Robert T. Kiyosaki's
1997 best selling book of this title has certainly helped to make him
rich. I bought a copy of the book for 17 cents (used of course) to
see what he had to say. His principles are worth understanding.
The book is long on examples of what he did right in stock and real
estate and missing on the true how-to.
He tells us that people
who just work for a living are less likely to become wealthy than those
who make their money work for them. I agree with that to the
extent that it is vital for people to have savings that can earn money
through interest or stock appreciation. And that people should own
assets that provide income and/or appreciate in value.
His opinion that most
things that people think as assets are not. Well, assets are hard
goods and other things of value. He is correct that most things do
not provide income or appreciate in value. A car for example loses
a quarter to a third of its value the instant it is bought. Some
(all too many) homes cost far more than they will ever return in
appreciation or tax benefits. The point is well taken that you are
much better off to buy property such as rental units that return income
and can eventually be worth more than they cost to buy and own.
Buy low and sell high is hardly a new concept but most people forget
that and buy for emotional reasons.
I do like the definition of wealth that he
acknowledges he took from Buckminster Fuller. Wealth is measured
by the number of days you can live into the future if you stop working
today. If you can live satisfactorily for the rest of your days
(and may they be many) you have wealth.
The Rich Dad Poor Dad money machine sells
other programs and games such as Rat Race. I choked when I saw
that the game is selling for about $195. I can't imagine the ideas
in the book being worth almost $200 in board game format. Pick up
a copy of the book at the library or buy one used on Amazon. He
has a book for teens that might very well be worth reading to help get
them on their way to understanding how money works in terms of personal
income and wealth. Otherwise everything and more is available here
on Financial Freedom for free.
The Millionaire Mind .
The
Real Secret to Money
