6 Success Tips from Rich Dad Poor Dad: Robert Kiyosaki

Estimated reading time: 8 minutes

A Sales Call That Led to Financial Enlightenment

During a sales call, my client/friend revealed his newfound interest in real estate, specifically in the fix and flip sector. Years ago, he realized the importance of making money work for him. What followed was a conversation that led to the recommendation of Robert Kiyosaki’s bestseller, “Rich Dad Poor Dad.” Rich Dad Poor Dad is a personal Finance book…scratch that; considered one of the best financial books of all time. The key takeaways include poor people buying liabilities and the rich buying assets, and this vicious cycle continues through generations. I now have 6 Success Tips from Rich Dad Poor Dad: Robert Kiyosaki. 

I want to break this New York Times bestseller down. This American Businessman turned author and speaker has inspired millions to take control of their finances and reach their goals. Today, his essential lessons about using good debt to buy income-generating assets have touched millions of people’s lives. He has several books and financial products. 

Top 20 Quotes on Passive Income for Sales Professionals(Opens in a new browser tab)

Understanding Financial Independence Through “Rich Dad Poor Dad”

The Core Lesson of the Book

Kiyosaki’s book emphasizes a fundamental truth: The poor work for money, and the rich make their money work for them. A popular read among real estate investors, this book doesn’t teach the “HOW” of investing but rather the “WHY” of focusing on assets. It dives into understanding that you can have enough money to retire from the rat race much sooner than we are taught. Your mind is your greatest asset, and increasing your financial IQ will get you easier access to wealth than hard work. 

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Tangible Assets provide numerous streams of income: 

1. Cash flow

2. Tax Reductions

3. Appreciation

4. Principle Pay-down

5. Inflation

Using your Discretionary Income to Build Wealth(Opens in a new browser tab)

Parnters in syndications receive a tax form called a K-1.

“Often, the more money you make, the more money you spend; that’s why more money doesn’t make you rich – assets make you rich.” – Robert Kiyosaki. 

Who Is Robert T. Kiyosaki ?

The Man Behind “Rich Dad Poor Dad”

Robert T. Kiyosaki, a former Marine Corps member turned author and teacher, is a self-made millionaire. Despite early setbacks, he used his experiences to educate others and build a multimillion-dollar training brand. Robert Kiyosaki has spent much time developing good education to get many people out of their comfort zone. 

The Rich Dad Company is focused on teaching people to make intelligent decisions and build wealth. The money problems people in the United States often face directly result from the lack of financial education for their entire life. 

The Rich Dad Series

Kiyosaki’s Rich Dad series includes:

  • Rich Dad’s Cashflow Quadrant
  • Retire Young Retire Rich
  • Rich Dad, Poor Dad For Teens
  • Rich Dad’s Guide to Becoming Rich Without Cutting Up Your Credit Cards
  • Fake Money, Fake Teachers, Fake Assets

Educational Games

Kiyosaki also created The Cashflow Board Game for adults and kids, teaching essential financial lessons through play. Parents can teach their kids about financial IQ with great lessons that are easy to learn in a fun game. The whole family can learn together, and a shift in understanding how money works can change. 

When families begin moving income from liabilities to tangible assets, enormous wealth can be created; instead of a new car or other bad debts, the family begins looking for better opportunities to make their money work. 

A Tale Of Two Dads

The Source of Financial Knowledge

Our education system must teach money management, leading to enormous debt and inequality. Kiyosaki’s book explores how two different “dads” influenced his understanding of wealth.

The Rich Getting Richer

Without proper financial education, many people rely on parental guidance. This may contribute to the ongoing cycle of the rich getting richer while the poor struggle. I related to this story. In my own life, we were not poor, but not rich. I also had a close friend whose family was entrepreneurial and owned several businesses. I spent a lot of time growing up with this family seeing how “rich people” live, which was not opulent as we often see on social media today. It certainly had an impact on me in later years. This family’s business is not rental properties or real estate.  However, they taught me that having financial intelligence is essential to managing how much money you earn. 

Also, the most important thing is not always MONEYEach of us can have our definition of financial security and, at any point, will have our financial problems. But, being grounded in God and family should take priority over having or making a lot of money.

49 Famous The Richest Man in Babylon Quotes(Opens in a new browser tab)

6 Success Tips from Rich Dad Poor Dad: Robert Kiyosaki

Tip #1: Keep What You Earn

Assets that produce income and appreciation, such as real estate, are essential for wealth creation. The government (all governments) incentivizes certain financial behaviors. If you do not believe me, ask Elon Musk about the US Government’s incentives for Green Energy and how they assisted Tesla in the early days…and even now. 

The government is always helping developers create housing, and companies fill demand in various markets. Being a business owner who understands the tax implications of your industry is only one of the intelligent decisions you can begin making on the path to wealth. 

Tip #2: The Rich Don’t Work for Money

The rich put money to work for them, focusing on investments and other passive income streams. I can’t help myself. I am a worker. By leveraging my work ethic with my understanding of the importance of passive income, I found myself drawn to sales to have my efforts draw a residual income from my employer. With this additional income, we began investing in real estate and syndications. Syndications have proven to be the most passive income form I’ve found. 

Work Optional Lifestyle(Opens in a new browser tab)

Tip #3: Focus on Assets

Building an asset column first allows the cash flow generated to pay for luxuries. This asset column will be made up of real assets such as their own business and real estate generating positive cash flow. 

Tip #4: Corporations as a Secret Weapon

Understanding tax laws and corporate structures can provide a significant advantage in preserving wealth. This has proven to be a key to the financial success of countless millionaires. It is not how much you earn but how much you keep. 

Tip #5: Work to Learn, Not to Earn

Investing in learning and acquiring knowledge pays off in the long run.

Tip #6: Embrace Failure

Failure is a part of the process, and it can lead to success if treated as a learning opportunity.

Rich Dad Poor Dad is considered the Purple Bible among Entrepreneurs

5 Real Estate Investing Principles From Rich Dad

Principle #1: Your House is NOT an Asset

Homes can be liabilities, not assets. Focus on investments that generate income. Your house costs money every month. People believe their home is an asset mainly because 1.) Appreciation, and 2.) Interest expense deduction on taxes 3.) Principle paydown 

Using this logic, the most crucial investment decision is building wealth for the average American in 3 ways every year!!  So, why doesn’t the average financial educator tell their clients to buy multiple pieces of real estate!! 

Principle #2: Search for the GOLD

Real estate investors must look beyond the surface to find valuable opportunities. The main difference between a buyer and an investor is understanding how to value a business for purchase. This can be real estate, stock, franchise, or a dry cleaner. Understanding valuation and purchasing undervalued businesses will drastically improve your financial life. 

Principle #3: Invest in YOU

Continual learning and association with like-minded individuals can lead to success in real estate investing. It would be best to avoid being in the expense column because you are always an investment

Limitless: Book Summary(Opens in a new browser tab)


Robert Kiyosaki’s “Rich Dad Poor Dad” guides understanding the principles of financial independence. By applying these lessons, individuals can succeed in real estate investing and other income-generating endeavors. The quest for financial freedom is not just about earning more; it’s about making wise decisions, understanding assets and liabilities, and learning from failure.

People should focus on real assets to improve their balance sheet.

Always consult with a financial advisor, CPA, or CFP to make sure your financial plans align with your goals, risk tolerance and financial situation.