Rich Dad Poor Dad
|Series||Rich Dad Series|
|Genre||Self-help, personal finance, entrepreneurship, business, investing, economics|
|Publisher||Warner Books Ed|
|April 1, 2000|
|Media type||Hardback and paperback|
|LC Class||HG179 .K565 2000|
Rich Dad Poor Dad is a 2000 book written by American businessman, author and investor Robert Kiyosaki. It advocates financial independence and building wealth through investing, real estate investing, starting and owning businesses, as well as increasing one's financial intelligence to improve one's business and financial aptitude. Rich Dad Poor Dad is written in the style of a set of parables, ostensibly based on Kiyosaki's life. Kiyosaki stresses the ownership of high value assets that produce cash flow, rather than being an employee in the book.
The book is largely based on Kiyosaki's childhood upbringing and education in Hawaii. It highlights the different attitudes to money, work and life of two men (i.e. his titular "rich dad" and "poor dad"), and how they in turn influenced key decisions in Kiyosaki's life.
Among some of the book's topics are:
- Kiyosaki's upbringing, business and investment ventures
- assets and liabilities
- what the rich, middle class and poor teach their kids about money
- a primary residence as a liability rather than an asset
- financial intelligence literacy
- roles of business and financial skills, aptitude, and experience in financial success
Kiyosaki advocated his former mentor and American futurist, Dr. Buckminster Fuller's views on wealth, that wealth is measured by the number of days the income from your assets can sustain you, and financial independence is achieved when your monthly income from assets exceeds your monthly expenses.
Praise and support
Rich Dad Poor Dad has sold over 26 million copies and received positive reviews from some critics. American talk show host and media mogul Oprah Winfrey endorsed the book on her show. Another celebrity supporter is actor Will Smith, who said he is teaching his son about financial responsibility by reading the book. American billionaire business magnate Donald Trump has read and praised the book and compared the book to his 1987 literary debut Trump: The Art of the Deal, which served as an inspirational book to Kiyosaki. Trump later did a literary collaboration with Kiyosaki in 2006 called "Why We Want You To Be Rich, Two Men One Message" and a second book called "Midas Touch: Why Some Entrepreneurs Get Rich-And Why Most Don't" in 2011. American fashion entrepreneur and investor Daymond John has called the book one of his favorites.
There has been strong criticism of the book. John T. Reed, a critic of Robert Kiyosaki, says, "Rich Dad, Poor Dad contains much wrong advice, much bad advice, some dangerous advice, and virtually no good advice." He also states, "Rich Dad, Poor Dad is one of the dumbest financial advice books I have ever read. It contains many factual errors and numerous extremely unlikely accounts of events that supposedly occurred." Kiyosaki provided a rebuttal to some of Reed's statements. Slate reviewer Rob Walker called the book full of nonsense, and said that Kiyosaki's claims were often vague, the narrative "fablelike", and that much of the book was "self-help boilerplate", noting the predictable common features of such books were present in Rich Dad, Poor Dad. He also criticizes Kiyosaki's conclusions about Americans, American culture, and Kiyosaki's methods. The New York Times editor Damon Darling described the advice provided in the book are for people "who wants to live on the edge". Jonathan Clements from The Wall Street Journal strongly questions the book's view toward mutual fund.
Definition of assets
One statement made throughout the book was the cause of both criticism and praise in the media. In the book, Kiyosaki claims that an individual's house is not an asset, although banks permit people to list it as such. He says a house is a liability. His definition of assets and liabilities is somewhat simplistic: "During hard times assets feed you, and liabilities eat you". Kiyosaki was indicating that liabilities are, by definition, "...anything that takes money out of your pocket," while assets, are "...properties that bring money into your pocket." Therefore a house that costs you money is a liability, and a rental property that produces positive cash flow income is considered to be an asset. A profitable business is also an asset, while a business that loses money is considered a liability.
The book was originally self-published in 1997 before being picked up commercially to become a NY-Times bestseller, the book has sold 26 million copies and has become a household name. In his audiobook Choose to be Rich, Kiyosaki said that every publisher turned him down, and Barnes & Noble refused to stock the book initially. He places his focus upon talk shows and radio show appearances, of which The Oprah Winfrey Show had the biggest influence on book sales.
Rich Global LLC Bankruptcy
On August 20, 2012, one of Kiyosaki's companies, Rich Global LLC, filed for bankruptcy in Wyoming Bankruptcy Court. The move followed a ruling by a U.S. District Court jury that former business partners of Kiyosaki were entitled to $23,687,957.21 of the profits from events they helped to set up for Kiyosaki including a 2002 appearance at New York's Madison Square Garden. A spokesman for Kiyosaki asserted that the amount of the award exceeded the value of Rich Global LLC and that Kiyosaki had no intention of using his personal assets to meet the judgement.
- Walker, Rob. "If I Were a Rich Dad" in Slate, June 20, 2002.
- Larry Ludwig (2014-05-18). "Rich Dad, Poor Dad Review - Revisited Ten Years Later". Investorjunkie.com. Retrieved 2014-07-10.
- "Will Smith on making his kids read Rich Dad Poor Dad". YouTube. 2010-09-24. Retrieved 2014-07-10.
- Susanna Kim (Oct 12, 2012). "'Rich Dad, Poor Dad' Author Files for Bankruptcy for His Company". ABC News. Retrieved 31 May 2014.
- "The Making of FUBU — An Interview with Daymond John". Tim Ferriss. Retrieved 31 May 2014.
- "Spare us the finance evangelists and their false profits". Sydney Morning Herald. June 4, 2004. Retrieved 2009-06-18.
- Robert Kiyosaki. "Robert Kiyosaki's Public Response to John T. Reed's Review of "Rich Dad Poor Dad"". Retrieved 2011-12-01.
- Darling, Damon. "Get Rich Quick, Write a Millionaire Book". The New York Times. Retrieved 3 July 2014.
- Clements, Jonathan. "Rich Men, Poor Advice: Their Book Is Hot, But Their Financial Tips Aren't". The Wall Street Journal. Retrieved 3 July 2014.
- Rich Dad, Poor Dad ISBN 9780446677455
- "GURUSPEAK : Robert Kiyosaki". Financial Express. 2008-07-06. Retrieved 2014-07-10.
- Choose to be Rich, Audiobook ASIN: B000CSXWXW
- "Company Bankruptcy Information for Rich Global LLC". busbk.com. August 20, 2012. Retrieved 2012-08-20.
- "Rich Dad, Poor Dad now a bankrupt dad: Best-selling author files for corporate bankruptcy after losing $24m judgement". Daily Mail (London). October 10, 2012. Retrieved 2012-10-11.
- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!, by Robert Kiyosaki and Sharon Lechter. Warner Business Books, 2000. ISBN 0-446-67745-0