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Rich Dad Poor Dad
- Thread starter Xmailer9
- Start date
I heard about this a while back on the radio...
Is it any good??? Completely forgot about it.
Is it any good??? Completely forgot about it.
So true, My parents live by this principle and so do I.
Very few people actually really understands this...
I can give you another quote: make the plan and work the plan
Very few people actually really understands this...
I can give you another quote: make the plan and work the plan
FrankCastle
Executive Member
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I love his philosophy of parents encouraging their kids to go to college and get good jobs when they should encourage them to create good jobs.
Something along those lines.
Something along those lines.
+1
HavocXphere
Honorary Master
meh. Kinda. Its very popular & even somewhat entertaining. But as far as financial advice goes its mediocre at best.
Basically the book says:
- Financial literacy is crucial
- Flipping real estate ftw
- Pay yourself first. Then when there is not enough money to pay SARS & creditors it'll motivate you.
All of this is dressed up as a story from Kiyosaki's childhood.
He also redefines "assets" as something which produces an income stream. i.e. House & Car <> Asset. Buying assets which produce an income stream is a solid plan, but maybe don't repeat that definition of an asset to someone with a finance background.
The main thing I learned from the book is that the fastest way to become rich is to create something popular...doesn't whether the thing in question is good or not.
guest2013-1
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book sucked. nothing in there I didn't already know.
macxsanity
Well-Known Member
you should also read the richest man in babylon
So you were familiar with the relevant financial principles, and now the book sucks?
It's a popular book, aimed at people who know little about managing their finances. As someone who already know this stuff, you should be able to confirm that it is correct or somehow valuable information, correct?
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unskinnybob
Expert Member
Kiyosaki preaches a couple of obvious truths. Lets face reality though - he makes his money selling books and attending presentations just like SA "money maker" Hannes Dreyer.
Johnone
Senior Member
Rober Kiyosaki's book/s are focused on laymen, and for that purpose it serves well. He describes in simple ways what assets and liabilities are and how to manage your money to buy assets rather than liabilities.
An asset, according to Kiyosaki, is something that put money into your pocket (like an investment that pays dividends).
A liability, on the other hand, takes money out of your pocket (like your house).
His definition is not technically correct according to accounting standards. For example: in accountancy the house (property) you own will be counted as an asset, whereas the mortgage bond over the property will be regarded as a liability. Kiyosaki just side-step this by calling a house a liability (cause it takes money out of your pocket), and thereby simplifying it for those not acquainted with the technical rules of accountancy.
The only way to get value out of the book is to read it out of a laymen's point of view. The practical advice he gives are good. There's no quick rich scheme involved. He actually recommends that you become financially intelligent, i.e. study finance.
Rich Dad Poor Dad is a good book to read when you are starting out in the world of finance. It should be recommended reading for those in school I personally think. It should also be remember that Kiyosaki wrote that book in the 90's. In his subsequent Rich Dad books, he expands on the ideas he puts forth in the original. And also comes up with different ideas and approaches to the financial world as the times changed. Remember he wrote that book before the bubble burst (he actually predicted the stock market's 'crash').
On a side note: has anyone here played his Rat Race boardgame?
An asset, according to Kiyosaki, is something that put money into your pocket (like an investment that pays dividends).
A liability, on the other hand, takes money out of your pocket (like your house).
His definition is not technically correct according to accounting standards. For example: in accountancy the house (property) you own will be counted as an asset, whereas the mortgage bond over the property will be regarded as a liability. Kiyosaki just side-step this by calling a house a liability (cause it takes money out of your pocket), and thereby simplifying it for those not acquainted with the technical rules of accountancy.
The only way to get value out of the book is to read it out of a laymen's point of view. The practical advice he gives are good. There's no quick rich scheme involved. He actually recommends that you become financially intelligent, i.e. study finance.
Rich Dad Poor Dad is a good book to read when you are starting out in the world of finance. It should be recommended reading for those in school I personally think. It should also be remember that Kiyosaki wrote that book in the 90's. In his subsequent Rich Dad books, he expands on the ideas he puts forth in the original. And also comes up with different ideas and approaches to the financial world as the times changed. Remember he wrote that book before the bubble burst (he actually predicted the stock market's 'crash').
