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adrw // Andrew Alexander

Rich Dad Poor Dad: the Rich Teach Their Kids About Money

Books, Author(Robert T Kiyosaki)1 min read

2017 | Robert T Kiyosaki

The famous book is often mentioned in real estate investing (landlord) and other personal finance and investing videos. I thought it would be good to read (or listen) to the source material.

Written largely in narrative style retelling stories from childhood learning from his friend's dad ("Rich Dad") and contrasting with his biological, socialist dad ("Poor Dad"), the author presents important personal finance topics in a digestible format.

I can better to understand the skepticism of the author given some suggestions such as 16% property tax lien investments or joining multi-level marketing schemes as a way to learn the skill of sales. Though the ideas aren't necessarily bad when taken with nuance, the author doesn't disclose much in terms of the risks of choosing a bad property lien or going into MLM thinking that you will make money from the scheme itself (and not the skills developed applied in a different business).

The broad philosophy he espouses make a lot of sense when strained for his more eccentric, non-nuanced suggestions. Some good philosophy includes buying assets (investment properties, stock, businesses that return to you cash flows) and not liabilities (personal homes that suck cash flows dry), not pinning your financial future purely on university education, learning from those who are "doing" and discarding advice from those on the "sidelines", and taking concentrated investments early on in life where time is on your side.

I wouldn't recommend this book as the only book you read on finance, but it is a good gateway drug into eschewing the conventional societal financial "wisdom" that is actual ruinous folly.

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