Just finished reading "Rich dad poor dad"

[cicy33]

Originally Posted by VJW

Oh, you rent.

That’s a different calculation. Most people, since most people own homes, spend more on housing and what is referred to as “shelter”, than they pay in federal income taxes.

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I wonder what the ratio really is on this. I don't think that most people own their homes. I think that there are a ton of renters out there. We own two homes so while we rent one and live in one that still cuts down the ratio already. I also think that if you can get something from a book that is fine. I wouldn't be idolizing the writer. I think that no matter where he is in his life that we could also learn that obviously it takes continous work. For example I have heard that the Millionaire next door was great. I hated it. but people really like this guy. I have no opinion on the writer just that I didn't like his book.

[VJW]

Originally Posted by cicy33

I wonder what the ratio really is on this. I don't think that most people own their homes.

The majority of people own their homes (well, when they get done paying back the bank). The home ownership rate is something like 66+%.

I think that there are a ton of renters out there.

Indeed, but there are even more homeowners.

We own two homes so while we rent one and live in one that still cuts down the ratio already.

That’s not the manner in which it’s calculated. It’s calculated by one’s residence. One can only reside in one place at one time.

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[baking23]

Originally Posted by CRFSaver

the only thing I have to say about the guy who wrote rich dad poor dad, is he has declared bankruptcy (I believe more then once)... Take that into account when you follow his advice...

Oddly, that's good to know. Maybe that's a mean thought but I wondered how much risk he could take wihtout getting burned a bit. Of course with his books doing so well he possibly won't have to worry about that agian for a long time, if ever.

[JBinKC]

I agree with him on many points however, it isn't a perfect system you still have to rely upon inflation for it to work. Borrow money to increase your assets. For it to work effectively the enterprise/investment must generate enough cash flow to service the debt and cost structure to keep it going and it also needs price inflation. Given the situation in the current housing market his system will not work unless it not funded by much debt. I still think a Roth IRA is the safest way to fund a nest egg.

[HalMd]

I loved Rich Dad, Poor Dad and agree that his books are very redundant.

What I really took away from it was how much my own view of money was influenced by my parents. To me that is a very important message.

I'll admit that I got my MBA and still did not feel comfortable managing my own finances, or starting and running a small business. That book caused me to rethink many of my own fears, biases, and misconceptions about money.

[vishenda]

Indeed that was a great resource! I often read that book and had my younger siblings buy their copies too!

Originally Posted by vishenda

Indeed that was a great resource! I often read that book and had my younger siblings buy their copies too!

and I'm sure Mr. Kiyosaki appreciates that kind of loyalty, it's what his money train is built on.





truly there's one born every minute and for that, Robert is no doubt eternally grateful.

[cschin4]

I just picked this up at the airport bookstore last week. I am almost through it. I think there are some excellent points regarding knowing the difference between assets and liabilities. However, I think there is an overemphasis on money to the point of that is what life is all about. It sounds like his "poor dad" was a very knowledgable professional who spent his life contributing to the world and others whereas Rich dad's sole purpose in life was accumulating wealth. So, I can't jump on board 100% with that philosophy. I do agree that we can all be much smarter in using the assets we have and to think ahead in accumulating things that have value vs. plopping down for the latest, biggest plasma TV.

[BCHGRL]

http://abcnews.go.com/2020/story?id=1982669&page=1

Pretty interesting story on 3 people who read all 18 books and failed.

[amberfocus]

Okay, I might be entering Rant Mode(tm) shortly.

I'll admit to having SERIOUS issues with this one.

To give the man credit, though, I did like his diagrams.

But seriously, think about it. For all the big deal that he makes concerning distinguishing between "assets" and "liabilities", it's just the same old "invest, don't spend" advice rehashed.

Hardly anything to swoon over.

Furthermore, what advice and examples he does give do grab your attention--make thousands of dollars in a matter of hours!--but for me, they also set off my "that is way too good to be true!" alarm. And I simply don't believe it is that "easy" to get rich. Nothing in life is.

I turned to the analysis of Kiyosaki and his book by real estate professional John T. Reed (already mentioned above) for a peer review, and I was quite dismayed (although not terribly surprised) to find that a lot of his advice are highly doubtful, if not flat out false and/or illegal.

Go <a href="http://www.johntreed.com/Kiyosaki.html">here</a> and search for "factual error" and "not likely" (second hit on the page) for more specific analyses.

