Book Review: Rich Dad, Poor Dad
It only took me two days to read Rich Dad, Poor Dad by Robert Kiyosaki & Sharon Lechter, as it is relatively short and an easy read. And Kiyosaki likes to say things over and over… and over. This supposedly non-fiction book deals with the conflicting teachings of his “Poor Dad”, his real educated paycheck-to-paycheck father, and his “Rich Dad”, a middle-school drop-out who is a millionaire. There are two basic themes that I got out of the book, after wading through the hokey stories:
1) People need to learn “financial literacy” more than book learning taught at school. I can agree that money matters are not taught in school nearly enough, but I’m certainly glad I went to ninth grade.
2) You should buy assets, not liabilities. Assets, such as real estate (especially real estate), stocks, and bonds, make you money. Liabilities, such as your house, car, gadgets, take away your money. This is probably the one thing to get out of this book, perhaps minus the real estate focus.
He includes very many vague stories about buying real estate properties for cheap with little or no money down and flipping them for great profits. Or investing in start-ups with great results. Many of these stories have been investigated with little proof found to support them. Overall, I see the book is more of an inspirational book on entrepreneurialism (is that a word?). Basically, try to think outside the box, and invest your money in something that grow instead of letting it sit in a bank account or spending it on that nice car. He just makes it sound way too easy to become a millionaire, just like any infomercial you see at 2am in the morning. Also, the book plugs expensive ‘get-rich’ seminars and his Cashflow game way too much.
Still, if the book gets your off your ass and thinking about making yourself some money, it’ll be worth the ten bucks and two days of reading during football commercials.
Find more in Book Reviews | 1/18/05, 7:25pm | Trackback
January 18th, 2005 at 8:13 pm
Yeah, I wasn’t too impressed with “Rich Dad Poor Dad” either. I also loose respect for a person when they come out with book after book after book,…
If you must read it, check it out at the library. Don’t buy it.
JLP
http://AllThingsFinancial.blogspot.com
January 19th, 2005 at 1:12 pm
One of the worst books I’ve read. It’s poorly written, full of “plot holes”, and offers rather crappy, infomercial-quality advice.
January 19th, 2005 at 10:19 pm
Read it a long time ago. Recall that the writing was mediocre at best. Very much a motivational, MLM sort of thing.
However, there were nuggets of good stuff. “Buy assets, not liabilities” was one of those, and there was an assortment of interesting quotes.
Wasn’t worth buying new, though.
February 11th, 2005 at 9:14 am
Robert Kiyosaki books are full of filler and really dumb down things but I learned alot of important ideas from him.
Because of him, i now review my “wealth ratio”, cash flow and networth monthly. His idea of the rat race, that spending always rises to meet income and you still stay in the same spot is a lesson all of North America needs to learn.
He is horrible writer though.
March 1st, 2005 at 6:04 pm
Kiyosaki loves to tell his stories. I question whether he really got rich off the real estate investments or just running Cashflow Technologies (churning out book after book). We should all be so fortunate to write a book(s) and have people gobble it up. I admit that I have the game. It does help to understand the financial statements better. Buying his game is cheaper than an accounting class at the local college. Might be even cheaper to borrow an accounting book and read though. Bottom line of Kiyosaki’s teachings: Buy assets, not liablities (the house you live in is a liability, not an asset).
Keep up the informative blog.
-rpw
March 8th, 2005 at 12:16 am
I disagree. My house is my best asset. It has raised in value about 20% per year for the last 4 years. I can use the equity in my home to invest in other things. If I moved to another part of the country, I could eliminate my mortgage.
I also think that Rich/Poor Dads takes a narrow view with “only buy assets”. A car is a liability right? But if you didn’t have a car, you couldn’t keep a job. A car is an asset. You use it to earn more money. No car, no income.
I am an engineer working in wireless technology. I buy the latest cell phones and PDAs when they become available. I buy a faster computer every year. Liabilities? No. Without using cutting edge technology on a regular basis, I would not have the successful career that I have. No toys, no knowledge, no promotion, no job, no income.
It’s just not as simple as “buy food and rental properties.”
November 5th, 2006 at 8:35 pm
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January 17th, 2007 at 9:51 pm
[…] Guzzo the Contrarian writes about Arizona tax lien certificates. I remember these being vaguely mentioned as superior to bank CDs in the Rich Dad, Poor Dad book series. It would be interesting to see how much these pay in my area. […]
May 11th, 2007 at 9:04 am
I think it is a good book for beginners like myself.
January 26th, 2008 at 12:18 am
[…] Book Review: Rich Dad, Poor Dad - Concise review on the book stating the good and the bad. […]