What Would Robert Kiyosaki Say?

The Rich Dad definitions

An asset puts money in your pocket; a liability takes money out. By his definition your home and car are liabilities, provocative on purpose, and plenty of planners disagree (home equity is real net worth; see the net worth calculator). You leave the rat race when passive income exceeds expenses.

The Cashflow Quadrant

E (employee) and S (self-employed) trade time for money; B (business owner) and I (investor) own systems and assets that earn without them. The score here reflects your passive-income ratio and how much of your wealth sits in the income-producing column.

The score

min(70, 70 × passive income ÷ expenses) + 20 × share of your assets that produce income + 10 if you add to them every month, held between 0 and 100. Coverage alone earns 21 points at 30% and 70 at 100%, so the gauge turns gold at 21 and green at 70, the same lines the verdict draws: red means passive income covers less than 30% of your expenses, and covering all of them is always green. The verdict box takes the gauge's colour.

The road out of the rat race

Both lines are in today's dollars. The passive line starts at the income you entered. Assets, and the rent or dividends they pay, are assumed to keep pace with inflation (FP Canada's 2.1% planning assumption), so in today's dollars the income you have now stays level. Each month you add the same amount in today's money (so it rises with inflation, like your pay and expenses), and every dollar added pays the new-purchase yield from then on:

passive income after m months = today's passive income + yield ÷ 12 × monthly amount × m

Expenses stay level in today's dollars, so the exit is the purchases still needed divided by what you add: months = (expenses − passive income) × 12 ÷ yield ÷ monthly amount. The yield is your own, passive income × 12 ÷ income-producing assets, held at 10.3%: the best long-run return in our market data (the S&P 500 in Canadian dollars, 12.6%) after inflation, since new money cannot keep buying a higher payout. With no passive income or no income assets entered there is no yield to work out, so new purchases pay 4.1%: FP Canada's 6.3% Canadian stock return less inflation. Market figures as of July 2026. An exit later than 100 years reads "100+ yrs". The metric card rounds the exit to whole years; the chart marks the month. Not modelled: tax on passive income, vacancies, dividend cuts, leverage, adding more than inflation over time, and reinvesting what the assets pay (if you reinvest it, count it in the monthly amount).

Where your monthly cash goes

Job income and passive income flow into one month of cash, which pays your expenses and what you add to the asset column; anything not spent or invested is left over. When expenses plus buying assets come to more than comes in, the red Shortfall stream is the gap, paid from savings or debt. Enter job income after tax so the left-over is real cash. The sub-text shows how the exit moves if the left-over went into the asset column too, at the same yield.

A grain of salt

Kiyosaki is a polarizing figure whose predictions frequently miss. This tool applies the useful core of his framework, cash-flowing assets and financial literacy, as education, not endorsement.

The fine print

This is an educational parody applying Robert Kiyosaki's well-documented public philosophy to your numbers. All verdict lines are paraphrases in his style, not real quotes. Not affiliated with or endorsed by Robert Kiyosaki. For actual advice, talk to a licensed professional.