Important Lessons From Rich Dad Poor Dad Book

In this article, I am going to reveal one of the best books written for beginners who want to understand‘Money’. This book isRich Dad Poor Dad.And, I will tell you some important lessons from rich dad poor dad book in this article.

Rich dad poor dad is a book that has been counted as one of the best books for many years. One should begin to read this book if he wants to know about money.

Who is Robert Kiyosaki?

Robert Kiyosaki is an American entrepreneur, investor, author, and motivational speaker. He is best known for the best-selling personal finance book “Rich Dad Poor Dad,” which has sold millions of copies worldwide.

In the book, Kiyosaki discusses his own experience of having two fathers while growing up. His biological father was highly educated but suffered financially, and the father of his best friend, who dropped out of high school but went on to become a successful businessman.

Kiyosaki draws on the lessons he learned from both men to provide insights into how to build wealth and achieve financial freedom. Apart from rich dad poor dad, Robert has also written books including “Cashflow Quadrant”, “The Business of the 21st Century”, and “Retire Young Retire Rich”.

Who is the Rich Dad Poor Dad book for?

The book “Rich Dad Poor Dad” by Robert Kiyosaki is intended for anyone who wants to improve their financial literacy and gain a better understanding of how to manage money and create wealth. It is primarily intended for people who desire to escape the “rat race” of working for a living in favor of achieving financial independence through asset building, entrepreneurship, and investing.

Corporate Employee
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The book is written in a simple, easy-to-understand style and uses real-life examples to illustrate key financial concepts, making it accessible to readers of all ages and backgrounds.


Robert Kiyosaki shocked everyone when he released this book. Because in this book he speaks about rich dad and poor dad. This was the story of his life.

Rober’s real father was a very hardworking professor but unfortunately, he can’t understand money. And he is the one Robert referred to as poor dad in this book. Despite having everything, and doing everything right in life, he could not create real wealth.

On the other hand, his so-called father who was the only 8th or 9th standard passed and not completed his education but also acquired a lot of wealth in his life. And he is the one Robert referred to as the Rich Dad.

In this book, Robert compared his rich dad and poor dad. That is how his real father even after doing everything right in his life, still remained kind of poor. And how his so-called father, understood life, he understood the importance of money in life, and then through that created lessons that he shared in this book.

I will thus provide some key lessons from Rich Dad Poor Dad book for you to understand the essence of what Robert is trying to express. I will try to explain his point of view on money.

Lesson 1: Rich Don’t Work for Money, Money Works for Them

We have heard many times that rich people do not work for money, money works for them. Robert compares his poor dad to a normal person who is caught in the rat race.

We have all been told to live a certain way of life. Society tells us to finish our studies quickly and then do a job because that is how we make money. According to society, that’s the only way we can live and survive in the world.

And after getting a job what we do, we start to buy things from that income. We buy houses, cars, clothes, costly mobile phones, vacations, and other luxury items or services. And we think this is the right way to earn money and live life.

Rich Invent Money
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This is true to some extent but we get addicted to the salary. And our lifestyle becomes such that we cannot say no to this money. That’s the reason lots of people continue to live in their job just because they don’t know anything else.

In the case of our parents, they had a tougher life. They never even thought about luxury life. All that they could think of was survival and paying next month’s bills. That’s why they have to struggle in their job. Some of them were not happy but they had no choice.

But wealthy people, who earn money for themselves and then convert it into something that works for them are the ones who are truly escaping the pains of life. They are the ones who are constantly making sure that money works for them.

Issue of Salaried People

When we get a salary, from that we take out our expenses such as rent, EMI, bills, taxes, and other things. After that, whatever small amount is left, then we try to figure out where to invest.

As the money came, we distribute it to all the people, and we didn’t do anything for ourselves. This is how we work for money. So that amount will always remain as a small amount and as a by-product.

We always reduce our savings, we never reduce our expenditures.We always reduce our savings, but we never find out a way to increase our income. That is the first and foremost lesson from this book.

Lesson 2: It’s Is Easy to Make Money, But Difficult To Keep and Grow

Keeping money is far far more difficult than earning money. This is the fundamental of life. According to a study conducted in the US, Lottery winners get a lot of money at once, but most of them lose all the money due to a lack of knowledge about money management. They transformed from a poor life to rich life because of the lottery and they spent all that money and entered back into poverty.

Robert shares the definition of an Asset and Liability. We often think that all the things we buy are an asset. We think that the car, watch, phone, and other expensive items that we bought are all assets.

