Author Topic: Rich Dad Poor Dad  (Read 21245 times)

Mozactly

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Rich Dad Poor Dad
« on: June 28, 2013, 11:37:13 AM »
Has anyone read the Rich Dad Poor Dad books?

I just listened to one on CD (on loan from the library) the other day, and found a lot of similarities between the book and the MMM way of life.

It's nice to hear different variations of the theme, and to see different people succeed in different ways with the same basic steps.


arebelspy

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Re: Rich Dad Poor Dad
« Reply #1 on: June 28, 2013, 12:28:22 PM »
He's a salesman.  A fairly slimy one, but I may be repeating myself.

His lifestyle has nothing to do with MMM's philosophy, and is probably pretty close to the antithesis of it.

He has one good idea: buy assets, not liabilities.

And I will grant that has had led many people to have a personal revelation around that idea.

But so much of it is hype, and the "courses" and seminars are outright scams.

Prior discussion of Kiyosaki here: https://forum.mrmoneymustache.com/welcome-to-the-forum/what-do-you-think-of-rich-dad/

I stand by my post (second one) in that thread.
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mpbaker22

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Re: Rich Dad Poor Dad
« Reply #2 on: June 28, 2013, 01:05:47 PM »
Definitely pay attention to the buy assets not liabilities.

Everything else isn't much worth it.

Actually, why am I commenting? arebelspy hit all the major points.

That and the idea of buying x cost me y hours of work are how I started an MMM lifestyle before finding MMM.
I dont remember - that may have come from his book.

George_PA

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Re: Rich Dad Poor Dad
« Reply #3 on: June 28, 2013, 01:55:05 PM »
haha Rich Dad Poor Dad, oh the memories, robert kiyosaki is controversial to say the least.

Anyway after years of discussion, the general public consensus is (from my understanding):

(1) First of the all the whole book is BS; the story about the 2 dads is a made up fictional story; it is designed to offer a lesson about money

(2) That being said, the first half of the book regarding the balance sheet assists verse liabilities is really of value; so do read this portion learn from it, but the rest of book is useless

(3) Roberts other books add no real value; they have been thoroughly analyzed by many people; his other advice and books tell you to do crazy hair brained money making schemes (some border on illegal; a lot of them, in general, involved screwing less educated people out of their life savings) or they are just garbage than will lose you lots of money

(4) Never attend any of Roberts workshops; they will try to con you (the attendee) out of 50k or more; they are all about stealing your money, not making your rich

(5) Thus, in summary even though the stories about the 2 dads is fictional, this one story in Rich Dad Poor Dad actually does illustrate some good fundamental things to know about the balance sheet and owing assets to generate passive income and to avoid liabilities.  So just read the first half of the book to get this part of it and disregard the rest. 











arebelspy

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Re: Rich Dad Poor Dad
« Reply #4 on: June 28, 2013, 02:23:24 PM »
(3) Roberts other books add no real value

Cashflow quadrant is potentially worth reading.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Mozactly

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Re: Rich Dad Poor Dad
« Reply #5 on: June 28, 2013, 02:25:30 PM »
He's a salesman.  A fairly slimy one, but I may be repeating myself.

His lifestyle has nothing to do with MMM's philosophy, and is probably pretty close to the antithesis of it.

He has one good idea: buy assets, not liabilities.

And I will grant that has had led many people to have a personal revelation around that idea.

But so much of it is hype, and the "courses" and seminars are outright scams.

Prior discussion of Kiyosaki here: https://forum.mrmoneymustache.com/welcome-to-the-forum/what-do-you-think-of-rich-dad/

I stand by my post (second one) in that thread.

Interesting post. Thanks for the link. Some of the things he said were very questionable, like his quick flip of the foreclosed house. But others were right on. Like don't spend money you don't have.

George_PA

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Re: Rich Dad Poor Dad
« Reply #6 on: June 28, 2013, 05:49:03 PM »
I read cashflow quadrant; in my opinion, its still that same fundamental concepts as Rich Dad Poor Dad, its elaborating further on it; the only part I really liked in the cashflow quadrant was when he talking about building pipelines rather than hauling buckets of water (a metaphor for setting up passive cash systems vs working for cash through active labor);

of course he did give various types of occupations/income sources different letters ...

Silvie

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Re: Rich Dad Poor Dad
« Reply #7 on: October 21, 2013, 02:50:12 PM »
He is a really good speaker. I went to a seminar yesterday and he was the keynote speaker. I really enjoyed his talk. The book is a motivational tool rather than a detailed how to-guide, but that's okay.

C. K.

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Re: Rich Dad Poor Dad
« Reply #8 on: December 01, 2013, 10:43:07 PM »
If you read one of his books, you've got the basic gist of the rest. The four quadrants concept is interesting.

