April 2017 marks 20 years since Robert Kiyosaki’s Rich Dad Poor Dad first made waves in the Personal Finance arena.
It has since become the #1 Personal Finance book of all time... translated into dozens of languages and sold around the world.
Rich Dad Poor Dad is Robert's story of growing up with two dads his real father and the father of his best friend, his rich dad and the ways in which both men shaped his thoughts about money and investing. The book explodes the myth that you need to earn a high income to be rich and explains the difference between working for money and having your money work for you.
20 Years... 20/20 Hindsight
In the 20th Anniversary Edition of this classic, Robert offers an update on what we’ve seen over the past 20 years related to money, investing, and the global economy. Sidebars throughout the book will take readers “fast forward” from 1997 to today as Robert assesses how the principles taught by his rich dad have stood the test of time.
In many ways, the messages of Rich Dad Poor Dad, messages that were criticized and challenged two decades ago, are more meaningful, relevant and important today than they were 20 years ago.
As always, readers can expect that Robert will be candid, insightful... and continue to rock more than a few boats in his retrospective.
Will there be a few surprises? Count on it.
Rich Dad Poor Dad...
Explodes the myth that you need to earn a high income to become rich
Challenges the belief that your house is an asset
Shows parents why they can't rely on the school system to teach their kids about money
Defines once and for all an asset and a liability
Teaches you what to teach your kids about money for their future financial success
|Publisher:||Plata Publishing, LLC.|
|Edition description:||Second Edition|
|Product dimensions:||8.80(w) x 5.50(h) x 1.10(d)|
About the Author
Robert T. Kiyosaki
He teaches people to be millionaires ... That is why they call him the millionaire school teacher.
Robert Kiyosaki is the author of If You Want To Be Rich And Happy...Don't Go To School? An international best seller, it received raves from thebusiness community and cold silence from the school system.
"The main reason people struggle financially is because they spent years in school but learned nothing about money. The result is, people learn to work for money ... but never learn to have money work for them." says Robert.
Born and raised in Hawaii, Robert is fourth-generation Japanese American. He comes from a prominent family of educators. His father was the head of education for the State of Hawaii. After high school, Robert was educated in New York and upon graduation, he joined the U. S. Marine Corps and went to Vietnam as a an officer and a helicopter gunship pilot.
Returning from the war, Robert's business career began. In 1977 he founded a company that brought to the market the first nylon and Velcro "surfer" wallets, which grew into a multi-million dollar world wide product. He and his products were featured in Runner's World, Gentleman's Quarterly, Success Magazine, Newsweek, and even Playboy.
Leaving the business world, he co-founded in 1985, an international education company that operated in seven countries, teaching business and investing to tens of thousands of graduates. His year-long television show was beamed across America on the Nostalgia Network, carrying his educational message.
Retiring at age 47, Robert does what he loves best... investing. Concerned about the growing gap between the "haves" and "havenots", Robert created the board game CASHFLOW, which teaches the game of money, here before only known by the rich.
Although Robert's business is real estate and developing small cap companies, his true love and passion is teaching. He has shared the speaking stage with such greats as Og Mandino, Zig Ziglar, and Anthony Robbins. Robert Kiyosaki's message is clear. "Take responsibility for your finances or take orders all your life. You're either a master of money or a slave to it." Robert holds classes that last from 1 hour to 3 days teaching people about the secrets of the rich. Although his subjects run from investing for high returns and low risk; to teaching your children to be rich; to starting companies and selling them; he has one solid earth shaking message. And that message is, Awaken The Financial Genius that lies within you. Your genius is waiting to come out. Most participants leave excited, some angry, but everyone is deeply moved.
This is what world famous speaker and author Anthony Robbins says about Robert's work.
"Robert Kiyosaki's work in education is powerful, profound, and life changing. I salute his efforts and recommend him highly."
During this time of great economic change Robert's message is priceless.
Sharon L. Lechter
Wife and mother of three, CPA, professional manager and consultant to the toy and publishing industries, Sharon Lechter has dedicated her professional efforts to the field of education.
She graduated Summa Cum Laude with a degree in accounting from Florida State University. She went on to be one of the first women to join the ranks of what was then one of the big eight accounting firms, the CFO of a turn around company in the computer industry, tax director for a national insurance company and founder and Associate Publisher of the first regional woman's magazine in Wisconsin, all the while maintaining her. professional credentials as a CPA.