Personally, after reading that, I would NOT trust a thing he says without serious corroboration from numerous trustworthy secondary sources. From the looks of it, the man is a cut-and-dried fraud.

I also just don't feel comfortable with his disdain for education, taxes, and his "the value of everything is measured by how much money it gets you" philosophy.

Education can and DOES garner a higher wage if the skill you learn is valuable, and it IS worth it if that is what you want to pursue for your personal fulfilment. After all, where would the world be without its doctors? Scientists? The purpose of education is NOT to teach a person how to "make money"--although a little financial prudence will do us all some good, I'll grant. Education is about finding passion in knowledge, ANY knowledge, not just "financial literacy", aka "the ability to sniff out get-rich-quick schemes".

No one likes taxes, but they are necessary. I disagree with his attitude of "become rich, evade taxes through corporations, don't be a sucker like the poor and the middle-class!" It just strikes me as... wrong. Instead of "working the system", we should make the system more fair. Or maybe I'm just a silly naive little idealist.

Finally, Kiyosaki says that "the rich" do not work for money. But the way I see it, he works his butt off every day... MAKING MONEY. What he actually meant was, the rich don't work for a *salary*.

But here's my view on it. I LIKE my goddamn job. It doesn't make me rich, but I enjoy doing it. I don't *want* to spend all day finding and selling real estate foreclosures and high-risk microcap stocks. I'd truly rather be doing my job. Call me a poor sucker, but there you have it.

Well, that's my rant. Hopefully, I won't be torn apart by Kiyosaki loyalists. But just in case... *dons flame-proof suit*

peace out,
~mimi

don't worry, I'm with you and standing by with the fire extinguisher....

[HalMd]

I'm not going to call myself a "loyalist", but I seemed to take away lots of good advice from the book.

For example, my wife and I became self-employed after, and in part, from reading the book. It has been one year, and we are far better off doing what we do as employees of our own company than working for somebody else. (Doing the same thing.)

This is not Kiyosaki's IDEAL of being a business owner, but it is measurably better than being an employee. I wish I had done it years ago.

And my point is, the main reason I didn't do it years ago is the way I was raised.

For all the great things that public education does teach, I think they could fit in at least one semester about starting and running a business. It's as good an experience as art, gymnastics, history, and so on.

[Broken Arrow]

I think it's good when people read... anything really... and take away the good stuff that works for them.

The only time I take issues is when someone comes along and professes that so-and-so book or author is the greatest prophet since Moses, Jesus, and Mohammad.

It'd be OK, if they were that good (*cough* Warren Buffet *cough*). However, many of the popular financial gurus you see in late night infomercials... just aren't.

That is not to say that I completely poo-poo on any of them either. Ramsey, Kiyosaki, Orman, and even good ole Ben Stein. I love them all and the many insights that they share. However, I prefer to make the most-informed decision possible after conducting thorough research, rather than charge blindly into something just because some "guru" out there said so.

[Joan.of.the.Arch]

Public education and enterprise.....

I think that public education, well, probably most classroom education of kids, tends to stomp out personal initiative and even the liklihood of persuing personal interests that might lead to starting one's own business as an adult.

Lots of kids who come out of high school without anything they are passionate about and not knowing what the heck they should study in college. They figure they should go to college, but they know next to nothing about what what goes on out there in the economic world. So they figure they will become a doctor, social worker, engineer, basketball player, nurse, or one of the mere two dozen or so other fields of work that they can name. Then they go to college, change their major, change their major again, and finally graduate to a job that pays okay, but their heart isn't much in it. And it might not have much to do with their degree anyway.

A lot of people spend a lot of time in formal educational settings but never find something they love and will excell at. I don't think having a semester on starting and running a business would make a whole lot of difference. Some, maybe; not much. I think there are some other basics missing, too.

[HalMd]

Originally Posted by Joan.of.the.Arch

I don't think having a semester on starting and running a business would make a whole lot of difference. Some, maybe; not much. I think there are some other basics missing, too.

I can see your point.

More fundamentally our culture embraces the ill notion that "Money is the root of all evil." (Which is ironic because America is the biggest experiment in Capitalism the world has ever seen.)

Money is not evil. (How you make it and what you choose to do with it can be, in my opinion.)

