Robert Kiyosaki and Learning From Another Perspective

Several months ago, I offered up a detailed and rather negative review of the well known personal finance book Rich Dad, Poor Dad. In it, the author, Robert Kiyosaki, encourages people to take on a substantial amount of risk in order to get rich and largely derides people who choose not to take on that risk.

Let’s get the facts straight: I feel that the actual advice as well as the tone of Rich Dad, Poor Dad borders on the absurd. Yet, at the same time, it is easy to understand how someone with an entrepreneurial bent and some competitive fire would find a lot to be inspired by in this book, and I’ve seen comments from lots of people that were inspired by Rich Dad, Poor Dad.

The question then becomes is there value in reading a “bad” book? Years ago, my answer would have been an automatic “no.” What’s the point in reading rubbish advice that you won’t follow? In fact, it wasn’t too long ago when I would toss aside a book or a blog as soon as I read something that I disagreed with.

As I’ve grown and thoroughly explored some subjects (like personal finance), my opinion on the idea of bad books (and blogs I disagree with) has changed quite a bit. It is incredibly valuable to get a diversity of perspectives on any subject. That’s why I actually read all the way through Rich Dad, Poor Dad – I extracted a few positive points from it and was able to really grasp the overall message that Kiyosaki was trying to sell.

In short, I try to read as much as I can on a topic and never stop growing in my understanding of it, even if that means reading things I disagree with, don’t fully understand (yet), or find incredibly challenging in some way.

Let’s take a look at Rich Dad, Poor Dad. What did I learn from it?

I learned that some personalities thrive on financial risk. “Rich Dad” thrived on taking on a huge amount of financial risk. I personally think it’s foolish to dive into businesses cash first, but I’m apparently wired differently. I’m a conservative investor who prefers to manage my money carefully – I’d rather see smaller, stable returns than to toss my cash on the roulette wheel.

I learned that even people who thrive on such risk are rewarded by frugality. “Rich Dad,” in some ways, was a rather frugal person. Of course, Kiyosaki coupled that with promises of fast cars and such for the person who followed the “Rich Dad” path, but there is value in frugality even for risk-taking entrepreneurs.

I learned that some people who thrive on this risk look at people who avoid risk with disdain. Kiyosaki looks down upon “Poor Dad” and refers to people who work for others and slowly accumulate wealth in a less-risky environment as “hamsters.” That perspective actually explains a lot about how CEOs and many business leaders operate – we’re just “hamsters” in the machine to them.

These were useful lessons, and they altered my perspectives on some issues, even if I thought much of the advice in Rich Dad, Poor Dad was rubbish.

How can you decide what’s right? If you read a bunch of books on the same topic, you’re bound to find contradictions between them. The best guidance is finding the points where lots of sources agree and trusting your own intuition after you’ve read a lot of material.

For instance, after reading Rich Dad, Poor Dad and some individual stock investing books, coupled with reading stuff like Your Money or Your Life and The Bogleheads’ Guide to Investing, you might find that the answers that make the most sense to you are entrepreneurial and have a lot of risk. If that’s the case, then by all means jump into entrepreneurship and aggressive investing – but don’t ignore lessons that come from more conservative sources. The greatest dangers are never bothering to learn more, ceasing to grow in what you know, and failing to understand what others are thinking even if you disagree.

For me (and for a lot of my readers), conservative investing, frugal living, and a debt-free lifestyle are the goals and the ideas that make the most sense – and books like Rich Dad, Poor Dad, though they provide valuable insight into other perspectives, just reinforce the idea that the debt-free road is the right road for me to follow. So, yes, I might sometimes review books or link to blogs that are way off base from this perspective, but even those books can teach us a lot.

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  1. I admire your willingness to look at his books. He seems to have some rabid followers and some rabid detractors. He does nothing for me personally and I haven’t so much as picked up his books. The covers were too sensationalist in my opinion.

    The fact that you can glean some wisdom from it is a feather in your cap.

  2. Mrs. Micah says:

    I didn’t find it all that useful. And I thought it was kind of insulting to people who have decent money management skills and live happy, frugal lives while investing for the future. My husband isn’t psychologically built for risk, so he’s going to be a professor/teacher like “Poor Dad.” And he thrives in that environment.

