Should the Wealth-Building Advice in 'Rich Dad Poor Dad' Be Taken Seriously?
Yup Let Your Assets Do the Work: Let Money Work for You
Yup, the wealth-building advice in Rich Dad Poor Dad emphasizes the importance of having assets that can generate income. The core message is that you should let your investments work for you, rather than relying solely on your salary or other liabilities. But just how seriously should we take this advice?
Good Advice But Not Always Easy to Implement
The book offers solid advice, but it isn't always easy to implement. Success in wealth-building often requires substantial effort and due diligence. The author downplays this aspect, which can make the journey seem simpler than it actually is.
Will you find assets that can build your wealth? Absolutely. But it will require careful research, smart decisions, and a consistent approach. If you do your due diligence, you can identify great assets that can contribute positively to your financial security.
A Must-Read and Make Up Your Own Mind!
One of the crucial takeaways from the book is not to follow someone else's path blindly. There are instances where the author, Robert Kiyosaki, didn't follow his own advice and ended up filing for bankruptcy. Similarly, when the "Rich Dad" persona was created, it was later revealed he was younger than Robert Kiyosaki himself. It’s a good fable, but take it as it is.
On the other hand, many successful individuals credit Rich Dad Poor Dad. Books like Think and Grow Rich and Richest Man in Babylon are also highly regarded. These books emphasize the importance of understanding assets vs. liabilities, financial security, and the power of proper money management.
The Authenticity of the Rich Dad Story
However, the authenticity of the "Rich Dad" concept has been questioned. For instance, a person claiming to be the "Rich Dad" was found to be younger than Robert Kiyosaki. Furthermore, some real estate investors from the Phoenix area where Robert and Sharon Lechter live claim that the properties listed in the various Rich Dad books were actually owned by Sharon Kiyosaki.
Given these details, it's important to remember that understanding and applying the principles of asset management are essential to financial security. The book highlights the importance of distinguishing between assets and liabilities, and this is particularly crucial for anyone aiming to build wealth.
Key Insights from the Book
One of the biggest takeaways from the book is the realization that, as long as you have a mortgage, your house is a liability for the bank, not for you. Understanding the cash flow quadrants can be even more valuable than an advanced business education. The book breaks down financial concepts in a way that is accessible and empowering.
For years, I struggled financially, spinning my wheels, as I spent more time educating myself for better-paying jobs in the E quadrant (Employed earning a salary) and starting businesses that were primarily me as my own employee in the S quadrant (Self-employed earning a salary). It wasn't until I seriously started investing in the I quadrant (Investor) and realized the importance of working with others to increase my wealth that I started to make real progress.
Conclusion
I would highly recommend Rich Dad Poor Dad as required reading for anyone who wishes to start a life of building wealth. It is a valuable resource that can provide essential insights and inspiration. However, it’s crucial to approach the advice with a healthy dose of skepticism, doing your due diligence, and thinking critically.
Understanding and applying the principles of asset management is key. Whether you agree with Robert Kiyosaki's theories or not, the core lessons of the book can be life-changing if you are willing to apply them carefully and responsibly.