His book with Trump was a waste of money for me- they didn't really say anything.

With R.K., proceed with caution.

lifejoy

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Re: Rich Dad Poor Dad
« Reply #9 on: December 02, 2013, 07:34:57 AM »
He introduced me to the idea of car as liability, so that was cool.

rogersbilly

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Re: Rich Dad Poor Dad
« Reply #10 on: December 06, 2013, 03:39:00 PM »
I finally read the book this year after hearing so many people mention it on the BiggerPockets podcast saying that it inspired them to get into real estate.  Some of them have been fairly successful.  After reading the book, i don't really get it.  Maybe it's just a motivational book, but there's no real plan of action or anything specific.  He definetly hit a nerve with some people, but not me.  Before I read the book i thought he was just a fraud like most of the get rich quick people.  Can't say that reading the book changed my opinion. 

ioseftavi

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Re: Rich Dad Poor Dad
« Reply #11 on: December 16, 2013, 08:43:10 AM »
John T. Reed's review of 'Rich Dad, Poor Dad' and Kiyosaki is worth reading.

By and large, his writing is not good.  Learning to think about assets and liabilities correctly is a good thing, but there are many other books that can teach you that.  Your time and your attention are limited.  There are better books on real estate, motivation, networking, building net worth, and personal finance.  The very small amount of good advice or interesting tidbits that he relates are not worth the many, many pieces of bad advice or misleading / possibly untruthful stories that he tells.

Mr. Liberty

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Re: Rich Dad Poor Dad
« Reply #12 on: January 21, 2014, 08:10:59 PM »
There has been a lot positive/negative hype bout him for years.

Surprised no one mentioned his comments bout how our education system is designed to make wage slaves & doesn't teach/prepare people for an independent life style.

Remember back in 2007-9 when he was yahoo expert poster in personal finance department all the grieef he received from like half the people there.  Most of it was over him promoting real estate  before & during the housing crash.

Even though he even explicitly said that was would happen if all you did was flip properties and didn't invest in them for the long term.  Also made a comparison to the cattle industry.  Flipping=butchering, while renting out=dairy.
As far as his seminars go, I've heard the same & even seen it confirmed.  Wish I still hd the info.  He even talks about it in Rich Dad Prophecy.  Long story short, he was also reamed by the people who were running the seminars originally.

I've also heard the rumors bout how his two dads were just a fable to teach about money, but don't know if I believe it.  As a kid my family had um....fluctuating blessings and have lived in mansions & literally in a one room shack with the only toilet being an outhouse.  The difference in what is taught in the homes is astounding.

But enough of my rant.
I also found similarities...

iris lily

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Re: Rich Dad Poor Dad
« Reply #13 on: February 01, 2014, 12:11:31 PM »
He introduced me to the idea of car as liability, so that was cool.

Yes! Agreed, the one piece of info that stuck with me in Rich Dad Poor Dad is to recognize real estate as a liability when it is a liability.

Otherwise he is a slimy snake oil salesman.


clarkfan1979

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Re: Rich Dad Poor Dad
« Reply #14 on: February 26, 2014, 04:32:46 AM »
I read it at the age of 20 and it really spoke to me. I agree that the greatest point in the book is him talking about the difference between assets and liabilities. However, there are many other smaller points that I enjoyed like why people are obsessed with "deals" on liabilities (food, car, etc...) but are not interested in "deals" on investments (market crash & housing bubble). I also liked his point about keeping large amount of cash in the bank as "risky" because you are going to get eaten alive by inflation. I think it changed the way I viewed "risk"

I listened to him speak at the Learning Annex along with Magic Johnson in early 2006 at the Staples center in LA. Robert predicted the housing bubble perfectly in his talk. Some may complain that it's too simple. Well at 20 years old, if it was more difficult, I probably wouldn't have understood. It was a great first book for someone seeking financial independence.

MrCash

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Re: Rich Dad Poor Dad
« Reply #15 on: March 11, 2014, 02:40:39 PM »
I read Rich Dad Poor Dad just a few weeks ago and I really liked it.  I ended up reading the whole thing in one day.  It's very easy to read and has some good information. 

I liked how he put an emphasis on creating your own job instead of just finding a job.  I think a lot of people are just afraid of the unknowns of self employment or starting a business.

dcheesi

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Re: Rich Dad Poor Dad
« Reply #16 on: April 10, 2014, 08:02:35 AM »
FWIW, he's giving away his original book for free download on his site this week. You just have to register ion the site (I suggest using a throwaway email account) and you can download it in PDF format.

libertarian4321

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Re: Rich Dad Poor Dad
« Reply #17 on: April 12, 2014, 04:07:15 AM »
Has anyone read the Rich Dad Poor Dad books?

I just listened to one on CD (on loan from the library) the other day, and found a lot of similarities between the book and the MMM way of life.

