Robert Kiyosaki is a Japanese-American from Hawaii, who loves dealing in real estate and writing books and giving seminars about personal finance.
This book is about financial literacy, many of us are well educated but don’t have much financial savvy. We don’t learn about money at school. The rich don’t work for money…. they get the majority of their money through assets. The book is about how to build up our asset column, rather than looking for a pay rise or a promotion.
Whereas the traditional educational route encourages those who want to earn more to specialise, Kiyosaki encourages us to broaden our education. The book encourages the reader to study four areas of expertise:
- understanding markets
The book has sold a whopping 32 million copies, I picked my copy up at the Stamba Hotel Bookstore in Tbilisi. It is an easy read with simple graphics relating to cashflow. There are three kinds of income: ordinary income, portfolio income and passive income. Here is an article I came across detailing some Passive Income Ideas, most are American, so I don’t know how easy they would be to apply in other countries, it might be worth a read. The book encourages us to look at how we can make money through investment and deals. Kiyosaki has some controversial heroes like Donald Trump and George Soros.
Kiyosaki and other financial gurus are not without their critics, John T Reed, a US investment adviser is very dismissive of Kiyosaki’s approach.
“Rich Dad, Poor Dad is one of the dumbest financial advice books I have ever read. It contains many factual errors and numerous extremely unlikely accounts of events that supposedly occurred,” John T Reed says.
I don’t know if I will follow any of the tips in the book but it has given me something to mull over.
My rating 4 out of 5