What do you think of Rich Dad Poor Dad?

[Kak]

Worth a read. Mostly agree. Decent intro to not trading your time for money content.

Accumulation that isn't directly teathered to your effort is the foundation of wealth.

 

[Jon822]

I guess I'm in the minority here but after I finished reading "Rich Dad, Poor Dad", I thought it was trash. And no, I'm not exaggerating for shock value or humor. 99% of the book was irrelevant stories to reach a sell-able page number threshold and the remaining 1% was common sense conclusions. "So to conclude this chapter with a summary that is in no way connected to the irrelevant childhood story I just rambled about for 30 pages, making more money is better than making less."

The entire book can be summarized in one line: rich people view money differently than poor people. And while the details behind this can be incredibly valuable, I don't recall anything of the sort. It was just vague cliches: all hat, no cattle. I commend the author on the financial success of the book but I have no idea why so many people found it valuable. To me, reading RDPD after reading any of the Fastlane books is an action fake.

 

[MJ DeMarco]

Interesting, thank you for writing this as I guess now I won't waste my time reading it. It also looks like you got a thank you from MJ so I guess that's what he think of it.

I enjoyed the book and found value in it.

It wasn't any revelation from me as it only confirmed what I already knew. However the expensive seminars and paid coaching and various other gimmicky things tacked onto RK's publishing empire (note: publishing empire, not RE empire) is when I lost interest in anything he had to say.

 

[biophase]

Interesting, thank you for writing this as I guess now I won't waste my time reading it. It also looks like you got a thank you from MJ so I guess that's what he think of it.

I still think it is worth a read for you.

Even though @Jon822 doesn’t remember much from it, it could be different for you.

I read it in 2002 and as of today I don’t remember much from it either. But I know it changed my trajectory in 2002.

 

[MJ DeMarco]

but a lot of the reviews say that it is the same information from TMF

Can you show me where in TMF I discuss the 3As?
A productocracy?
A paycheck pot?
Kinetic execution?
Model Citizenry?
An in-depth overview of value skew?
The various BS stories we sell ourselves?

Go ahead I'll wait...

I can list about 3 dozen other things but I won't bother.

Simply put, the reading comprehension of the average person is no comprehension.

Are the books rooted in the same philosophy?

Yes.

Are they the same?

About the same as a Lambo Urus (the SUV) and a Lambo Huracan (the sports car)

If you let other people do your thinking, you'll end up with the results of "other people" .

 

[Awakened2022]

I still think it is worth a read for you.

Even though @Jon822 doesn’t remember much from it, it could be different for you.

I read it in 2002 and as of today I don’t remember much from it either. But I know it changed my trajectory in 2002.

My two main takeaways from the book are:
Your profit is made when you buy, not when you sell.

God does not need to receive, but man needs to learn to give.

While the investment advice he gives may not apply to this shit hole I call my country, the book has piqued my interest in Real Estate, and I am thinking I should consider it an investment vehicle when I make some money worth investing.

I guess OP has nothing to lose by reading the book. After all, it isn't that long.

 

[heavy_industry]

I'm looking forward to the second edition of the book:

Rich Dad - Poor Dad - @BizyDad

 

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[Andy Black]

I enjoyed the book and found value in it.

Me too. It was one of, if not the, first business books I read and it made me think differently.

 

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[ZCP]

@El1mination
One person says it is good 'I'll Read it!'.
Another says it is trash 'I won't Read it!'.
Come on.
If you change your mind that quickly and easily with that little information, get a job. Entrepreneurship is not for you.

Think for yourself.
Read ALL of those books and report back what YOU think.

RDPD changed my life and got me here.
Each of @MJ DeMarco 's books has a message and important info.
In addition to the 29 other books on my desk at home, the 17 others on my shelf, and the countless others I have read and passed on to others. Pull up YT and look for best business books. Read the top 25 over and over.

"But @ZCP, I don't have time to read all these books.' .... Bullshit.
Then you are not committed to learning and getting better.

Learn from others that have already done it. Read.
Then apply what they teach you to YOUR own life.
Not every book will have the right info at the right time.

I'm rereading books from the Traction (Wickman) series right now to prepare for our company Annual L10 planning meeting. Learning new things I didn't see the first time I read the book.