    If you thrive on that kind of risk, of course, then the book might be more useful.

  3. moneymonk says:

    For every single personal finance author, you have to take their advice with a grain of salt.

    I take portions that I can relate with to my learning. However, everyone sitution is different
    RDPD may have did wonders for some people, others is may have not

  4. Frugal Dad says:

    I agree with the comments above. I think with any book offering advice we should take that advice with a grain of salt. Rather, we should take the author’s opinion with a grain of salt, and look for ways to apply the information in the book towards our own ideologies. I tend to agree with Trent – Kiyosaki hit a home run with his first book, Rich Dad, Poor Dad. However, he then launched into a “leverage yourself up to your eyeballs” real estate pitch that left a bad taste in many conservative investors’ mouths. I felt the same way. Overall, I liked the idea behind RPPD, though I disagreed with the mechanics.

  5. He has some bad ideas, but that book woke me up from my financial ignorance and that’s a good thing. I don’t know how many times he said “Make your money work for you,” but it stuck. That’s a good thing.

    I think it was Steven King or some other writer who also things sometimes you need to read a bad book to be a good writer. You have to learn what not to do as much as what to do.

  6. Money Management and You says:

    I think it depends a lot on the age of individual in question. A younger person, say just out of college, can justify taking on more risk because they have time to recover should anything go wrong.
    But an older person near retirement should have a more conservative approach.

    I myself enjoyed Rich Dad Poor Dad, but I do have an entrepreneurial mindset.

  7. kazari says:

    I agree – i didn’t find that book particularly valuable. but it did get me thinking about money in new ways – and it was entertaining enough to finish.
    I find your choice of language interesting – is a book ‘bad’ just because you don’t agree with the point of view it espouses?
    Then, is a book only good if it fits with your beliefs?

    Anyway, I read for diversity of perspectives. I’d find it hard to form an opinion if I only had one to choose from.

  8. Tyler says:

    The book is entertaining and does offer one piece of sound advice.
    Leverage is the fastest way to get rich. That is a fact. It is also the fastest way to go broke…also a fact.
    Personally, I have taken his real Estate adivce and have made more money on my last two real estate transactions than I have in 2 years at my day job.
    Were these transactions highly leveraged – Yes! Could they have gone terribly wrong – Yes!
    Did I do my due diligence and understand my local market – Yes!
    Did I profit immensely – Yes!
    Was I lucky – Yes!
    Could I have made this much money and advanced my retirement plan by a decade without leverage – Absolutely NOT!
    I’m not saying that I’m going head over heels for Kiyosaki becuase I think that he is a schmuck for the most part…but leverage is the only way to accelerate wealth exponentially and that I give him credit for.
    P.S. – I’v stopped Real Estate investing because my market is no longer acceptable to me and I have eliminated all consumer debts and just have 50% of my mortgage left to pay off. Thanks Trent!

  9. Peter says:

    I guess what I’ve taken away from him over the years is that if you’re not an entrepreneur, you’re a hamster.

    So per Kiysaki, cops are hamsters, doctors are hamsters, engineers are hamsters, firemen are hamsters, teachers are hamsters, etc.

    He can couch it any way he wants, claim that isn’t what he means, but that’s the bottom line attitude he exudes.

    Oh, and he’ll help you not be a hamster, he’s there to teach you. Just buy all his stuff and he promises, you’ll learn how not to be a hamster. If it’s not in the first book, it’s in the second. Oh, not there, must be in the seminar? Oh, not in that seminar? Must be in the really good seminar? Still haven’t succeeded? You just need to buy more of his stuff, because it’s there.

    Oh, you feel like a donkey chasing a carrot now. Good, at least you’re not a hamster

  10. Susan says:

    I saw him on Dateline or 20/20, one of those shows. He seemed more like a motivational speaker than a entrepreneur. He appears to get rich on other people’s entrepreneurial spirit in terms of selling ‘expert’ advice to those who are actually starting businesses. He’s just sort of spouting encouragement, and not much else. I do agree with some of his philosophies, but overall it seems like a marketing scheme. http://www.theinnovativetraveler.com

  11. Lurker Carl says:

    Agreed, you have to read lots of books by lots of authors to develop a personal financial philosophy.

