There is No "Rich Dad", Really
Frankly, this is borderline fraud. Let's say you try something like this, and the other party, with too much to lose, decides to call your bluff, and SUE you in court, you will be ordered by the judge to reveal your partner. Kiyosaki, if he had actually tried it, was lucky that no one called his bluff.
There are also many "questionable examples" given in his whole series of books. And as always, it was real estate investing that drew the most fire. He gave examples that are just too good to be true, according to most real estate investors. However, if you are to believe Mr. He suggests that you can do so too. However, other real estate investors explained that those are "once in a lifetime" type deals. For other erroneous advice given in the Rich Dad books, see John T. When questioned about these errors, Mr.
Kiyosaki stated that the examples given are just that: Two of Robert Kiyosaki's hypothesis attracted even more criticism: The problem with this idea is virtually all currencies around the world now are free-floating.
6 Principles of Financial Success: Lessons from Rich Dad, Poor Dad
Nobody use gold-backed currencies any more. So if the US dollar falls consistently against other currencies also not backed by gold , there must be some OTHER explanation for the falling worth of the dollar, not just because it had gotten off the gold-standard.
I remember when it was yen to 1 dollar. It's now like 90 yen per dollar. Another idea, explained in "Rich Dad's Prophecy", basically says that the stock market WILL collapse, MUCH bigger than this subprime mortgage mess, because baby boomers are retiring, and thus they will start taking money out of mutual funds, k s, CD's, stock markets, and so on so they actually can live on them.
This will cause the market to crash.
Thus, you should diversify your holdings by investing in real estate and precious metals like gold and silver. Which, of course, Mr. Kiyosaki will sell you lessons on, be it seminars and coaches to books and tapes and whatnot. A book that discusses Wall Street rumors discussed the idea, and found it to be "chicken-little" "Sky is falling" type alarmist view, sorta like the alarmists. Basically, while it's true that babyboomers are retiring, they don't do so all at once, and thus, the threat of all that money leaving the market will be over period of decades, and the effect on market should be minimal, or at least, nowhere as close as Mr.
Kiyosaki claim to be. So why would Mr. Well, let's just say that some people are natural-born storytellers. They can take a simple story, and add a lot of dramatic flair to it, so it becomes more than a story, but an inspirational legend. A lot of the folk heroes and anti-heroes are handed down this way from generation to generation, and the story grew in each retelling.
The story of Robinhood, Sherwood Forest, Sheriff of Nottingham, and Maid Marion probably did happen, but it was nowhere as glamorous as the story was. That is what is going on here, with Robert Kiyosaki's stories and books. Kiyosaki had said that the Rich Dad series is really meant as motivational, instead of actual practical advice. In the book "Rich Dad's Guide to Becoming Rich without cutting up your credit cards ", he gave the example of his prized Porsche. He bought it, but he also bought a business and used the excess cashflow to fund the luxury car's monthly payments, thus, "turned bad debt into good debt".
Okay, that almost sounds reasonable, until you realize somehow he was able to afford the down payment on the car which won't be cheap, as it is a collectible, probably in the K range , AND the down payment for the business, which presumably costs even MORE than the car, to generate that sort of excessive cashflow to pay for the car. However, no actual figures were mentioned. Somehow you're lead to believe that the business paid for the vehicle, period.
Most of us don't have that much cash around. While it is important to illustrate the advice with examples that inspire, the inspiration can lead people down the wrong path if not explained properly. It is a common theme in his books that the educational system is outdated, not teaching the stuff one should learn in the real world, and teaching people to become employees and self-employed. The problem is, it is very easy to take that idea out of context. At least one parent have reportedly complained that her child read Rich Dad Poor Dad and now refuses to go to school, cites the book to be his inspiration, claims education is useless, and that his parent a single mother is feeding him obsolete information to keep him poor.