 

[biophase]

I think rich dad poor dad is garbage, when I first read it, it blew my mind but when I actually studied business more I realized the book was elementary

So basically after you learned more, then the book was garbage. That's like saying when I first read the math 101 book and learned addition it was great. But after I learned calculus, the math 101 book was elementary.

 

[FierceRacoon]

The idea of Slowlane is a key contribution of TMF .

The idea that it's a Process is even more key. I have seen a very intelligent and high-earning professional read a bunch of books like that and decide to get "passive income from real estate." In the end he lost a lot of money and a lot of time fixing one of the properties, because he had been sold on the idea that it was easy. He had spent decades honing his craft that made him mid-6 digits per year, but decided to start making 6-figure investments after just maybe 50 hours of research and due diligence, with no real entrepreneurial experience.

Then, "paying yourself first" sounds cute, but ultimately changing the order of the addends does not change the sum, 2+3 = 3+2. Of course, it can be helpful psychologically if you have a spending addiction, but starting a business to reach financial independence -- or building up passive income from real estate to the same end -- requires SO MUCH MORE in terms of time and effort and discipline.

So, I think the book is ultimately destructive and just sells a dream to naive people.

 

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[David Fitz]

He's a good salesman and I like that book, some good stuff in there that taught me not to consume and waste money on cars.

 

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[BrightAhead]

Me too. It was one of, if not the, first business books I read and it made me think differently.

I agree. It was the first time I thought about things differently. I also agree it was not as shocking as TMF . It was a good introduction to the idea that time for money is not a great trade.

Although I found value at the time, my hot take is that if you have read TMF , there is no need to read that book at all. You could for fun and to tick one off the list.

 

[ZCP]

Alright thanks, I think I'll give it a read

Interesting, thank you for writing this as I guess now I won't waste my time reading it. It also looks like you got a thank you from MJ so I guess that's what he think of it.

Thanks for all of this guys, I have decided to give it a read but not before reading the great rat race escape , I would read unscripted but a lot of the reviews say that it is the same information from TMF .

My reply was after this back and forth...... back and forth ..... maybe i hadn't seen the rest of the thread when i replied....

that indecision above along with your other thread, I've seen similar mindset before (looking for the silver bullet, susceptible to the 'latest' opinion from others). add to that the arguing with anyone that helps you and you'll have a path of anger and frustration with little results ahead of you.

I'm stepping in to help you. And my replies are not just for you, they are for the 1000s that will read this over the next 10 years.

You seem lost. DM me and we can do a call this week and see how I can help you / make some connections / get you on the path to achieve your outcome.

 

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[Jon822]

I politely declined your offer, no need for the snarky comment as usual with you.

Just curious, why did you decline? Wouldn't a 10 minute conversation with someone who has had success in business be valuable? I'm not judging you or condemning your decision, I just want to know what y0ur reasons are if you don't mind sharing.

 

[ZCP]

I politely declined your offer, no need for the snarky comment as usual with you.

Again, that post wasn't for you. Anyone coming behind, if you are in a similar spot as @El1mination , hit me up. Maybe I can help.

 

[Bounce Back]

Then, "paying yourself first" sounds cute

Spot on - anyone who has or has tried scaling a business knows there are many times you sacrifice paying yourself extra, more (or sometimes even at all) because to do that would mean not paying someone else which means you are doing some work you could have offloaded. Do that enough and you just bought yourself a job.

 

[Tiago]

To me one of the biggest takeaways of the book is to not only track your income and expenses, but create your own financial statement.

I've been doing that for the past 5 months and it's been incredibly helpful: The Personal Financial Statement: Your Foundation for Being Rich

Also, I've switched from investing for capital gains vs investing for cash flow. To me it makes much more sense.

Cash Flow vs Capital Gains: Understanding the 2 Types of Investment Income

Financial freedom is about how you invest; understanding these 2 types of investment income will get you there.

www.richdad.com

Why Cash Flow Is More Important Than Net Worth: Focus On What's Real

Whether you are a fake retiree, a traditional retiree living off Social Security, or someone with a day job, cash flow is more important than net worth, especially during an economic downturn. Net worth is often an illusion that only helps to boost your ego when times are good. When times are...

www.financialsamurai.com

 

[MJ DeMarco]

atest news: 'Rich Dad, Poor Dad' author says he's in $1 billion debt

Well if you have $2B in assets, I guess that's not too shabby.

