Rich Dad Poor Dad Book Review

Well, this my friend is a life changing book. If like me, property investing is what you want, you have to develop the mind set, the motivation and the lingo.

The first time I read it was over 5 years ago, at the time it didn't seem that great. However with the addition of years, and my own cancer episode, it seems to have sparked a much greater appreciation, or perhaps understanding.

It tells of Kiyosaki's own poor father and his friends multi-millionaire dad. Both the men had powerful impacts on Robert's life, and this is really brought out by the thought differences between the two fathers. While I certainly don't know if 'Rich Dad' existed or for instance was a combination of people and Kiyosaki's own thoughts, it certainly makes compelling reading.

So whats so good? it's really a case of perspective. While Robert's own father was always in the unenviable position of letting the lack of money dictate his future, his rich dad actively sought to build an empire, a system, a way out of the rat race.

Rich Dad takes on the task of empowering the boys to bring out there creative ideas. Rather than talk he preferred to train via experience. One of the more notable quotes was "The poor and middle class work for money. The rich have money work for them." (P30). This is done via building your own system to run a business, or assets, so that money comes in whether your there or not.

Financial understanding is the first step into this world. Knowing the difference between an asset and a liability. Kiyosaki has a new take on the meaning of asset, he puts forward that an asset has to generate income. Your home would traditionally be considered an asset, Robert disagrees. He makes many diagrams in his attempts to explain finances, particularly income and expenses or assets and liabilities.

"Work to learn - don't work for money" (P117). Another one of the quotes of this book. This could well be good advice, but being an old dog of 41, I really think I wont be pulling the pug of my job until I can equal my wage.

"Master a formula and then learn a new one" (P154). This theme is only taken over a page or so, though I like its sound. Personally I like the idea of mastering a formula and then tweaking it different ways to see if you can get it working better, though I am no millionaire... yet. The main mentor Dave Dorian in my realestate group very much believes in this. He preaches this religiously, though the trick is to find qualified mentors to teach you these, be them in book or other form.

"The rich invent money" (P97) I prefer a more specific quote like "the rich invest money", Now this is my cup of tea. At the time of writing I am waiting for the Sydney (Australia - Yes the land of skippy) realestate market to pick up. I'm planning to stack a host of properties bought at least 10% under value and wait for the wave to come in, much like a surfboarder waiting for the big one. Then I will drop the shakes of my current job and annoy my friends with more jewelery than Mr T. Unfortunately this wont happen over night, but it will happen.

The criticism I have of the book is the lack of a plan. My favorite books have this as a key feature. I'm sure Robert would argue that he is really trying to develop a mind set.

What did I get out of this? The most simple of things.

• If you expect to rise above the rat race, then you have to act.
• Sacrifice now and reap the rewards later.
• Change that damn mind set. Thinking small will keep you right there.
• Time to build assets. Or as I like to think magically make money.
• Rather than be destroyed by your mistakes, learn and keep going! Life is all about making mistakes, the only question is how bad do you want to succeed?
• Change that mindset! absorb this book.

My first Rating! 7/10. Particularly good if you haven't been exposed to this sort of thing before. Not bad Kysosaki, keep up the good work.

Ian's Spin

I have (before my cancer episode) tried a number of ways to break free of the rat race, though now that I think about it, it has never been with an absolute plan, nore with a compelling belief that I can do it. I suppose what I'm trying to say is I have failed, failed and failed. Now the impetus has been embedded on my spirit. Books like this one produce the oil to keep me burning for success.

As a side note I often play Robert Kiyosaki's cashflow game. Its really a teaching aid game, similar to monopoly to educate you on the rich mentality. If you decide to play it, do it a number of times, as the idea is to push both your intellectual and your emotional understanding.

Make sure you have a look at the review of the rich dad sequel The Cashflow Quadrant.

If you don't have the book, just click the image below to be transported directly to the Rich Dad site. If your serious about changing your mind set this book is for you.