I only think schools and PARENTS could do a better job of teaching kids about money: How to make it, how to spend it wisely, how to invest, how to save, etc.

Originally Posted by HalMd

I can see your point.

More fundamentally our culture embraces the ill notion that "Money is the root of all evil." (Which is ironic because America is the biggest experiment in Capitalism the world has ever seen.)

to respectfully disagree...that hasn't been my experience.


I found quite the opposite growing up. money was it. everything. the source of good, the source of happiness, the only goal worth pursuing.


several of my friends drifted away from their "dreams" while going through college solely because of the financial implications.


one in particular (certainly not the only though) loved entertainment so much we used to make silly little music and tv show style videos in garages and bedrooms much to the delight of our peers. given the zeal with which he led the projects, it was a given that television production was his destination in college and that's most definitely how he started out (carrying that zeal right along with him.)


you make how much in television production?!? (short of wild and very rare star-like success)

hmm, accounting it is.

today he makes a fantastic living as a CPA and b i t c h e s about his job every time I go home to visit.


anecdotal yes but he is far from the only example in my world.



if RK was a little more open about the...um...embellishments used to make his points, I probably wouldn't be so critical. do other authors do it? sure. but when you're using your life story to "encourage" people with your life lessons, use actual lessons from YOUR life.


do we honestly believe the concept that it's better to be your own boss and control your own life was a revelation he gave birth to? seriously?


assets are good, liabilities are bad. get out of town! truly an oracle.


cheat your way out of your taxes (loopholes be damned, ethics are ethics you con artist), thanks bub, 'preciate that.


he invented a fantasy (to what degree people are still piecing together) to make the above "earth shattering realizations" seem as nuggets in a fog he was clearing for you.


the real secret he imparts to being rich and independent? write a best selling book (with assorted addendums and workbooks and whatever else you can think of), pass out the acolyte robes and watch the cash roll in.


for that Mr. Kiyosaki, you have my admiration.

[amberfocus]

Originally Posted by HalMd

I'm not going to call myself a "loyalist", but I seemed to take away lots of good advice from the book.

For example, my wife and I became self-employed after, and in part, from reading the book. It has been one year, and we are far better off doing what we do as employees of our own company than working for somebody else. (Doing the same thing.)

This is not Kiyosaki's IDEAL of being a business owner, but it is measurably better than being an employee. I wish I had done it years ago.

And my point is, the main reason I didn't do it years ago is the way I was raised.

I think it's terrific that you managed to take away something positive from the book. I really tried to do the same myself--I read the book twice, took copious notes, and thought about it for two months--but it just stuck in my throat.

I think the difference for me is that I had already read "The Millionaire Next Door" and took away the same lesson--that it is not employees that strike it rich, but entrepeneurs.

But TMND painted a much more realistic picture of what it takes to build wealth--namely years and years of hard work and frugalness. *Not* overnight rags-to-riches in the real estate/microcap stock market--give or take a tax-sheltering corporation or two.

Kiyosaki brags about his Porsche. What do the actual statistics say? Truly wealthy people don't/rarely buy Porsches. And Rolexes neither. And while it's true that wealthy people pay fewer taxes, that is attributed to decreased cash flow and non-liquid assets, not corporations.

Since TMND is based on decades of actual research, I would certainly trust that source more than anecdotal evidence from one guy, whose writing makes this ex-humanities/literature major want to weep (okay, sorry, cheap shot, but it was in my head ).

It's not easy being a business owner, and it's not easy to build wealth. Most parents probably never had those experiences, and would not be able to teach their children those paths. (It's kind of like how I've never met a parent who didn't recommend having children to their kids. Since parents are the ones who chose to have kids... that kind of made sense. )

But I did plenty of things my parents never did/recommended, and so have you. I really don't think it's all that unusual, really.

best,
~mimi

[mama4]

My library has 258 personal finance titles. Some books are good, some are not, how do you know until you read them???? Save your $$ and use your library - they are a great resource. I have been reading lots of personal finance books, includign Rich Dad, Poor Dad and taking notes. I really like Smart WOmen FInish Rich by David Bach. He also wrote a bunch of other books - Smart COuples FInish Rich, The Automatic Millionaire, etc.

Also Emigrant Bank has savings accoutns for 5.05%. A good conusemr advocate website is www.clarkhoward.com a nd he has lots of info on investments, insurance, etc.

Happy saving and investing!

mom of 4