It's nice to hear different variations of the theme, and to see different people succeed in different ways with the same basic steps.

Unfortunately, I have read 3 or 4 of his books (I have waaaay to much free time).

Essentially, his books are pablum.  A few nuggets of wisdom and truth (which you can find in many other places for FREE), interspersed with heavy doses of fiction and bad ideas.

How did Kiyosaki get rich?  He didn't do it selling real estate or investing or listening to the fictional "rich dad," HE GOT RICH SELLING "GET RICH QUICK" books, tapes, and seminars.

Basically, he's a huckster.

Go ahead and read a couple of his books, but do it the smart way- borrow them from the library.  At least that way, you won't feel like you got ripped off...

But one of the more successful hucksters.

arebelspy

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Re: Rich Dad Poor Dad
« Reply #18 on: April 12, 2014, 09:42:46 AM »
I think that's overly simplifying, and you shortchange his ideas (cashflow quadrant over the original RPDP) a little, but in general, yes.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

MichaelR

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Re: Rich Dad Poor Dad
« Reply #19 on: April 12, 2014, 12:08:27 PM »
I read Rich Dad Poor Dad just a few weeks ago and I really liked it.  I ended up reading the whole thing in one day.  It's very easy to read and has some good information. 

I liked how he put an emphasis on creating your own job instead of just finding a job.  I think a lot of people are just afraid of the unknowns of self employment or starting a business.

While I know many here will support the notion of self employment and starting a business, but the statistics about this are appalling. 25% failed at 1 year, 55% at 5yrs, 70% at 10yrs. While I haven't read this particular book, most authors advocating self employment and start up business ignore the statistics and perpetuate the illusion that you have control over the outcome. Its very similar to the mutual fund managers who say they are the chosen ones who can beat the odds.

BrianT

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Re: Rich Dad Poor Dad
« Reply #20 on: April 24, 2014, 12:25:07 PM »
FWIW, most of his earlier books are free on YouTube. Use KeepVid to download as an MP3 format and load it onto your phone or a DVD to listen to on your way to work.

I've read the books, and then recently listened to the audio books of the same. His book changed my mindset, and did put me on the path to attaining cash flowing assets. But keep in mind it simply doesn't happen overnight. I picked apart the portions of the book that made sense for me. His cash flow quadrant is as simple as it gets. His simple commentary on ROI is golden. It's all about mindset, and his book does help tremendously with that. But there's tons of gibberish too. So in conclusion, pick apart the book and snatch up the pieces you need.

In one of his books, he calls out the five levels of investors. I felt he nailed it, based on my experience with meeting people who claim to be investors, and who truly are investors. In typical RDPD style, he likes to re-hash his material: http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/September-2013/the-5-levels-of-investors.aspx

I went to one of his seminars. It's just a bunch of up-selling. You pay for a $500 three day course only to be pressured into buying a $5,000 course. They'll teach you how to leverage credit card debt to pay for the courses. I can't speak on the $5,000 courses since I never bought one.

Ambition89

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Re: Rich Dad Poor Dad
« Reply #21 on: May 20, 2014, 04:44:44 PM »
I enjoyed his cash flow diagrams of the poor, middle and rich dad classes. I showed it to my 15 year old brother and it was clear enough for him to grasp easily.

Jazzpolice

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Re: Rich Dad Poor Dad
« Reply #22 on: July 14, 2014, 08:54:54 PM »
Just read the book (from the library) and I don't know if anyone else felt like this but it left me feeling like a bit of a loser for not being an "entrepreneur" type and being just a "wage slave".  What if some of us don't want the headache of starting businesses or taking a risk flipping houses, does that mean I cannot be wealthy?  I don't know…but it just didn't settle right with me.  I got the liability/asset bit but I knew that before reading the book so I can't say it taught me anything new…except wishing I'd been born decades early to make some bucks in the real estate boom?

grantmeaname

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Re: Rich Dad Poor Dad
« Reply #23 on: July 19, 2014, 02:12:46 PM »
I haven't read the book but I get that vibe from other similar sources (Ramit Sethi, for example). I have no desire of starting a business and exposing myself to all that risk before I'm FI, and if I'm already FI I can't imagine putting myself through that level of stress when all I could get out of it is more money...

arebelspy

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Re: Rich Dad Poor Dad
« Reply #24 on: August 05, 2014, 10:57:27 PM »
Indeed.

Often people who are very strongly one way assume that everyone is that way, or at least potentially could/should be.

Entrepreneurs are no different.

