Is rich dad poor dad good?

Question

Hello so I recently bought rich dad poor dad by Robert kiyosaki because of all the stuff I've heard about it and I want to know. Are people basically getting paid to "recommend" it to other people is it actually good?

Randall Alan · Answer

@Robel Nessro

Rich dad poor dad is a great read to turn you on to the possibilities real estate can do for a passive income future.

While the nature of the storyline (the difference in perspective between 2 different dad’s about finance / money issues) gets a little long winded in my opinion, the information in the book is a real eye-opener to most people new to the concepts presented. Definitely still valid even though the book is decades old.

We started down our real estate path in 2018 and RDPD was one of the first books I read on the subject. In 3 years we had amassed over 35 doors by buying cheaper houses that sometimes needed some “sweat equity” to make them ready to rent.  For what it’s worth,  16 of those doors were duplexes, with 2 of those purchases being for 2 duplexes sitting on 1 parcel (2 purchases equaling 8 doors) as well as a couple of triplexes …. So it was more like 20 transactions yielding 35 doors in 3 years .   We had capital that we could deploy, which let us move unusually fast compared to the typical beginner investor.

With that said, what I would tell you is that it would be much harder for me to pull off what we did in 2018-2021 in 2026. Higher interest rates and higher housing prices would mean it would probably take twice the capital today versus back then.

I think the simplest way to look at long term rentals is each one hopefully initially yielding about $300/door/month in profit (before taxes and capital improvement expenses.). In our case we got great market appreciation in values through the COVID period, as well as significant rent appreciation as well. So now the properties that were yielding $300/month/door are now doing double that, and ones we have paid off are often doing triple that. So the market goes through cycles, and we caught some really good parts to that cycle. Today prices have topped out and are starting to come down some, hopefully along with interest rates sometime soon which hopefully will bode better for affordability.

From what I see and hear, however, as interest rates come down it will likely increase demand for real estate, which will likely help stabilize or increase real estate prices. Eventually rental prices will have to adjust for the increased purchase prices of today’s real estate… but for many houses you will run the numbers on, that won’t be the case … they will effectively be upside down rentals that would lose money each month due to the imbalance between interest rates and high prices. Those, you skip over and keep hunting to find ones that can be profitable… which are out there… just in fewer numbers.

The big picture is that real estate USUALLY isn’t a get rich quick endeavor.  In our case, it worked out that it was… as our portfolio basically tripled in value in 3-5 years…. Which is pretty crazy.  But realistically I think you have to call that culmination of circumstances that let that happen a pretty one-off occurrence… or at least pretty rare!  But given the cyclic nature of the real estate market, as well as unknowns as to what the current administration might do to influence housing affordability,  you can really ever know what will come next.

But as for the book, it’s worth the read and hopefully will give you an appreciation for what the path to a passive income investment future could look like and why you should seek it out!

All the best!

Randy

David Kaufman · Answer

It's a great book for inspiration and how to frame your financial future, i.e. the importance of accumulating income-producing assets, and *not* thinking of your own home equity an asset (it's a liability, and for most people their biggest expense!)

I don't think people are paid to recommend it. It has just become a famous book that has inspired so many people to become successful investors over the years that nearly every guru and RE coach recommends it.

That said, the author has always been a bit of a nut job :-) If you take to heart the way he "re-defines" already well-defined accounting terms you'll sound like an idiot speaking to a bookkeeper or CPA. His way of categorizing assets and liabilities is a good way to think about them, but a silly way to speak about them.

Plus the book was written decades ago and the author has since shifted focus to become something of a crypto bro.  Nice that he can afford to, after making his millions in real estate.

The best thing I learned from the book when I read it many years ago was that working for others is a trap (you want to be the employer, not the employee!), renting is a trap (you want to be the landlord, not the tenant!) and buying your primary residence with the biggest mortgage you can afford is a trap (you want to keep your living expenses as low as possible so you can save and spend that money on income-producing assets, especially when you're young!)

So: long story short: Book Good, Author Crazy :-)

Kenneth Garrett · Answer

@Robel Nessro

I enjoyed the book, but I read it after I started investing in real estate.  My first 1-3 years.

The book in simple terms is teaching you what an asset is and what leverage can do for you.

1. Asset - generates income and appreciation over time.

2. Personal Home - this is not an asset as it does not generate any income.  It actually cost you money with maintenance, mortgage, taxes, insurance, etc.

3. Leverage - a mortgage allows to put 20% down and receive a value worth 80%.  What industry allows you to invest so little and yet you receive such a tremendous value.