Her focus quickly changed to education as she watched her own three children grow. It was a struggle to get them to read. They would rather watch TV. Children's programming on television was stunting their interest in reading. She recognized that the schools simply were not up to meeting the challenge.
So she joined forces with the inventor of the first electronic "talking book" and helped create and expand the electronic book industry to the multi-million dollar international market it is today. She remains a pioneer in developing new technologies to bring the book back into children's lives.
As her own children grew, she was keenly involved in their education. She became a vocal activist in the areas of mathematics, computers, reading and writing education. She continues to fight to improve the educational system.
"Our current educational system has not been able to keep pace with the global and technological changes in the world today. We must teach our young people the skills, both scholastic and financial, that they will need not only to survive, but to flourish, in the world they face."
As co-author of the book Rich Dad, Poor Dad, she turns her attention to another failing of the educational system, the total omission of even thefundamentals of finance. Rich Dad, Poor Dad, is an educational tool for anyone interested in bettering their own education and financial position.
Date of Birth:April 8, 1947
Place of Birth:Honolulu, Hawaii
Education:B.S., U.S. Merchant Marine Academy
Read an Excerpt
Lesson Four-The History of Taxes and The Power of Corporations
I remember in school being told the story of Robin Hood and his Merry Men.
My schoolteacher thought it was a wonderful story of a romantic hero, a KevinCostner type, who robbed from the rich and gave to the poor. My rich dad did not see Robin Hood as a hero. He called Robin Hood a crook.
Robin Hood may be long gone, but his followers live on. How often I still hear people say, "Why don't the rich pay for it?" Or "The rich should pay more in taxes and give it to the poor."
It is this idea of Robin Hood, or taking from the rich to give to the poor that has become the single most pain for the poor and the middle class. The reasonmiddle class is so heavily taxed is because of the Robin Hood ideal. The real is that the rich are not taxed. It's the middle class who pays for the poor, the educated upper-income middle class.
Again, to understand fully how things happen, we need to look at the Cal perspective. We need to look at the history of taxes. Although my educated dad was an expert on the history of education, my rich dad fashioned himself as an expert on the history of taxes.
Rich dad explained to Mike and me that in England and America originally, there were no taxes. Occasionally there were temporary taxes levied in order to pay for wars. The king or the president would put the word out and ask everyone to "chip in." Taxes were levied in Britain for the fight against Napoleon from 1799 to 1816, and in America taxes were levied to pay for the Civil War from 1861 to 1865.
In 1874, England made income tax a permanent levy on its citizens. In 1913, an income taxbecame permanent in the United States with the adoption of the 16th Amendment to the Constitution. At one time, Americans were anti-tax. It had been the excessive tax on tea that led to the famous Tea Party in Boston Harbor, an incident that helped ignite the Revolutionary War. It took approximately 50 years in both England and the United States to sell the idea of a regular income tax.
What these historical dates fail to reveal is that both of these taxes were initially levied against only the rich. It was this point that rich dad wanted Mike and me to understand. He explained that the idea of taxes was made popular, and accepted by the majority, by telling the poor and the middle class that taxes were created only to punish the rich. This is how the masses voted for the law, and it became constitutionally legal. Although it was intended to punish the rich, in reality it wound up punishing the very people who voted for it, the poor and middle class.
"Once government got a taste of money, the appetite grew," said rich dad. "Your dad and I are exactly opposite. He's a government bureaucrat, and I am a capitalist. We get paid, and our success is measured on opposite behaviors. He gets paid to spend money and hire people. The more he spends and the more people he hires, the larger his organization becomes. In the government, the larger his organization, the more he is respected. On the other hand, within my organization, the fewer people I hire and the less money I spend, the more I am respected by my investors. That's why I don't like government people. They have different objectives from most business people. As the government grows, more and more tax dollars will be needed to support it."
My educated dad sincerely believed that government should help people. Heloved John F. Kennedy and especially the idea of the Peace Corps. He loved theidea so much that both he and my mom worked for the Peace Corps training volunteers to go to Malaysia, Thailand and the Philippines. He always strived foradditional grants and increases in his budget so he could hire more people,in his job with the Education Department and in the Peace Corps. That washis job.
