Did you read Rich Dad, Poor Dad?

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archcommus

Diamond Member
Sep 14, 2003
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Just finished this book up today. For one thing I have to say I hate how unrealistic the initial story seemed. The whole ordeal of two 9-year-old boys being taught by one of their fathers. For one, 9-year-olds don't talk or think the way those kids did in the book. For two, that "rich dad" was an absolute a$$ in terms of making fun of the other dad and calling him poor, stupid, etc. Was that whole story even real?

Second, I think a lot of good points were made in the book, about how assets are so important and how liabilities only pull you down, however often times it seemed like it was really just a book written by a guy who is a crazy risk-taker and invester who likes to buy property and big stocks. This of course is not something everyone is destined to do, but it is made to seem that it is necessary to ever become free.

Can anyone else discuss this book and what they learned from it?
 
Queasy

Queasy

Moderator<br>Console Gaming
Aug 24, 2001
31,796
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I got about half way through it and got tired of him making essentially the same point over and over and over again.
 
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91TTZ

Lifer
Jan 31, 2005
14,374
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I read it. I didn't take the story literally, I think he was just trying to get points across. The points were pretty good, they were just simple fundamentals that most people never bother learning. I didn't get into the whole real estate thing since that seemed shaky, but the basics of it are sound, such as:

1. You'll make more money if you have workers working for you
2. Tying up your money in liabilities is a great way to prevent you from building wealth.
3. Let your money work for you.

These are real basics that any businessman can tell you, so it's nothing groundbreaking. But sadly, when you see some kid get his paycheck and blow it on a set of wheels, or get a new job and instantly go out and buy a new car, you see that most people simply don't get it.
 
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archcommus

Diamond Member
Sep 14, 2003
8,115
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76
The problem I found after reading it is that, even after the author pounds into you for many chapters that you should not fear losing, and that losing should only make you stronger, I don't think that is something I could shake off enough to invest in the ways he mentions. Over the course of the next four years I will be having to dish out 15-20 thousand dollars each year for my education, and after I'm out of school it's not like I'll have tons of dough to toss around either. I don't see how I could consider it reasonable to risk putting 10, 15 thousand down on some real estate and just hoping it will boom and earn me money. I understand that Kiyosaki got rich doing this, but think of how many others got dirt poor.
 
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DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
Read Viper's link, like most people pushing a book or "system" it is selling the book itself that has made him semi-wealthy not real estate.

You can make money in real estate, but it takes a lot of work and a fair amount of luck to do better than just writing a check to Vanguard.com for some shares of their VFINX fund.

A lot of the people buying foreclosures, fixing them up, and selling for a profit either put hundreds of hours of their own work into the property, or scores of hours acting as their own contractor hiring and managing other people.

If you don't have these skills you should probably be looking at some other business, but be careful of falling into some other scam like a worthless franchise "opportunity."
 
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archcommus

Diamond Member
Sep 14, 2003
8,115
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Originally posted by: DaveSimmons
Read Viper's link, like most people pushing a book or "system" it is selling the book itself that has made him semi-wealthy not real estate.

You can make money in real estate, but it takes a lot of work and a fair amount of luck to do better than just writing a check to Vanguard.com for some shares of their VFINX fund.

A lot of the people buying foreclosures, fixing them up, and selling for a profit either put hundreds of hours of their own work into the property, or scores of hours acting as their own contractor hiring and managing other people.

If you don't have these skills you should probably be looking at some other business, but be careful of falling into some other scam like a worthless franchise "opportunity."
Click to expand...
Why did you choose to mention getting into a franchise? Are you thinking of something in particular?
 
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DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
Originally posted by: archcommus
Originally posted by: DaveSimmons
If you don't have these skills you should probably be looking at some other business, but be careful of falling into some other scam like a worthless franchise "opportunity."
Click to expand...
Why did you choose to mention getting into a franchise? Are you thinking of something in particular?
Click to expand...
Just because a franchise is the next thing many people think of for a "be your own boss" business. Then they pay to get a non-exclusive right to sell knives, pay phones, water filtration, a "turn-key web business," etc. that is usually worthless because the merchandise or service is overpriced and/or easily available from a normal business.

Many companies legally prey on people wanting to improve their lives by selling "sample kits," training materials, seminars, etc. for some product that can be bought for half the cost at Wal-Mart, or where the only real way to make money is to sucker new victims into joining a pyramid (MLM = Mult-Level-Marketing = 99% chance a scam).
 
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DJFuji

Diamond Member
Oct 18, 1999
3,643
1
76
I initially thought it was a good read, but now that i read that article, it is kind of suspicious that there isn't really any specific advice in those books. Just a bunch of repeated mantra about real estate being the way to go and that there are no rewards without risk.

On the other hand, the book was supposed to be revolutionary for its mindset -- not for its specific techniques. I thought the attitudes the book encouraged were good-- that people will continue to be stuck in the 'rat race' if they constantly increase their liabilities to meet their income/assets. A simple premise, but one that is not highly stressed enough to most consumers. The book has some good points but i don't consider it the holy grail of getting rich quick. Reminds me of a quote i once heard about someone giving ridiculous advice and the moral being to beware of advice from successful people-- they don't like company.
 
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DeeKnow

Platinum Member
Jan 28, 2002
2,470
0
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i read about ten pages, then cursed the bastard for wasting my 10 minutes...
it's amazing the kind of crap that makes it to bestseller lists... JEEZUS!!
 
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0roo0roo

No Lifer
Sep 21, 2002
64,795
84
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Read Viper's link, like most people pushing a book or "system" it is selling the book itself that has made him semi-wealthy not real estate.
Click to expand...

yea, rich dad writes and sells books on how to be rich.

thats what i remember from the site. most his assets are from the book.
 
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No Lifer
Sep 21, 2002
64,795
84
91
maybe penn and teller will rip into him sooner or later. they certainly did on the self help/love books. "men are from mars women are from venus" and such..from people with fake degrees lol:)
 
kranky

kranky

Elite Member
Oct 9, 1999
21,019
156
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I think the book is lousy, but I give you credit for putting effort into increasing your knowledge of personal finance.

If you plan on reading other books on the topic, I suggest The Millionaire Next Door. It's not a "how-to" but you'll see that there are many, many wealthy people who live frugally and the value in not squandering the wealth we do have.
 
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Orsorum

Lifer
Dec 26, 2001
27,631
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Like most everyone else has said, glean the good points that you can from it, and then read a better book like The Millionaire Next Door.
 
GasX

GasX

Lifer
Feb 8, 2001
29,033
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Originally posted by: Orsorum
Like most everyone else has said, glean the good points that you can from it, and then read a better book like The Millionaire Next Door.
Click to expand...

Which does a much betyter job of getting the message accross: LIVE WITHIN YOUR MEANS

i.e. buy used cars, pay off your credit cards, save your money, don't increase spending when you get a raise.
 
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archcommus

Diamond Member
Sep 14, 2003
8,115
0
76
If I knew it was on infomercials, Goose, I wouldn't buy it, either. Then again, I didn't buy it. ;)

It seems I already know the basic points that Mwilding pointed out above. I am already a frugal person by nature. As far as the points RDPD tries to get across, such as investing in real estate, well, I don't have that kind drive and risk-taking attitude, and as such doubt I will ever dabble in that.
 
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