Home > Media > Books > Robert T. Kiyosaki and Sharon L. Lechter - Rich Dad Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and Middle Class Do Not!
Robert T. Kiyosaki and Sharon L. Lechter - Rich Dad Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and Middle Class Do Not!
HJS33's Full Review: Robert T. Kiyosaki and Sharon L. Lechter - Rich Da...
As many of you may already know, I was in school for massage therapy. As part of our training, we took a Business Practices course (thank GOD!). As part of the learning experience, we were asked to read a ‘money’ book. I chose this book. I’m glad I did, because it made me think about money differently.
The best thing about this book is not the way it was written. His writing style is just ok, and at times, the repetition can really get on your nerves. But, the book made me think, and it was easy to read and understand, so I enjoyed it. Many times I have tried to pick up a ‘money book’, and it was just way over my head. Regardless of whether or not I believe in all the concepts of the book, I actually realized that I didn’t spend much time thinking about money in quite the same way, and I was long overdue. I was also disturbed by the fact that I really don’t know enough about money. The book was a taster of what is out there. I now think I am ready to move on to something a bit more advanced.
The author, Robert T. Kiyosaki, a fourth-generation Japanese-American, was born and raised in Hawaii. Kiyosaki shares life lessons/money information he has learned from his ‘rich’ dad, who is actually his best friend's dad. He also talks about (and compares to 'rich' dad) his birth dad, or ‘poor’ dad, who happens to be very educated, but who also happens to struggle financially through all his life. ‘Poor’ dad seems to have similar beliefs about money that most people in the ‘rat-race’ have. His ‘rich’ dad, who didn’t finish high school, was very successful with money. At times his comparisons of both dads may seem a bit harsh and may even be considered offensive toward the ‘poor’ dad, but I wasn’t bothered much. I felt that he was just trying to point out their financial money-handling differences, not judge the actual person. He just happens to agree with his ‘rich’ dad's point of view regarding money and is also trying to point out that it doesn’t matter what your education level is, you can get financial freedom if you use your mind.
Kiyosaki wants us to actually THINK about money instead of just falling into a pattern or what is taught to us. How many of us have been taught that if you study hard, stay in school, get good grades, go to college, etc. that you will find a good job and be successful and financially set or comfortable? I learned this method. I still live it. Kiyosaki feels that thinking like this is not only outdated, but potentially dangerous. This sort of thinking was fine for past generations, but now that we are in the information age, this method won’t work and will keep us in the ‘rat-race’ forever.
He says that the basic key to financial freedom is to make your assets, NOT your liabilities (which are often confused with assets) work, aka, make money for you. It doesn’t take a lot of money to be rich, it takes smarts, and Kiyosaki doesn’t mean traditional education necessarily, he means using your head. He talks about his childhood and the financial lessons he has learned. As he brings us through the story, we are brought along with him on his money lessons. He even draws out simple pictures to explain money relationships (assets, liabilities, income, etc.)
One of the biggest problems, according to Kiyosaki, is that kids are not taught about finances in school. Kids are taught to study hard, stay in school, get good grades, go to college, etc., to be successful, etc. but not how to deal with money and make money work for you, instead of you working for money.
There are many other concepts in this book as well. He lists 10 step, so to speak. Kiyosaki talks about how the rich let the money work for them where as the poor and middle-class work for the money. This is what keeps the poor and middle-class in the rat-race, because they HAVE to work, or they won’t have the money to pay their bills. When the rich have money that works for them, they don’t necessarily have to work. They have built a portfolio with money producing assets, and a small amount of liabilities (or ones that can easily be covered by their assets). He also discusses the confusion between assets and liabilities. For example, he mentions that your house is a liability, NOT an asset, like most people think. In addition to making money work for you, he touches on paying yourself first. This was a difficult concept for me to grasp, as he was saying that paying yourself first before paying your bills, etc. would motivate you to make your money work for you in order to pay your bills on time. I’m not so sure this would work for me, but it is an interesting concept.
He also touches on risk a bit, but I do feel that he sugarcoats this a lot. At times he almost sounds too good to be true, even infomercial-like. He mentions that you have to take risks to be successful, but then he mentions that if you are smart and use your head, the risk will be minimal. He does mention that there is failure along the way, but the individual that bounces back and learns from the experience is on the way to success. He doesn’t really dwell on the failures or the learning experiences you get from failures.
He mentions becoming financially literate. I wholeheartedly agree with this. I think we should never stop learning…about everything. He encourages everyone to take courses and seminars, to read books, etc. etc., anything you can to gain more knowledge about money. He also mentions that you should take in all this information, not just one piece of it and instead of judging and making decisions about just one piece of information. The more you know, the better off you are.
The concepts above are great, but what bothers me most is that he talks about building a portfolio, but doesn’t tell you how, especially if you have limited funds. A lot of his focus is on real estate, which is not a feasible asset for me at this point in my life. Buying real estate is not affordable to me, even if I sold everything I owned.
But overall, I enjoyed the book and would recommend it to those beginning their journey into the world of financial knowledge, or those who want to look at a different and somewhat controversial view of becoming ‘rich’. It was an easy 195 page read and I bought it on www.half.com for about $6.00. I felt it was worth the price and would recommend it to anyone who wants a taster on ‘money’.
Taking the message that the poor and middle class work for money, but the rich have money work for them to heart, personal-finance author and lecturer...More at HotBookSale
Taking the message that the poor and middle class work for money, but the rich have money work for them to heart, personal-finance author and lecturer...More at Buy.com Marketplaces
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