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Wednesday, March 29, 2017

Book Review: Rich Dad, Poor Dad

Posted by Tim Stobbs on March 3, 2008

Ok, I’ll admit I have been avoiding reading Rich Dad, Poor Dad by Robert Kiyosaki. Why? Because in the beginning when I started reading about personal finance there was too much negative comments on blogs about the book. Yet over time I also come across some good comments, so I thought I would take the chance and read the book.

First off I have to say it was one of the worst written books I have ever read (and given I read at least one book a week that will give you an idea of how poor it was). He couldn’t stay on a topic, he talked about this and then gave an example of that and then got back to this. It was painful to read due to a lack of organized thought.

In all fairness to Kiyosaki he does have some useful lessons like focus on getting income producing assets rather than debt and the fact that a corporation’s structure is a good thing to use if you have any business interests. He also does a fairly good job of motivation and trying to convince people to think outside of the box.

My basic complaint about the book is this: he does have some points, but frankly there are some much better books out there to achieve the same goals like the The Millionaire Next Door and Your Money or Your Life. I found his writing overly arrogant, his investing examples unreasonable for the average person and it annoyed me he didn’t provide one single solid piece of advice on how people should get started on anything.

All he did was go on about “You should do X and you too can be RICH.” Listen, I don’t care to be ‘rich’, all I want in financial independence I could care less if I ever drive a sports car. In reality his brand of fast talking bull is downright dangerous to a new person to reading about personal finance. It sets up unreasonable expectations and teaches people to take risks when potential it could be down right foolish for them to be taking risks (ie: already drowning in credit debt).

In my humble opinion most people would be better off never touching this book as there are a few lessons in it, but the negative parts far out way any usefulness I found in those pages.

Comments

11 Responses to “Book Review: Rich Dad, Poor Dad”
  1. That’s a fair summary. It’s good for motivation and maybe (just maybe if you are feeling charitable) a few basic pointers but otherwise the book is badly written and potentially dangerous rubbish and best ignored.

    There are a lot of better books on finance and investment out there.

  2. nobleea says:

    If you haven’t read it before, check out John T Reed’s analysis of Kiyosaki’s book.

    http://www.johntreed.com/Kiyosaki.html

    If Reed is to be believed (and he lays out a convincing argument), Kiyosaki is a liar, tax evader, criminal, and military deserter. And very poor writer.

  3. I wrote about post about this topic:

    http://www.thickenmywallet.com/blog/wp/2008/01/08/if-i-could-re-write-rich-dad-poor-dad/

    In one of the comments, someone from the Rich Dad, Poor Dad empire admits that the book was written to support the board game. I checked the trademarks and copyright on the game and book and the book was indeed written before the game.

    I agree with you that The Millionaire Next Door should be required reading.

  4. I had to go back and check my notes on this one.

    I read this book a few years ago and made lots of notes at that time. I had absolutely no negative comments at that time. I thought the book was filled with good advice.

    Sorry to disagree here.

    CM

  5. Will says:

    I, too, was unimpressed with the book and, truthfully, did not finish it.

    It feels too much like a marketing tool. Looking at the multiple offerings under the Rich Dad brand, I don’t think that’s much of a leap.

    It feels a lot like Bachrach’s Values-Based Financial Planning and that’s not a good thing.

    My brief time with Rich Dad, Poor Dad turned me off the Kiyosaki empire completely.

  6. julz says:

    I read this book when I was 22 or 23 and it was great. Within 6 months my partner and I had purchased our first 2 properties because we wanted to buy “assets” that would generate passive wealth (the two concepts that sunk in from the book). I lived in one of those purchases for a few years but it was a strategic purchase – I wanted to take advantage of the first time home buyers plan, and put less money down. After a couple of years it became another rental property.

    We credit this book with getting us started down the road to financial freedom. BUT, as I read your post and that of John T. Reed’s I wonder if I would still feel the same about the book now that I actually understand most of the financial topics he writes about. I recently wrote a review of the book and had trouble picking out the reasons why I thought the book was so good. While I know it really was the reason I got into real estate – I was young, inexperienced and easily impressionable. I never agreed with his stance on education, and went on to do an MBA a year or so after reading the book. I read a few of his other books after this one but grew tired of him, and was annoyed that he had taken a couple of decent concepts and whipped them to death in 100 different ways. Thank you for your post, and thank you nobleea for the John T Reed post. My mind is really going now and I am going to rethink recommending this to other beginner real estate investors as we do right now.

  7. I think your review was spot on. Truth is, his book was the 2nd book i read that had to do with money, and if i was not into checking out some of the details that he mentioned, i would have a false impression on how things are done. That said, he did motivate me to where i am today.

    I would enjoy review his book again some time.

  8. Maria says:

    Rich Dad, Poor Dad is the worst personal finance book I have ever read, and I have read many.

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