In 1997, a book was published by Robert Kiyosaki about money called Rich Dad Poor Dad.

When this book came out, many people started talking about it. Today, 26 years later, the book is still popular. More than 32 million copies have been sold around the world.

In the book Robert shares the lessons he learned from two fathers. His real father is called Poor Dad. The father of his best friend Mike is called Rich Dad.

Poor Dad was highly educated and worked as a professor. Rich Dad was not well educated because he failed in school, but he understood how money works.

As a child, Robert saw that his classmates lived better lives. He also wanted to be rich. He asked his poor dad, that Dad! How can I become a rich man? Poor Dad said he could not teach this, but told Robert to learn from Mike’s father. That is where Robert started to learn about money.

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Lesson 1: Rich people do not work for money

Most people work hard all their lives. They study to get a good job and a salary. Then they work with full dedication. This creates what Robert calls the Rat Race.

People work to cover expenses. When they earn more, they also spend more. They take loans for houses, cars, and other things. Debt keeps them trapped and makes life difficult. They spend their whole life running after money, but they never become truly free with it.

Rich people do not live like this. They do not only work for money. They learn how to use money in a smart way so it helps them.

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Lesson 2: Buy assets, not liabilities

Rich people spend money to buy assets. Assets bring money into their pocket. For example, if they buy a house and rent it out, they earn income and also keep the house as an investment.

Poor people often buy liabilities. Liabilities take money out of their pocket. Expensive cars and houses that they cannot afford are liabilities.

The difference is simple:

Assets give you money
Liabilities take your money away

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Lesson 3: Learn financial literacy

Schools teach us how to become employees. They do not teach us how to use money properly. This is why many educated people still face money problems.

Robert says financial education is very important. If you want to become rich, you need to learn how to handle money and how to invest it.

A job alone cannot make you rich. Investment makes your money safe and also helps it grow.

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Lesson 4: Mind your own business

Your job is not your business. If you want to earn more money, you should start your own work or business. You can start small.

Robert gives the example of McDonald’s founder. He asked students what business he was in. They said he was in the burger business. He smiled and said that his real business was real estate.

Every McDonald’s franchise comes with land ownership. That is why McDonald’s is one of the biggest real estate companies in the world.

The lesson is clear. Do not only work for others. Build something that belongs to you. Start with a side business. When it earns enough, you can leave your 9 to 5 job.