From the time I was about 10 years old, I would hear from my rich dad government workers were a pack of lazy thieves, and from my poor dad I would hear how the rich were greedy crooks who should be made to pay more taxes. Both sides have valid points. It was difficult to go to work for one of the biggest capitalists in town and come home to a father who was a prominent government leader. it was not easy knowing who to believe.
Yet, when you study the history of taxes, an interesting perspective emerges. As I said, the passage of taxes was only possible because the masses believed in the Robin Hood theory of economics, which was to take from the rich and give to everyone else. The problem was that the government's appetite for money was so great that taxes soon needed to be levied on the middle class, and from there it kept "trickling down."The rich, on the other hand, saw an opportunity. They do not play by the same set of rules. As I've stated, the rich already knew about corporations, which became popular in the days of sailing ships. The rich created the corporation as a vehicle to limit their risk to the assets of each voyage. The rich put their money into a corporation to finance the voyage. The corporation would then hire a crew to sail to the New World to look for treasures. If the ship was lost, the crew lost their lives, but the loss to the rich would be limited only to the money they invested for that particular voyage. The diagram that follows shows how the corporate structure sits outside your personal income statement and balance sheet.
It is the knowledge of the power of the legal structure of the corporation that really gives the rich a vast advantage over the poor and the middle class. Having two fathers teaching me, one a socialist and the other a capitalist, I quickly began to realize that the philosophy of the capitalist made more financial sense to me. It seemed to me that the socialists ultimately penalized themselves, due to their lack of financial education. No matter what the "Take from the rich" crowd came up with, the rich always found a way to outsmart them. That is how taxes were eventually levied on the middle class. The rich outsmarted the intellectuals, solely because they understood the power of money, a subject not taught in schools.
How did the rich outsmart the intellectuals? Once the "Take from the rich" tax was passed, cash started flowing into government coffers. Initially, people were happy. Money was handed out to government workers and the rich. It went to government workers in the form of jobs and pensions. It went the rich via their factories receiving government contracts. The government became a large pool of money, but the problem was the fiscal management of that money. There really is no recirculation. In other words, the government policy, if you were a government bureaucrat, was to avoid having excess money. If you tailed to spend your allotted funding, you risked losing it in the next budget. YOU would certainly not be recognized for being efficient. Business people, on the other hand, are rewarded for having excess money and are recognized for their efficiency.
As this cycle of growing government spending continued, the demand formoney increased and the "Tax the rich" idea was now being adjusted to include lower-income levels, down to the very people who voted it in, the poor and themiddle class.
True capitalists used their financial knowledge to simply find a way to escape. They headed back to the protection of a corporation. A corporation protects the rich. But what many people who have never formed a corporation do not know is that a corporation is not really a thing. A corporation is merely a file folder with some legal documents in it, sitting in some attorney's office registered with a state government agency. It's not a big building with the name of the corporation on it. It's not a factory or a group of people. A corporation is merely a legal document that creates a legal body without a soul. The wealth of the rich was once again protected. Once again, the use of corporations became popular once the permanent income laws were passed-because the income-tax rate of the corporation was less than the individual income-tax rates. in addition, as described earlier, certain expenses could be paid with pre-tax dollars within the corporation....
Table of Contents
20 Years… 20/20 Hindsight: It Was 20 Years Ago Today 1
Introduction: Rich Dad Poor Dad 9
Chapter 1 Lesson 1: The Rich Don't Work for Money 17
Study Session 53
Chapter 2 Lesson 2: Why Teach Financial Literacy? 63
Study Session 93
Chapter 3 Lesson 3: Mind Your Own Business 107
Study Session 115
Chapter 4 Lesson 4: The History of Taxes and the Power of Corporations 123
Study Session 135
Chapter 5 Lesson 5: The Rich Invent Money 145
Study Session 169
Chapter 6 Lesson 6: Work to Learn-Don't Work for Money 179
Study Session 195
Chapter 7 Overcoming Obstacles 205
Study Session 223
Chapter 8 Getting Started 233
Study Session 255
Chapter 9 Still Want More? Here Are Some To Do's 269
Study Session 275
Final Thoughts 281
Study Session 289
BONUS Excerpt from: Rich Dad's CASHFLOW Quadrant 297
Most Helpful Customer Reviews
Rich Dad, Poor Dad explains the differences and distinctions between how the rich class, and the poor and middle classes manage their money. The author differentiate throughout the entire book explaining how his best friends dad, the "Rich Dad" was so successful. One of the main significances that were emphasized was "working hard" was different from "working and spending smart". For example, you can be the hardest worker in the building, but, if you are not smart on managing your money, you can have nothing to show for it. The Poor Dad is considered to be more government based, relying on other people to make monetary decisions, especially when it concerns taxes. The Rich Dad in more corporation based, being more proactive and finding ways to keep more of the money earned. This book explained economics in a way that was realistic and encouraging. The fact the author explained it in a way that anyone can follow his methods and be successful. It was able to keep my interest from the beginning to the end. It gave real world examples of how to manage my money and make smart investments to build my asset column. Before reading this book I had no knowledge or interest in starting to build an assets column at my age. This book gave me an understanding on what exactly determined an asset and how to start building a portfolio that could benefit me now and in the future. It is never too early to start. The most helpful thing that I gained from this book was to look at things as; a want versus a need. I realize that I have more wants than needs. Reading this book as a teenager has pointed me in the right direction of knowing what determines an asset and what determines a liability.
