Lessons from Rich Dad Poor Dad on Borrowing, Saving, and Investing

Rich Dad Poor Dad came out back in 1997 and has never stopped being relevant since then. Robert Kiyosaki wrote it as a story, depicting two father figures with two completely different money-wise mindsets. That contrast is exactly what stayed with readers. Nearly 30 years later, it’s still one of the personal finance books you recommend to your friends. Here’s what it actually says about borrowing, saving, and investing, and what everyone should take seriously.

What Is Rich Dad Poor Dad About?

Kiyosaki based the book around two men he grew up watching. “Poor Dad” is inspired by his biological father, who was educated, worked hard, and believed a stable job was the path to security. His best friend’s father, “Rich Dad”, never finished school but managed to build real wealth through businesses and investments. This contrast isn’t really about income, as both men made money. The real difference lies in how they used it. Kiyosaki uses that gap to tell readers that the way most people earn money, spend it, and save what’s left, is exactly what’s keeping them from moving forward.

What Does Rich Dad Poor Dad Teach You?

The main idea is simple: most of us work for money, but wealthy people make money work for them. Kiyosaki keeps stressing the importance of financial literacy (understanding assets, liabilities, cash flow) as the actual foundation of wealth. He states that schools teach children how to be 9-to-5 employees, not how to build anything. One of the main points in the book that many would find counterintuitive is his take on the “pay yourself first” principle. It means setting money aside for investments before paying anything else, never after. It flips the usual budgeting logic, and that shift alone changes how people approach their finances.

How the Book Reframes Borrowing and Debt?

Most of us have been taught that borrowing is bad, but Kiyosaki disagrees here. He clearly distinguishes two types of debt. One drains you, and the other helps build wealth. For instance, a car loan is a liability because vehicles depreciate. A mortgage on a rental property is an asset as it generates monthly income, even though it involves borrowing. It sounds obvious once spoken out loud, but most people never think about debt like this. They either avoid it entirely because of fear or accumulate it without asking themselves if it’s helping or making things worse. The book is quite thought-provoking, pushing you to ask that question every time.

Borrowing and Short-Term Credit: a Focused Comparison

The book draws a sharp line between good debt and bad debt when it comes to borrowing. According to Kiyosaki, short-term borrowing through credit cards and bank loans for consumer purchases is one of the biggest wealth destroyers. Due to his personal advice, people need to learn managing debts wisely. He argues that people often use credit to buy liabilities like clothes, electronics, and vacations, which take money out of their pockets every month through interest payments and minimum balances. That’s why his advice is to first learn about different borrowing options, rather than jumping straight into the credit history. Kiyosaki views this kind of borrowing as a trap of the middle class, where individuals work harder only to pay off debts that fund a lifestyle rather than build wealth. In contrast, he supports borrowing when the funds are used to acquire assets that generate cash flow, such as rental properties or businesses. The key lesson is simple: borrow to invest, never to consume.

Applying the Lessons: Borrowing, Saving, Investing (Practical Tips)

All those ideas sound good in theory, but how do we actually apply them in real life? Let’s start with saving. Kiyosaki isn’t against it, but he states that saving alone won’t build wealth, plus inflation slowly erodes money sitting in an account. The point is to save intentionally and move that money into income-generating assets. Now, investing. Start small, but start. It may be real estate, index funds, or a side business. There’s no point in buying one more car; it’s better to develop the habit and the knowledge. As for borrowing, ask one simple question before taking out any loan: Will this add money to my pocket or the opposite?

How to Use the Book Responsibly

There are real critics of Rich Dad Poor Dad, and some of them are quite fair. The author’s advice is often broad and lacks specifics. He’s also spoken openly about carrying over a billion dollars in personal debt. Of course, he frames it as leverage, but it feels controversial. The best thing you can do is to use the book as a mindset shift, not a step-by-step guide. Take the asset/liability concept seriously, as well as financial literacy. If you need to make a financial decision, rely on detailed resources based on evidence and, ideally, a financial advisor. This book does open a door, but it won’t walk you through opportunities and hurdles on the other side.

Final Thoughts

Don’t expect Rich Dad Poor Dad to tell you exactly what to invest in or how much to save. What it really does well is challenge the way most people think about money. The core difference between the two fathers in the book has nothing to do with luck or income. It’s all about mindset and basic money management. None of that is extraordinary, but that`s what many lack. Read it with an open but critical mind, focus on what’s really useful, and build your financial stability from there.

Frequently Asked Questions

What does Rich Dad Poor Dad say about investing?

Kiyosaki believes that investing is money that works for you, not the other way around. He prefers real estate and businesses over traditional savings accounts, encouraging readers to choose assets that generate income. He also contrasts passive investing, like buying mutual funds, and active investing, where you personally launch businesses or invest in them.

What does Rich Dad Poor Dad say about assets?

Kiyosaki’s definition of an asset is very simple: something that yields gains. It includes rental property, a dividend-paying stock, a business you don’t have to run daily. A car, a personal home, and consumer debt are liabilities as they bring no money. The author’s advice is to spend your working years building the asset column, not the liability one.

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More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
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Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.

More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

M1 Finance ($75) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $75 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
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Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
US Bank Business. US Bank is currently offering new business customers a $400/$1200 signup bonus after opening a new account and meeting certain requirements.
M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $75 for opening an account.
Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.