![]() C – Corporation – You own a business and others work for youīasically, each quadrant is better than the last because you pay less in taxes and earn more relative to the amount of work you put in.The idea was that income comes from four different places, or quadrants: This was a concept that proved so popular Kiyosaki wrote an entire book just on this. The Cash Flow Quadrant By Robert Kiyosaki Now I'm not quite as big of a fan of leveraging up my life as he is - he suggests leveraging up the asset (investment property) and then using the cash flow to buy the liability (car) on credit, but I do like the idea of getting rich first before buying the outward signs of being rich. I love Kiyosaki's recommendation to FIRST buy the assets and then buy the liabilities. On the other hand, stocks, bonds, mutual funds, investment properties, and other small businesses are assets. But it's often not an awesome investment, especially when you don't hold on to it long enough for appreciation to make up for the heavy transaction costs. It may appreciate and it pays “dividends” of saved rent. I've been telling graduating medical students this for a decade–a house is not an awesome investment. I mean, it decreases in value, you have to pay to insure it, gas it, maintain it, and repair it. A car is generally not an asset, unless you're an Uber driver. Perhaps the most important concept in Rich Dad, Poor Dad is that assets make money and liabilities cost money. Some people with marketing degrees never come up with a line that good.Īssets Make Money – A Key Concept of Rich Dad, Poor Dad That was clickbait before there was clickbait. That is clickbait if I ever have ever seen it. What the rich teach their kids about money– that the poor and middle class do not. I mean, just look at the book's subtitle: #RICH DAD POOR DAD CASHFLOW CHART HOW TO#We all have something to sell and we can better learn how to do that by observing Kiyosaki. People buy a ticket to come do what they can do in the boat dealerships for free. He has people lining up to pay to come listen to him sell stuff to them. He's got people volunteering to sell his stuff for him. So even if you aren't learning a thing from what he is selling, there is a lot to learn from how he is selling it. Kiyosaki has sold a lot of books and other stuff. But I truly believe that it often leads people to read other, more specific/accurate books. There might be lots of bad ideas in the book (don't bother going to college for instance.) The book might be really short on specifics. She actually picked this one up on her own, read it, and sent a summary out to her kids. I think I might have gotten her to read The CoffeeHouse Investor once. The Book Rich Dad, Poor Dad Increases Interest in Finances I bet some of my younger readers have not even heard of this book first published in the early 1990s. In this post, I'll discuss what I find useful in Rich Dad, Poor Dad. Just take what you find useful from every source (including this one) and incorporate it into your own personal financial philosophy. If you're looking for some guru who always gets everything right and with whom you will agree 100% on every controversial issue in the financial world, you are bound to be disappointed. Take what you find useful and leave the rest. But here's the way I look at all of them as well as every book, blog post, or podcast I ever encounter: It's really not all that different from other well-known financial personalities like Suze Orman or Dave Ramsey, although I don't recall anyone ever calling either of them liars. Kiyosaki is just running a cult of personality.Rich Dad, Poor Dad gives no concrete advice, just a collection of cliches about money.Kiyosaki is probably a liar (there likely never was a rich dad).The main criticisms of Rich Dad, Poor Dad that I hear are: Robert Kiyosaki's Rich Dad, Poor Dad Criticism Employees who invest primarily in static asset allocations of low-cost, broadly diversified index mutual funds tend to be especially critical while entrepreneurs and real estate investors tend to be less critical. The online personal finance community can be pretty critical of Robert Kiyosaki the author of the Rich Dad, Poor Dad book series. Physician Wellness and Financial Literacy Conference – Park City.Continuing Financial Education – Las Vegas.Financial Wellness and Burnout Prevention for Medical Professionals. ![]()
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