Robert Kiyosaki has lived with two dads. The poor dad, who was his biological father, went to the ivy league schools and received a doctorate degree, however, always ended up financially poor. The rich dad, was his friend's father, who only received education up to 8th grade, understood how to invest in money. He explains that it's all in the mental process. For instance, if job wages are low the common thought is--"I can't afford it" or "how can I afford it?" The poor dad would say he can't afford it, automatically shutting down his brain and accepting the state that he's in to save money. On the other hand, the rich dad tries to figure out a way to make more money and not dwell on the fact that the wages are small. This theme of differences in principals and financial methods is what continues on throughout the book. The common problem is that people in school are not taught about money. The average dad, also the poor dad, tells their children to work hard in school and get a steady job in a good company. In other words, he believes in the traditional ideas of working hard, preserving money, and not wasting it on material things, especially things he can't afford. The situation is that the poor dad was always more focused on education, rather than money, and commonly thinks "money doesn't matter". The poor dad also dwells on company insurance, security, and salary raises, instead of actually focusing on the job itself. This is what the rich dad calls the "Rat Race" in which one can never leave this cycle of being poor with this mindset. The rich dad did not spend time for education, but instead invested it on investing. The rich dad is seen as someone who learned to take risks, instead of not taking them, and by doing so, was able to have money work for him, instead of him work for money. I was shocked as to how much I was able to see these common thoughts portray in my life, and that my father fits perfectly under the category of a poor dad-- a common teacher, who loves to learn more but doesn't really like to focus on money, and constantly exclaims around the house, "we can't afford that". He also always focuses on insurance of our house, or our social security, or saving money. However, I may not live the glamorous life of having a rich father, I appreciate the rich life I live with his knowledge and determination to work hard, even if it still means to financially struggle with money. I am skeptical about not having an education, in the means to be able to become a rich dad, because I feel that without a root of knowledge then money takes over a family and have no real value. However, constantly dwelling on low wages, or in other words, to not be a pessimist, can always be a goal that families try to achieve. In the end, I found this to be book to be informative and maybe even life changing, but at the same time very unethical.
Pretty good book to help get you started on a more financially intelligent future. Teaches some basic principles, but can often be vague. A lot of the book teaches the same basic rules over and over most likely to cram them into the reader's mind. I ocassionally got rather uncomfortable when he would recommend some illegitimate tactics to get ahead. Such as buying new cars and other things as "corporate expenses" and using his cat as his partner. -Ethan
Purchased my third copy as a gift for a friend who didn't think about getting his money working for him when he purchased his condo and is now under water with the loan. He couldn't understand how a hard working ethical person could get in so much debt. He is pretty discouraged! When I first read RD-PD I had many ahha moments that explained how to think about money. I already had the basics of attention to interest rates, paying off debt in an order and saving. I still felt frustrated. The book guided me in a complete turnaround to co-owning and assets. I changed my employment, increased my deferred comp and increased my base pay to increase retirement. I was raised in a cash household by depression era kids who recycled and bought used. I had frugal down -but not asset awareness. My folks were land oriented. Property value increases saved them from low income. Still I didn't know how to get on top until I started studying money. RD-PD is the best as a mental gear shifter.