Kiyosaki himself have stated in his books that one must finish college, because it is a good investment in oneself, and that the money one can earn as a college grad is like five times higher than a high school grad. It is implied that you should graduate college THEN think about being an entrepreneur. However, then he starts to cite Michael Dell and Bill Gates and such, who never DID graduate from college both Dell and Gates dropped out of college after 2 years to pursue their dreams of being entrepreneurs.
And since one of the ways to financial freedom is to be an entrepreneur, that part about being college grad is quickly tuned out and lost among the message that education is obsolete and useless. Bill Gates may have dropped out of college, but he was in Harvard for two years, and he was not quite successful until IBM went to him for PC-DOS, and he basically bought someone else's version, customized it a little, and sold it to IBM.
I doubt even Bill Gates had actually anticipated the success of the PC, but he was able to capitalize on the success and build his fortunes by studying the market and react to customer needs as well as go after all threats by assembling a good team such as Paul Allen. In other words, entrepreneurship require more than will. So you see, there is some use after all.
In another case, the advices conflict with each other. In one book, the advice is "go big or go broke". In another book, one is recommended to start with small real estate deals, and trade up later. So what is one supposed to get from the Rich Dad series of books? After amassing a collection I have all books except Rich Dad's Prophecy, and several of the advisor series books as well I can tell you this: Despite his allegedly failing English, he is excellent in reducing problems down to a soundbyte that one would care about, and present equally succinct and pithy answers which he then attributes to "Rich Dad", then comes up with a lot of examples, anecdotes, experiences, and such that enhances his answers but those may be embellished.
The problem is, the financial world is NOT quite as simple as it sounds, and some of his answers are a bit TOO succinct and pithy that it can easily be misunderstood, or taken out of context. In his latest book, Improve your Financial IQ , he related a story about facing down an IBM hiring manager who was about to tell him to take a hike as he didn't have an MBA unlike the other candidates.
He claims he ranted about how he had more courage than any of the other draft-dodgers by facing down VC and death every time he flew in Vietnam as a gunship pilot, and sales is about courage to fail, and he practically shamed the hiring manager into picking him instead of the other candidates who came in suits he came still in khaki uniform.
Rich Dad Poor Dad author Robert Kiyosaki warns ‘biggest crash’ is coming
Personally, I think the story got embellished in the retelling. The real incident is probably nowhere as dramatic as that. Stories do get embellished in the retelling. Thus, I found it interesting to discover that Nichelle Nichols, who played Uhura on the original Star Trek series, regularly repeats her encounter with Dr. Martin Luther King Jr. And from people who have gone to a lot of conventions, the story gets longer and more embellished in each telling.
While there's no doubt that she decided to quit, but later stay on the series despite it's a "bit part", and she probably did meet MLKjr at an NAACP convention, she claims that MLK jr told her personally that he's a fan of the show, and that she must stay on the show because there must be a black person in space in the future, or something like that.
However, some reported that in the earliest conventions, she merely claimed that MLK jr "inspired her" to stay on Star Trek. However, if you search on the Internet now, it's full of articles about how a meeting with MLKjr turned her around. Take Rich Dad series of books for what they're worth Those books have the actual how-to steps that are of practical use, and are written by people who were actually there and do things. Just beware of the motivational claptrap that got tossed in there along with the book.
As I read more and more of Mr. Kiyosaki's books I found that he is starting to rehash his own ideas. Cashflow Quadrant is basically an expanded idea upon the concept of asset and liability, and rich vs. He conveniently divided each side into two and came up with the quadrants. Rich Dad's Guide to Investing is basically a slightly more detailed version of Cashflow Quadrant , with explanations on how to move into the I and B quadrants.
He expanded that into "5 Financial IQ", 2 of which is "protecting your money". Rich Dad's Guide to Becoming Rich without cutting up your credit cards. So, are the books worth reading? Yes, it will give you a paradigm shift, so to speak, as it will present you with a new way of thinking, a new viewpoint that you may not have considered before. And that is always useful.
You'll find that most of the advice given in the books are more philosophical than practical. Thus, those who seek formulas i. Kiyosaki said so as much in one of his books.
