Rich Dad, Poor Dad Chapter 5: The History of Taxes and The Power of Corporations
- Amber Breanna
- Jun 22
- 6 min read
Updated: Jun 26
One of the biggest shifts I experienced from this chapter wasn’t just in the information or the strategy, it was in the reminder of power through knowledge.
As Powerful Creators, it is our responsibility to take advantage of the wisdom, resources, and access we now have.
We haven’t always had these tools.
Our ancestors didn’t.
Our parents may not have.
But we do and that means it’s our duty to learn how to use them.
I know the journey isn’t easy. I know the language of wealth, taxes, and law can feel intimidating. But one thing that Robert Kiyosaki repeats throughout this chapter is simple and profound: the rich got ahead because they studied while others worked.
The poor and middle class stayed busy grinding, never stopping to learn the rules of the game they were stuck playing. And because of that, they remained stuck.
This blog post isn’t just about learning, it’s about liberation.
I invite you to do the work.
Read.
Reflect.
Apply.
Sit down with your journal.
Ask questions.
Let this be the moment you begin learning the rules of the game so you can start changing the game.
We had a powerful call around this chapter. And I’m so grateful to be on this journey with women who are choosing to rise. As we continue to show up, study together, ask the right questions, and share what we’re learning. We build. 👑
🎥 Watch the Replay
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💡 3 Powerful Takeaways from the Conversation
Understand That Taxes Were Designed for Control but You Have the Power to Learn the System
One of the most eye-opening truths from this chapter is that taxes were never about fairness, they were a tool of control. The government weaponized taxes to create a system where the middle class carries the weight, while the wealthy learn how to move within the law to protect and preserve their money.
And the rich didn’t complain about it, they got strategic.
Instead of resisting the system, they studied it. They looked for the loopholes, the codes, the structures. They learned how to navigate the game, not just survive it.
And now? So can we.
We have access to what they had access to and even more. We have the internet. We have community. We have ChatGPT. We have resources and tools to understand the tax code, to ask better questions, and to start using taxes as a tool instead of fearing them as a trap.
We don’t need to be accountants to get started. We just need the willingness to learn and the knowing that we are worthy of financial power.
A Corporation Is a Legal Tool That Protects and Preserves Wealth
A corporation is a legal body that separates your personal finances from your business activities. It allows income to be earned and expenses to be deducted before taxes are applied, unlike personal income, which is taxed in full.
This structure helps reduce tax liability, limit personal risk, and create a more strategic flow of money. Corporate tax rates are often lower than individual rates, making it one of the most powerful financial tools the wealthy use.
Kiyosaki emphasizes "wrap your assets in a corporation." Whether for your business, trading, or investments, learning how to use this structure is a key step in protecting and growing your wealth.
Financial IQ Is a Skillset—Not a Mystery
One of the most important lessons from this chapter is that building wealth isn’t about luck, it’s about learning the skills that create and sustain it. Robert Kiyosaki breaks down Financial IQ into four core areas:
Accounting – Understanding how money moves, what the numbers mean, and how to track it accurately.
Investing – Knowing how to grow your money through assets that generate income.
Understanding Markets – Learning how timing, trends, and supply and demand influence value.
The Law – Understanding how to use legal structures like corporations to protect and optimize your finances.
Your financial IQ isn’t built all at once, but it does get stronger the more you study, apply, and surround yourself with the right people. That means working with accountants, attorneys, advisors, and mentors who are experts in these areas.
Building a strong financial strategy means not only learning these foundations for yourself but also knowing how to leverage the support and wisdom of those who’ve mastered them.
It’s not about doing it all alone, it’s about being smart enough to build a team and seek out the knowledge that serves your goals.
🔥 3 Specific Action Steps to Apply Now
1. Do Your Due Diligence, Form a Corporation to House Your Gifts
The first step is understanding what a corporation actually is and how it can benefit you based on where you are right now. This isn’t one-size-fits-all. Whether you're building a business, trading, or investing, it's your responsibility to explore how forming a corporation could help protect your income, reduce your taxes, and organize your finances more strategically.
Use the resources you have. Ask questions. Use tools like ChatGPT to get clarity on things like:
What kind of corporation fits my goals?
Do I need this now, or is there something I should do first?
How would this shift support my long-term wealth strategy?
This step is about exploration, not perfection. It’s about being proactive, curious, and committed to finding the structure that fits you best.
Take Ownership of Your Tax Knowledge
One of the most powerful messages in this chapter is that we have access to the same tools the wealthy use, we just have to start using them. That includes the U.S. tax code. It’s public, it’s available, and it’s something we can understand with the right focus and questions.
This action step is about doing your homework. Ask yourself:
Where do I currently stand with my taxes?
What don’t I understand that I need to?
What can I clean up, prepare for, or structure better?
Use your resources. Use ChatGPT to break down terms or laws. Ask about deductions. Explore what’s available for entrepreneurs, traders, and investors.
Set aside time to study. This isn’t just financial hygiene—it’s financial power. The wealthy don’t wait for someone to explain it to them. They learn. They ask. They apply. And so can we.
Begin Building Your Financial Dream Team
As we grow, learn, and evolve, one truth becomes clear: a strong financial strategy requires a strong financial team. That includes experts like CPAs, attorneys, advisors, and mentors who know the game, and know how to protect, preserve, and multiply wealth.
This might seem obvious but for many of us, it's new. And it's powerful. This chapter reminded us that we don’t need to do everything ourselves—we just need to know what we need and start seeking the right support.
Yes, this can feel intimidating. But the first place to start is not the bank, it’s the mind.
Begin by affirming: “I am supported by the best accountants, attorneys, and money mentors.”
Let that energy guide you. Speak it. Believe it.
Then, start asking better questions.
Research. Reach out. Use your imagination as your initiation, and let your words become the doorway to alignment.
You don’t need the full team today, but you can start preparing for them now. Because the woman you’re becoming will need them.
Join the Next Powerful Creator Money Mastermind
Every Thursday at 6pm CST
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💖 Personal Note from Amber Breanna
We can do this. You can do this.
The most important step is simply beginning—beginning to mind your own business, like the book says. Beginning to build a lifestyle rooted in financial aptitude. Becoming a woman who carries a high financial IQ. A woman who stretches her mind, educates herself, and believes in what’s possible.
We have the resources.
We have the access.
Now it’s about consistently showing up, asking questions, and doing the work—even if it takes asking the same question five times, even if you have to study it over and over again until it clicks.
You deserve the payoff. You deserve the breakthrough. You deserve the freedom.
So don’t give up. Don’t give in. Don’t shrink.
I’m so grateful to be on this journey with you.
Let’s keep building.
Let’s keep applying.
Let’s keep becoming.
I’ll see you at the top because the bottom is way too crowded
With love & power,
Amber Breanna ❤️
Disclaimer: This content is for educational and inspirational purposes only and does not constitute financial advice. Please consult a licensed financial professional before making financial decisions.
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