157 of 165 people found the following review helpful
on 2 January 2002
In order to enjoy this book, you'd best put your "capitalist pig" head on. The first sixty pages assume that the best thing you can do from the age of nine is apply yourself to making money. Play baseball? Baseball is for wimps. It's wasting precious time that you could be using applying your brain to thinking up money making schemes. It all started to irritate me, because there clearly is more to life than earning money - but then you wouldn't really be buying this book without wanting to earn a bit more dosh, would you? I'm glad I stuck with it, however, as he does temper this attitude as the book progresses.
You cannot argue with one Kiyosaki's opinions. Our (and the American) education system just does not teach you how to deal with personal finance. If it did, Barclaycard would be in receivership. Understand the value of a pound and make it work for you - it shouldn't be such a distasteful subject. Kiyosaki offers some basic common sense approaches that you could apply in order to make your money work better, but he often qualifies advice by stating the approach may not be right for you. Therefore step one could be Learn to Understand Yourself and Your Motivations. Once you've done that, apply your mind to making money if it interests and excites you. If it doesn't, fair enough. Perhaps the process will help you discover what actually does make you tick.
For those interested in making a stack, then the advice is again about learning. Choose who and what you learn from - teachers, friends, books, tapes, seminars. Look for new approaches. Find people who want to buy and sell something to them. Try to make your profit when you buy, not when you sell. Investigate stocks, real estate, whatever. Find people who can do a good job for you and reward them well. I especially liked his advice that you'll only receive when you learn how to give, and as the book progressed Kiyosaki seemed to "lighten up" a bit more and came across a bit more human. In the later chapters he relates a lot more personal anecdotes and pithy tales about the upsides and downsides of trying to make money. It's not all a bed of roses, but it shouldn't be life or death either. Making money is just a challenge, and you should enjoy it. If you're successful, you can reap the rewards, even if that's choosing to donate it to other people or causes.
In summary, the book is an easy and likeable read. I'm sure most people will get something out it on their road to understanding. Will this book make you rich? Of course not. The only thing that will do that, as the book constantly reminds you, is you, your brain and the action you take.
60 of 63 people found the following review helpful
on 22 January 2007
The best thing about this book is that the central message is very clear. Rich people put their money into ASSETS (items which grow in value/ generate income - e.g. stocks, shares, real-estate), whereas worse-off people tend to spend money on LIABILITIES (things that either depreciate or cost money to maintain - e.g. cars, clothes.... and your own house). So far, so good. The non-rich also waste money by (a) unnecessarily paying too much tax and (b) running up debts on credit (he says its OK to buy the flashy car/ boat etc., but only AFTER you've made money from investing in assets).
However my problem is that the practical advice is very US-centred, in particular some of the tax-avoidance techniques he proposes which are simply NOT legal in the UK (e.g. putting your holiday down as a legitimate business expense if you own your own company... I wish!). I would welcome a UK version of the book. On balance the style is engaging if repetitive (as with many US self-help books). A useful way to start you thinking differently, but I would have liked some more specific recommendations on where to go/ what to do to get started with some of the investment ideas he suggests.
82 of 90 people found the following review helpful
on 12 June 2011
Sharon Lechter was introduced to Robert Kiyosaki by her husband, a patent lawyer. Koyosaki wanted to patent an educational game called "Cashflow" aimed at improving what he calls young peoples financial intelligence.
One thing leads to another and they eventually collaborated in producing this book which is essentially a financial biography of Kiyosaki. The Rich Dad, Poor Dad of the title are his real father, the superintendent of education for Hawaii (poor) and the businessman father of a schoolfriend (rich).
He says that at age 9 he decided to follow the advice of his rich dad and contrasts it with the advice of his poor dad throughout the book.
For example, poor dad says, "Love of money is the root of all evil", but rich dad says, "The lack of money is the root of all evil" and he follows rich dad, making the money but proving that his poor dad was right on the moral aspects.
Rich dad says, "The rich don't pay taxes, that's only for the poor and middle class", or Kiyosaki; "In real estate I make an offer with the words, "Subject to approval of my business partner" ...... and if they accept the offer and I don't want the deal I call my (non existent) business partner"
And rich dad again: He hugs a manageress in one of his shops and says that she is like a mother to him, then in the next breath gives a warning that "you'll wind up like Mrs Martin". He could have said that he respected her for her loyalty and good work but he clearly doesn't.
If Kiyosaki had been aboard the Titanic you would have found him hiding behind the women and children in the first life raft, but in non critical situations he has some useful things to say about financial management.
His idea that an asset is only an asset if it makes you money is a good one. If you take a large mortgage to buy a private residence, then it is a drain on your resources, although an accountant would class it as an asset.
He's also good on the importance of clear thinking. As he says, "Most people do not know that it is their emotions that are doing the thinking."
The book is aimed at young people but should come with a double warning. Firstly that the writer is dishonest and secondly that the "less travelled road" of business ownership is very risky for less imaginative people than Kiyosaki.
A far better choice is Sam Walton's Sam Walton : Made in America My Story. He was way ahead of Kiyosaki on ethics and financial success.
