Robert Kiyosaki wrote the first publication of Rich Dad Poor Dad 25 years ago, and today, his book is still seen as the “No. 1 personal finance book of all time.” The edition referred to in this book review of Rich Dad Poor Dad was published in 2022. It is available at Takealot, Exclusive Books and Wordsworth. This 25th edition is particularly meaningful as it includes Study Session sections that help readers understand Robert Kiyosaki’s ideas and philosophies. His concepts remain as relevant and actionable today as they were in 1997 when the first edition was published. We will share 10 lessons from Rich Dad Poor Dad that we feel are particularly insightful.
At IGrow, our Founder and CEO, Jacques Fouché, was truly inspired by this book in the early stages of his own property investment journey. Similar to Robert Kiyosaki, Jacques believes in a solid financial education and grounding, creating passive income, and surrounding yourself with an expert team to gain long-term wealth through property investing. Both men, considered leaders in their fields, share the idea that gaining financial freedom leans on understanding assets and liabilities, and making your money work for you.
What is the background of “Rich Dad Poor Dad”?
Robert Kiyosaki compares the financial beliefs and philosophies of what he calls his two “dads”:
- Poor Dad (is his biological father): he is educated and hardworking, but always short of money.
- Rich Dad (his friend Mike’s father): he is a self-made entrepreneur who understands how money operates and has built wealth via entrepreneurship and real estate investments.
The two points of view held by Robert’s two dads in Rich Dad Poor Dad create the book’s “secret sauce”. “Poor Dad” worked hard for his salary, while “Rich Dad” made money work for him. Robert chose to follow in his “Rich Dad’s” footsteps.
He taught him lessons concerning investing, becoming financially literate, and the importance of financial independence. These principles still guide property investors today.
What is the core lesson of “Rich Dad Poor Dad”?
The Rich Dad Poor Dad lesson is clear: you can earn a high income and still stay poor if you don’t understand the cycle of money. Real wealth doesn’t originate from earning an excellent salary; it comes from owning assets.
For IGrow’s property investors, this lesson will hit home. Owning rental income-generating buy-to-let properties is the answer! Rather than relying on your salary, your passive rental income is the path to financial freedom. This is precisely what IGrow’s team teaches our investors as we guide them on their property investment journeys.
Ten Lessons from “Rich Dad Poor Dad”
These ten lessons from Rich Dad Poor Dad are considered universal and timeless. They are particularly relevant for South African property investors, such as IGrow investors, who build wealth through smart, strategic property investment moves.
1. The rich don’t work for their money; money works for them
Robert Kiyosaki famously said, “The poor and the middle class work for money. The rich have money work for them.” (Page 71).
At IGrow Wealth Investments, we incorporate the same principle. We encourage our investors to invest in property so that their rental income and capital growth will increase and build wealth, even while they sleep.
2. Gaining a financial education is the foundation of financial freedom
According to “Rich Dad,” schools don’t teach financial intelligence in a way that you can apply it today.
At IGrow, we believe having easy, free access to property investing tools and online education training is key to our investors’ success. IGrow offers free weekly webinars, online courses, our educational blog to boost your property knowledge, and free property strategist consultations.
We also have a handy IGrow Wealth Investments YouTube channel, and our social media platforms offer short videos and content aimed at informing IGrow investors. Check out our IGrow Facebook, Instagram, LinkedIn, and TikTok feeds to learn more golden nuggets of property investment guidance.
3. You need to grasp the difference between assets and liabilities
This is one of Rich Dad Poor Dad’s best lessons. Robert Kiyosaki re-examines the term “assets”, defining them as “anything that puts money in your pocket.”
At IGrow, a well-structured, profitable property portfolio that generates a secure monthly rental income is the perfect example.
“Liabilities”, however, suck your income dry, such as expensive cars or having unused credit.
Robert Kiyosaki believes that the more money that goes into his “asset column”, the more it grows. As the assets grow, so too does cash flow. If we keep our expenses less than the cash flow derived from the assets, the investor will grow wealthier with further income generated from things other than physical labour. (Page 111).
This is known as the “reinvestment cycle”.
He sums up:
- “The rich buy assets.
- The poor only have expenses.
- The middle class buy liabilities they think are assets.”
(Rich Dad Poor Dad, Page 111).
Take note: Robert Kiyosaki explains that rich people acquire assets first, then income from these assets pays for their luxury purchases later. This shift in how you handle money encourages you to invest first and enjoy luxuries later. This is the cornerstone of sustainable wealth.
4. Your mindset is more important than money in the bank
Robert Kiyosaki believes that your mind is your greatest asset. Without having the right mindset, even people who earn well can remain broke.
Jacques Fouché often tells our investors: “Education, discipline, patience, and having a core strategy are vital components of successful property investing.”
5. Taking action transforms knowledge into a wealth creation tool
Robert Kiyosaki’s 2022 edition has “Study Sessions” within the book for each chapter to help you put his ideas into practice. Core ideas in each chapter are discussed in these study parts and help readers grasp his techniques more easily.
In a similar vein, IGrow offers our investors actionable steps from securing financing with IGrow Home Loans, to helping you choose high rental yield suburbs to buy investment property in with the aid of property investment strategists, keeping on top of tax and accounting to remain legally compliant, and benefit from tax deductions. We also have a trust and estate planning team to help you place your property assets in a trust or company and safeguard them.
