Review of Rich Dad Poor Dad

In Rich Dad Poor Dad Robert T Kiyosaki talks about the differences between those who are wealthy and those who are not, stating that society is sorely lacking in financial intelligence.

Many people in the middle class get stuck in debt because they buy liabilities which prevent them from saving for assets. Expensive mortgages from a bigger house, higher car costs from larger and more expensive cars, having kids, and other similar incremental expenses that come with age perpetually keep people fighting just to get by, even as they receive pay raise after pay raise. If people slow consumption to pay off debt and allow their income to help build assets compounding interest can help them.

Robert also talks about paying yourself first, a concept where you make yourself save money and stash it away before you pay off all your bills. The need to pay the bills can be a force to help you create additional income, although sometimes I think the added stress may not be a good thing for some.

Robert also suggests that money spent on learning / investing in your brain is the single best investment you can possibly make.

As a warning, some of his specific investing examples may require strapping on the wading boots, as noted by John T. Reed. Some statements, such as lose big when you lose, might not be too well in tune with reality for good investment advice for most people. Also Robert T Kiyosaki was not well known until he got together with a group of multi level marketers, which makes some people question whether or not he only got wealthy by / after telling others how to do so.

If you focus completely on the money some of his advice is exceptionally shallow, but some of the general ideas are good stuff.

Published: August 18, 2005 by Aaron Wall in book reviews

Comments

Trevor Jacobson
March 23, 2006 - 7:06am

Go and read about John T Reed. Anyone with half a brain can see he has an alternate agenda. All of his points of how real millionaires drive chevys and not porsches and other ridiculous conclusions. All he can do is cry and whine because he is jealous. Kiosaki Turned me into a millionaire

August 18, 2005 - 3:59pm

Please don't forget to point out that the whole premise of the story is false. No one has ever been able to find the people he references and that he has gone from insisting that it was all real to comparing it to a fable to saying that the people were composite characters.

The guy is a hack.

August 18, 2005 - 4:22pm

I've read several of Kiyosaki's books, as well as listened through one of his CD seminars. All great stuff. Sound philosophies wrapped in common sense.

August 18, 2005 - 7:11pm

I read the book several times, and found it very inspiring. I don't really care if this is a true story or not, the concepts described in that book work (or at least worked for me), and get people to try better (or at least the people I kno whom read the book).

Great book, recommended to everyone.

Fergal
August 18, 2005 - 9:01pm

I really enjoyed this book. I found it to be a very easy and enjoyable read. The concepts he talks about are very simple and yet often overlooked, by many people managing their personal finances. These concepts are repeated over and over again throughout the book yet his story telling style maintains your interest and the repitition hammers his simple message home.

Well worth a read.

subbu
August 19, 2005 - 12:44am

Svengali. Kiyosaki's a hack who didn't make his money using the advice that he offers... made it by schilling this swill water that is now packaged as a series of self-help books. I'm so glad I read John Reed's review before spending $ and having Kiyosaki's sunshine blown up my @$$. (BTW - John Reed's review itself paints John Reed himself as as an internet-stalker, for all practical purposes.) Even even-keeled reviewers who aren't as negative as Reed often ask potential readers to carefully weigh certain elements of the advice Kiyosaki offers before blindly following anything, as some of these "mantras" are qualified as suspect. If you can't be entirely sure about what is "good" and what is "bad" advice in the book, and you know that the author made this up anyways and didn't get rich off the advice itself, why bother?

Scott
August 19, 2005 - 4:36am

You don't care if the story is true ?

So your saying you don't care if the guy is a bald face liar.. so long as he gives you sunny advice?

The guy says BS like buy low sell high.. wow what a revelation. Or get into real estate.. you can make alot of money. Nevermind he never made money until his book got picked up by the talk show circuit.

rushy
January 31, 2007 - 6:36pm

its a known fact kiyosaki was financially free before rich dad poor dad came along
from 1985 t0 1989 he built businesses
from 1989 to 1994 he invested in real estate
rich dad was written in 1997
he also built other companies long before rich dad like the velcro wallet business which went bust due to trademark issues

Armen KUrdian
July 7, 2006 - 10:30pm

I have read RDPD and Cashflow Quadrant. Both of them helped me rewire how I thought about money, and I see several tactical errors in how I allocate my investments, and my overall strategy has been changed as well. No, the book doesn't give you a step-by-step process, he makes you go out and learn while teaching you at the same time.

I'll say this much, I am not convinced that many of his anecdotes are true. I think rich dad may be either an amalgamation of people, or just made up. I have learned a lot from his books, just as I have learned from sheisters as well. You can learn a lot from those who know and those who try to con.

November 3, 2005 - 7:15pm

Kiyosaki is a smart man. It's because of him, I decided to stop being an E, and an S... I can say with honesty, I've built myself a growing B!!!

Sir.Tee
January 25, 2006 - 11:18pm

whether he made his money before or after his book is not the issue. The issue is that the guy is smart and has offered useful information on how to get financial freedom, which is working well for me. You must know that there is hardly a wealthy person who doesn't have a dark past. Being rich is not about working hard but working smart.

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