Status
Missing
Collection
Series
Publication
Plata Publishing (2017), Edition: Second, 336 pages
Description
Taking to heart the message that the poor and middle class work for money, but the rich have money work for them, the author lays out a financial philosophy based on the principle that income-generating assets always provide healthier bottom-line results.
User reviews
LibraryThing member adamallen
Given the popularity of the book and it's many reviews, I'm not sure an overview of Rich Dad, Poor Dad is necessary. Nonetheless, here's my abbreviated version.
Rich Dad, Poor Dad tells the story of Mr. Kiyosaki as a young man and the money lessons that he learned from his "Rich Dad" who was the
- One should "get a job to make money" versus "put money to work for you"
- What is an asset and what is a liability
- What is important to study and how to apply that knowledge
These were all good points and there were other topics in the book that provided more specifics. The following examples were from Rich Dad's explanation of how the rich use corporations as a vehicle for sheltering money.
- That corporations spend first, then pay taxes, while individuals must pay taxes first
- That corporations are artificial entities that anyone can use, but the poor usually don't know how
As you might imagine, there were other examples in the book as well. For me, three main points resonated and while they may not be rocket science, they warrant my rating of 4 stars.
First was the new definition of liability and asset. It's quite simple. An asset is something that you purchase that will produce income for you. Everything else that you spend money on is a liability. The most dramatic example that Kiyosaki gives is your house. Most people list this as an asset. Rich Dad considers this a liability. Why? Because it isn't producing cash flow. In fact, you dump money into it through repairs, interest to the mortgagor, taxes, etc. You receive no cash flow until you sell it. Even then, you may or may not make a net profit. Keep in mind that this is not the case with all real estate just your personal home. Other real estate should be producing a positive cash flow (or you shouldn't own it). Kiyosaki wasn't discouraging the purchase of a home, he just considers it a necessary liability rather than your primary asset.
Second was the use of corporations to shelter taxes. I have some experience with this approach (my wife and I have one company already) but Kiyosaki's comments led me to revisit the drain of taxes on my family's income. I will be spending more time with our accountant to reduce taxes as much as possible in 2008. Some of this will be done through the vehicle of a corporation. I still don't believe we've fully tapped this opportunity.
Finally, and most importantly, I liked the concept of building businesses or other assets that can produce your monthly income. This sounds like common sense but the way it was described was to gradually add assets that produce monthly income until you can eventually leave the rat race and focus exclusively on building more assets. You don't reward yourself with new toys (i.e. liabilities) until you have generated the cash flow to purchase them (not through an employer).
I see this as the beauty of the book. It is a reminder of what it takes to get rich. Most of this isn't new information. It's a culmination of information told in the form of a story. That being said, it's well done and it's motivating.
Kiyosaki doesn't get overly prescriptive. The book has been criticized for not getting into the details of "how to". But really, how could he? There are so many different ways to go about making money and so many factors that play into whether or not one will be successful that you could write twenty volumes. Guess what? That's what he's begun doing through licensing the "Rich Dad" monicker. He has people writing books on "Guide to Investing", "Real Estate Investing", "Own Your Own Corporation", and more. He is licensing others to provide the details. Rich Dad, Poor Dad is the primer.
Rich Dad, Poor Dad tells the story of Mr. Kiyosaki as a young man and the money lessons that he learned from his "Rich Dad" who was the
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father of one of his childhood friends. Rich Dad was a successful entrepreneur and he taught the boys the life lessons that they needed to become wealthy. This story shares those lessons and emphasizes them by comparing them against the actions/lessons of his highly educated but financially inept "Poor Dad". A few of the differences highlighted include:- One should "get a job to make money" versus "put money to work for you"
- What is an asset and what is a liability
- What is important to study and how to apply that knowledge
These were all good points and there were other topics in the book that provided more specifics. The following examples were from Rich Dad's explanation of how the rich use corporations as a vehicle for sheltering money.
- That corporations spend first, then pay taxes, while individuals must pay taxes first
- That corporations are artificial entities that anyone can use, but the poor usually don't know how
As you might imagine, there were other examples in the book as well. For me, three main points resonated and while they may not be rocket science, they warrant my rating of 4 stars.
