Book Review - Rich Dad, Poor Dad
TLDR: Rich, Dad Poor dad by Robert Kiyosaki
Robert Kiyosaki’s book - Rich Dad, Poor Dad is one of the most popular books on personal finance and investing. I should probably start off by stating that I am not a big fan of this book and I don’t consider it essential listening for most investors. But here are some key takeaways from the book.
The 7 principles that he outlines.
The rich don’t work for money - They make money work for you while the poor and middle class work for money
Financial literacy - Poor and middle class buy liabilities, while rich buy assets. Learn
Mind your Own assets - Anything that provides a positive cashflow is an asset, anything that takes money out of your pocket is a liability
Power of corporation - Rich use the power of incorporating a company to avoid paying taxes, expense things, make use of these tax loopholes
Rich invent money - Rich are constantly on the look out for opportunities to make money
Work to learn and not for money - Do not stick to a job, that just provides a pay check, only stick to a job that gives opportunities to learn constantly. Don’t become a specialist, become a generalist.
Overcome obstacles - Avoid Fear, cynicism, laziness, bad habits and Arrogance as much as possible to be a better you.
In principle the book has nothing earth shattering to provide, but general life principles that we should learn to apply. Most of his investment success is from buying foreclosed houses and buildings and flip them to make money.
I am personally not a fan of this approach as i feel that it is acting like “a vulture circling around an animal that is about to die to feed on it carcass”. I know the banks that foreclosed or the home owners who bought houses beyond their means who are to be blamed. But in general I am not a fan of this approach in making money.
Whatever approach works for you.
Rich Dad Poor Dad - Score 2.5/5
If you are someone who prefers a visual review instead, find an animated version of the book from youtube that I found.
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