Rich_Dad_Poor_Dad by MonikaKam

VIEWS: 13 PAGES: 2

									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 market today.


Keywords:
Rich Dad Poor Dad, personal finance, investing, make money, real estate
investing, Robert Kiyosaki


Article Body:
A lot of people have read Robert Kiyosaki's books (and he has a lot of
them), but this is the one that started them all.

I think what endears people to Rich Dad Poor Dad is the story. It seems
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 your info
into a story.

Rich Dad Poor Dad is the story of Robert learning the habits of the rich
from his best friend's dad. Robert's own dad was a highly paid, highly
educated government official, but who ended up poor (this is his "poor
dad"). His best friend's dad was not highly educated, but he started lots
of businesses, bought lots of real estate, and invested in stocks. He is
"rich dad".

Some lessons or themes that keep coming up:

*School prepares you for a job while financial education prepares you for
better financial habits that lead to a more prosperous life

*The rich invest in ways that the poor and middle class do n ot

*The rich invest in assets that produce class flow, and then reinvest
that cash flow into other assets

*The poor invest in liabilities, or things that take money out of their
pockets

*The middle class tend to go to school, get a job, buy everything o n
credit, get raises, then buy bigger houses and nicer cars, under-save and
under-invest, and then retire on less than what they should have.

*There are 3 kinds of income:
    -Earned income (what you make when you're there)
    -Passive income (money that comes to you when you're not there...that
can come through     businesses, real estate income, intellectual
property, etc)
    -Portfolio income (money that also comes when you're not there...but
specifically from stocks, mutual funds, and other such paper investments)

As it turns out, Robert didn't go on to become a rich guy too soon into
his adult years, like his best buddy 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 timeline wrong, but he he was a top-selling
Xerox sales rep for several years. And then he went on to start a
successful business importing/selling those Velcro nylon surfer wallets
from the eighties. Remember those? After a few years, that business went
bust.

Eventually he made the jump into buying assets...income producing real
estate...and within 8 to 10 years, he and is wife retired. Then six
months later he came out of retirement to start his financial education
business...which includes his books, board games, tapes, seminars, etc.
In reality, it sounds like he's started a whole ton of other businesses
too, but that's what I've pieced together from other books of his that
I've read. Notice that most of his activities center around passive
income?

It's a great and easy read and should 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 Robert's students that have taken his
advice and who started businesses or are collecting assets that produce
cash flow.

There's so much more that can be said, but it's time for you to start the
adventure of reading a new book. Try to think of "Rich Dad Poor Dad" a s
financial education; it will make the purchase that much easier to
justify.

								
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