If you want to get rich while working for someone else, but becoming a business owner yourself through passive ownership (equity investments), rather than active (building a business), do it.  Ignore the people who say there is only one way (their way) to skin the cat.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

BrianT

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Re: Rich Dad Poor Dad
« Reply #25 on: August 26, 2014, 10:54:55 AM »
In some of his columns I used to read, he said mutual funds were for losers. So don't listen to that. As a salesman, like have said on here, he is trying to tell you his way is the only way to get rich. It's simply not true. We have to take a more deeper approach and understand what works best for us. We have to understand our own personal thresholds and appetite for risk. I dare say that the majority of Americans are not the business owner type, so the ever so popular index fund we talk about on here is the way to go.

BaldingStoic

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Re: Rich Dad Poor Dad
« Reply #26 on: February 11, 2015, 02:40:55 PM »
Just finished reading for free on Scribd.  I'd give the book a B-.  Easy read, a couple good perspectives, but the author does come across as very self-promotional and full of himself.  Very little actionable advice beyond buying assets.  However I did like his perspective about the limitations of traditional education.  My kids are hearing all the time at their school that they only way they will succeed is by going to college...hello?...I bet 90% of plumbers are earning more then undergrad anthropology majors.  The books emphasis on marketable skills and good money management is spot on, but could be distilled into 50 pages. 

LiveLean

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Re: Rich Dad Poor Dad
« Reply #27 on: March 20, 2015, 04:42:14 PM »
I read his main book years ago and the one thing that has always resonated is his line about how most people never grow up. They go from relying on parents to relying on an employer to relying on the government. (To which you might add that some people just go right from relying on parents to relying on the government or just going to work for the government, which is its own reliance once you get into that pension/salary level entitlement game.)

innerscorecard

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Re: Rich Dad Poor Dad
« Reply #28 on: March 23, 2015, 02:00:58 AM »
I'm glad I read the book early on in my knowledge journey. Quite early, a little bit before The Millionaire Next Door. Since it was so early on in my learning, I quite liked the book. It's quite accessible for people who don't know anything about money or financial independence. Not a bad book to give people who don't know anything, I think, despite all its flaws and the many flaws of Kiyosaki himself.

blackomen

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Re: Rich Dad Poor Dad
« Reply #29 on: March 29, 2015, 12:47:30 PM »
He has a pretty touching story about his two dads and really hammers the point to buy assets, not liabilities and to live within your means throughout the book.  But he lost me once he talked about real estate as the way to make money.. not that it won't work but it's quite limiting to suggest one out of thousands of other opportunities out there.

math-ya

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Re: Rich Dad Poor Dad
« Reply #30 on: March 29, 2015, 01:46:37 PM »
i think rich dad is a great book to give to kids or young people to teach them some sort of basic financial understanding- its such an easy read. plus it seems like kids arnt getting any sort of info on the subject.

Tjat

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Re: Rich Dad Poor Dad
« Reply #31 on: June 14, 2015, 06:34:39 AM »
I made the mistake of purchasing this book (before finding MMM), read it, and tossed it in the garbage. There's about a page of interesting concepts buried in a mass of "you're a loser if you don't own your own company" and "look at all the things I have bought with my money."

Before realizing the two dad concept was a marketing ploy, I felt terrible for his father if his son would mock him to the world and argue that he doesn't measure up to his friends dad.

Nickels Dimes Quarters

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Re: Rich Dad Poor Dad
« Reply #32 on: July 19, 2015, 10:25:38 AM »
Agreed that the important take-away is to buy assets not liabilities. But lifestyle? Not MMM at all.

I love the lesson about assets, and I buy income-producing assets. In Rich Dad Poor Dad, he makes the distinction of separating the single-family residence you live in (not an income-producing asset) from investment real estate. I also like the distinction between being a small business owner (trading time for money) and being an investor (money works for me regardless of what I'm doing).

The book is great and a gate-way to a different way of thinking. The beauty of MMM is that anyone can do it...you can start immediately no matter where you live or how much (or little) you make.

NDQ

LiveLean

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Re: Rich Dad Poor Dad
« Reply #33 on: August 13, 2015, 02:00:20 PM »
Long before MMM, I read this book. One thing I'll always remember is the anecdote about the 50-year-old executive interviewing with his Rich Dad for a job. Even though this guy had earned a huge income for years, he had few assets and needed another healthy executive salary.

I've never had a huge corporate salary. But now that I'm only a few years from 50, I'm glad I'll never be that guy.

Natasha472

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Re: Rich Dad Poor Dad
« Reply #34 on: October 25, 2015, 10:01:34 AM »
I read this a few years ago as I was starting to learn more about how to become fi. I thought the first 3-4 chapters were good info on lessons about money, the assets liability charts were great. The entire second half of the book seemed disjointed in how it related to the front half.

When I use this book for a book club discussion I am always amazed at the reaction when I ask "how would you feel about the author if you knew he filed for bankruptcy after doing all the things he did in the book?"

A useful take away was about having commissioned only jobs teach you a lot about rejection and how to handle it.