The purpose of this book (besides to make the author money) is not to give the reader a cookie-cutter MLM plan to make money; rather it sets out to change the mindset of the reader, to help open his/her eyes to opportunities. If you are looking for stock tips or ways to refi your house, pick another book. If you are frustrated with working for somebody else but need a motivational spark, then this is your book. Parts of it do read like a commercial for his other products, but what author doesn't do this? One lesson I took from the book that I won't forget is changing my attitude from "I can't afford this" to "what can I do to afford this?".
I have serious issues with Rich Dad/Poor Dad books. I have read several, including this one, and here it is: Defenders will claim that it is meant to inspire. The inspiration he offers is telling of the great amounts of money he has. He throws in a quick snippet occasionally mentioning that if you aren't rich, you have to live below your means and cut of credit cards. Since there's no elaboration there, I can only assume this is not meant for someone in debt. Who is it meant for? It's certainly not meant for someone without a plan on how to get rich. He touts real estate and owning companies. Yet he never elaborates on how you would begin this. Essentially, the only purpose this book can have is inspiration, but it left me rather depressed. In his anecdotes, he constantly bemoans his tragic fate of growing up middle-class: 'poor', he calls it. He gives no real suggestions about the steps that must be taken to get out. A note: these stories he gives have been 'fictionalized'. This is NOT nonfiction. He makes no claims that he is telling you the truth. One of the biggest flaws of his books are the number of plugs for his seminars and board games (we're not talking a measly $30 Monopoly game). He's obviously in this to make money off of the reader, not to let the reader make money off of his ideas.
In Rich Dad Poor Dad the author never ventures to tell the reader how exactly to attain wealth. Throughout the book he leads the reader through a cat and mice game 'basically dangling promises without the following through part. This book is a poor investment in ones quest to ultametly live a finanicially controlled life. The authors own personal success is the direct result of the consumers naivety. As a result he is a 'Rich Dad' through your own money and not through the system that he claims works.
The financial press investigated this guy's claims of wealth and found them false. Until he made million's on these books he had nothing. So, unless he is writing a book about writing a book, his knowledge is limited. Entertaining, but don't follow his advise. The one good point he has is to teach your kids early on about finance. Now you don't have to read the book.
"If you work for money, you give the power to your employer. If your money works for you, you keep and control the power." This quote sums up practically everything that Kiyosaki has to say about being financially literate. Many of us are slaves to our paychecks when in fact we can easily find ways for our money to work for us (stocks, property, etc) College is not necessary in a financially literate man's life. I found this book to be very informative in the sense that it got me thinking about my own financial future. Kiyosaki gave me hope for a financially prosperous future through each of his six lessons. This book can be helpful to anyone even if they end up finding Kiyosaki to be a quack. This book has the potential to make people think about their own financial situation and whether or not they are satisfied with it. It is the very fact that this book can help answer one question, what they are doing wrong, financially, if anything. I really enjoyed the fact that Kiyosaki conveyed his information through a story rather than through an essay. I was able to relate to Rich Dad, Poor Dad more through Kiyosaki's characters. Seeing that Kiyosaki's characters were kids, they asked a lot of questions. Kiyosaki cleverly 'answered' many of the readers' possible questions through the answers that the characters got. Overall, I felt the book had a lot of helpful information about becoming financially literate. I always saw before reading this book that the only successful people out in this world are the rich, but Kiyosaki has taught me that someone can make any amount of money and be 'well off' as long as they know how to work their money. This got me thinking of why we are not taught how to balance a checkbook or learn what 'assets' and 'liabilities' are even though the majority of our lives are going to be spent earning, saving, and spending money. The information in the book is important to everyone. There is not specific age group that should only read this book. If you are able to count money then you are able to comprehend Kiyosaki's teachings.
I haven't read a lot of these self-help books, and I've only read the first chapter of this one but I couldn't continue. His anecdotes of his early money making are based on illegal activity, which he sneakily nods at, like "but I didn't know." He tells a story about being stopped from actually counterfeiting money, which he didn't know was illegal as a kid. But then he talks about all the books he got and set up a pay library. He obviously knows what he did was illegal 'cause he points to a couple of key things: he notes that the woman who gave him the books or comics cut the covers off them. That's a marker that the books have been reported as destroyed and the authors-publishers don't make any money off them. And the woman tells him he can have the books so long as he doesn't sell them. He repeats the fact that he didn't sell the books a couple times. It's obvious that he knows "renting" the books, or whatever you call his pay library, is illegal. He's saying he followed the rules he was given, so it wasn't wrong. He also never remarks that he knows it was illegal. He's either assuming people don't know, or he's pretending he still doesn't know. He could've talked about the idea, the fact that he did it, and it was illegal, but he didn't know at the time, but it's the idea of making money work for you. Instead he touts it as a mark of his business acumen. I'm all for educating people in more of the complexities of the financial world, but I can't see that predicating a life and financial advice on illegal activities and "I didn't know" is a great way to teach legal financial concepts, let alone moral guidelines.
