A look into an individual who had two lanes of financial information at a young age. One lane being his dad who was well educated but lacked financial knowledge The other lane being his friend’s day who was not classically educated but was always very wealthy. Which one would you take lessons from?
Rich Dad Poor Dad : What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! – Robert T. Kiyosaki
Here is one of those books that I’ve heard of repeatedly in the last few years and finally gave it a read. This very successful book has been recently updated which is the version I read.
The title itself is interesting and straight forward enough. Growing up I didn’t get a lot of lessons from either of my parents about money. So now that I’ve made a lot of decisions on my own at this stage, I was hoping to find a bit of knowledge and a few resources to see what information was being pass around by others.
The book starts simple enough: the author’s dad was a successful, college educated family man who always struggled with money while the author’s friend’s dad was a high motivated, wealthy, school drop out. It really sets the tone for two methods of thought. One being what (I’m assuming) most readers will fall into which is get smart, go to college, find a secure job and wait to retire. The other being use your mind and resources around you to find how to make your money work for you.
While it starts off as a history lesson in the author’s life, it does turn into a basic breakdown of steps to take to achieve financial freedom. Now these steps are pretty vague and you’re not going to get rich from finishing it, but it does offer a unique perspective on what to do with money when you have it and how to turn nothing into something. These ideas are obviously not easily done without proper knowledge and training, but the idea behind it is simple enough.
It’s a fairly quick and easy read without getting into gritty details unless it’s necessary. I enjoyed it and even though some of it was above my head, I do think I walked away with a few ideas to hopefully implement in the future. If the ideas in I Will Teach You To Be Rich were a bit too “safe” or you already have some cash or big ideas to try out, Rich Dad Poor Dad may be more of your speed.
Who should read it?
For myself it was a good read. I’m currently doing little to nothing being stated in the book as it does fall a bit past my current risk toleration. That doesn’t mean I didn’t learn something from it and it does try to motivate you to take a risk here and there for the sake of learning something new if you fail.
If you are ready to take some risks (nothing too big) and you’re not sure where to start, this may be a good read. It should give you some confidence to move forward and re-ensure that even if you fail it won’t be for nothing. It gives you a few avenues to research and starts some gears in your head turning about a few topics. I think someone with college level life experience would appreciate this book, maybe a bit younger if you’re interested in the topic. I’m a bit past this age group but again, I enjoyed it and was able to learn a bit from it.
Part of my risk toleration being low is my own lack of confidence in financial situations. I enjoy being safe with funds as I like having everything at my finger tips if I need it. That’s not the best ideology though and as I learn more about financial situations, I’m learning more that I do have some funds that could be better utilized elsewhere.
Hence why I’m reading a few of these books to see what are some ideas other people have that meet my risk tolerance. At this stage I don’t mind taking a small risk but I also want to fully understand it before I move forward. I don’t consider a Roth IRA really a risk even though it is technically. That’s because I understand enough of it to know what it does and how it works. It’s not a complicated vehicle.
Buying properties to rent out or hold to allow it to appreciate is a bigger risk for me, especially where I live right now. The book talks about real estate as his method of choice but also explains that it doesn’t have to be real estate. So it does have me thinking of what else I could invest in that is not stocks. This would also need to be low risk and something that I can learn about and understand. Keeping an eye out for ideas is part of what you learn in the book and I hope to move forward with idea and see where it leads.
This was only the second financial book I finished. The next one is more focused on stock investing but I did enjoy seeing various angles on a topic that is so broad and so common at the same time. I hope to continue seeking out some of the better selling books and continue reading on this topic.