the government taxes you.

Lesson 5: The Rich Invent Money

Most people just sit around waiting for an “opportunity.” The rich create opportunities.

Kiyosaki argues that your greatest asset is your mind. If you train your mind to see deals that others miss, you can literally “invent” money out of thin air.

Lesson 6: Work to Learn

“Job security is everything to the poor dad. Learning is everything to the rich dad.”

If you are young, look for the job where you will learn the most, specifically Sales & Marketing, Communication, and Investing.

The 5 Obstacles to Wealth

1. Fear: Everyone is afraid of losing money.
2. Cynicism: Don’t listen to people who say it can’t be done.
3. Laziness: Busy people are often the laziest.
4. Bad Habits: Pay yourself first.
5. Arrogance: What you don’t know costs you money.