 

[EvanOkanagan]

Depending on where you are in your life, this book can be either a waste of time or a game-changer.

I read this when I was 19 or 20 and it really gave me a paradigm shift in my thinking, so I'm for it.

If I were to re-read it now who's to say if I'd get much value from it, but it definitely helped put my life it a positive trajectory at that time.

 

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[Güero Tonka]

As people that have read Millionaires Fastlane, what do you all think of Rich Dad Poor Dad? Is it worth a read? Do you agree with what the author says?

I think rich dad poor dad is garbage, when I first read it, it blew my mind but when I actually studied business more I realized the book was elementary

 

[Awakened2022]

and just like that @El1mination misses another opportunity ..... bummer

Our people say,"it is those without teeth that are given food."
@ZCP ,appreciating your offer on behalf of OP

 

[Antifragile]

Maybe he should write a new book: "Rich Dad, Poor Bank.”

 

[Antifragile]

My Dad was a homebuilder / developer. He talked about a VERY distinct change the day he got over a certain level of debt with the banks. Guys that he used to have to 'sell' on the deal were suddenly calling him. Asking him how he was feeling. Was he taking care of himself. What did HE think was happening next in the market. He realized the power dynamic changed. Now he owned them. They did what he said. He provide the paperwork and information he wanted to provide.

Nothing wrong with good debt.

I laugh because the boomer generation had it different with banks. My business partner who’s in his 70s now back when he started borrowed $30Million on a $10k net worth. Try that now!

But I get your point and it’s true. Rich Dad is middle fingering banks. And I don’t like any douche who’s willing to F*ck others to be rich. I think it’s that kind of attitude that gives entrepreneurs a bad rep.

As far as “good debt” goes… what are you talking about? Are you really implying that being so deep in debt that you can’t cover your payments is “good debt”? Nonsense.

Debt is leverage and …

Leverage is an amplifier​

Leverage is an amplifier of the gains and losses asymmetry.

Say you have $100 and borrow $400 to purchase an asset for $500. If the asset goes up by 20% and you sell it, you get back $200, great news – you doubled your money.

Unfortunately, the reverse is true too. If a developer who invested $100 and borrowed $400 to develop an asset with projected valuation of $575 (15% profit) were to see a drop of 20%, the value drops to $460. After repaying the lender $400, that leaves only $60.

This example shows that a 20% drop on a 15% profit margin led to a developer losing 40% of their initial equity! Leverage is an amplifier of gain/loss asymmetry.

 

[ZCP]

Hey, I am new to the platform, and I do not know if there is a way to private message, however, I would like to understand that a bit more. I don't remember reading much in MJ's books regarding "good debt". Could you explain what you mean in a bit more detail, please?

As @Antifragile said, it can be an amplifier. It also can give you the ability to do something in service or manufacturing businesses that you might otherwise not be able to do. We are about to take on a business note at 11% to allow us to do a set of projects with a 68% margin. That is good debt. My home mortgage is at 2.3%. Instead of paying off the note, I invest at 10%. Good debt. When my kids were doing the soap business, they regularly borrowed money from a friend of ours to cover the cost of all their raw materials. He would charge them like 5% and they would make and sell their products and double their money.

I'm just pushing back against the Dave Ramsey storm of 'all debt is bad debt'. We regularly use business LOC's, debt, notes, PO funding, etc. to do larger projects. In the case of the large debt w/ banks, you do own them once you reach a certain threshold. They treat you better, bring you in on other deals. Just like being the top customer anywhere, you get better treatment.

Just be careful like @Antifragile said, don't get overextended or negative leverage or they'll call the note on you. Of course, the advantage there is that if they do, THEY have to deal with the mess now. And I think that is what RK is getting at. He just is a boomer and always comes across curmudgeony.