    Kiyosaki has a writing style that I find is hard to digest, too preachy and self-centered to easily pick out the nuggets of knowledge he offers. Most disturbing to me is that he claims great success in a business model that bankrupted many (famous faces like Dave Ramsey and Donald Trump) and has more than a few homeowners on the verge financial ruin.

    Speculating with borrowed money is best left to those with deep pockets. I get the feeling he made most of his wealth with the financial advice he dispenses rather than the leveraged transactions he claims.

  12. Jon Morrow says:

    Thanks for the honest comments, Trent. Here’s my perspective:

    The reason there are so many different approaches to personal finance is that we all have different goals. Different goals require different systems. Where a system may be completely appropriate for one person, it can be completely inappropriate for another.

    The systems described within his book do not to teach you how to retire at the age of 65 with $1.5 million and enough cash flow to sustain your retirement years. If that’s your objective (or you have a similar objective), then the book is completely irrelevant.

    On the other hand, if you want to become a billionaire within the next 20 years, then Rich Dad, Poor Dad is more relevant. It’s still not perfect, but the systems and principles he outlines are important for people that want to become “ultra rich” to understand.

    Similarly, the books that advocate slow growth are irrelevant to people that want to become billionaires. Thinking about it mathematically, how long would it take for you to become a billionaire at your present growth rate? Just from what you’ve written, I’d guess you would be dead.

    Where people make the mistake is criticizing a system because it conflicts with their personal goals. RK criticizes slow growth investors because he believes they have an inferior system for making money. What he doesn’t realize (or acknowledge) is that the primary concern of slow growth investors is not to make money as quickly as possible. Their concern is to make money as safely as possible.

    Along the same lines, many conservative investors criticize RK because his ideas are risky. What they don’t realize (or acknowledge) is that, to a certain extent, risk is irrelevant if the only systems that help you achieve your objectives are risky. People that want to become billionaires frequently experience huge losses because their approach necessitates risk. The thing is, their approach also allows them to recoup their losses extremely fast, so they have a completely different perception of losing money.

    Anyway, I think the bottom line is this: figure out where you’re going financially and then find the systems and principles that help you get there. Maybe that’s Rich Dad, Poor Dad, and maybe it’s not. Just evaluate it from a perspective of “Will this work for me?” rather than “Is this correct?”

  13. Danny says:

    Wait, he actually calls people hamsters? I haven’t read it in a while so maybe he did but I thought he just used a simile/metaphor. I did a quick google search and found this:

    “Once people are trapped in the lifelong process of bill paying, they become like those little hamsters running around in those little metal wheels. Their little furry legs are spinning furiously, the wheel is turning furiously, but come tomorrow morning, they’ll still be in the same cage: great job.”

    Well, that is a true statement and a pretty good analogy.

    Comparing two things (using like or as) is not the same as saying one “is” the other.

  14. It’s great that you are willing to keep an open mind and listen to opinions that you might disagree with.

    Just tonight I was trying to drive home when I got stuck in a huge traffic jam downtown. Well, little did I know, but Dave Ramsey is in town! I personally find the way he mixes Jesus and personal finance annoying and more than a little creepy, but it seems to work for some people. And I do agree with a lot of his points.

    It’s always a challenge to separate the message and the messenger.

  15. > is there value in reading a “bad” book?

    I would say yes. I make an effort to read things that I disagree with to help me understand different perspectives. Often I can take something from it.

    Best Wishes,
    D4L

  16. Bill says:

    RK is a motivational speaker, not an entrepreneur.

    He doesn’t seem to understand risk very well.

    Entrepreneurs do take risks, but they do their very best to understand and manage the risks they choose to take.

    Telling risk-adverse people to jump into highly leveraged investments like real estate is simply setting them up for failure.

