Yellow's Green

The Adventures of Money Blog.

Thursday, April 20, 2006

Review - Rich Dad, Poor Dad

"Rich Dad, Poor Dad" by Robert Kiyosaki is a great read, even if it is poorly written. It reads just like a motivational speech, where the excited cheering speaker repeats himself often - really driving his point home. He even uses his lack of great writing ability as an example in the book! (He may not write well, but his marketing skills got him a #1 NYT Bestseller.)

I enjoy his argument that we need to choose to be rich. I've always been of the mindset that I would be poor (financially) throughout my life. I am/want to be a stay at home mom, and enjoy working in the non-profit world and the arts... not big money in those industries. But he makes a good argument that those who see any problem with the idea of a desire to be rich are simply being mentally lazy... they're really just afraid to try. He even goes so far as to argue that being greedy can be a good thing, and he manages to do it in a completely inoffensive way.

One surprising argument he makes (that fits very well with the "All Your Worth" philosophy) is that your home is actually your biggest liability, not your biggest asset. (Your brain - and using it - is your biggest asset.) The reason he argues is that assets contribute to your cashflow, and liabilities detract from it. A home takes mortgage payments, utility bills, repairs, etc., but doesn't bring cash in. (Unless, maybe you have a reverse mortgage.) Owning rentals, buying and selling real estate, these are assets.

Kiyosaki has even created a game to teach his way of handling money, and how can you not like that? We have yet to play it, but likely will one day.

The book is not a financial planner. Like I said, it's more motivational than anything, but it's an enjoyable and easy read with some fascinating ideas.

2 Comments:

  • At 4/26/2006 9:04 PM, Blogger lumina said…

    I liked this book too.

    I would recommend also, "The Millionaire Mind" by Thomas J. Stanley

    From Library Journal
    In The Millionaire Next Door, read by Cotter Smith, Stanley (Marketing to the Affluent) and Danko (marketing, SUNY at Albany) summarize findings from their research into the key characteristics that explain how the elite club of millionaires have become "wealthy." Focusing on those with a net worth of at least $1 million, their surprising results reveal fundamental qualities of this group that are diametrically opposed to today's earn-and-consume culture, including living below their means, allocating funds efficiently in ways that build wealth, ignoring conspicuous consumption, being proficient in targeting marketing opportunities, and choosing the "right" occupation. It's evident that anyone can accumulate wealth, if they are disciplined enough, determined to persevere, and have the merest of luck. In The Millionaire Mind, an excellent follow-up to the highly successful first analysis of how ordinary folks can accumulate wealth, Stanley interviews many more participants in a much more comprehensive study of the characteristics of those in this economic situation. The author structures these deeper details into categories that include the key success factors that define this group, the relationship of education to their success, their approach to balancing risk, how they located themselves in their work, their choice of spouse, how they live their daily lives, and the significant differences in the truth about this group vs. the misplaced image of high spenders. Narrator Smith's solid, dead-on reading never fails to heighten the importance of these principles that most twentysomethings should be forced to listen to in toto. Highly recommended for all public libraries. Dale Farris, Groves, TX

     
  • At 4/27/2006 12:22 AM, Blogger Amber said…

    Thanks for the recommendation. I'm headed to the library's website to add it to my que now.

     

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