84 of 93 people found the following review helpful
on 28 March 2002
I had heard about this book and decided to do some research of my own, sure enough there are about equal amounts of people who either like his views or see them as complete rubbish.
I find that the basis behind the book is good, the idea of "paying yourself first", not relying on your job to provide for you, buying assets that will make money rather than buying things that make more bills for you. This is surely common sense and Robert spends a long time on this. While he does go into detail, he spends an astonishing amount of time before he gets to the point.
The majority of this book centres around how he (supposedly) makes his money but I found it a bit unfair, unnerving almost, the way he went about it.
The book is written in a gloating fashion, "My assets bought me my porsche" I found this a bit like rubbing peoples faces in the fact he had a lot more money than we the readers (and the fact youve bought this book means your helping him buy the next one).
I like the way he explains the difference between incomings and outgoings in his diagrams, but again this book is written for an american audience so about 1/3 of his book will not apply here in good old blighty.
Some of his statements about education too I find disturbing, he almost recommends dropping out of school and learning about money in order to be better off. I find this irresponsible and dangerous. I certainly would not want my son to read any of this material.
If you, like me are looking at a way of clearing your debts and getting yourself steady in order to start saving or investing, there are better, simpler books on the market. My personal recommendations are: The Richest man in Babylon by George Clayson, or the Motley Fools "How to invest when you dont have any money" these are much better books geared more to our UK market and are more likely to help you on the way to a secure financial future.
63 of 70 people found the following review helpful
on 11 September 2006
Robert Kiyosaki has produced a very readable book explaining many of the fundamental differences between wealthy and poor people. He makes very good use of repetition to ensure that his points are firmly `sent home'. Although this can be annoying at times, particularly when concepts are already familiar to the reader, it's easy to skip over the repetition and move on to the new concepts.
It is a simple book to read, and requires no particular financial or academic background. However, the concepts introduced are very powerful, and, if taken to heart, life changing. The book traces the author's life from the age of 9, comparing the financial teaching that he received from his own, highly academically intelligent, real dad, and that of his friend's, financially intelligent, dad. Having experienced first hand the teaching and upbringing resulting from both of the dads, he is able to reflect on how they differ and how these differences have a profound effect on financial wealth.
The book is written from an American perspective, but the concepts and ideas are universally applicable, certainly in all Western societies. It explains how the poor and middle-class pay much more in taxes than the rich and how most people, including many of our advisors, do not understand the difference between assets and liabilities. He makes good use of simple diagrams to explain the relationship between income, expenditure, assets and liabilities.
RK firmly believes in education, but also believes that the education system does not teach financial intelligence. This book, and indeed all of the books in the Rich Dad Poor Dad series, is about filling this gap in the system, and trying to help people who want to be helped, out of the rut of a `safe secure job' into the freedom of real wealth.
I think almost everyone will benefit from reading this book, whether still at school, or later in life wondering why they seem to be still poor after working hard all their life, and everyone else in-between!
20 of 22 people found the following review helpful
on 5 March 2004
Kiyosaki is selling a dream - the dream of being rich. He lures the reader step by step into the realisation that they too can have this dream; that there is an entire world out there that won't mock them for adventurous goals. It is an easy read and mostly entertaining, although the self-promotion does become a little oppressive.
However, once you’ve been sold on the dream, put the book away. Kiyosaki’s actual advice and ethics aren’t the wisest to follow. Instead, do thorough research on the field or fields you wish to invest in. Don’t negate the pessimistic viewpoints until you understand why they claim something can’t work. In particular, make sure you understand exactly what actions are and are not legal – an area particularly fuzzy in the book.
Not recommended for any one who already has financial plans in place, but may be motivational for those who prefer not to think about money.
2 of 2 people found the following review helpful
on 12 September 2014
For the first ever time I feel compelled to write a review about a book. I think this book is a waste of money, there are thousands of words dedicated to a few very simple concepts. Basically buy some real estate, buy some businesses and buy some shares. Whilst I completely agree that this is a great way towards replacing your active employment income with passive asset income; for 99% of people there is more than just their mindset to overcome.
Whilst it may be possible to completely change your own mindset, the book centres around couples with children tied up with mortgages, loans, debts etc. How easy is it to change two minds so that the couple both agree to a completely new mindset? How easy is it for the same couple to then start to invest in asset building with the debts in place? Surely they would need to pay off the debts first or by the nature of loans / credit cards; those debts would increase.
They would be paying off the debts whilst educating themselves on investing. Once those debts are paid off and the education process well underway; they may then begin to invest in asset building - the risk is surely too high to embark on new investments with excessive liabilities?
I think there are a lot better books available that teach you much more detail about getting your personal finances in order - that must be the starting point for most people. This book does little to help that process.
The other issue is that some of the stories seem a little far-fetched and many of them are based on the American tax system. It is not possible in the UK to sell an investment house without incurring tax at the values given in the book. If you fall below certain thresholds per annum you would be ok - but that would not be giving you enough to be financially independent.
