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Monday, April 9, 2007

Rich Dad Review - Robert Kiyosaki

Robert Kiyosaki, author of Rich Dad Poor Dad and founder of Cash Flow Technologies, writes a series of profound books. He is an investor, business man, author, and motivational speaker that is a leader in business today. He was so successful in his quest to become rich he was able to retire at 47! In his writings, he constantly compares his real dad (poor dad) to his friend Mike's dad (rich dad), one of the richest men in Hawaii. Mr. Kiyosaki's real dad was highly educated man that believed you go to school, get a job, and save money. Mike's dad was an eighth-grade drop out who amassed a large, multi-million dollar fortune through owning real estate and businesses. Mr. Kiyosaki would say "The rich don't work for their money - it works for them"! Through building businesses and developing assets is how one can get rich the fastest. The assets buy the businesses and vice versa. It is true - the rich buy assets, the poor buy liabilities. Through my studies of Mr. Kiyosaki, I've learned and trained my brain to think like the rich. To think like the rich means to analyze situations from a perspective of a rich person - that is "Will purchasing this asset/liability translate into positive cash flow or "passive income" - money that didn't require active work"? My wife and I invested in his board game "Cashflow 101" and we love it! The lessons learned from that game (such as managing a balance sheet) are priceless. We can now transfer that knowledge over to daily life and use those skills in our "real life" investments. Mr. Kiyosaki mentions that the rich have "teams" working with them to help ensure financial success. I am a physician by training, so I wouldn't rely on my 8+ years of higher education to fix a legal problem or a tax issue. I have no concept of that stuff! So, it's best to "refer" out to others who are more knowledgeable than you in order to ensure you make sound investment moves. Granted, this will cost money, but look at it in terms of an investment in your investment. I highly recommend the following from Cashflow Technologies: 1.) Rich Dad Poor Dad - that is a must read! Start here. Then I'd go with 2.) Cashflow Quadrant, 3.) Rich Dad's Guide to investing, and then I'd purchase the CashFlow board game. Your financial intelligence is what is going to separate you from the poor. If you can develop your financial "IQ", you'll be farther ahead of your peers. Granted, you should read these books, but be prepared. There is no magic answer in these books. There are, however, concepts that you can apply in a variety of situations. These resources are for learning to think differently than you may already think now. So be prepared to open your mind and increase your financial IQ!

1 comment:

Ryan Shamus said...

Nice post!

Just wanted to thank you for the comment, and I added a link to your site right away. You have links to a lot of useful sites, which is very nice!

Anyway, best of luck and thanks for linking me back in return :)