Rich Dad Poor Dad is awesome!
Rich Dad Poor Dad, tells the story of Robert Kiyosaki and his 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.
When reading Rich Dad Poor Dad, I could totally see what he was saying. He provides a very clear framework for people to consider when looking at their personal finances. Most people are in the ‘rat race’ and don’t realise it. This book shines a light on how people are just working for retirement, spending what they earn and not trying to get their money to work for them. I had actually been doing a lot of what he said but never put it into such a clear framework that he set out.
After reading the book I was more explicit about following his framework. Each month I update a spreadsheet to see how much money we have, what our overall expenses are and how much income we are generating (both from working and passively from investments and other sources). I have recommended this book to many of my friends.
A key point raised in this book was about how your house is actually a liability, not an asset. Your house costs you money over time (insurance, mortgage, maintenance) and doesn’t make you money unless you sell it and live somewhere cheaper. A house can be an asset if it being rented out as then it is generating money.
My only criticism is that it made starting a business sound like an easy thing but that clearly isn’t true. I love the theory and feel people should follow what he has said but in my humble opinion, the book could focus a bit more on the practical side of things.
In conclusion, I would strongly recommend this book to everyone. If you like this book, you’ll also like The Richest Man in Babylon.
I note that Robert Kiyosaki has written other books and has ‘The Rich Dad Company’. I’m not a big fan of his other ventures. The book about investing (I’ll write a review in due course) is not a good read and gives a false impression that investing in companies is easy if you do research on a company’s balance sheet. Given that 75% of ‘professional investors’ can not beat the market over a sustained period of time, I don’t believe that anyone who reads a book on investing would be able to do any better. They would be much better off just buying a fund which tracks the market and save themselves a lot of money in fees.
I’ve now written a blog on how I’ve taken actions to become a ‘Rich Dad’, check it out => Becoming a ‘Rich Dad’
Thought provoking = 10 (out of 10)
Enjoyment of reading = 10 (out of 10)
Money making = 8 (out of 10)
Overall score = 9.2
Read again = Definitely