I don't like a lot of the things RK says either, I just wouldn't throw out ALL of his advice, as there are some gems in there. And to bring it full circle, RDPD is not an end all be all business book. It is the gateway into a new world of thinking (at least it was for me!). If I would of had that book while working with my Dad, we would be gagillionaires and he would probably still be here. The P&L / Balance Sheet view of your life and how you interact with others is VERY valuable.

 

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[El1mination]

I guess I'm in the minority here but after I finished reading "Rich Dad, Poor Dad", I thought it was trash. And no, I'm not exaggerating for shock value or humor. 99% of the book was irrelevant stories to reach a sell-able page number threshold and the remaining 1% was common sense conclusions. "So to conclude this chapter with a summary that is in no way connected to the irrelevant childhood story I just rambled about for 30 pages, making more money is better than making less."

The entire book can be summarized in one line: rich people view money differently than poor people. And while the details behind this can be incredibly valuable, I don't recall anything of the sort. It was just vague cliches: all hat, no cattle. I commend the author on the financial success of the book but I have no idea why so many people found it valuable. To me, reading RDPD after reading any of the Fastlane books is an action fake.

Interesting, thank you for writing this as I guess now I won't waste my time reading it. It also looks like you got a thank you from MJ so I guess that's what he think of it.

 

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[AnNvr]

I might share my 2 cents, although I am going to gain some negative reaction.

The book is well written and he is a great preacher, but he also sells what is convenient for him, not for you.

I like to match the integrity of the author with the book he/she has written, and concerns about Kiyosaki's business practices are just a Google search away (i.e. : This Legal Dispute Says Everything About the Shadiness of Personal Finance Gurus )

When I read Unscripted , I was impressed by the integrity of the person behind that book backed by testimonials from forum members who have achieved wealth by following his guidelines, enhanced by the the feedback from those who know him personally.

No courses.
No seminars.
No band wagons.

Can I say the same of Kiyosaki? No.

 

[datagod]

What I think... Latest news: 'Rich Dad, Poor Dad' author says he's in $1 billion debt

 

[Radar]

As people that have read Millionaires Fastlane, what do you all think of Rich Dad Poor Dad? Is it worth a read? Do you agree with what the author says?

Based on what I have read from the comments, and my own experience, here are the takeaways that you should know:

1. People forget the material in the book.
2. Some have found real estate knowledge and financial knowledge from it.
3. Some consider it to be an action-fake.
4. There is a lot of fluff (stories that don't align with the conclusions)

So, ultimately, as I am sure you can see there is conflict. What I would say, based on my knowledge from reading the books from MJ and from what I have read in the comments is to use it when you need it.
So, when you are looking into a real estate venture, perhaps give the book a read/listen, or have a look into some videos online that allow you to gather some of the key points.
As mentioned somewhere in MJ's book of unscripted , when the time comes, you must learn to solve the problem that is faced in front of you. That is when you should read this book.
However, "curiosity over what the book is about and whether or not you should read it", doesn't quite fall under the category of an immediate problem to be solved.

So, the simple answer is yes, read when you are ready and, No, don't read if you don't have an immediate need to.

I hope that helps and let me know if you need any clarification on anything. Have a wonderful day.

 

[El1mination]

Based on what I have read from the comments, and my own experience, here are the takeaways that you should know:

1. People forget the material in the book.
2. Some have found real estate knowledge and financial knowledge from it.
3. Some consider it to be an action-fake.
4. There is a lot of fluff (stories that don't align with the conclusions)

So, ultimately, as I am sure you can see there is conflict. What I would say, based on my knowledge from reading the books from MJ and from what I have read in the comments is to use it when you need it.
So, when you are looking into a real estate venture, perhaps give the book a read/listen, or have a look into some videos online that allow you to gather some of the key points.
As mentioned somewhere in MJ's book of unscripted , when the time comes, you must learn to solve the problem that is faced in front of you. That is when you should read this book.
However, "curiosity over what the book is about and whether or not you should read it", doesn't quite fall under the category of an immediate problem to be solved.

So, the simple answer is yes, read when you are ready and, No, don't read if you don't have an immediate need to.

I hope that helps and let me know if you need any clarification on anything. Have a wonderful day.

That was a really good way of explaining it. I definitely don't have any intent in real estate right now and have a bunch of other knowledge I should learn before reading this book as it's not that important to me right now. Thanks for the reply

 

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