First was the new definition of liability and asset. It's quite simple. An asset is something that you purchase that will produce income for you. Everything else that you spend money on is a liability. The most dramatic example that Kiyosaki gives is your house. Most people list this as an asset. Rich Dad considers this a liability. Why? Because it isn't producing cash flow. In fact, you dump money into it through repairs, interest to the mortgagor, taxes, etc. You receive no cash flow until you sell it. Even then, you may or may not make a net profit. Keep in mind that this is not the case with all real estate just your personal home. Other real estate should be producing a positive cash flow (or you shouldn't own it). Kiyosaki wasn't discouraging the purchase of a home, he just considers it a necessary liability rather than your primary asset.
Second was the use of corporations to shelter taxes. I have some experience with this approach (my wife and I have one company already) but Kiyosaki's comments led me to revisit the drain of taxes on my family's income. I will be spending more time with our accountant to reduce taxes as much as possible in 2008. Some of this will be done through the vehicle of a corporation. I still don't believe we've fully tapped this opportunity.
Finally, and most importantly, I liked the concept of building businesses or other assets that can produce your monthly income. This sounds like common sense but the way it was described was to gradually add assets that produce monthly income until you can eventually leave the rat race and focus exclusively on building more assets. You don't reward yourself with new toys (i.e. liabilities) until you have generated the cash flow to purchase them (not through an employer).
I see this as the beauty of the book. It is a reminder of what it takes to get rich. Most of this isn't new information. It's a culmination of information told in the form of a story. That being said, it's well done and it's motivating.
Kiyosaki doesn't get overly prescriptive. The book has been criticized for not getting into the details of "how to". But really, how could he? There are so many different ways to go about making money and so many factors that play into whether or not one will be successful that you could write twenty volumes. Guess what? That's what he's begun doing through licensing the "Rich Dad" monicker. He has people writing books on "Guide to Investing", "Real Estate Investing", "Own Your Own Corporation", and more. He is licensing others to provide the details. Rich Dad, Poor Dad is the primer.
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LibraryThing member krobbie67
I think for a novice financial person this is a good motivational book. There is nothing really new or enterprising given as advice. It is extremely redundant and could easily have been half the size. But, some people need redundancy for a concept to sink in so take it as you will.
LibraryThing member bbbart
I liked the content (that's what the two stars are for), but the format is absolutely bollocks. Ironically, the author writes about himself in this book `I'm a best-selling author, not a best-writing author'. I must agree.
His ideas on financial intelligence seem to make sense, and repetition is the
Apart from that, it's too American. It assumes the reader is stupid and American.
His ideas on financial intelligence seem to make sense, and repetition is the
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mother of all learning, but this book can really be summarised on a single page.Apart from that, it's too American. It assumes the reader is stupid and American.
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LibraryThing member stevage
There are some cute anecdotes here, but the book has two major failings. First, the writing is appalling. Long-winded, repetitive stories in that folksy, "man of the street" style that gets tedious quickly. Secondly, the advice isn't helpful.
Kiyosaki describes three "tracks": most people manage
After a while, his cheery catchphrases ("I pay myself first, before the government!", "My money works for me, not the other way around!") begin to grate. Does his strategy depend on US tax law? Who knows? He's not specific enough.
Kiyosaki describes three "tracks": most people manage
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their money badly, spending as much, or more, as they earn. A small percentage, which I identify with, are capable of spending less than they earn, but don't do anything particularly spectacular with their savings. And the third track? The one Kiyosaki enthusiastically espouses? It sounds an awful lot like "full-time property investor" to me. So it's clearly not for everyone.After a while, his cheery catchphrases ("I pay myself first, before the government!", "My money works for me, not the other way around!") begin to grate. Does his strategy depend on US tax law? Who knows? He's not specific enough.
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LibraryThing member pratish100
A great book to read.very encouraging and full of examples
LibraryThing member ngennaro
Video by the author of Rich Dad, Poor Dad giving a speech on his book for KQED. The book is a pretty easy read and for the most part he is just repeating the anologies although he does add some opinions that I don't remember him using.
