VIEWS: 9 PAGES: 5 POSTED ON: 12/26/2010
Title: Rich Dad Poor Dad Word Count: 592 Summary: A book review of "Rich Dad Poor Dad ". This is one of the most popular personal finance books on the marke t today. Keywords: Rich Dad Poor Dad, personal finance , investing, make money, real estat e investing, Robert Kiyosaki Article Body: A lot of people have read Robert Ki yosaki's books (and he has a lot of them), but this is the one that st arted them all. I think what endears people to Rich Dad Poor Dad is the story. It seem s to me that whenever a non-fiction book teaches with stories, it does very well. So, if you're going to write a non-fiction book, weave you r info into a story. Rich Dad Poor Dad is the story of R obert learning the habits of the ri ch from his best friend's dad. Robe rt's own dad was a highly paid, hig hly educated government official, b ut who ended up poor (this is his " poor dad"). His best friend's dad w as not highly educated, but he star ted lots of businesses, bought lots of real estate, and invested in st ocks. He is "rich dad". Some lessons or themes that keep com ing up: *School prepares you for a job whil e financial education prepares you for better financial habits that le ad to a more prosperous life *The rich invest in ways that the p oor and middle class do not *The rich invest in assets that pro duce class flow, and then reinvest that cash flow into other assets *The poor invest in liabilities, or things that take money out of thei r pockets *The middle class tend to go to sch ool, get a job, buy everything on c redit, get raises, then buy bigger houses and nicer cars, under-save a nd under-invest, and then retire on less than what they should have. *There are 3 kinds of income: -Earned income (what you make wh en you're there) -Passive income (money that com es to you when you're not there...t hat can come through businesses , real estate income, intellectual property, etc) -Portfolio income (money that a lso comes when you're not there...b ut specifically from stocks, mutual funds, and other such paper invest ments) As it turns out, Robert didn't go o n to become a rich guy too soon int o his adult years, like his best bu ddy did. Robert went into the Navy to learn how to sail ships, then to the Marines to fly helicopters in the Vietnam war. I might have the t imeline wrong, but he he was a top- selling Xerox sales rep for several years. And then he went on to star t a successful business importing/s elling those Velcro nylon surfer wa llets from the eighties. Remember t hose? After a few years, that busin ess went bust. Eventually he made the jump into bu ying assets...income producing real estate...and within 8 to 10 years, he and is wife retired. Then six m onths later he came out of retireme nt to start his financial education business...which includes his book s, board games, tapes, seminars, et c. In reality, it sounds like he's started a whole ton of other busine sses too, but that's what I've piec ed together from other books of his that I've read. Notice that most of his activities center around pas sive income? It's a great and easy read and shou ld shock you out of your usual way of looking at money. Another one of his books that I like a lot is one he didn't even write by himself... aptly named "Success Stories". It's a collection stories by many of Ro bert's students that have taken his advice and who started businesses or are collecting assets that produ ce cash flow. There's so much more that can be sa id, but it's time for you to start the adventure of reading a new book . Try to think of "Rich Dad Poor Da d" as financial education; it will make the purchase that much easier to justify.
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