kenworld
Rich Dad, Poor Dad


Rich Dad, Poor Dad
By: Robert T. Kiyosaki
Published: 1998
Reviewed: 4/23/2002



I picked up Rich Dad, Poor Dad after a coworker mentioned the book and some of its controversial assertions, such as a home being a bad investment. The title comes from a continual comparison of the advice of his own dad who "worked for money" and his friend's dad who "had money work for him". All of which is more marketing for the book than meaningful. The book spends a lot of time differentiating between assets and liabilities, and how most people spend their income on liabilities (cars, TV's etc.). His two main points are that you should spend your money on revenue generating assets, and that working for someone else will never let you get ahead. It also discusses (with kudos to Buckminster Fuller) the difference between Net Worth and Wealth, with Wealth being defined as how long you can live without a job. Along those lines, a bigger house may increase your Net Worth, but it doesn't help you be able to live longer without a job, in fact up to the point you sell it, a bigger home reduces how long you can survive because it has higher associated costs. Now if you own a second house and someone is paying you rent, then it is an asset. All that said, the book is very light on specific investment strategies. The author made his money in real estate and most examples are along those lines. In a lot of ways he sounds more like a motivational speaker, where you are excited when finished and Ready to Maximize Your Potential!! After headbutting the walls because you are SO PSYCHED you begin to realize any real information will have to be found elsewhere. The book is Co-Authored by Sharon L. Lechter (CPA) who I would have mentioned earlier if I thought there was any CPA-style advice in the book. Kiyosaki recommends attending investment seminars, which isn't surprising since he gives them for a living. Even thought I'm more or less panning the book, I am still interested in a board game he developed called CASHFLOW, which is intended to demonstrate the importance of revenue generating assets over expensive purchases. The game is very pricey (pushing $200) so don't expect me to be giving everyone a copy at Christmas.