General Questions
Q: Where do I find the web game?
A: Register here and then go to richdad.com/classic.
Q: Do you have a web game for kids?
A: Visit www.richkidsmartkid.com
Q: How do I change my password?
A: There is no need to change your password. Any time you need to login, click the button found in the upper righthand side of the webpage. Click the button input your email in the form field. After you submit your email, you’ll receive a link in your inbox. Click the “Login” link and you will return to your account page already logged in.
Q: How can we book Robert or Kim for an event?
A: Contact us through the Interview Request form found on this page.
Q: How much does the CASHFLOW FOR KIDS cost?
A: To check the prices on all products, visit our online store here.
Q: What’s the age range to play CASHFLOW FOR KIDS?
A: CASHFLOW FOR KIDS is recommended for kids ages 6 and up.
Q: Where can I find a CASHFLOW club?
A: Rich Dad suggests using Google Groups to find or start a CASHFLOW Club. Search for “CASHFLOW club” at groups.google.com.
Q: Where can I find Financial Resources for Teachers?
A: Visit www.richkidsmartkid.com and click on Grownups.
Q: Where can I find the instructions for CASHFLOW? Is there a PDF format?
A: Check our CASHFLOW Resources page for all CASHFLOW game resources
CASHFLOW Game Play FAQ
Q: How many people can play CASHFLOW? Can I play on my own?
A: CASHFLOW was designed to be played by more than one player. Better interaction occurs when 3 to 6 people are playing. You can also play the Web game absolutely free on the website as a registered community member.
Q: When I purchase real estate, is the cash flow amount the net amount after the mortgage payment?
A: Real estate mortgages cannot be paid off on investment properties in CASHFLOW. The mortgage payment is calculated in determining the ROI and monthly cash flow.
Q: If I land on the downsized square and don’t have enough cash, can I sell stock or borrow money?
A: You may not sell stock to the bank at purchase price. Stock is only available at prices indicated by opportunity or market cards. You may, however, take a loan from the bank.
Q: Can I borrow money from the bank to make down payments for investment properties?
A: Yes, but remember you must include the bank loan as a liability and 10% of the loan amount as a monthly expense, adjusting your cash flow accordingly.
Q: When a market card says “anyone can sell at this price,” can I sell all my holdings or just one?
A: You and any other player may sell any or all holdings that match the description on the card.
Q: When downsized, can I still participate in market opportunities?
A: Yes, you may still take advantage of opportunities presented by cards drawn by other players as long as the card specifies “anyone can…”
Q: Why don’t mortgage liabilities reduce as payments are made?
A: For ease of play, we do not adjust the principal amount of mortgages. A level monthly mortgage payment is assumed.
Q: Do I receive CASHFLOW Day Income immediately upon exiting the Rat Race?
A: Yes, as soon as you’re out of the Rat Race, you receive your CASHFLOW Day Income without waiting to pass the first CASHFLOW Day on the Fast Track.
Core Rich Dad Poor Dad Concepts – FAQ
Basic Principles
Q: What’s the main lesson of Rich Dad Poor Dad?
A: The rich don’t work for money – they make money work for them. The book teaches the difference between assets (things that put money in your pocket) and liabilities (things that take money out of your pocket).
Q: What are the six lessons of Rich Dad Poor Dad?
A: 1) The rich don’t work for money, 2) Why teach financial literacy, 3) Mind your own business, 4) The history of taxes and the power of corporations, 5) The rich invent money, 6) Work to learn, don’t work for money.
Q: Why does Kiyosaki say a house is not an asset?
A: Because it takes money out of your pocket every month (mortgage, taxes, maintenance, utilities) without generating income. An asset should put money in your pocket. However, if you rent out your house and it generates positive cash flow, then it becomes an asset.
Q: What’s the “Rat Race”?
A: The cycle where people work for money, earn more, spend more, but never get ahead financially because they’re buying liabilities instead of assets.
Q: What does “pay yourself first” mean?
A: Before paying any bills or expenses, set aside money to invest in assets. This forces you to find ways to pay your expenses and builds your asset column first. Click here to learn more about the pay yourself first concept.
Assets vs. Liabilities
Q: Can you give examples of assets?
A: Rental real estate that generates positive cash flow, dividend-paying stocks, bonds, businesses that generate income, royalties from books or patents, and anything that puts money in your pocket.
Q: What are examples of liabilities?
A: Your primary residence, car loans, credit card debt, personal loans, and anything that takes money out of your pocket without generating income.
Q: What if my house appreciates in value?
Isn’t that an asset? A: Appreciation is just potential value until you sell. Until then, it’s still taking money out of your pocket monthly. Kiyosaki focuses on cash flow, not appreciation.
Q: How do I turn liabilities into assets?
A: You can rent out rooms in your house, use your car for rideshare or delivery services, or leverage debt to purchase income-generating investments.
Financial Education
Q: Why doesn’t school teach financial literacy?
