Rich Dad, Poor Dad Review

A lot of excellent material has been written about personal finances, because it is a subject which becomes relevant to almost everyone at some point, and because there are many different ways to approach it. In fact, it is not unlike dieting, in that there are many “miracle solutions” which promise great results with little work, and there are the tried-and-true principles which provide results over time. Everything else usually falls somewhere in between.

Before I start, let me first say that I am writing this review on the book, not on the man. I have read many reviews of the man and his philosophies, and I have to say that there is a lot of evidence that speaks to the invalidity of his claims, but there are numerous websites which already cover this, and I see no need to rehash their conclusions.

So, where does that leave the information in Rich Dad, Poor Dad?

Let’s start with what is good about this book and the underlying philosophy: spend less than you make. As simple as it sounds, this is the basic principle underlying many problems people have in their lives: burn more calories than you eat, earn more than you spend, give more than you take, etc. The unfortunate truth is that there are many, many people that need to be reminded of this fact.

The other thing that Kiyosaki does well is to make his message accessible. He uses language that the average person can understand, and gives his point of view through a perspective most can relate to: the schoolyard “my dad is better than your dad” argument. He also prices his book reasonably, which is more than I can say for a lot of so-called “financial gurus.”

What don’t I like?

First of all, every single thing Kiyosaki says can be found on the internet for free, and could have been before he even wrote his book.

The book (and Kiyosaki’s program in general) are marketed as the ‘miracle cure’ mentioned above. There are plenty of books out there which give you the same “save lots, spend little” advice without the snake-oil attitude and the constant pressure to buy more product. (See Idiot’s Guide to Personal Finance)

And while the old adage, “Invest in oil and land because God isn’t making any more of either.” May hold true, Kiyosaki places too much emphasis on real estate as the path to millions, without providing enough guidance. Not that you could read a book (any book) about real estate investing and know everything you need to know to be a millionaire. Look at Donald Trump, possibly the most knowledgeable real-estate deal-maker in the world, who lost nearly every penny he had on bad deals.

The bottom line on Rich Dad, Poor Dad, is that is the same old advice dressed up to look like the latest magic bullet, but with the dangerous side effects of providing only enough information to be dangerous.

April 16th, 2006
Related Topics: rich dad poor dad (5)- tucson rent to own (1)- "Rich Dad, Poor Dad" (1)-