How rich people become rich

Note: This post will cover some of the my biggest takeaways after reading Rich Dad, Poor Dad. In no way does this blog post reflect any of my past or present financial situations. The sole purpose of this post is to summarize some of the main concepts that Robert Kiyosaki covers in his book.


Considering someone a “rich” person is a subjective opinion. I’ve met people who earn $40,000 dollars a year, pay $10,000 in taxes, $15000 in rent, $10,000 in feeding themselves, $5,000 they spend in having fun and they put $5000 in their savings account and consider themselves rich. For the purpose of this post, we are going to refer as being “rich” as having enough money to not worry about working again for the rest of your life. Having enough money to exploit your soul, power and purpose for the rest of your life without having to work.


With that said, let’s talk about money.

Do you know why the rich are rich? The answer is simple: they’re financially smarter than everyone else. Yeah, this might seem obvious, but let’s actually break this idea down.


There’s a few reasons why people become rich:

  • They take the time to educate themselves; they read, learn, listen, think, and do.
  • They make money work for them. They don’t work for money.
  • They invest in assets, not in liabilities.
  • They learn to mind their own business.

There’s many other reasons why someone could become rich but I feel like these are the main ones that Kiyosaki tries to transmit in his book.

Let’s go over these points.


They take the time to educate themselves. They read, learn, listen, think, and do.

Think about the last time that you were inside a classroom. It can either be kinder garden, middle school, high school or college. Now try to think about when was the last time that one of your teachers tried to teach you how to handle your money. It can be your weekly $10 that your parents gave you when you were 8 years old or your $500 weekly earned revenue working at a restaurant. I bet that 100% of you wont be able to come up with one single teacher that tried to teach you how to properly manage your money. Notice how I said 100%. I didn’t say 99%. I said 100%. Why? Because my audience consists basically on my friends and I don’t have one single friend that is rich enough to quit their jobs and retire today if they wanted to.

What I’m trying to say here is that in school they don’t teach us to be rich. They don’t teach us how to effectively manage our money. They teach us to read, write and formulate algebraic expressions. They raise us to gain knowledge on things that we might not even be good at so that we can then go on and work for someone else. So, the first step towards becoming rich is to invest in your Financial IQ. The more you read, the more videos you watch, the more seminars you attend, the higher your Financial IQ will be and therefore the higher chances you’ll have of becoming rich.


They make money work for them. They don’t work for money.

90% of human beings are like donkeys. It might sound harsh but it’s the truth. We’ve all seen on TV how someone puts a carrot in front of a donkey so that this one gets motivated to push on the cart. This is literally what 90% of human beings do their whole lives. They work hard for money. Incredibly hard. Way harder than rich people do. And guess what… They never get the carrot. They’re fooled thinking that just because they’re pulling really hard on the cart they’re going to get the carrot in exchange. Foolish.

This doesn’t mean that rich people don’t work hard. Don’t take me wrong. But they’ve taken the time to educate themselves and see the big picture. They know that the carrot is just a bait. They know that instead of pushing hard on the cart to get to the carrot, it’s better to figure out a way to make the carrot get to their mouths without having to push hard on the cart.


They learn to mind their own business.

You have to be educating yourself everyday for the rest of your life. The hardest part isn’t acquiring wealth, it’s maintaining it. Thus, make sure you still learn and educate yourself even when you get your hands on the money.

To learn to mind your own business is probably the biggest takeaway from Kiyosaki’s book. What does this mean though?

Let me put you into some context… Imagine a recently graduate computer scientist who is offered a job at Microsoft. Let’s call him Bob. He is starting off at $100,000 a year. Sounds great right? I mean let’s be honest, I wish someone offered me a job like that when I graduate.

If I were to ask Bob what his business is, he’d probably say that he’s a computer scientist. But… that’s not his business. That’s his profession. If I were to ask him again, he’d simply state that he doesn’t own a business. AHA! Exactly. This is the first step towards becoming rich. Mind your own business. You need to have some sort of incorporation that is building up your assets.

Do you know what’s so wrong about having a profession? It’s never going to make you rich. Yes, you heard me. If you are working for someone or for a company as big as Microsoft, NASA, Apple, name whatever company you want. If you don’t own it, you are not going to get rich. Ever. You will contribute to the owner’s richness, but it wont get you rich. Not making $100,000 a year. Not making $1,000,000. But Tony… If I’m making $1,000,000 a year I’m for sure making a lot of money… In fact I’d be a millionaire!

That would be a false statement.

Let me help you figure this one out.

Let’s go over Bob’s life.

Bob graduated and got his $1,000,000 job at Microsoft right after graduating college. Let’s just say that he manages marketing operations in England.

Bob doesn’t own Microsoft. He doesn’t have company expenses. He is a mere employee that receives an $83,333 check the 30th of every month. What does this mean? That every time he receives a check, around 35% of his earnings will have been taken away by the government (taxes). Without even being given the chance to manage his money, at least $350,000 of his annual revenue is taken away from him. Or, in other words, Bob will invest approximately four months of his work every year to exclusively pay taxes. Ridiculous.

