October 21st, 2008
Book Review – Rich Dad, Poor Dad
… by Robert T. Kiyosaki with Sharon L. Lechter
This is not a new book, in fact it was first published almost 10 years ago, but I just finished reading it … I didn’t even read the Coles Notes version! A friend gave me the book to read recently and not only is it an easy read, I think it is a MUST read. Anyone who has aspirations of early and comfortable retirement, or who has designs to build wealth really needs to read this book. If you have kids in college or around that age this is a book that just might change their lives.
Having started with that glowing opening I will say that the book is at times a little too evangelical for me, but the concepts and ideas are spot on (that is and English way of saying that they are good ideas!).
The premise is that the author’s father is a very well educated (PhD) college professor with a great career and lots of status … but he is poor dad. He is caught in the usual life cycle that includes mortgages, debt, credit issues and an increasing number of “things” that he owns, but that come with debt. The end result is that he is headed to retirement with a pension and an uncertain future.
The author’s friend’s father does not have the outward signs of the middle class, nor does he appear to be wealthy. However he is in the process of building wealth and adds the trappings of wealth as he achieves his goals. So much so that he ends up one of the wealthiest men in Hawaii.
Many of the principles in the book are similar to things you might have heard before. “Pay yourself first”, “don’t accumulate debt”, “don’t work for money … make money work for you” etc. However many are ideas also a departure from “standard thinking” … a “house is not necessarily an asset, it is often a liability”, “work to learn, not for money”. Note that the author’s (actually Rich Dad’s) definition of an asset is something that puts money in your packet.
The author learns things from both “dad’s” but makes the decision to follow rich dad’s advice in matters of money … good choice.
The goal of this book is to change your perspective and to try and get you to think like a business owner. My experience is that is a challenge for many people … but if you can “get it” then you can REALLY make a difference in your life.
Buy the book … it is an easy read, and it could make a difference for you. I will be making sure both my kids read it!