LibraryThing member gregfromgilbert
While I think the ideas were useful there was a lot of repetition and he probably could have made his points in one tenth the space.
LibraryThing member justafrog
Phenomenal writing. Maybe the best financial advice offered in a century. Kiyosaki is articulate as he weaves his tale of life experience from mediocre living to great wealth. I know from experience his information is true, because I was taught this when I was young.
Rich Dad, Poor Dad should be
Rich Dad, Poor Dad should be
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required reading for all teenagers and adults alike who do not understand how to read the financial pages in the newspaper. He breaks the complexities of economists and bankers down into bite sized pieces for the layman. Show Less
LibraryThing member VVilliam
A fantastic motivation for getting rich, but really it's only a philosophy for how to get rich without any actions. The book is also pretty poorly editted and very repetitive. The author is a huge fan of motivational seminars, and it shows. It does have really good advice, though, and is the
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perfect book for getting excited about leaving the rat race. Show Less
LibraryThing member tjsjohanna
Some interesting ideas, but also a pervasive theme of living life to make money. I found that unsettling, since I think there is more to life than money.
LibraryThing member marcelcarroll
Investor describes how he learned about money from his PhD father, who could never retain wealth, and also from his friend's father, who was a millionaire with an eighth grade education. Explains how to make your money work for you by mastering financial literacy and taking charge.
LibraryThing member tursach_anam
Essentially the book had only a handful of points and reiterated them in countless ways - somehow filling up a whole book! Despite the vast amount of repetition, this book is quite useful in putting you in the proper mindset for approaching the management of your money. The format is to use stories
I believe this book has done it's job and I'm now pursuing several other business books in order to begin my financial education, I have several ideas working in my head, and I intend to take action as soon as possible instead of waiting for Fates to smile upon me!
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of his childhood and young adult life to take common wisdom espoused by those who never seem to "get ahead" in life (the poor) and redirect them into the "correct" way of thinking in order to manage your money (instead of letting it manage you!). I believe this book has done it's job and I'm now pursuing several other business books in order to begin my financial education, I have several ideas working in my head, and I intend to take action as soon as possible instead of waiting for Fates to smile upon me!
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LibraryThing member Robin_Goodfellow
Excellent book. Light reading, but with some heavy substance. I'll be re-reading this again soon, as well as some of the other books by this author.
LibraryThing member shawnd
This changed thinking about wealth generation in many ways. The math is flawless and simple enough for everyone to understand.
Perhaps the consistent example of owning homes and renting them out, and some other examples, are too focused. I wouldn't be surprised if many readers of this ran out to
Perhaps the consistent example of owning homes and renting them out, and some other examples, are too focused. I wouldn't be surprised if many readers of this ran out to
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buy a 2nd home to rent out and slowly gain equity on an asset, funded by renters. The backstory of having a second father is a bit of a stretch and I found this a bit smarmy, and detracting from the main value, and distracting. Once beyond the 'two fathers' backstory however, it becomes not only factual, but motivational. The last third of the book talks a lot about why readers of the book won't use its principles to create wealth, and ways to break through them. I would say this is a must read, and the earlier in life and more consistently, the better. Show Less
LibraryThing member Cecilturtle
A worth while read; full of examples and enthusiasm
LibraryThing member jimowin
Well I have tried to read this numerous times, but last week I made the effort. On reflection it was what I thought it would be in the first place. We all need more education when it comes to money so write another book, the message is a good one for me.
LibraryThing member ngennaro
5/25/2005 Interesting book about teaching oneself how to use primarily real estate or dividends to increase wealth. There are a set of books which make up a series of which this is the first. Its a decent primer and a very easy read which makes up for the lack of specifics.
