Robert Kiyosaki has influenced the lives of millions worldwide, teaching the importance of financial literacy and independence. When you need guidance on how to boost your financial IQ and escape the rat race, he's the expert you want to listen to.
Kiyosaki has authored over twenty works on building wealth and financial education, appealing to readers from teenagers to senior citizens. His most famous creation, "Rich Dad Poor Dad," has sold over thirty million copies, maintaining its position on the New York Times bestseller list for over six years. Currently, this work ranks as a top-selling personal finance book of all time. But who is Robert Kiyosaki, and what led him to pen this groundbreaking self-help guide on financial success? Let's find out!
Robert Kiyosaki's background
Robert Toru Kiyosaki, a Japanese American, was born to Ralph and Marjorie Kiyosaki in 1947 in Hilo, Hawaii. Ralph was an academic educator, while Marjorie was a registered nurse. As a teenager, Robert attended Hilo High School and graduated in 1965. After graduation, he moved to New York and enrolled in the United States Merchant Marine Academy. In 1969, he completed his program as a deck officer and accepted his commission as a second Lieutenant in the United States Marine Corps.
In 1972, Kiyosaki served as a helicopter gunship pilot in the Vietnam War, earning an Air Medal for his service. The following year, while still in the military, he began a two-year Master of Business Administration program at the University of Hawaii, though he didn't complete it. His military career ended in 1974 when the Marine Corps honorably discharged him. After that, he found employment as a Xerox salesperson.
Robert Kiyosaki's entrepreneurial journey
Kiyosaki's first venture into entrepreneurship began in 1977 when he founded Rippers, a company selling nylon and Velcro surfer wallets. Despite initial buzz, the company declared bankruptcy three years later. This setback, however, didn't deter Kiyosaki from pursuing his goal of financial knowledge.
Months after his first company's failure, he launched another business in the retail sector, producing and selling accessories for heavy metal rock bands. Unfortunately, this second company also went bankrupt in 1985. Despite these early failures, Kiyosaki didn't give up, and nearly a decade later, he wrote his first publication: "If You Want to Be Rich and Happy, Don't Go To School," which shows how to reverse the effects of the traditional education system and gain financial intelligence.
In 1997, he and his wife Kim created a financial education company called Cashflow Technologies Inc. This same year marked Kiyosaki's big breakthrough with publishing "Rich Dad Poor Dad." The guide's title refers to Kiyosaki's father (the "poor dad") and his best friend's father (the "rich dad"), who taught him contrasting lessons about money and building wealth.
Since then, Kiyosaki has continued to expand the Rich Dad company, adding books and audiobooks to the series, including the "Cashflow Quadrant," and creating educational workshops and seminars focused on financial prosperity. Beyond his work in financial education, Kiyosaki is an investor in real estate, oil wells, stocks, gold, and silver, among other things.
Why Rich Dad Poor Dad?
Robert Kiyosaki's life-changing work came to life due to marketing a board game he created: CASHFLOW 101. Like Monopoly, this game teaches the rules of money in a fun and exciting way. While developing a marketing strategy for the game, he began writing a brochure, which eventually became the foundation for his influential work, "Rich Dad Poor Dad."
The path to success wasn't always smooth. Initially unable to secure a publishing deal, Kiyosaki opted to self-publish a thousand copies. He then leveraged his connections with top members of a multi-level marketing company to advertise the publication before Warner Books picked it up.
Kiyosaki's story is one of persistence, grit, and resilience. Despite numerous setbacks that might have made others say "sorry" and give up, he persevered until his big breakthrough.
Lessons from Rich Dad Poor Dad
To build wealth, you must be financially independent and let your money work for you. So, let's examine some of the essential lessons from this text.
1. Gain knowledge
A standout theme throughout the work is that financial literacy and freedom begin with knowledge. You can't apply financial concepts you don't understand. Kiyosaki recommends immersing yourself in personal finance literature or attending seminars about it. For instance, "rich dad's" understanding of taxes allowed him to legally pay less tax compared to "poor dad," who was earning less. One of the easiest and fastest ways to learn insights on this matter and many others is through the Headway app, which offers a selection of bite-sized content for financial literacy.
2. Let your money work for you
Kiyosaki claims that to achieve financial independence, you need to make your money work for you. Simply working hard and earning income will not cut it. You should invest your earnings into income-producing assets and start earning passive income as rewards for your investment. This approach will increase your financial gains and make it easier to identify wealth-creation opportunities.
He controversially states that a house is a liability because, in most cases, it takes money out of your pocket, except when you rent it out. Kiyosaki also explains that having a job is often just a quick-fix solution to the long-term challenge of wealth creation. He further points out that the fear of losing money is one reason people become shackled to their finances, often becoming overly reliant on credit cards. If you can overcome your worries, educate yourself about financial independence, and take calculated risks, you've taken the first step toward building wealth.
3. How much money you keep is more important than how much money you make
The first step to investing involves having enough money. Poor people often struggle to save because most or all of their income goes to expenses. For example, if you make a thousand dollars every month and your expenses account for that same amount, there's nothing left to save — as many in the middle class do. In contrast, most wealthy individuals prioritize saving overspending on liabilities so that they can invest their savings into income-generating assets.
4. Overcome your obstacles
Kiyosaki believes that
"the primary difference between a rich person and a poor person is how they manage fear."
The fear of losing money is one of the biggest obstacles people face on their journey to becoming rich and financially independent. Laziness, arrogance, and cynicism are also among these obstacles. The earlier you overcome such challenges, the better because some can prevent you from achieving your financial independence goals.
Kiyosaki's early years defined who he is now. His resilience and grit made him the author of one of the bestselling personal finance guides despite multiple failures. So, in your quest to achieve financial freedom, Rich Dad Poor Dad is a must-read! And if you want to grasp its core ideas and main takeaways quickly, you can read or listen to its summary on the Headway app. In just 17 minutes, you will learn all the basics to put you on the right track to financial freedom.