  17. money_me says:

    To each his own. One man’s meat is another man’s poison. Find what works for you, Trent but don’t waste time bashing Kiyosaki. Find your own theory and get where you want to get. Some of us are rich because of great risk. Some are poor because of great risk which led to great losses, others are average because that’s what they want. Question is: who decides what’s right or wrong? Not you, not me, to each his own. The books are not bad but just like Jon Morrow said, they are meant for those that are meant for them. Period. Just like I enjoy your blog and some people think it’s crazy but still the Simple Dollar is not crazy for me. I like it. Grow up, Trent! By the way learn to be objective as much as you analyze stuff. It will help you a lot in the next 30 years or so. Now, give us some of your good ol’ Trent wisdom :-)

  18. Danny says:

    I forgot to mention that although I, like Trent, don’t completely agree with Kiyosaki, I will say that I am very glad I read the book and learned many things from it. Just like anything in life, you must separate the good from the bad, take the good in and ignore the bad.

  19. DC says:

    In every finance/investing book there is a gem to be found. The gem is different for people scattered throughout the risk spectrum. Defining a book as good or bad is subjective, however if the writer allows the reader to view a “given” or “standard” differently, the writer has succeeded. Read the RDPD series a few years ago and they produced a few gems for me:

    -Money is 1) consumed, 2) held or 3) grown. Your choice. This one is intuitive, but simplifies personal finance. Every dollar goes one of 3 directions. Reduce #1, Set #2 at your comfort level and maximize #3.

    -Your house is not an “investment” in the context of producing an income flow. This one really threw me for a loop initially, but after a few years of thinking about it and following #1, #2 and #3, it kinda makes sense. Still gonna pay off my mortgage early…which probably falls into #1 or #2.

    Cheers.

  20. Matt says:

    I’ve been following RK for quite a while now. As far as I can tell, the only thing he’s been demonstrably successful at is selling books.

    I HAVE read several of his books, and a lot of what he says IS “generally” good advice”. The problem is that he almost never gets down to specifics. He talks a lot about his past successes but always seems to leave out the kind of information that would allow you to actually confirm his claims. You can waste a lot of money on RK’s books only to find out that there is really “no there there”.

    This man is the quintessential snake oil salesman and that alone makes him very interesting to follow. Googling “Robert Kiyosaki and fraud” provides hours of entertainment.

  21. Harm says:

    I’m no fan of Mr. Kiyosaki, not so much
    because I disagree with his ‘money philosophy’,
    but because I think he’s dishonest. Like
    poster ‘Matt’ says, reading about Mr.
    Kiyosaki’s various stories can be amusing, but
    I don’t believe someone who’s that slippery
    has anything to teach me about finance.

  22. KC says:

    RDPD is more like a parable – much like The Wealthy Barber and The Richest Man in Babylon. But personally the more I read from Kiyosaki the more I think “pure snake oil”. I like his attitude – which is basically don’t be afraid to make money. But the way he goes about it is not for everyone. Sure real estate is great, but its a lot of responsibility and work – and it requires too much leverage for me to sleep soundly at night. Kiyosaki also heavily supports investing in gold because he believe the US currency will ultimately fail since it is no longer backed by the gold standard. If that’s the case – we’re all screwed whether we have a basement full of gold bullion or not. I liked his first book, but the next 3 didn’t really give me very much. And the one with Trump was just designed to make money – it brought nothing to the table for me.

  23. bp says:

    Trent,

    You’re confusing yourself, RDPD is a bad book.

    In short, I try to read as much as I can on a topic and never stop growing in my understanding of it, even if that means reading things I disagree with, don’t fully understand (yet), or find incredibly challenging in some way.

    This high minded nonsense. You can’t read everything, why not just recommend a better financial book that is inspirational to the entrepreneur, that is non-fiction and that doesn’t contain “absurd” advice? There are some things people can disagree on but some things are just wrong. Its not frugal to read or recommend books without considering the value per hour spent and the potential damage of misinformation.

    I learned that some personalities thrive on financial risk. “Rich Dad” thrived on taking on a huge amount of financial risk. I personally think it’s foolish to dive into businesses cash first, but I’m apparently wired differently.

    How do you know how much financial risk “Rich Dad” took? I have read RDPD and there is no where near enough information in the book to evaluate his risk. This statement also implies that you believe “Rich Dad” is a real person, despite considerable evidence to the contrary.