On a side note: has anyone here played his Rat Race boardgame?
cerebus
Honorary Master
Robert Kiyosaki is a conman who passes off marketing fluff as financial advice. There is NO evidence that rich dad ever existed, which, given his specificity of description, should be easy to establish. He constantly boasts about having profited in ventures that on closer inspection never happened and would have been untenable - such as particular property investments. In fact the only business experience he can reasonably claim to have had is the surfwear company. He makes claims to fortunes of which there is NO evidence, then boasts about tax evasion on those assets which presumably is the reason nobody has any evidence of them. His advice is so nebulous as to be meaningless (let money work for you.... what does that even mean?).
For solid financial advice, I implore you to look elsewhere.
http://www.johntreed.com/Kiyosaki.html
For solid financial advice, I implore you to look elsewhere.
http://www.johntreed.com/Kiyosaki.html
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Johnone
Senior Member
Have you read his books? Whether Rich Dad existed or not is not the point. Whether he is a con-artist is irrelevant. His books are successful, cause the advice he gives are sound and make sense to a lot of people.
It simply means using your hard worked for money to buy assets (investments) and thereby letting that money 'work' for you by growing and providing dividends/income.
You probably missed the part in his book where he advises his readers to get financial intelligence. That is, study. For there are no easy roads to riches nor success. Interesting for a con-artist to give such advice.
cerebus
Honorary Master
Four or five of them yes.
Yes it is.
Are you kidding?
His books are successful because the advice he gives makes it sound like any semiliterate rube can jump into investment and make a packet out of it. He doesn't tell you how to distinguish one investment from another.
I could have written that in a fortune cookie. It is NOT solid financial advice.
He throws every soundbite of advice he's received in the apparent handful of seminars he's attended to acquire his body of knowledge into a book. You can't make anything stick to him because he contradicts himself elsewhere. Thus, he will tell you to study everything you can. On the next page he'll tell you how he bought a bunch of houses and doubled his profits overnight. The man is a con artist.
unskinnybob
Expert Member
Incorrect. His book is successful because his marketing is successful. His book is successful because it is an entertaining read. Best sellers are based on books sold - not financial prowess readers gain post reading said book.
You probably missclicked the link Cerebus provided. Here are the highlights:
Dangerous advice
"If you're gonna go broke, go broke big"
Convinces people that college is for suckers
Law-breaking advice
Advocates committing a felony: have rich friends for trading stock based on non-public inside information, he says "That's what friends are for."
Recommends tax fraud by deducting vacations and health club dues
Brags about using a partner weasel clause in which his cat is his partner
Bad liar
Can't keep track of his story
Shouts from the rooftops how rich he is, but refuses to disclose real estate portfolio because he "doesn't want people to know he has money"
Apparently lied about going bankrupt in 1985
Claimed his net worth is $50-$100 million depending on the day; his Rich Dad Poor Dad coauthor said in court that he only made $9 million
His "best teacher ever" changed repeatedly
'92 - Ralph Kiyosaki (Poor Dad)
'97 - Rich Dad
'06 - Buckminster Fuller
The blueprint to becoming a "Financial Genius"
I'm not the only critic
Wall Street Journal: "Rich Men, Poor Advice"
Smart Money Magazine: "Karma Chameleon"
Fiction posing as non-fiction
Oprah needs to confront Kiyosaki about calling a fiction book non-fiction just like she did with James Frey
He asks why Rich Dad has to be any more truthful than Harry Potter
Admits fictionalizing on copyright page of Rich Kid, Poor Kid
Admits to 20/20 that he doesn't teach people how to get rich
"Marine corps made him what he is today" - he was laterally transferred to the Marine Corp from the Merchant Marine and Navy, he never went through the entry-level Marine training
Lied about desertion while serving in Vietnam (admitted later he just missed the boat)
Became a helicopter pilot to "lead men" (platoon leaders and company commanders lead men; pilots lead machinery)
Rich Dad, Poor Dad triggers the following items on my Real Estate B.S. Artist Detection Checklist: 1, 6, 7, 10, 11, 13, 20, 26, 27, 28, 29, 30, 31, 38, 39, 46, 49.