But Tony… isn’t this the same for everyone?

No. Rich people are the ones that pay the least amount of taxes. Why? Because they’re smarter. They have employees, expenses, they incorporate and are given the chance to manage their money before actually paying their taxes. Being rich doesn’t mean that you don’t pay taxes, but you do pay a much smaller percentage than what middle class and lower class people do. It might sound unfair, but that’s the way it is. If you think about it, rich people are the ones that employ everyone else. If you currently have a job it’s because of a business owner who took a risk and thanks to his risk you are allowed to make money too. Rich people are treated in a much nicer way by the government because they were the ones who set aside their fears to help society in some way. They found a problem, took a risk and became rich by fixing the problem.

So, Bob realizes that out of his $1,000,000 job, he really is just making $650,000 since he has to pay taxes. This is still an incredible high amount of money right? Well, here’s where 80% of the population screw up.

What happens when people like Bob start making money? They buy stuff thinking that it’s making them even richer.

Let’s just say that Bob thought that he had to have a car and a house that corresponded to his social status. Thus, he gets a loan and buys a $500,000 house and a $100,000 porsche. You’d think that he now owns a $500,000 asset and a $100,000 asset. This is false. He owns a $500,000 and a $100,000 liability.

Assets are things that will give you some sort of recurring income. They will allow you to retire and forget about working for the rest of your life. This can be in the form of stocks, bonds, treasury notes, IOU’s, real estate investments…

Is a $600,000 loan giving you any money? No. In fact, it’s costing Bob money every month. Money that he could have invested in assets that would have given him a recurring income. To this loan, add living expenses, hobbies, house insurance, life insurance, gas, property taxes of your new house, etc. Bob is now one of the 7,5 billion people who will never be rich. By the time Bob has finished paying for his house, guess what? He has no loans. Great. But he doesn’t have any assets that bring him money every month. He wouldn’t be able to retire tomorrow if he wanted to and therefore he is not rich. He’ll have to wake up every morning and go back to work extremely hard again to make the money that he is earning.

Let’s say that Bob gets promoted and starts making $2,000,000 a year. Bob will still never be rich. He is still an employee who now is getting a bigger check. Guess what’s going to happen… He is now going to be paying even a higher percentage amount of taxes. And guess what? Bob makes the same mistake as most humans do when they get promoted. Since he is now in a much more powerful position and he is making more money, he nows believes he deserves a $1,000,000 house and a $300,000 Ferrari. The process has started again.

Bob is obviously an exception to most human beings. The chances of even having a $1,000,000 job at some point in your life is extremely remote. So, if Bob, who is one of these fortunate people that managed to get a high paying job is still struggling financially… Think about yourself now. How much are you making in earned revenue and how much are you investing in assets and liabilities. If someone who is earning $2,000,000 a year still struggles financially, what are you supposed to do with yourself if you’re only making $30,000 a year?


They invest in assets, not in liabilities.

So… how do you get rich if you’re not supposed to be spending the money and you’re also not supposed to be saving it? You’re supposed to be investing it! Bob works 5 days a week all year around. He works incredibly hard but he is making a big mistake.

You are not supposed to work for money. You are supposed to find a way of making money work for you. You will be afraid, you will feel unsure, but you need to take the risk. You need to find a way of making money work for you. Mind your own business. Talk to smarter people than you. Talk to rich people. Ask them how they did it. Leave your ego behind you and educate yourself.

Don’t buy your dream house if you don’t have the money to pay it off. Instead, ask yourself… how can I buy this house without taking a loan that will have me in debt for the next forty years of my life? The same thing goes for your dream car.

A $200,000 loan is a liability that wont allow you to get rich because you wont have the money to invest in assets! Remember, assets are what make you rich! If you have assets that are generating you $3,000 of recurring income every month you can literally live off from your assets and invest your earned revenue in acquiring even more assets!

You get rich by having assets. The more assets you have, the richer you will be.

You remain poor because you buy fancy stuff like a house and a car and all of your cash flows through your expenses.



People will tell you that all rich people took incredibly high risks. That they got lucky and now they’re billionaires. This is false. Yes, sometimes you will fall and will be forced to stand up again. Just like when you were starting to ride your bike. Just like when you were learning how to walk on your feet. The more you educate yourself, the more knowledge you will have and the less risk you will be assuming.


You can’t receive without giving. Learn this by heart and you’ll be on to a good start.



This blog post has been an extremely summarized version of Robert Kiyosaki’s Rich Dad, Poor Dad. Make time in your schedule to read this book as it will completely change the way you perceive money.



Author: Tony Lewis

Marketing nerd, blockchain enthusiast and part-time planet Earth explorer. I like building (and acquiring) long-lasting assets.