  24. tightwadfan says:

    I agree with you about exposing yourself to a variety of viewpoints but I disagree with your particular example of Kiyosaki. I browsed through RDPD in a bookstore and was intrigued, I went home and looked up reviews online. Well apparently Kiyosaki is a fraud, he never had the real estate success he writes about, the “Rich Dad” is fictional, and as other commenters have noted, his financial success has actually come from selling books and seminars.

    I think you have to draw a line at frauds when exposing yourself to different viewpoints, because reading their books or whatever they’re selling, you’re contributing to their sales numbers. And not everyone is as financially educated as you are, others could get sucked in and get in trouble following the bad advice.

    Also it seems like reading the occasional bad PF book works only if you already have good PF skills so you can recognize bad advice.

  25. Lisa Spinelli says:

    There are cheerleader money making books, and books that actually provide you with information. I’m sticking with the latter, and this book did not fall into that category.

    The fact that he is a fraud does not surprise me.

    Lisa

  26. Anna says:

    @Peter — brilliant! For present purposes, we can disregard the distinction between simile and metaphor. Your point is well taken.

    You cite cops, doctors, firemen, engineers, teachers, etc. — all people who contribute to society. We could not do without them.

    So is getting rich the primary value? Or is being a constructive member of society the primary value? Maybe we need to find ways to keep these values in balance.

  27. Kirk says:

    Each person is different. The great thing is that any person can become financially free so long as she or he is disciplined. Read the “Millionaire Next Door” by Thomas Stanley if you want to see how everyday folks become millionaires. Many of those folks were business owners, but most were modest, conservative folks.

    As far as Kiyosaki, I think the articles he writes for Yahoo Finance tell it all. They are poorly written with no clear thesis and completely devoid of facts. I think the comparison of two Dads was a unique, interesting way to present material, but the content was lacking.

  28. Trent Trent says:

    I never once said RDPD is a good book – if you think I said that, you didn’t bother to read what I wrote. I think the statement, in bold, that “the actual advice as well as the tone of Rich Dad, Poor Dad borders on the absurd” is pretty clear.

    The point in reading a book is to learn something, and I did learn some things from “Rich Dad, Poor Dad.” These lessons, however, just reinforced my basic beliefs: frugality and conservative investing are the way to go, even if they’re not respected by some (like Kiyosaki and his followers).

  29. Trent Trent says:

    It’s for similar reasons why I think Christians should read books on atheism and atheists should read books like “Mere Christianity” – they challenge the way you think and inform you on the perspectives of others.

  30. bp says:

    Trent,

    Maybe “good” and “bad” are confusing us. Do you think RDPD was a worthwhile read? I would say yes, after all you are claiming that you learned something from it and that you see how it can be inspirational. If you don’t think it was a worthwhile read, why are you so proud of having learned something from it? How bad does a book have to be to learn absolutely nothing from it?

    Reading different viewpoints is great, but that argument can be used to justify reading anything. Even when reading different viewpoints, most people care about the truth and quality of the writing, most people don’t like to waste their time.

  31. sandspiral says:

    bp wrote:
    “Even when reading different viewpoints, most people care about the truth and quality of the writing, most people don’t like to waste their time.”

    And that is EXACTLY why Trent’s review of RDPD is valuable. He gives us his honest opinion and states that he doesn’t approve of or agree with much of what Kiyosaki writes, but he also clearly states that people with different attributes might benefit from reading it.

    So reading a review like this can help you determine whether or not it would be a waste of time to read the whole book yourself. And whether or not you agree with anything that Trent or his commenters have written, THAT is valyuable, I think. :)

    Thanks, Trent, for having the courage to state and stand behind your convictions.

  32. Rick says:

    The problem that I have with RDPD is that he makes getting rich seem easy. I would suggest anyone look at this analysis before acting on RDPD:
    http://johntreed.com/Kiyosaki.html

    I found the “Not likely” section highly telling- I believe that you can make a lot of money in realestate it just will take a lot more work than Kiyosaki leads you to believe.