‘Rich Dad Poor Dad’ author Robert Kiyosaki appeals for financial literacy
If you need philosophical advice to get through your lack of motivation, then yes, his books will help. Keep one thing in mind: Don't take all of his assertions for granted. Just because he says so doesn't necessarily mean it's true. Sign in or sign up and post using a HubPages Network account. Comments are not for promoting your articles or other sites. Well I think you have to keep in mind that this is a book of the self-help genre that is more fiction and inspiration than fact.
Like the Secret, How to Win Friends and Influence People, Og Mandino books they have a following that is almost cult-ish and people tend to take what they say as literal fact. I perused the title years ago and was a bit skeptical but as someone who worked in a library, amazed at the following the book had. Keep in mind that if everyone who read the book followed the advice within and was successful, there would be no poor or the measure of what is actual wealth would be greatly elevated. It still might make for some interesting reading and may have some good points that insprie or enlighten.
However, you are correct that it is basically fiction. As a scientist, trained for decades to be a skeptic, this book is almost certainly a fiction. Sure some elements of it have happened, but there is not way someone would convince me of the story being told about this rich dad. The first sign that triggered my skeptic brain was in the very few pages, when the 9 years old kids are supposedly trying to print money The story goes in so much details about how this 9y old kid asks questions well beyond his age.
If the story was told of a y old maybe I will buy it, but 9 y, no way in hell. I stopped reading the book after 3 chapters, and have been researching about the authenticity of the story. Short story it is fiction. There are some news about this rich dad identity but it sounds more plausible that it was a made up story as well. You missed the whole point of the book, whether or not it was real the book sent a powerful message to the world. If you missed the message read it again. From what I'm getting, Robert here his tryna show us that not only education we get from the classroom be not the only instilled knowledge in us or our children, but to learn the skill and technique to be streetwise as well.
Hence he emphasise on practical financial education through life visual communications. If it takes a whole book just to get that point across it's worth reading.
My simple question to critics is what have you done to inspire anybody to take a different and positive route in life. Have you taught any body about no limits to your income as the 1st rule of wealth? Have you shown anybody that no matter where they are in life, that success is a learn-able skill?
And people like Robert Kiyosaki, Tony Robbins and Harv Eker have done more to bring awareness of what is possible to a large number of people. A closed mind does one of two things when presented with new information and that is - 1. I already know that and 2. Try to discredit the person that delivers the message. I will close this by quoting one of my mentors T Harv Eker: The world was flat then round, you can't be in 2 places at the same time - then quantum physics. When you hear things like https: It's funny all the people only commenting on "Who cares if rich dad doesn't exist, when the author of this article talks about so many more and more important topics tear apart the "quality" of Rich Dad Poor Dad.
Rich Dad Poor Dad's readers are mini-cultists. They like to believe they've learned a "secret" that sets them apart from the ignorant masses. It makes them feel special, so they're loathe to learn anything negative about their mini-messiah. The book covers a few basic concepts of wealth management that aren't at all secrets: Those are common sense. Then the book delves into, as the author mentions, dumb practices such as the contract example, that aren't just risky, but also illegal, or just plain dumb.
So while entrepreneurs such as Kiyosaki are waiting to run into the next crash, the poor and the middle class run away from it. As Rich Dad taught him, business and investing are team sports. Without financial education, the poor middle class cannot see what the rich are doing. All I do is tell people to stand on the edge of the coin and look at all sides. Like anyone, Kiyosaki does have his share of detractors. Some have called him a fraud because his books are anecdotal, or even claim that Rich Dad is a fictional character.
The skin is oddly translucent and the nail slightly discolored, the kind of bruised, off-green you'd associate with trapping your finge Kiyosaki, who has faced criticism over the years for various issues including his real estate investment advice, said he was still a fan of real estate. Are you a good cook? I was making more money off my real estate course than my MBA. Kiyosaki also shares the unique distinction of being the only person to have co-authored two books with US President Donald Trump, and was a supporter or the Republican during the election.