Rich Dad Poor Dad

by Kristen
(Missouri)

I get a lot of people asking me about Robert Kiyosaki author of Rich Dad Poor Dad. Mr. Kiyosaki's philosophy really intrigues a lot of people and infuriates others. People seem to either love him or hate him. Personally, I wouldn't say I love him, but I think he has some very good points.

First of all, he really hits the nail on the head with his explanation of assets and liabilities. He teaches that assets are things that put money in your pocket each month and liabilities take money out. He therefore teaches that your house is not an asset. Your house requires a mortgage and upkeep and doesn't put any money in your pocket at the end of the month. This is contrary to what many accountants, financial advisers, and bankers will tell you. They view your house as an asset because it has monetary value on a balance sheet. Rich Dad would ,however, considers a rental house that is positively cash flowing and putting money in your pocket each month an asset.

Another thing he explains well is the quadrant that we all fit in. We are either an employee, small business owner, big business owner, or investor. He calls this his E/S/B/I quadrant. In each quadrant he accurately explains the qualities and characteristics of each type. He teaches that the rich fall into the right side or the "B" and "I" quadrants. In his books he does a good job of explaining how the rich think differently.

I have read Rich Dad Poor Dad and I highly recommend it to anyone interested in wealth building. It doesn't go into great detail about the "how" to do it, but it is a great book for getting you prepared mentally. I also have read ABC's of Real Estate Investing and felt like it was an okay read. It's good for the beginner and someone who knows nothing, but not to enriching for the advanced. The product of Rich Dad series that I recommend the most is his 12 CD audio "Think it, Learn it, Do it". He goes into much more detail about wealth building and overall I believe it is worth listening to.

If I am to criticize anything about Robert Kiyosaki, it is the fact that after awhile he repeats himself. Also, he makes it sound easy and as we all know, investing and wealth building isn't always easy.