Posts Tagged ‘Robert Kiyosaki’
First Impressions: Kiyosaki’s Rich Dad Poor Dad’s Conspiracy of the Rich
It's been a long time since I've delved into a Kiyosaki book; tho I still would be quick to recommend Rich Dad / Poor Dad to anyone looking for a philosophical foundation for money. I've not read the entire book (um... that's why I entitled this "First Impressions"). My first impression (see, there's the title in action) is that it should be a pretty good read. While it's clear in calling today's financial disasters the result of conspiring men and women, it doesn't seem to be a book that's overly focused on the "Oh my gosh, how can men be so evil" downer side of things. Sure, mean people suck; but let's focus on what good people with good intentions can do to improve their own circumstances. That's the direction I feel this book is heading. Most people leave school not knowing even the basic differences between a stock and a bond, betweent debt and equity. Few know why preferred stocks are labeled preferred and why mutual funds are mutual... Many people think debt is bad, yet debt can make you rich. Debt can increase your return on investment, but only if you know what you're doing. Only a few know the difference between capital gains and cash flow and which is less risky. Most people blindly accept the idea of going to school to get a good job and never know why employees pay higher tax rates than the entrepreneur who owns the business. Many people are in trouble today because they believed their home was an asset, when it was really a liability. These are basic and simple financial concepts. Yet for some reason, our schools conveniently omit a subject required for a successful life-the subject of money. +++ Okay, so there we have one of the problems. Again, I feel the problems are introduced only as a stage to introduce solutions. He later states: +++ Smart investors understand that owning a business that adjusts to the ups and downs of the economy or investing in cash-flowing assets is much better than owning a diversified portfolio of stocks, bonds, and mutual funds- investments that crash when the market crashes. +++ This is how I see the book might appeal to Self-Enterprisers. We want our business to reflect who we are as a person; but we also want to be smart and not end up broke because we're, well... to put it in Kiyosaki's words, *playing by the wrong set of rules*. Do I recommend the book? I'm still undecided. I mean, if you just need to read something, and you've already read and understand the books on my Good-Enuff-To-Get-Going list, sure. Or, if you're finding yourself in paralasis by the bad news that's being presented daily (hint, turn off the news), then perhaps the book could be a booster shot of Vitamin B (B, meaning *Business*, of course). I believe it's a great time to start and build up a business. Perhaps better than any other time in history. To be able to take the things you care about the most and use these to create value for others makes for a great life, in my opinion. And the [...]
