Rich Dad Poor Dad Thoughts?

[Samson Kay]

On a vacation to Whistler this past week I managed to read Rich Dad, Poor Dad (in between shredding the slopes) and thought that it was an interesting read. The concept of the rich buy assets versus buying liabilities made common sense even though I never thought to put it into words that way. And his discussion about always paying himself first.

How can he do that?! Is he saying that he always pays his salary first before all debt? And what kind of liabilities is he talking about? I mean people like nice things, but nice things arent generally good investments (i.e. boats, cars, diamonds).

What do you guys do? How do you incorporate the Rich Dad Poor Dad philosophy into your business?

[Ali Boone]

I stand behind the Rich Dad Poor Dad books (and mentality) all day long. I've read numerous books of his and I can truly say that a lot of the principles those books taught me are why I am where I am today (which is working for myself, living my dream life, etc). Had it not been for some certain principles I learned from him, I wouldn't have been able to make some of the investments I have, survived the sanity-trial of becoming an entrepreneur, and have a tight grasp on how to make things work.

It's true, it's not a how-to book. Anyone who knocks on it for not being one is crazy... why does it have to be one? The point of the book is to teach a mentality that is very foreign to most people. It's a required mentality that you have to understand in order to accomplish a certain set of things. You can't just jump into the how-tos without understanding the fundamental premises behind knowing why you are doing what you are doing. That's what he teaches. Not how to buy a rental property or flip a house.

A liability is anything that doesn't increase in value. A TV, a car, some argue a primary house, clothes, vacations, etc. Assets will continue to provide value even after you buy them- real estate investments, stocks, college education (value in the form of smarts rather than money), educational books, etc.

Remember the advice of "take advice from people you would trade shoes with". I would trade shoes with Kiyosaki all day long, so I'm going to listen to his advice. I would not trade shoes, however, with a good majority of people on this website (or in general for that matter) who landlord their own properties, pay all cash, work full-time flipping houses, and more importantly, those who aren't at least millionaires. Therefore, if they those people tell me Rich Dad Poor Dad is worthless, I'm not going to take their opinions to heart. I know the advice in that book has allowed me to have an awesome life, so I'm going to go with it. Regardless of how Kiyosaki lives his own life or whatever.