Rich Dad Poor Dad Review

Before diving into my review of Rich Dad, Poor Dad, here’s some background. I’ve been aware of Robert Kiyosaki for a while. His pitches for his books and seminars often felt like typical hype aimed at the mass market. The book’s subtitle is, What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not!.

Rich Dad, Poor Dad is the best-selling finance book of the 21st century in America. Recently, Kiyosaki has made headlines with statements advising people to avoid cash, suggesting investments in silver and Bitcoin, and claiming he has $1.2 billion in debt but isn’t worried because if he went bust, the bank would too.

I picked up the 20th anniversary edition of Rich Dad, Poor Dad, which claims to be the #1 personal finance book of all time. I expected poor quality advice and hype, and I wasn’t disappointed.

The book isn’t completely terrible. About ten percent of it is good. Kiyosaki is very entrepreneurial, recommends starting a business, advocates financial literacy, and is clearly a lifelong learner. That’s all good.

However, I’d say another 30% of the book is bad advice. Kiyosaki has his own definition of liabilities that doesn’t align with accounting standards. He defines a ‘liability’ as a depreciating asset or one that costs money to maintain, without properly defining basic concepts like net worth, net income, revenues, or expenses.

He warns against saving cash, citing the U.S. dollar as a fiat currency since Nixon took it off the gold standard in 1971. While he feels the dollar isn’t real, he advocates investing in cryptocurrencies. He also likes real estate for cash flow but recently has been advocating for investments in silver, suggesting speculation in commodities over saving in interest-bearing accounts.