January 29, 2009

Rich Dad, Poor Dad ***

*** Rich Dad, Poor Dad, Robert T. Kiyosaki, 1998

On page 132, Kiyosaki says, "I am a terrible writer." And it's true. He is a terrible writer. So why the three stars? The information.

I've heard of this book for ten years, but just got around to reading it. I wish it had been around when I was in high school. Things might have turned out differently. Not that things turned out so bad, but, you know.

The ideas are not new, but are presented in a context that makes them compelling, if somewhat repetitive. Here are a few ideas from the book:

From Buckminster Fuller: Wealth is a person's ability to survive so many number of days forward . . . or if I stopped working today, how long could I survive?

An asset as something that generates income rather then expenses. This is not the typical definition. When you buy a house to live in, you're not buying at asset. It actually generates expenses, not income. When you buy a rent house, you're buying an assett. (Assuming the rent will cover the mortgage and then some.)

You should have a profession and a business, until you can afford to have only a business. By Kiyosaki's definition, your prefession is what you do to make money. Your business is what makes you money without you working for it.

Don't work to earn, work to learn. Get jobs that help you build your business, not your profession.

I recommend you grit your teeth through the writing and give this book a read. It is not overstating to say it could change your life.

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