Our partnership with IGrow Private Wealth offers our investors highly qualified Certified Financial Planners who will modify your retirement strategy to incorporate a sound retirement property investment plan so you can live comfortably and leave a legacy to your heirs. Our short-term insurance offering under IGrow Wealth Management helps you take care of your moveable possessions and home contents.
Check out our recent blog post to see if you are adequately insured before the festive season arrives. These are just a few companies under the IGrow Group that help you on your wealth creation journey.
6. Don’t fear the idea of risk – learn to mitigate it
Wealthy and driven investors don’t avoid risk; they actually study it. Real estate investments involve taking calculated risks.
Gaining financial and property investment education will improve the profitability of your investments down the road. With IGrow’s expert guidance, we can help turn those risks into rewards and a wonderful ROI (Return On Investment).
7. You need to work to learn, not merely to earn
When Robert Kiyosaki worked for his “Rich Dad” for no salary when he was young, he learned lessons that no salary would ever teach him. He learned a respect for money and that you need to know your worth. You need to want to become a wealthy man through wisdom, not necessarily the biggest paycheck.
At IGrow, our team encourages our investors to spend time learning about the property market, helping you understand property and general finance management through our guidance and tips, and the importance of understanding tax structures. This is the kind of education that earns our investors lifelong returns.
8. Build your network around you and gain mentors
“Rich Dad” taught Robert Kiyosaki to surround himself with people smarter than him.
“Rich dad surrounded himself with men and women who were specialists: attorneys, accountants, brokers, and bankers… Today [Robert’s] team of Advisors is among [his] greatest assets. What’s more important than money? An entrepreneur’s team.” – Robert Kiyosaki (Rich Dad Poor Dad, Page: 97)
Jacques Fouché and the IGrow team’s ecosystem is built on this idea. That’s what IGrow’s ecosystem provides: expert property investment strategists, bond originators, tax and accounting advisory specialists, trust and estate planners, property management rental agents, and Certified Financial planners who can create a sound retirement property investment plan and offer you the necessary insurance coverage.
Our team works together for your optimal financial success and property portfolio longevity. This is so you can leave a legacy to your loved ones.
9. The rich create opportunities for everyone
Wealthy investors don’t pause and wait for the perfect deal; they recognise the potential in deals that other investors miss.
IGrow’s prime property investment opportunities reflect this thought pattern. We help our investors pinpoint suburbs with high growth potential, such as those undergoing infrastructure improvements, like transport or municipal services. These growing suburbs are earmarked as having good potential ROI, and our expert property strategists will help you select the ideal properties for the best rental output and potential capital growth.
10. Think in terms of generational wealth- make sure your wealth outlives you
One of the best Rich Dad Poor Dad lessons is to leave an inheritance to your children and grandchildren. Property ownership means your heirs will inherit your property assets, not your debt.
At IGrow, we call this “leaving a lasting legacy”, and our property investment strategists and Certified Financial planners help you achieve this so your finances are safe in your own retirement. Also, your loved ones will be taken care of by the income from your property portfolio long after you are gone.
Why does Rich Dad Poor Dad still matter today?
The ten lessons from Rich Dad Poor Dad remain applicable in today’s property landscape.
For our South African IGrow property investors, the lessons in Rich Dad Poor Dad reinforce IGrow’s mission, where we encourage you to:
- Strategise regarding your income-producing rental properties as your central asset.
- Consistently educate yourself via IGrow’s resources and relevant property investment books, such as those that we review.
- Equip yourself with financial literacy and a team of experts
- Use your property investment knowledge and our team’s expertise to guide you to build generational wealth.
Key Takeaways: Why should IGrow investors read “Rich Dad Poor Dad”?
- It’s the ideal Summer holiday read: it’s inspiring, relevant, and easy to follow, and potentially life-changing.
- It’s considered the No. 1 personal finance book of all time: it’s a must-read for anyone serious about wealth creation and property investing.
- Rich Dad Poor Dad courses are still taught throughout South Africa and internationally. Keep your eye on the Rich Dad website for workshops led by Robert Kiyosaki, who is potentially visiting South Africa in 2026.
- Robert Kiyosaki invented some board games to learn through play: Robert’s CASHFLOW® board game teaches the investment principles he discusses in the book. You can play Cashflow free online.
- Gain financial wisdom: learn how to tell the difference between assets and liabilities and make good property investment choices.
- Mindset adjustment: The book helps readers move away from consumer thinking to investor thinking.
IGrow recommends Rich Dad Poor Dad as a must-read and as a mindset enhancer. This book aligns with IGrow’s mission to empower everyday South Africans to achieve financial freedom through property investment and ownership, passive income generation, and a wealth-driven mindset, so wealth flows into their lives.
Kiyosaki’s message is still relevant, maybe more than ever. Read Rich Dad Poor Dad now, available at Takealot, Exclusive Books and Wordsworth over the festive season holiday. Or try play the play Cashflow free online. Take the next step towards financial education and independence.
IGrow’s team can’t wait to see your journey in property investment turn into a budding property empire.
Contact an IGrow property investment specialist today, and let’s start mapping out your path to financial freedom one property purchase at a time.
