Wealth Creation as explained in “Rich Dad Poor Dad”– the #1 Personal Finance book of all time

The main theme of Rich Dad Poor Dad is how to use money as a tool for wealth development.

Robert Kiyosaki’s Rich Dad Poor Dad was first published in 1997 and quickly became a must-read for people interested in investing, money, and the global economy. The book has been translated into dozens of languages, sold around the world, and has become the #1 Personal Finance book of all time.


Robert Kiyosaki, author of Rich Dad Poor Dad, had two main influential fathers in his life.

Poor Dad was Kiyosaki’s biological father, a man who was highly intelligent and very well educated. Poor Dad believed in studying hard and getting good grades, then finding a well-paying job. Yet, despite these seemingly positive attributes, Poor Dad didn’t do well financially.

Rich Dad was the father of Kiyosaki’s best friend. He had a similar work ethic to Kiyosaki’s real dad, but with a twist. Rich Dad believed in financial education, learning how money works, and understanding how to make money work for you. Although he was an eighth-grade dropout, Rich Dad eventually became a millionaire by putting the power of money to work for him.

The book is written from Kiyosaki’s perspective of how Rich Dad went about making money and the mistakes that Poor Dad made.

Chapter 1: The Rich Don’t Work for Money

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

Chapter 2: Why Teach Financial Literacy?

It’s not about how much money you make, but about how much money you keep.

An asset is something that has value, that produces income or appreciates, and has a market where the asset can easily be bought and sold:

  • Assets produce income
  • Assets appreciate
  • Assets do both

Conversely, liabilities take money out of your pocket because of the costs associated with them. Example –a car is a liability, it depreciates in value, and incurs operating costs. A share is an asset, in may appreciate and may give dividend income.

“Want to grow rich? Concentrate your efforts on buying income-producing assets – when you truly understand what an asset is. Keep liabilities and expenses low. You’ll deepen your asset column.”

Chapter 3: Mind Your Own Business

There are two key messages in this chapter.

First, pay off your debts and start investing in income-producing assets as soon as possible.

Next, stay financially healthy by spending your time (instead of your paycheck) and investing as much of your money as possible in assets.

Kiyosaki notes in Chapter 3 of Rich Dad Poor Dad that most people confuse their profession with their business. In other words, they spend their entire lives working in somebody else’s business and making other people rich.

Chapter 4: The History of Taxes and the Power of Corporations

Business owners with a corporate structure:

  • Earn
  • Spend
  • Pay taxes

Employees who work for corporations:

  • Earn
  • Pay taxes
  • Spend

Notice that employees who work for somebody else spend their money post-tax, while business owners earn and spend before paying tax.

Chapter 5: The Rich Invent Money

Intelligent investors have three things in common:

  • Identify opportunities that other people have not found
  • Raise funds for investment
  • Work with other intelligent people

Chapter 6: Work to Learn – Don’t Work for Money

Poor Dad was intelligent and well educated and worked for money because job security meant everything to him. Rich Dad became a millionaire by working to learn.

As Kiyosaki writes:

“I recommend to young people to seek work for what they will learn, more than what they will earn. Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race.”

Chapter 7: Overcoming Obstacles

There are five roadblocks – and the failure to overcome them – are why people who have studied and achieved financial literacy are still unable to develop assets that generate plentiful amounts of cash flow.

i. Fear

Losing money is a fact of investing life, and so is the fear that comes along with it. Kiyosaki notes that he’s never met a rich person who has never lost money, but *he’s met plenty of poor people who have never lost a dime because they’ve never invested.*

Investors who choose to act only on a “sure thing” are paralyzed by fear in disguise. People who can’t see the big picture and think big are the ones who almost never, ever succeed in investing or in life.

ii. Cynicism

Everybody has doubts that affect self-confidence, and it’s easy to fall into the trap of playing “What if?” especially when friends and family are constantly reminding you of your potential shortcomings.

Things like the economy crashing, interest rates rising are common “what if” fears that all investors have. While these are important items to consider, it’s important not to allow the cynicism of others to overtake your control. Otherwise, you may become immobilized as opportunities pass you by.

iii. Laziness

In today’s interconnected world it’s easy to confuse being busy with actually accomplishing things that matter. In fact, according to Rich Dad Poor Dad, busy people are often the most lazy.

Busy people arrive at the office early and leave late. They bring work home to finish at night and on the weekends. Before they know it, the people and things that matter most to them have disappeared.

*Instead of giving in to the call of the rat race and mistaking action for accomplishment, successful investors are proactive and take care of themselves and their wealth first.*

iv. Bad habits

Habits control behavior. For example, most people pay their bills first before they pay themselves. The result is that there’s usually very little left over at the end of the month for investing.

Paying yourself first – even if you don’t have enough money to pay other people - makes you financially stronger, mentally and fiscally. In a way, it’s a form of reverse psychology.

When you develop the habit of paying yourself first, you become motivated by the fear of not being able to pay creditors. In turn, you begin looking for other forms of income like investment real estate.

v. Arrogance

When people become truly arrogant, they honestly believe that their financial ignorance doesn’t matter.

Train yourself to listen to what other people have to say, especially when it comes to money and investing. If you discover you’re ignorant about a subject, educate yourself or find an expert in the field.

Overcoming these five biggest obstacles on the path to real estate success requires a blend of balance and focus. There are plenty of “Chicken Littles” in the world today -- people with a victimhood mentality who live their lives in cynicism and pessimism.

Rich Dad Poor Dad suggests filtering negative people and their fears out of your life. Instead, concentrate on the big picture and always ask, “What’s in it for me?”

Chapter 8: Getting Started

In Chapter 8, Rich Dad Poor Dad tells us that “there is gold everywhere, most people are not trained to see it.”

Part of this lack of vision and clarity comes from the world we live in. We’re trained from a very young age to work hard for someone else, spend the money that we earn, and borrow more if we run short.

Unfortunately, people who choose to become one of the masses never take the time to develop their financial genius.


"The poor and the middle-class work for money. The rich have money work for them."

“Thinking that a job makes you secure is lying to yourself.”

“The fear of being different prevents most people from seeking new ways to solve their problems.”

“A person can be highly educated, professionally successful, and financially illiterate.”

“Many financial problems are caused by trying to maintain your status.”

“The rich buy assets. The poor only have expenses. The middle class buy liabilities *they think* are assets.”

“Financial struggle is often directly the result of people working all their lives for someone else.”

According to Kiyosaki, real assets fall into the following categories:

  • Stocks
  • Bonds
  • Income-generating real estate
  • IOUs
  • Royalties from intellectual property such as music, scripts, and patents
  • Anything else that has value, produces income or appreciates, and has a ready market

“An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.”

“Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.”

“The reason so many talented people are poor is because they focus on building a better hamburger and know little to nothing about business systems.”

"Many people use arrogance to try to hide their own financial ignorance."


If you have realized that you need to create wealth, even if that means taking risk, overcoming all psychological obstacles, act now and consider the following – “Trikaal Capital has been generating over 30% returns per year, way ahead of other investment options”. If you can find a better option, go ahead for that (or discuss that with us), or contact us to understand more.

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