There are a couple of common sense messages that continue through the book; to me the main one is also noted in "The richest man in Babylon" and that is to set aside a percentage (10%) to pay yourself out of every payment you receive. if you can get into this habit you can start to invest in asset building - with the premise that your liabilities are not increasing, i.e. interest on credit cards.
2 of 2 people found the following review helpful
on 19 August 2005
This book is a valuable read for anyone interested in escaping from the 'rat race'. Rather that offer a manual of techniques the author tries to encourage readers to seek financial intelligence. He points out that the education system is lacking when it comes to teaching students how to manage money and illustrates the benefits of taking the time to learn about basic accounting terms.
The author goes on to discuss the mindset and mentality of the rich and what sets them apart from the 'poor and middle class'. He also explains that the best money-making tool we have is our mind and suggests that we need to train our brain to spot opportunuties that would normally pass us by. He clearly shows why the rat race exists and encourages the reader to make changes which will break the 'work-earn-pay' cycle.
The book is written in the form of a story of the author's childhood. It is very easy to read and you don't need to be a financial wizard to understand the theories. There are a few example of the author's dealings which require a little more attention. This may be partly due to the author's American origins and the reference to the American financial and tax systems.
You will not get quick rich from buying this book but it might just change your life. It's certainly changed my attitude towards my financial affairs and has encouraged me to pay much more attention to the financial implications of my lifestyle. Many of the suggestions appear to be common sense but I know from expensive experience that the easiest answers are sometimes the hardest to find.
19 of 21 people found the following review helpful
on 12 August 2014
This Book Honestly has changed my financial life! End of Many read it put it away and think it's no good, well not for me, I first read this 7 years ago after struggling and i mean really struggling for years Infact more than a decade, i won't go into detail but the finishing point was loosing a commission only job because of the recession having tens of thousands of debt, no credit line, no income huge mortgage to pay wife and child to support, from a poor working class background my financial skills were non exhisant, hence being broke for a decade and now about to loose everything! well thanks to studying this book and the follow ups my mindset changed, i followed the tips, and 7 years on ive paid off all my bad debt myself, kept up with all my payments, made some small investments, have savings, started a small business, live well (although not Rich yet) i'm well on the way and this is still a recession! It can be done from any starting point and 7 years more maybe i will be rich but without starting on the path with this knowledge i have no doubt i'd still be in debt and struggeling probably miserable. Do yourself a massive favour, Buy this Book! take some time out to read it cover to cover, then read it again following the tasks, buy the 2nd book and do the same, then the 3rd you'll have enough info and tips from those 3 books to sort yourself out, join his website, use the worksheets, be honest with yourself don't buy the expensive courses unless you hve loads of income you don't need them, play the free webgame you learn loads, i still play it, GOOD LUCK ITS WORTH IT!
87 of 97 people found the following review helpful
on 28 July 2003
In this short book Robert Kiyosaki distinguishes between the typical cash flows of the 'rich' and those of the poor and middle classes. He goes into some detail as to how they achieve this and how you can achieve it yourself; simply by ensuring that you live well within your means and consistently build on your assets.
For such an easy read it touches on some deep concepts that one doesn't generally think about too deeply. Some great one liners inside to remember, along the lines of "Time is your most precious asset" with regard to compound interest, and "listening is more important than talking, which the majority of people don't understand. If God intended you to talk all the time then he wouldn't have given you 1 mouth and 2 ears" with regard to ones need to learn from those who are greater than oneself.
Unfortunately he does come across rather badly due to his high self-confidence from making his millions... he seems to have had a poor relationship with his real father (referred to as 'poor dad')- painting him in a negative shade throughout, and he occasionally comes across as fairly arrogant when talking about the middle classes and 'poor'... he somehow manages to bestow an image of utter stupidity upon anyone who doesn't own acres of land and real estate, and anyone who works for a living (if everyone was 'rich' and let out real estate instead of working, then who would rent the real estate or produce any goods to consume?).
This attitude of his all helps to hammer in the flowing theme of why one should not be financially dependant though, which is probably why it is a best-seller.
The other downer, in my opinion, is the way he talks about investment gains. The most consistently prolific investment returns, of 13% per annum before inflation consistently since 1919 has been in the stock market... Kiyosaki projects the image that making 100% investment wins is extremely easy... just buy a tech stock and sell it in a few months down the line for a big mark up, or buy property in an area with a depressed housing market and sell for twice the price in a few years, or even buy government bonds with 16% yields. He talks about the rich losing in order to win, but not once does he mention a losing venture of his, which would have made a nice balance. He encourages readers to have an unbalanced portfolio and not to worry about risk if you want to make any real money. This prolifically successful image he projects of himself will not be a reality for most and I would urge readers to take heed... just look at what happened to tech stocks soon after the book was written.
In conclusion I would say that this is an excellent book for anyone who is struggling with the concepts of cash flow... a wonderful read for the youngsters of today... Listed above are some flaws, but the positives hugely outweigh the negatives and I would recommend this book to anyone with a wallet or a dream of early retirement. A good read!