"Rich Dad, Poor Dad" Review
"Rich Dad, Poor Dad" by Robert Kiyosaki is a short book which is very clear and easy to read, I think I read the whole thing in less than two days. The basis for the title of his book is that Kiyosaki had two Dads in his youth, a rich Dad and a poor Dad. His rich Dad was not well educated but was financially literate, but his poor Dad was very well educated, though financially illiterate. Obviously the well educated poor Dad is ultimately a lot worse off than his rich Dad. Throughout the book Kiyosaki emphasises the need to financially educate ourselves and financially educate our children. He uses his simple story to compare the differences between the way the rich handle their money and the way the rest of us do. Essentially, the rich invest in assets, and the poor and middle class invest in liabilities. This very much mirrors our society wherein the middle class are trying ever so hard to 'keep up with the Jones's'. He describes everyone who has yet to cover their monthly expenses by their passive income as still in the rat race. Kiyosaki also teaches us about the significance of using corporations to minimise the amount of tax we are liable to pay. After reading the book you genuinely feel motivated to go out there and change your life with your new found knowledge! All along he advises spending money to make money, buying the best people to do your work, and finding the best mentors, even if they are the most expensive.
This is all a very good eye opener to someone who is in need of some financial education, and is extremely motivational. However, there is something decidedly underhand about the whole 'Rich Dad' brand. The question is, is Kiyosaki is a self made millionaire through his property investments and 'Rich Dad' thinking, or does he makes most of his money through the sales of his books. What makes me think the latter is that he is constantly trying to sell you copies of his three board games aimed at teaching you about investing in assets and getting out of the rat race. These in all honesty are good games and having played them many times they do open your eyes. The main drawback is that they retail for about $175. This is an extortionate price to pay for a board game. On the other hand is he just trying to teach us that we must make investments in our financial education in order to become financially free? Who knows?
All in all the first and second book in the Rich Dad series (there are several) have good solid content, but as the series has expanded this level of content has become thinner and thinner, leaving a lot of repetition not only within books but between books. Some might claim this is all a sales pitch which will ultimately lead you to attend one of his expensive seminars, or even to buy one-to-one mentoring which runs into the thousands of Dollars.
Is Mr. Kiyosaki a selfless man championing the need to financially educate ourselves and our future generations, or is he preying on the thousands of people who are desperate to find a way out of the rat race, and will pay through the nose for that knowledge?