  33. jana says:

    i know that many people who are into multi-level marketing and center their lives around money and consider friendships a tool to make more of it (they think they actually help others by pushing their beliefs at them) love this book. for this reason i have never checked it out, sending it might not be for me. i do like thinks like stocks, which is considered risky, but risky investments is not my main goal and i refuse to have the view of “lets make money-fast-and get the flashy car asap”. also, i very much dislike whyt you call “calling us hamsters”-especially because LOTS of the very bright minds (scientists, doctors)-people i admire- are for some reason the type that has different values and does not thrive in risky investments and money making. these people are ot hamsters, they just have different views and lifestyle-and that is somethin that the multi-level-rich-dads often fail to recognize.

  34. John J says:

    Risk is different for everyone. I read his books, and have follow his advice. I am far better off now, then I was before I read his book.

  35. Fathersez says:

    Hi,

    I was one of those who did not agree with you in your earlier criticism of RK.

    His book was the starting point for me to evaluate and relook at my financial situation.

    It is really great that you have now articulated another view point.

  36. bp says:

    @ Sandspiral

    I think Trent’s post looses a lot of value because it try’s to have things both ways, its a “bad” book but I learned “something” from it. When you say that people with different attributes might benefit from reading it, what are these attributes and roughly want % of the population has them? And why can’t they just obtain the benefit from reading something better. Yes, its silly for Trent to toss aside a book or a blog as soon as [he] read something that [he] disagreed with but its equally silly to not stop reading a book full of mostly “absurd” things.

    I think all the points Trent claims he “learned” are either, trivial, something he already knew or something did not actually learn from the book (ie that explains a lot about how CEOs and many business leaders operate). I am also confused each time he talks about rich dad like he is a real person, even though he has read Reeds commentary on RK. I think RK has committed massive fraud and his sales are backed by multi level marketing organizations, and RDPD is one of the worst possible examples of a “bad” book to learn from.

    Trent, do you really want to encourage people (and that is what you do when, when you bring RK’s name back into the spotlight and say you learned things from him) to listen to RK? Even when he gives interviews like this this?

    When he says is net worth fluctuates between 50 and 100 million depending on the day, or that he owns a fleet of porches, my problem is not with his frugality or values, it that I think its pretty obvious that he is lying.

  37. Trent Trent says:

    It doesn’t matter really whether Kiyosaki is lying or not. The point is that RDPD is probably the most widely circulated book on personal finance out there, and you can’t go into a personal finance section in a library or a bookstore without seeing a pile of those books.

    I get probably a dozen emails a week that in some way relate to Kiyosaki or Rich Dad. I might feel that the message is bad and I’ve criticized it over and over again, but I also see that it’s inspired a lot of people to actually stand up and make a change in their life.

    The truth is that different messages reach different people. Why does Kiyosaki’s message reach some people so effectively? Maybe they just needed a little inspirational push to do whatevery they were thinking about, or maybe they never even considered entrepreneurship and that book opened their eyes.

    And that’s a good thing. Whatever it takes to get you to open your eyes and take a serious look at your money and your life. The important part is to keep looking. Keep learning and studying. Maybe you’ll discover that that first inspirational message that opened your eyes wasn’t the best answer for you. Maybe you’ll discover some logical and factual flaws in it. In fact, I’m pretty sure most people who read RDPD critically and then follow it with additional learning will find at least some big flaws in the book.

    But the learning process itself is valuable. Reading a lot of viewpoints and ideas is valuable. The only dangerous point is when you close your eyes to a viewpoint held by a lot of people, writing it off and declaring yourself “above” it. Then you just become ignorant yourself.

    You don’t have to agree with what everyone says, but when you actively choose to ignore someone and stop learning, you choose ignorance.

  38. Peter says:

    “You don’t have to agree with what everyone says, but when you actively choose to ignore someone and stop learning, you choose ignorance.”

    I disagree. At what point do you realize the individual has nothing new to show you? At what point is the material provided so full of holes in logic and thought that it no longer is of use? Do you sit and listen to every infomercial on TV because there might, possibly, be a grain of truth in the blather of what they’re selling? At some point, you stop listening because the message is no longer of worth to you. Is that ignorance or a smart use of your time?

    I will agree that you are in a different position, because you do get asked about kiyosaki (and probably other folks like Dave Ramsey and David Bach), and therefore, perhaps you don’t feel comfortable ignoring him and need an answer as to how he’s inspired people.