But according to Robert, Assets are those whose value increases over time and does not decrease. An asset is something that if you buy or own, earns money for you by itself, it doesn’t lose it.And based on this definition a car is not an asset.

Let me tell you, After buying a new car, its value starts depreciating as soon as it is taken out of the showroom. As years go by, its value will depreciate even more. Robert argues that people should focus on acquiring assets rather than liabilities and that this is key to achieving financial independence.

Stocks are an asset because, when we buy stocks, we buy into the future growth of a company. If you buy Physical Gold (not jewelry), Digital Gold, Residential Real Estate, or Commercial Real Estate, and if its value increases without taking a loan then it is an asset. If you wrote a book it is also an asset.

Lesson 3: It is Important to Have Side Incomes Along with Your Job

You need to have side incomes along with your job. And this is one of the great lessons from rich dad poor dad, a brilliant lesson, and even more so in today’s world. All those, who are in their 20s or late teens, have so many opportunities to create a side income.

Anyone can generate side income if they have relevant skills in addition to the job that they have. So you have to build those side incomes and make sure that from your regular stream of income, you are not just buying assets, but you are also able to make time for yourself so that you can make the biggest investment and that is of your time.

The value of entrepreneurship is another thing that we should learn from the book. According to Kiyosaki, one of the best ways to acquire wealth and reach financial independence is to start a business. He encourages readers to take risks and think outside the box when it comes to generating income.

Lesson 4: Knowing How The Taxes Work

This is also one of the important lessons from rich dad poor dad book. That is how you can save your taxes, And how taxes are different for salaried people and business owners.

Here is a simple way to understand this. The people who aresalariedneed to payIncome Taxand this Income tax is levied on their income. In the case ofCompaniesthey need to payCorporate Taxand this is levied on their profits.

Understand the Taxes
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So the government says if the company has earned income, and there are expenses to generate that income, whether they are resources, raw material, IT, marketing, or anything at all, the money which remains after that which is the profit, they need to pay tax on that. Do you see this difference altogether?

If I would have to say that you don’t have to pay income tax, you have to pay another tax, which is a tax on your profit. So the income that you earn, and after all your expenses, whether it is your rent, food, and other things you will pay tax on whatever money is left after that, then can you imagine how much lesser your tax would be? That is a big difference.

So, reduce your tax by doing anything. The government provides you with several options to reduce your tax so reduce it as much as you can with the help of tax deduction rules.

And when you ever start any type of company or business you will actually be able to save taxes, by showing your expenses in the business according to the income of your business, and you will only have to pay the taxes on your profits, and not the entire amount.

Lesson 5: The Rich Invent Money

It means that rich people never try to take money from here and put it somewhere else. They add value to the money and try to grow it.

For Example, if you are a content writer and you have two options. Either you can create a book summary of an already published book and sell it for a price you want or you can resale the same book to get a commission on it.

So in the first case, you have put your experience, and knowledge, into the book summary and added value for the buyers that can create money out of nothing. This is how rich people think.

But some people can choose the second option, they resell this book to get a commission on it. This is calledTrading Mentality. But unless you add something new to any thing, you cannot expect much from it.

Lesson 6: People Who Create Wealth Are Constantly Learning

This is also a great lesson from rich dad poor dad book. And I think there is nothing true other than that. If your college can teach you one thing that will set you up for life, that is, how to keep learning for the rest of your life?

Always remember, don’t run away from your studies, and don’t be afraid to learn something new. Because if you learn how to learn at any point in time, then you are gold. Nobody can defeat you, and nobody will ever be able to surpass you, because you will know why you have to change as the world changes.


In conclusion, Robert Kiyosaki’s “Rich Dad Poor Dad” teaches readers valuable lessons on how to handle money, accumulate assets, and become financially independent. The book emphasizes the value of entrepreneurship, financial literacy, and taking charge of one’s financial future.

People can improve their financial status and accomplish their goals by putting more effort on assets than liabilities, taking risks, and being proactive with their savings and investments. Overall, “Rich Dad Poor Dad” is a valuable resource for anyone looking to gain a better understanding of personal finance and build wealth.

Important Note:

This article is not a replacement for book reading. Even if you read the important lessons from the rich dad poor dad book, you still need to read the entire book. Because this summary is only 1% of the book. This article is to encourage you to read the book.

If you like these lessons from rich dad poor dad, share with your friends and family.

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