Wealth is assets earning income! Rich Dad Son's, CD explains how to teach pre-teens, mental processes necessary to solve financial problems. You will learn how basic misunderstanding of what is an asset; can lead people down very different roads. We are talking about assets that earn income for you, instead of you working for assets that are really liabilities. You will earn how to communicate in terms used by the wealthy. A misunderstanding of what an asset is is how many financial institutions make a living off clients. The difference between what the rich teach their kids about wealth, really boils down to the difference between how they define simple words like assets, wealth, and how they fund luxuries. Simplistically have pre-teens look at buying things as it relates to cash flow. It is very easy. Take a piece of paper. Draw a line down the middle. List income-producing assets on one side, liabilities on the other. An asset either earns income (i.e. increases in liquidation value) or it is a liability and does not. "Assets put cash in your pocket, liabilities take cash out of your pocket." No one can dispute that the rich buy "income-producing assets," the problem is the poor buy liabilities that they think are assets, which clearly do not earn anything, and may have no market value. Wealth is measured as the number of days the income from your assets will sustain you. Financially Independence is when your monthly income from assets exceeds your monthly expenses. Rich Dads Son teaches you how the rich can buy Luxury sports cars at 50% less than what the non-rich pay. 1. Save 25% by not being the first to drive it off the lot. 2. Save 30% by using after tax dollars 3. Save 100% on interest charges 4. Pay ancillary expenses with after tax income 5. The rich do not work for luxuries. The rich earn the funds first, and then buy. The poor buy first, then work for money. In summery students learn to measure wealth in asset earned income. They learn to look for opportunities to add to there income earning assets. They learn if they want luxuries, they should earn the funds first. -ooO-(GoldTrader)-Ooo- ?[/url]
As it was a real eyeopener nevertheless The Richest Man in Babylon is the source on which Kiyosaki's books are based upon. I have a downloadable summerized PDF version on my website. Tamarz
Like any other man in his circle, he's just repeating common sense. as sense that very few of use. its all in the way he delivers it.
the sad thing is that it IS common sense, yet we all fall into the trap, or at least most people do. It is very hard to go against the grain. When you start making money, and you see the guys on TV with all the toys, it is hard to stop yourself from doing that too. From my own personal experience, working in the financial industry for many years, plus I have many old friends from school that are all making good money. You know what, none of them has any money left over. A buddy of mine makes over 100k per year, but I doubt if he has 3 grand in the bank. Big house (which he just bought, probably at the top of the real estate pricing bubble), 2 cars, goes out almost everynight. He blows at least 200 bucks a night on the weekends drinking (thurs-sunday). He's also got the $3k watch etc... And he wonders where all his money goes.... It's like watching a train wreck, but just slowly... The Rich Dad series is a good wake-up call, even if it is old style common sense.
I read a book Kiyosaki recommended in his "Cashflow Quadrant" book, and it's a great inspiration to stop going after the toys and put wealth-building above spending. It's called "The Millionaire Next Door," by Stanley. I'm sure you've heard of it--it's been a national bestseller for a while--but, have you really READ it? I am a status-seeker type that's learned that status-seeking rings hollow; there's no gold at the end of this rainbow. Now, don't get me wrong, I'm not going to start living like a miser like many of the truly affluent described in this book--happiness is greater than money, after all--but I have definitely shifted my priorities towards financial security and financial independence after that.
At least 50% of this article is BS. I already read it after my first Rich Dad book. Now I read three more of Kiyosaki's books last year and I can honestly recommend all of them. There are a lot of good ideas in them. It doesn't matter that he glamorized his past or present and that he made up some things to tell the story. The story is still good and you can learn a lot by reading his books.
What is passive income? Actually it is mostly real estate that you do not live in and passive interest and dividend on holdings. Now we all know how much the dividends we can depend on from common stocks - measly 2-3 percent is the average SP500 div index. Rich Dad and Poor Dad and the rest of the mumbo jumbo talks about sheltering your money from the IRS and invest in RE. You can invest RE in your IRA hence never pay taxes on it yet you can draw or even better borrow. Now please buy my books and seminars not that guy's , I just blew the lid on Kiyoshaki and his stupid book. I have tried to read it but it is dull and just talks nonsense on an 8th grade level. The jest of it is here, above. He never made a dime before he made millions on Tapes, books, etc etc
I think Scientist pretty well sumed it up with regard to value of ANY book. And that is..... what ever information you get out of it is what you didn't have before. Kiyosaki's repetition was boring, but then my financial mindset was already higher than most people's. But for someone totally in the dark, there is some good information there. I personally wouldn't discount anything that another might find value in. I don't know them, I don't know how they think or what their attitude is.