This guy has conflicting advice and is a scam artist. Do not waste your money on his get rich quick scam.
Thesis: This books main idea is to tell the story of his life about his 2 parents: the rich dad and the poor dad. He shows that rich dads teach children about money and wealth and what the middle class or poor classes' dads do not teach to their children. He shows that you don't have to go to big schools and have a great education to be successful. Make money work for you, not work for money. Summary and analysis: This book is about Robert T. Kiyosakis' life, from childhood to adulthood. He was raised with a Rich dad, who was his best friends (Mike) dad, who was a large business owner, and a poor dad, his real biological father, who was poor and highly educated. Both fathers taught Kiyosaki different views on success but because he saw that Mikes' father was successful he chose to learn how to be successful from him (rich dad). This book shows you that anything is possible if you are fearless and open-minded and also shows the 6 major lessons for success: The rick don't work for money, The importance of financial literacy, mind your own business, Taxes and Corporations, The rich invent money, The need to work to learn and not to work for money. Kiyosaki states to never to work for money through out the book and shows that the rich when opportunities come and go the rich tend to take risks, wile the poor are too concern paying bills, fearful to make a risk, and too busy seeking wealth. This book shows the difference on how the rich class vs. the poor class look at money.
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this was a good book that really stressed the importance of financial intelligence and it seems like a good stepping stone to find out more about making a living in different ways than just being employed by someone else.
I highly recomend this book to anyone who has financial problems. It explains a whole lot about investing, making a lot of money, and getting out of the rat race. Anyone at any age should read it!
this book for me told me a lot of stuff that i already knew. it has really good advice but it does not tell exactly how to do it. that is the only critique i have for this book. i liked how kiyosaki used pictograms in which helped me understand what he meant.
The book Rich Dad Poor Dad by Robert T. Kiyosaki is a wonderful novel and guide to the little tips and tricks it takes to become financially literate. This book shoes one how to look at life's bigger picture and explains about how to work to learn and then to earn; and how to find loop holes in the financial game called life. It talks about the author's life experiences and his advice. One might say the theme of this novel is the power of education but not school, the whole novel is centered on the idea of out of class room education. Page by page the author provides all his knowledge about money. I found this quite amazing how he could go from nothing to everything just form his power and understanding of money. The only part of the book one might disagree with is how you really he talks about being rich in just money, because you could also be rich in family and friends etc. Anyone interested in money and seeking a better understanding of hoe to become financially literate should read this book.
This book is a milestone for your lives. Once you read it and once you play the game Cashflow afterwards, nothing will be the same for you anymore. Surely everyone will benefit in a different way but the general idea of the necessity to get of the rat race is priceless; while you are reading the book you'll feel like this "Would I share this information with everyone if I'd knew it?" Yes, this book is "THAT" awesome. I recommend you to read this book while you are also reading a Trump Book. Your focus will be doubled and everything will make more sense to you. Thank you Mr. Kiyosaki for helping young idealists like me to find some answers to our questions which we couldn't be able to learn from our own parents.
This is a motivational book with a few common sense financial suggestions such as buy assets that appreciate over time or provide a positive cash flow. It also has suggestions that are not so great, like how an education and a good job only trap you in the rat race and lead to debt. Some suggestions are downright bad, like not paying bills so your creditors will be able to motivate you to get out and make money. It is sprinkled with examples that are actually get-rich-quick fantasies so absurd that this book should be listed in the fiction section. It sells dreams, it does not realistically educate you to accumulate wealth. If a reader were to actually follow the author's advice, they could loose a lot of money fast!
A truly remarkable and life changing book that helps me pave my road to financial independence each and every day.
