We go to school to learn to work hard for money. I write books and create products that teach people how to have money work hard for them.
Robert Kiyosaki

The book is the story of a person (the narrator and author) who has two fathers: the first was his biological father – the poor dad - and the other was the father of his childhood best friend, Mike – the rich dad. Both fathers taught the author how to achieve success but with very disparate approaches. It became evident to the author which father's approach made more financial sense. Throughout the book, the author compares both fathers – their principles, ideas, financial practices, and degree of dynamism and how his real father, the poor and struggling but highly educated man, paled against his rich dad in terms of asset building and business acumen.

The author compares his poor dad to those people who are perpetually scampering in the Rat Race, helplessly trapped in a vicious cycle of needing more but never able to satisfy their dreams for wealth because of one glaring lack: financial literacy. They spend so much time in school learning about the problems of the world, but have not acquired any valuable lessons about money, simply because it is never taught in school. His rich dad, by contrast, represents the independently wealthy core of society who deliberately takes advantage of the power of corporations and their personal knowledge of tax and accounting (or that of their financial advisers) which they manipulate to their advantage.

The book’s theme reduces to two fundamental concepts: a can-do attitude and fearless entrepreneurship. The author highlights these two concepts by providing multiple examples for each and focusing on the need for financial literacy, how the power of corporations contribute to making the wealthy even wealthier, minding your own business, overcoming obstacles by not fostering laziness, fear, cynicism and other negative attitudes, and recognizing the characteristics of humans and how their preconceived notions and upbringing hamper their financial freedom goals.

The author presents six major lessons which he discusses throughout the book:

• The rich don’t work for money
• The importance of financial literacy
• Minding Your own business
• Taxes and corporations
• The rich invent money
• The need to work to learn and not to work for money
• www.wikisummaries.org/Rich_Dad,_Poor_Dad

RICH DAD, POOR DAD 
Author: Robert T. Kiyosaki
Year of Publication: 2000
No. of Pages: 207

Robert Kiyosaki refers to two fathers, his father is poor as he went to school, earned good grades,
obtained his PhD and after various years of service, retired due to differences with Government.
Second father, his friend’s father is a rich father who is a businessman. This book is based on
advices given by the ‘rich’ father to the author.  

Six Secrets of Rich

1. Rich don’t work for Money
2. Learn financial literacy
3. Mind your own business
4. The History of taxes and power of corporations
5. Rich Invest Money
6. Work to Learn – Don’t work for money!!!

SECRET 1: RICH DON’T WORK FOR MONEY

People quit jobs because jobs don’t pay well. Rich work (in jobs) to learn and not for money. Rich dad got his
own son and the author to work for a very small pay in a retail store. At one time, due to small pay, both
boys were ready to quit the job and Rich father told them that this is exactly why people quite job and a
prospective businessman don’t. Rich Dad’s lesson: Learn the business where you do your job so that you
can start your own business later. As a result of this thinking, both boys took thought about business and
reviewed the available resource base. They started a comic book library, renting books and earning more
money than their job of retail store.

SECRET 2: LEARN FINANCIAL LITERACY

Most people buy a house at mortgage and consider it to be an asset. However, in businessman’s vocabulary,
it’s actually a liability because the house is not earning anything. The house is eating up resources of the
person who has bought it on mortgage. 
In school, people are taught to earn good grades, get good jobs and be good employees. Generally, financial
literacy component is not taught. Therefore, people with job generally struggle to meet their day to day
expenses, middle class purchase liabilities considering it to be an asset (e.g. a house bought on mortgage or
a car on lease!) while rich people construct a sound asset base which generates income for purchase of
other assets. 
Rich dad taught author to buy house once there is another asset which generates enough cash flow to
enable the person buy a house. What are the assets of rich people? Those include: Real Estate, apartments
generating rents and businesses being managed by managers and generating cash. A person can start with
stocks, bond and mutual funds but these are not at all a substitute of a business which generates cash flows.
Rich Dad’ lesson: Learn the difference between an asset and a liability and think how to create income
generating assets.   

SECRET 3: MIND YOUR OWN BUSINESS

Rich Dad’s lesson: Along with your day job, start some business side by side. Don’t spend all your salary.
Save some amount on a monthly basis and think about an idea which can be turned to profitable business
later. Business of Mc Donald’s owner is not selling ham burgers but to have real estate. If ham burgers don’t
sell, there is enough property to be sold, if required.

SECRET 4: THE HISTORY OF TAXES AND CORPORATIONS

Salaried people earn their salary, pay taxes and then spend from whatever amount is left. Rich people earn,
their companies pay all their expenses including taxes and then they have enough amounts to spend, as all
their expenses are paid before paying any tax.
Author advises to talk to businessmen and investment bankers to learn businesses. Reading and
understanding of financial statements is a must to understand how a business operates. Rich dad’s lesson:
how rich people protect themselves from heavy taxes? Their secret: Corporations!

SECRET 5: THE RICH INVEST MONEY

A person can invest money either through experts i.e. investment bankers, stock brokers etc or can go for
self created investment by identifying an opportunity, raising capital and finding expert people to manage
the business. Rich Dad’s lesson: Learn how to manage risk. An Investment is not risky. Not knowing how to
manage an investment is risky

SECRET 6: WORK TO LEARN AND NOT FOR MONEY

One should learn to manage cash flows, systems and people. Continuous learning is the key. Learn how to
sell. 
Rich dad’s lesson ‐ What to do? Action plan
• Assess your present situation: If you keep on doing what you are doing since quite some time, you
will get the same results what you are getting. To get new results, do some thing different.
• Try to find some new idea – how will you create and income generating asset?
• Take action, after finding new some new idea. Practical tip: Find Mentor. Try to find some person
who has achieved what you want to achieve. Ask tips from him / her.
• Try to invest in real estate when market is down. Make offers. Don’t sit and wait for opportunity to
come. 
• Learn from lessons of successful people.

ACT, MANAGE RISK, THINK BIG, THINK BUSINESS, DON’T BE AFRAID TO TRY & FAIL

USA Today quoted "Rich dad Poor dad is a starting point for anyone looking to gain control of their financial future" while JP Morgan Company declared the book a must read for Millionaires. 

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