Gen Z's Critique of "Rich Dad, Poor Dad" by Robert Kiyosaki: A Blueprint or a Mirage? (2024 Edition)

Sian!

How to pivot from a non-business diploma to do business?

Being exposed to Network Marketing at 21, like many curious onlookers, I picked up Robert Kiyosaki’s Rich Dad, Poor Dad.

I was instantly hooked by his portrayal of the ESBI quadrants:

Employee, Self-Employed, Business Owner, and Investor—and his promise of financial freedom by moving from the left side to the right.

Source: Youtube.com

It felt revolutionary.

But as I reflect during those days, the cracks in Kiyosaki’s framework become clearer.

The Allure of the ESBI Quadrants: Kiyosaki’s key idea is simple yet powerful:

• Employees trade time for money, _limiting _growth.
• Self-employed individuals gain some freedom but still _depend _on their time.
• Business Owners create systems to generate income independent of their time.
• Investors use money to make more money, achieving "ultimate financial freedom".

The appeal for a Gen Z audience lies in this structured journey—an aspirational roadmap to break free from the traditional 9-to-5 grind.

If you are still studying, technically this doesn't apply to you unless you are spending ~40 hours, immersed in a quadrant.

Where Kiyosaki sees the quadrants as separate stages, I believe they can coexist. As a Gen Z, I believe we CAN thrive to integrate these ESBI quadrants into a lifestyle.

Common Flaws: Danger of Hope Selling Here’s where the common critique begins.

While Kiyosaki advocates for moving to the right side of the quadrants, much of his narrative is like a pitch for hope (after sharing how 99% of startups fail AS IF they are the only form of businesses to start).

Note: He wrote this book back in 1990s (so there wasn't much awareness on other forms of business. Also, no computer nor digital gadgets so a lot of people who aren't entrepreneurial largely stayed that way throughout their careers (without doing anything on the side).

His emphasis on network marketing as a gateway to becoming a "business owner" becomes the SOLUTION.

The reality?

Network marketing models often position individuals as distributors, not necessarily business owners with control over assets or systems.

What you CAN actually do!

After some personal reflection and some common sense, in reality, with discipline and a system of routines, you can embrace aLL 4 quadrants simultaneously:

Source: giphy.com

• An employee CAN gain (temporal) stability and/or learn valuable skills.
• A self-employed creator in the gig economy to earn on the side.
• A business owner building/leveraging systems/digital tools to scale.
• An investor uses saved capital to build long-term wealth to achieve XXX.

Rather than shunning one quadrant for another, the goal is integration—leveraging the strengths of each to achieve a sustainable financial journey.

I say this from personal experience during a season after tertiary graduation, while university had to be deferred...

Final Thoughts

While Kiyosaki’s Rich Dad, Poor Dad remains an iconic entry point into financial literacy (at least for me), the key isn’t abandoning one quadrant for another but embracing a fluid/multiple approach that aligns with today’s realities.

His greatest success was selling hope; may ours will be building systems that deliver it~

What’s your take on Kiyosaki’s quadrants? Can they coexist in your financial journey? Share your thoughts in the comments!

Image: Opinion Writer Amos Photoshoot (Dreamina)

Here’s to stories that matter and the people we meet along the way. Cheers! 🥂

“Knowing you want to do something isn't the same as knowing how to do it; and even knowing how to do something isn't the same as actually doing it well.” — Meg Jay, author of Defining Decade: Why Your Twenties Matter—And How to Make the Most of Them Now