A: According to Kiyosaki, schools prepare people to be employees, not investors or entrepreneurs. The education system was designed during the Industrial Age to create workers, not wealth builders.
Q: What’s financial IQ?
A: Financial intelligence consisting of four areas: accounting (financial literacy), investing (money making money), understanding markets, and understanding the law (tax and corporate law).
Q: How do I start my financial education?
A: Read books about money and investing, attend seminars, find mentors, play the CASHFLOW game, and start with small investments to gain real-world experience. Get a quick overview of our 17 definitive lessons on financial education here.
Q: What’s the difference between good debt and bad debt?
A: Good debt puts money in your pocket (like a rental property mortgage), while bad debt takes money out of your pocket (like consumer debt for cars or credit cards). Learn more about the differences between good debt and bad debt here.
Real Estate Investing
Q: Why does Rich Dad emphasize real estate?
A: Real estate can provide cash flow, appreciation, tax benefits, and uses leverage (other people’s money). It’s a tangible asset you can control, unlike stocks.
Q: How do I get started in real estate with no money?
A: Learn to use OPM (Other People’s Money) through mortgages, partnerships, seller financing, or finding distressed properties. Education and finding good deals is more important than having money.
Q: What’s the BRRRR method?
A: Buy, Rehab, Rent, Refinance, Repeat. Buy a property below market value, fix it up, rent it out, refinance to pull out your money, then repeat the process.
Q: Should I pay off my rental property mortgage?
A: Kiyosaki generally says no – use leverage to acquire more properties. The mortgage payment should be covered by rental income, and the debt provides tax benefits.
Business and Investing
Q: What’s the difference between being self-employed and owning a business?
A: Self-employed people own a job (they have to work to make money), while business owners have systems and people working for them, generating income whether they’re present or not.
Q: What are the four quadrants of the CASHFLOW Quadrant?
A: E (Employee), S (Self-employed), B (Business owner), I (Investor). The wealthy focus on the B and I quadrants. Get a broader overview of the CASHFLOW Quadrant here.
Q: How do I move from the E/S quadrants to B/I?
A: Focus on building systems, hiring people, and creating passive income streams. Invest in assets and businesses rather than trading time for money.
Q: Why do the rich get richer?
A: They understand money, invest in assets that generate income, use debt strategically, and have financial education. They make money work for them instead of working for money.
Practical Implementation
Q: I’ve read the book, but how do I actually start?
A: Start with financial education, track your expenses, begin building an emergency fund, then start investing small amounts in assets. Take action, even if it’s just $100.
Q: What if I can’t afford to invest in real estate?
A: Start with REITs (Real Estate Investment Trusts), learn about real estate, find partners, or look into house hacking (living in a property while renting out rooms or units).
Q: How much money do I need to start investing?
A: You can start with very little. Some brokerages allow stock investing with no minimums. Real estate might require more, but creative financing can reduce this barrier.
Q: Should I quit my job to become an investor?
A: No, keep your job while building your asset column. Only consider leaving when your passive income exceeds your expenses and you have sufficient assets.
Common Criticisms and Responses
Q: Critics say Rich Dad Poor Dad lacks specific investment advice. How do you respond?
A: The book is designed to change your mindset about money, not provide specific investment instructions. It’s the “why,” not the “how.” Specific strategies are covered in other books and education.
Q: Is the “Rich Dad” story real?
A: Yes. “Rich Dad” was inspired by Richard Kimi, a successful entrepreneur and the father of one of Robert Kiyosaki’s childhood friends. While the character is based on Kimi, it also blends lessons, experiences, and traits from several of Kiyosaki’s other mentors, making “Rich Dad” both a real individual and a composite figure.
Q: Isn’t this advice risky?
A: All investing involves risk. Kiyosaki argues that not investing and relying solely on employment is riskier in the long term. Education and starting small can minimize risks.
Q: Does this work in today’s economy?
A: The principles of cash flow, assets vs. liabilities, and financial education remain relevant regardless of economic conditions. The specific strategies may need adaptation.
Getting Started Actions
Q: What should I do first after reading Rich Dad Poor Dad?
A: After reading Rich Dad Poor Dad, examine your personal finances through the lens of the book’s core lesson: the difference between assets and liabilities. Make a simple list of what you own that puts money in your pocket (assets) versus what takes money out (liabilities). This will give you a clear starting point to shift your focus toward building income-producing assets.
Q: How do I find deals in real estate?
A: Network with real estate agents, look for distressed properties, check foreclosure listings, drive neighborhoods, use online platforms, and build relationships with wholesalers.
Q: What if I’m afraid to invest?
A: Start small to gain experience and confidence. Fear often comes from lack of knowledge, so focus on education first. Remember that not investing is also a risk.
Q: How long does it take to achieve financial freedom?
A: It varies greatly depending on your starting point, income, expenses, and investment returns. Focus on building assets consistently rather than timeline expectations. Read more on how to achieve financial freedom here.