Rich Dad Poor Dad is an excellent starter for young adults who want to get ahead in the real world. Not only does it teach them about assets, liabilities, real estate and marketing, but it also introduces how to get out of the "rat race". A place where almost every American is in, where they work for their whole life with just enough to get by. I'm a young adult myself and I highly recommend this book to others my age, or just anyone in general. Getting financially literate in the real world can be harder these days, but this book is a great stepping stone to get started.
There are some cute anecdotes here, but the book has two major failings. First, the writing is appalling. Long-winded, repetitive stories in that folksy, "man of the street" style that gets tedious quickly. Secondly, the advice isn't helpful.Kiyosaki describes three "tracks": most people manage their money badly, spending as much, or more, as they earn. A small percentage, which I identify with, are capable of spending less than they earn, but don't do anything particularly spectacular with their savings. And the third track? The one Kiyosaki enthusiastically espouses? It sounds an awful lot like "full-time property investor" to me. So it's clearly not for everyone.After a while, his cheery catchphrases ("I pay myself first, before the government!", "My money works for me, not the other way around!") begin to grate. Does his strategy depend on US tax law? Who knows? He's not specific enough.
Given the popularity of the book and it's many reviews, I'm not sure an overview of Rich Dad, Poor Dad is necessary. Nonetheless, here's my abbreviated version.Rich Dad, Poor Dad tells the story of Mr. Kiyosaki as a young man and the money lessons that he learned from his "Rich Dad" who was the father of one of his childhood friends. Rich Dad was a successful entrepreneur and he taught the boys the life lessons that they needed to become wealthy. This story shares those lessons and emphasizes them by comparing them against the actions/lessons of his highly educated but financially inept "Poor Dad". A few of the differences highlighted include:- One should "get a job to make money" versus "put money to work for you"- What is an asset and what is a liability- What is important to study and how to apply that knowledgeThese were all good points and there were other topics in the book that provided more specifics. The following examples were from Rich Dad's explanation of how the rich use corporations as a vehicle for sheltering money. - That corporations spend first, then pay taxes, while individuals must pay taxes first- That corporations are artificial entities that anyone can use, but the poor usually don't know howAs you might imagine, there were other examples in the book as well. For me, three main points resonated and while they may not be rocket science, they warrant my rating of 4 stars. First was the new definition of liability and asset. It's quite simple. An asset is something that you purchase that will produce income for you. Everything else that you spend money on is a liability. The most dramatic example that Kiyosaki gives is your house. Most people list this as an asset. Rich Dad considers this a liability. Why? Because it isn't producing cash flow. In fact, you dump money into it through repairs, interest to the mortgagor, taxes, etc. You receive no cash flow until you sell it. Even then, you may or may not make a net profit. Keep in mind that this is not the case with all real estate just your personal home. Other real estate should be producing a positive cash flow (or you shouldn't own it). Kiyosaki wasn't discouraging the purchase of a home, he just considers it a necessary liability rather than your primary asset.Second was the use of corporations to shelter taxes. I have some experience with this approach (my wife and I have one company already) but Kiyosaki's comments led me to revisit the drain of taxes on my family's income. I will be spending more time with our accountant to reduce taxes as much as possible in 2008. Some of this will be done through the vehicle of a corporation. I still don't believe we've fully tapped this opportunity.Finally, and most importantly, I liked the concept of building businesses or other assets that can produce your monthly income. This sounds like common sense but the way it was described was to gradually add assets that produce monthly income until you can eventually leave the rat race and focus exclusively on building more assets. You don't reward yourself with new toys (i.e. liabilities) until you have generated the cash flow to purchase them (not through an employer).I see this as the beauty of the book. It is a reminder of what it takes to get rich. Most of this isn't new information. It's a culmination of information told in the form of a story. That being said, it's well done and it's motivating.Kiyosaki doesn't get overly prescriptive. The book has been criticized for not getting into the details of "how to". But really, how could he? There are so many different ways to go about making money and so many factors that play into whether or not one will be successful that you could write twenty volumes. Guess what? That's what he's begun doing through licensing the "Rich Dad" monicker. He has people writing books on "Guide to Investing", "Real Estate Investing", "Own Your Own Corporation", and more. He is lic
One of the most stimulating books read, during my teens. Kiyosaki showed the possibilities of getting rich with a change of mindset. It also affirms what I've suspected about: "go to school, get a good grade, get a good job, and enjoy life".