Rich dad, poor dad  Chapter summary

 Chapter 1:rich dad , poor dad

 Robert  Kyiosky and Mike starts their journey in 1956 in Hawaii, when both boys were 9 nine years old.

 The urge and desire to be rich was born in them when they were not included in the beach party by their rich friends.

This bring me to why do people want to get rich
List reasons why you want to be rich
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 For Robert and mike  they were ridiculed by the rich kids

Who is the rich dad and the poor dad

The poor dad was Roberts’s father who worked for the government and waited monthly for his salary at the end of the month, and after the monthly expenses, there is not enough to save, talk more of investing
The rich dad was mikes father, who had various businesses and was constantly investing.


There were so many lessons learned from this chapter1.

Robert defined for us what the rat race was all about: when people constantly work for that monthly salary and after the expenses, there is none left for investing.

The rich dad argues that it is not how much you earn, because most of the people in the rat race earned more, for example the poor dad. But what those in the rat race lacked was financial intelligence. So the rich dad decided to teach them


Another lesson here was not to give up even when a business idea fails, Robert and mike tried their first business idea but it was counterfeiting a nickel, so evidently they failed but they went home and kept on thinking of new business ideas.

Another major lesson in this chapter was when the rich dad asked Robert and mike to work at the store for 3hours for 3 cents. Indeed they were under paid. The lesson here was that it’s not how much you were paid but what you used the money for. 

Robert used his money for comic books. And things turned worse when rich dad decided not to even pay them at all, that was when they invented the idea of using the comic books turned out from the store to start up a basement library.


The last lesson learnt in this chapter was when Robert and mike was offered 25cents as opposed to the 3 cents they were paid earlier. The lesson to get out of the rat race not matter how much you were earning. He taught here that one of the reasons people remain in the rat race is because of greed. When they are offered more they keep peddling just like the rat in the cylinder chasing after the cheese butt never catches it.



Chapter 2: The Rich Don’t Work For Money


In chapter two the rich dad explained to Robert and mike why he put them though all the stress of working in this store that life keeps pushing us around till our backs are against the wall we learn the lesson required and push back.

Rich dad insists that the people in the rat race have decided to play it safe , avoid taking risk, Due to various reasons ranging from ignorance, greed, poverty, fear and lack of financial intelligence.


Another lesson here is using ones emotion and not thinking with the emotions also that opportunities abound in every moment that the rich sees these opportunities and cease them but the poor prefers to play it safe and seek for security. In bold letters the rich don’t work for money



Chapter 3 : Why Teach Financial Literacy


Why teach financial literacy. Robert and mike was all grown up by 1990.He made reference to the 1929 global depression that left all the wealthy men in Chicago either dead or in jail.

The lesson learnt from this unfortunate experience was that once you get the money you should not be wise about the money (playing it safe) but rather be smart with your money, here comes the importance of financial literacy , if you lack it when the depression hits you are left with next to nothing.

Robert taught us a great a lesson he learnt from his rich dad. The difference of assets and liability, he explained that his rich dad and his poor dad had a different definition of assets and liability and also the dictionary definition of assts was different from a rich man’s definition of assets.

 Here Robert explained how disturbing it was to have two different fathers who had different opinions as to the path he should follow in life. How even though both of them wanted what was best for him, that they had different opinions of how he was to get there.

His poor dad wanted him to go to school het good grades’ and get a good job, work and retire and wait for the government to take care of you but his rich dad told him to go to school alright  , get good grades , get financial intelligence, invest and retire and let your money work for you. These differences in opinions amongst his two fathers caused him to think for himself and decided whose opinion he should listen to.



In bold  intelligence brings money but money without financial intelligence is money soon gone, and this financial literacy starts from a working knowledge on accounting. Poor people keep buying liabilities but the rich keep their assets column solid. People have to understand it is not how much they make but how much they keep. He explained the basic cash flow. Through how many ways does money flow into your income statement and how many ways does it go out.(The Cash Flow Quadrant)



Chapter 4: Mind Your Own Business

The rich dad didn’t discourage Robert form getting a daily job but he enjoined him to mind his own business and not his employers business.

 Robert explained the secrets for mc donalds business. The explained the secrets for real estate business and gave various hints on stocks, mutual funds, royalities,bonds, incoming producing  real estate, notes amongst others. 

Roberts’s rich dad practically told him that one of the sources of wealth for a rich man was real estate. The rich dad so emphasized it that Robert took up the business and made more income using it.



Chapter 5: The History of Taxes And Corporation

The author described the history of taxes in America, how  taxes was invented to tax the rich but the rich has financial intelligence so they escaped it through the corporations and the tax was moved down to the  poor , so now the poor work the better part of the year to pay for these taxes they owe the government.


 So henceforth the poor works for the government so how does he expect to get out of the rat race while the rich is getting richer through the corporations. The author encouraged that knowledge of accounting, investing, understanding the markets and the law gives the poor man a fighting chance to get out of this rat race.
Don’t ask me how the rich get richer through the corporation, read the book

The contents of this book are much bigger than I and indeed the author advised to read through the chapters at least once a month. So there are so many lessons to be learnt here, even though I have  tried to summarize this book ,but I am not capable it is a must read for everyone who wants to get out  this rat race . I hope this summary will entice you to pick up the book and read. The rest of the chapters will be in m