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 1997 book written by Robert Kiyosaki and Sharon Lechter. It advocates the importance of 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.
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:
- Robert Kiyosaki's personal story, upbringing, and his business and investment ventures throughout his early adult life and into the late 1990's.
- Differentiation between assets and liabilities
- What the rich teach their kids about money that the poor and middle class do not
- The idea that your primary residence is not an asset, but a liability
- The value of financial intelligence and financial literacy
- How stronger business and financial skills, aptitude, and experience play a role in one's financial success.
- The vitality of entrepreneurial and investment skills are both necessary and useful traits to prosper in a capitalistic society
- The importance of investing and entrepreneurship
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 a 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. American rapper Big KRIT made a song called "Rich Dad Poor Dad" though it had no connection to 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.
Definition of assets
One statement made throughout the book was the cause of both criticism and praise in the financial 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.
The fight between Kiyosaki and Lechter
The first ten books from the Rich Dad series were written by Kiyosaki with the help of Sharon Lechter. After business disagreements between the two, which was followed by a law suit, Kiyosaki opened his own publishing company, Plata Publishing and republished all his books removing the credits to his co-author.
- Walker, Rob. "If I Were a Rich Dad" in Slate, June 20, 2002.
- "Rich Dad, Poor Dad Review - Revisited Ten Years Later". Investor Junkie. Retrieved 24 January 2016.
- Will Smith on making his kids read Rich Dad Poor Dad. 24 September 2010. Retrieved 24 January 2016 – via YouTube.
- 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.
- "Video: Big K.R.I.T. Explains the "Rich Dad Poor Dad" Video". 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.
- Rich Dad, Poor Dad ISBN 9780446677455
- "GURUSPEAK : Robert Kiyosaki". The Financial Express. Retrieved 24 January 2016.
- Choose to be Rich, Audiobook ASIN: B000CSXWXW
- 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