LibraryThing member FKarr
poorly written, seems! very informative, can it be put into practice? seems like just one more financial advice book that only works because so many other people don't do what he suggests -if everyone did it, it wouldn't work
LibraryThing member Jozzer
Very American in that it repeats itself at least three times. Expect to finish this book in 3 hours tops. Given its popular theme and style, it still is an interesting read. How one applies his/her life, has a direct result on the fruits one reaps. What I liked most about this book is the idea of
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building a money machine. Put your creativity into building something that will keep generating income on its own and irrespective of how little time you invest in it. Because this for me is essential in business. You 'child' needs to be taken care of initially, but increasingly it will stand on its own feet. And eventually it will take care of you. If that potential is lacking, leave it be and invest your times differently. An easy and quick read with good retention and practical value. Show Less
LibraryThing member kristenn
Although I've been on a personal finance kick, I probably wouldn't have picked up something this old if my soon-to-be in-laws didn't swear by it. I now understand why -- they do a lot with real estate. But I'm not sure who else would really be helped by this one. I don't trust that many shortcuts
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and I never get a good feeling about "only suckers pay taxes" type advice. My main problem was that this is marketed as a 'usable advice for everyone' type of book when it's actually only suitable for entrepreneurial types, and that is a very small group. The idea of thinking of your house as a liability rather than an asset could be pretty helpful, especially in the area of avoiding home equity loans. And I did appreciate how he was much better than the contemporary gurus (Ramsey, etc.) about encouraging charitable giving. Considering my (library's) copy was an umpteenth edition, it's odd how many typos there were. Show Less
LibraryThing member Terpsichoreus
I read this book while in an Entrepreneur phase. On one hand, it is rather inspiring, in a John Madden sort of way. You see, John Madden (American football broadcaster) always makes everything sound easy, which may be how he coached the Raiders to the superbowl. He'll say something like "now what
I still recall a memorable game where a quarterback's contact fell out, and while he and the refs looked for it, Madden said "now here's a guy who when he wears glasses, he can see better". When it's explained in such a simple way, it really seems like the easiest thing in the world. Unfortunately, one must remember that the 6'5 defensive line is not just going to roll over and say 'uncle'.
And real estate isn't any easier. There's always some conflict around the corner to trip you up and send you back to square one (or even square negative one). So, while this book gives you such excellent advice as "learn from failure", "make profitable deals", and "work hard for yourself", it doesn't actually give you a system or method to make money.
This seems a strange irony to me, as this book is clearly marketed to people who are not smart enough to realize that they should 'work hard and not give up' if they want to succeed, but who are smart enough to be able to figure all the rest of the logistics out by themselves.
Now, there are supplementary books that give a lot more in-depth information, but they still tend to fall into similar traps. It seems to me that you are either the self-motivated entrepreneur-type, or you aren't, and that difference will show itself often and early. The self-made may use this book, but to continue projects they are already working on, not to start their 'dream business' from scratch.
There is another option for the marketability of this book, but it is not one I like to think about: depressed people who feel their lives going nowhere and stave off depression by clinging to untenable dreams. For these types, self-help and new age books act like a surrogate (or additional) religion: bolstering their self-esteem and making them feel as if their dreams are truly within reach.
Then, years go by and the dream draws no nearer. They get depressed. Then they whip out this book (or another one) and suddenly feel like their millionaire retirement is only 6 months away! Then they do nothing again.
I'm not saying people shouldn't have dreams, and I'm definitely not saying not to follow them, and I know people get attached to their denial, but it's not going to make your life any better.
Now, I know that most people who (don't say 'peddle', don't say 'peddle') market these self-help (or new age) products are not usually scam artists. Most of them believe in what they do; they believe that they are helping people; and I hope sometimes they do.
However, there is a difference between being a doctor and telling someone they have cancer to help them move on and lying that there is no cancer because it seems more 'kind' or 'uplifting'. The latter, is, of course, morally reprehensible (said the atheist).
Kiyosaki has built an empire off of this book, and made himself a pretty penny. He has also been researched by some critics who have challenged his assertions about his wealth, real estate successes, and the very premise of the book. There is no evidence that his 'rich dad' ever actually existed, and Kiyosaki has said in interviews that the character is, at best, a combination of people. However, at other times he has stated that he definitely does exist. And that doesn't even go into his support of Casey Serin.
Maybe I'm wrong, maybe you will buy this book and it will turn your life around, maybe Kiyosaki is relating a true story of struggle and inspiration, but maybe not, maybe it will just be another $5 in his pocket and less room on your bookshelf for Chekhov.
