Rich Dad Poor Dad books and games can be a fun way to learn financial literacy. The books tell interesting stories of Robert Kiyosaki and his friend Mike growing up where Robert’s dad was in education and Mike’s dad was an entrepreneur. Of course the poor dad was Robert’s father while the rich dad was Mike’s.
A Rich Dad Poor Dad summary of the book would state that Robert’s friend Mike’s father taught the boys lessons about first working as an employee and then seeing the value of passive income through owning businesses and investing.
In fact, Robert Kiyosaki has a well-known illustration called the Cash Flow Quadrant where you can identify yourself in one or more of four categories. Those categories could be described as: employee, self-employed, big business owner who could walk away for a year and return to find the business better off than he left it, and investor.
Robert and his wife Kim try to stay in the Business and Investor half of the quadrant rather than trading their time for dollars. In fact, passive income systems would be a great way to describe his philosophy. If you can find or create repeatable systems to earn money whether you work or not, you are on your way to living the dream.
One of Robert’s main vehicles is real estate because you can invest the bank’s money and keep the profit for yourself. He preaches that the deal is made not when you sell the property, but when you buy it and if you can earn more monthly income from that property than you spend on the loan and expenses. If you can use the bank’s money to buy properties and you keep the profits, then you are leveraging other people’s money (OPM).
Robert Kiyosaki is also known for his analogy of escaping the Rat Race. This basically means the employee/self-employed earns more passive income than their expenses so that they can effectively stop trading time for dollars.
His Cash Flow 101 and Cash Flow 202 board and electronic games are great at teaching the mindset of getting out of the rat race and earning passive income.
Learn more about Robert and his products here.