4. Appreciation - over time by keeping rental properties the value of the property in general keeps going up.  There will be up’s and downs in the economy, but mostly ups.  Don’t over leverage.  Cash flow is king.

5. ROI - Cash on cash return or for some it’s ROI (return on investment) is your measure of success.  For me, cash on cash tells you how you are doing today while ROI is down the road or based on projection.  The true ROI is when the asset is sold.

This is my take on the book.  I as have many became a multi-millionaire.  My rich dad taught me how to become wealthy, my poor dad taught me to love and everything else growing up in life and made the person I am.  To be clear either dad could be your mom, grandmother, grandfather, aunt, uncle, family friend or other.  The term dad for me is anyone influential in your life.

Jules Aton · Answer

I read it when it came out, liked it as an easy read and felt it was motivating. Over the years I have grown weary of what seems like significant embellishments, pontification and yet another guru who makes their money selling more conferences than actually being successful in whatever field.

Lance Olenius · Answer

I was looking for ways to build long term wealth and wanting to break into real estate investing but didn't know anything about it.  RDPD kept popping up as a recommended read so I read it.  While it doesn't really teach you how to invest in real estate, it provides a foundational logic as to why one would invest in real estate.  The book also helped drive it in my head that without risk, there is no reward.  It made a lot of sense and was the motivation I needed to take the risk and get out of my "analysis paralysis".  3 months later I bought my first property, completed the rehab on it, and it's about to get my first renter.

Chris Seveney · Answer

Good book on philosophy and thinking but is not going to teach you "how to do it".

Mohammed Rahman · Answer

I think Rich Dad Poor Dad is good for beginners, especially if you are new to financial literacy, money mindset, and just understanding how wealth building works in general. It is not really a technical real estate book, so you do not read it for strategies or step by step investing methods.

The real value of it is mindset. It shifts how you think about money, assets vs liabilities, and the idea of building income outside of a traditional job. For a lot of people, that is the first real exposure they have to thinking differently about money at all.

And honestly that matters more than people realize. Before you get into real estate or any investing, you usually have to become aware that your current way of thinking about money might not get you where you want to go. That awareness is kind of the starting point for everything else.

So I would say yes it is worth reading, but not because it teaches you how to invest. It is useful because it gets you thinking in a different direction, and that mindset shift is usually the first step before you actually start learning the practical side of real estate.

Todd Jones · Answer

I agree with what everyone has said regarding the book.I heard him in interviews where he goes into detail of the backstory.

The "poor" dad is actually his biological father who earned several degrees and displayed them on the wall. He prompted the importance of an education. The "rich" dad was his close childhood friend's dad who allegedly owned apartment buildings in Hawaii, his home state. While the poor dad wasn't exactly poor, he was not as wealthy and business oriented as the "rich" dad. His poor dad said to him "I would have been rich if it wasn't for you kids" so he didn't get along well with him.

While the book doesn't specifically distain from obtaining college degree, Robert believed a college education can only deliver middle-class, higher-paid employees and place them in a safe secure job or "career". You won't get wealthy with degrees. This is primary because the book is solely focused on wealth building and financial education where a degree may not be necessary.

However, logically, this is where I slightly disagree. Yes, several colleges are designed solely so employees can hire talented workers. However, college is simply an education. You can become both financial literate and have degrees and be wealthy. Its all about the perspective, effort, action, and if you are coachable.

Mohammed Rahman · Answer

Hey Robel,

RDPD is good as a mindset starter—it gets you thinking assets vs. liabilities and pushes you toward investing over just earning a paycheck. Not a how-to manual though; lots of critics call out factual issues and hype. People recommend it because it feels empowering for beginners, not because they're paid. Take the wealth‑building spark, then read something more practical next.

Kyle Mccaw · Answer

@Robel Nessro

I’ll be honest — Rich Dad Poor Dad by Robert Kiyosaki changed my life.

It’s not a tactics book. It’s a mindset book.

It teaches you to think differently about assets, liabilities, and how money actually works. For a lot of people, it’s the first time they realize their job alone won’t create wealth.

That said, it’s not a complete financial education. It’s a spark.

Personally, I think Cashflow Quadrant is even better. It explains why employees, self-employed people, business owners, and investors think differently — and why that matters long term.

Are people paid to promote it? Maybe some are. But that doesn’t mean it isn’t impactful.

Just don’t stop there. Read widely. Learn how money, debt, taxes, and business really work. Real wealth comes from education + execution over time.

Is rich dad poor dad good?

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