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they need to do here is score a touchdown. I think that if they can do that, they will turn this game around".I still recall a memorable game where a quarterback's contact fell out, and while he and the refs looked for it, Madden said "now here's a guy who when he wears glasses, he can see better". When it's explained in such a simple way, it really seems like the easiest thing in the world. Unfortunately, one must remember that the 6'5 defensive line is not just going to roll over and say 'uncle'.
And real estate isn't any easier. There's always some conflict around the corner to trip you up and send you back to square one (or even square negative one). So, while this book gives you such excellent advice as "learn from failure", "make profitable deals", and "work hard for yourself", it doesn't actually give you a system or method to make money.
This seems a strange irony to me, as this book is clearly marketed to people who are not smart enough to realize that they should 'work hard and not give up' if they want to succeed, but who are smart enough to be able to figure all the rest of the logistics out by themselves.
Now, there are supplementary books that give a lot more in-depth information, but they still tend to fall into similar traps. It seems to me that you are either the self-motivated entrepreneur-type, or you aren't, and that difference will show itself often and early. The self-made may use this book, but to continue projects they are already working on, not to start their 'dream business' from scratch.
There is another option for the marketability of this book, but it is not one I like to think about: depressed people who feel their lives going nowhere and stave off depression by clinging to untenable dreams. For these types, self-help and new age books act like a surrogate (or additional) religion: bolstering their self-esteem and making them feel as if their dreams are truly within reach.
Then, years go by and the dream draws no nearer. They get depressed. Then they whip out this book (or another one) and suddenly feel like their millionaire retirement is only 6 months away! Then they do nothing again.
I'm not saying people shouldn't have dreams, and I'm definitely not saying not to follow them, and I know people get attached to their denial, but it's not going to make your life any better.
Now, I know that most people who (don't say 'peddle', don't say 'peddle') market these self-help (or new age) products are not usually scam artists. Most of them believe in what they do; they believe that they are helping people; and I hope sometimes they do.
However, there is a difference between being a doctor and telling someone they have cancer to help them move on and lying that there is no cancer because it seems more 'kind' or 'uplifting'. The latter, is, of course, morally reprehensible (said the atheist).
Kiyosaki has built an empire off of this book, and made himself a pretty penny. He has also been researched by some critics who have challenged his assertions about his wealth, real estate successes, and the very premise of the book. There is no evidence that his 'rich dad' ever actually existed, and Kiyosaki has said in interviews that the character is, at best, a combination of people. However, at other times he has stated that he definitely does exist. And that doesn't even go into his support of Casey Serin.
Maybe I'm wrong, maybe you will buy this book and it will turn your life around, maybe Kiyosaki is relating a true story of struggle and inspiration, but maybe not, maybe it will just be another $5 in his pocket and less room on your bookshelf for Chekhov.
Show Less
LibraryThing member sabs83
A parable type approach to explaining finances.
LibraryThing member timbrown5
Very inspiration, if not just a spur to get one to understand the importance of financial eduction. Some simplistic catchphrases "Not 'I can't afford this,' but 'how can I afford this." He asserts people are lazy in their financial thinking. His Solution is learning about tax loopholes and other
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ways to keep your income going into your assets and not liabilities. He ends with the insightful, if you need something; be it friendship, money, or the like.. give that away to someone else. Show Less
LibraryThing member chsbellboy
Gives a great picture of what a financially successful life should look like in terms of investment, income, and pursuit of continuing success. An excellent read overall, but would benefit by offering a bit more advice on daily, down-to-Earth changes that the typical individual can make to start on
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the path described in the book. Show Less
LibraryThing member zen_923
A well-written book. I was very hesitant to buy this book because of all the negative comments i have been reading but I am glad I did not listen to those comments. This book was able to achieve for me what it really aims to do: To inspire the reader to invest.
Subjects
Awards
Audie Award (Finalist — 2001)
Language
Original language
English
Original publication date
1997
Physical description
336 p.; 7 inches
ISBN
1612680194 / 9781612680194
UPC
884547133656