    However, I feel that there is no problem in ignoring him or frankly, telling others that there are better resources out there they can use.

  39. The fact of the matter is that RDPD has probably created a lot of wealthy people out there. People who lives have been transformed because they have been able to keep and open mind and implement some new strategies that may have been out of their comfort zone.

    Thats the thing with investing. You have to be able to keep an open mind to what is available out there. Ok thats fine if you don’t entirely agree with one author. Fine don’t use his strategies. But if you are finding that every book you read you have a negative view on .. then maybe there is something internal like (mindset) that may be holding you back.

    I think one of the things that will hold anyone down is a closed mind. I even thing that its better to have an open mind, to try certain things out .. and hey if it doesn’t work out then as least you learned something from it … But if you didn’t do anything at all .. well you will just be in the same financial position in 20 years time ….

    Young Investor

    http://www.investmentrealty.blogspot.com

  40. Fred says:

    Someone wrote: [Quote]“…I have eliminated all consumer debts and just have 50% of my mortgage left to pay off. Thanks Trent!…”[/quote]

    As long as you can sustainably maintain positive cash flows to service the debt, do take on more debt to be repaid later with devalued, diluted, inflated to oblivion IOU nothings Federal Reserve Notes…

    Money IS DEBT (Simply understand how King Henry gets it from Ben Burnthebank) and your mortgage IS THE ASSET!

    RDPD is a book on accounting; in the coming years, wealth will be transferred through the balance sheet, without any visible flow of money… Loss and profit account obsessed observers will wake up too late, their wealth gone… Read again, and again, and again until you see that and become able to position yourself on the receiving end of this transfer…

    Suze Orman had denied most people of their brains and ability to use them… but maybe, all they can afford in the first place are bad answers to the wrong questions: Which mutual fund is “the best” to “park” my money and please don’t call me a hamster, it is too terrible!

    At the very least, RK is challenging your thinking: he does not offer formulas of easy answers – he does not have answers – RK offers invaluable questions.

    Two more thoughts:
    1- I find it remarkable that Mr. Trent changed his mind and is slowly becoming an advocate and promoter of RK – all hope is not lost!
    2- Nothing like a good controversial recurrent popular subject to boost blog readership and interaction…

  41. Fred says:


    And an additional bonus thought: Investments are not risky, investors are!

    With that, a MERRY XMAS to all!

  42. blake says:

    I have read several of Robert’s books. I have to say, yes, he does encourage risks. He does tell people that in order to become financial free you have to take chances. Do i agree with him? Yes! I do!

  43. Terence says:

    Well done to those who can use their brain cells when reading Kiyosaki. The guy’s an exaggerator to say the best, an arrant liar to say the worst.There is a place for the whole wealth generating through a change in the way you view reality genre but Kiyosaki is not the one to follow on this.

    His books contain a multitude of generalisations, assertions and plain old misinformation/lies and of course they have popular appeal because so many fellow Americans just do not understand the tax code nor the multiplicity of rules about investments, businesses, mortgages etc.

    I could not believe that people who have intelligence could swallow all Kiyosaki’s unsourced assertions and he has been caught out in lies regarding key elements in his book such as the so called ‘Rich Dad’.

    Do yourself a favor and read John T Reed on Kiyosaki. It’s amazing to read how many sincere Kiyosaki fans will bitch about and defame Reed, claiming that Reed sees Kiyosaki as a so called ‘rival’. No – Reed actually has been there and done that, earning wealth in the conventional business like way. As he points out and as should be clear to people with brains, Kiyosaki is a hustler who actually got rich on people like them.

    By selling books and giving seminars. Follow the truth trail, do real research on Kiyosaki and you will see he made money from books, not from other sources. He is the last person to be advising on how to get wealthy from real business dealings.

    If you read somebody like T Harv Eker, then that’s what a genuine person writes. Eker actually has positive things to say that have real depth and resonate – while reality begins in our heads, he also points out that you’re going to have to really work and be single minded to be wealthy.

    He gives real advice on the psychological side whereas Kiyosaki is a snake oil purveyor, making the right sounds but falling short when subjected to hard analysis.

  44. yup, this was the book that made me crazy about getting real estate and now i am paying the price.

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