Book Review 💥
Rich Dad Poor Dad by Robert Kiyosaki ⭐️⭐️⭐️
Apparently this book had revolutionized personal finances. It makes sense — being told that working will not bring financial freedom and hearing about something called “financial literacy” must have been groundbreaking. However, 20 years later, the book is just 40% chicken soup, 20% bragging and self-plugging, 20% helpful information, and 20% repetition.
Kiyosaki spends much of the book describing his success to bolster ambiguous suggestions. For instance, he reasonably suggests lifelong learning, but then supports it by saying that he had spent a few hundred dollars to take a course on investing and consequent garnered millions of dollars.
Another problem with this book is its impracticality. I kept waiting for him to actually discuss his theories on investing, only to read near the end something along the lines of, “some of you must be disappointed by the lack of practical advice, but this book is more about changing your mindset.” Well if this was the case, you could have said so earlier.
That said, I did find interesting and even helpful tips. One concerns the definition of “active assets,” which many people believe would include their home. However, the home is actually a passive because it is not something you can sell to counter a crisis. This is also true from personal observations. For instance, although the house prices in Vancouver have skyrocketed in recent years, many people who own valuable homes cannot actually sell them without leaving the area, so owning a more expensive home might not actually give more financial freedom. I also learned about the cash flow diagram, which explained the importance of maintaining actives, owning a company, and paying oneself first.
Despite these redemptions, I cannot help but feel that this was $25 thrown away. I am also perplexed by the fact that Kiyosaki published numerous other books after offering so little in his masterpiece. However, he did say that one way to earn passive income was to write. So I guess he just took a page out of his own book.
And is definitely having success with it.