So you end up taking on by example (parents, friends) on how to deal with money.īasically it is MPC. The problem is that there is no education about money in your early years. Anything that takes money from your pocket is a liability, this includes loans.Īlso as far as education is concerned, I don't think he was saying that continued education is bad, it is really good.

Your house is an asset, the liability is the mortgage payment you have to pay. I think the part about home ownership you may have misunderstood. I have read this book as well and it seems pretty sound. See for an in-depth critique of Kiyosaki and charts showing the correlation between education and wealth. If you just want some motivation, please try another book such as ' The Millionaire Next Door.' If you want sound personal financial advice, please read 'The Only Investment Guide You'll Ever Need.' The book is full of exaggerated and sometimes completely false anecdotes - for example, it appears the entire premise of the book is false - there never was a rich dad and Robert wasn't wealthy until he embraced MLM and started selling get-rich books. For example, his first rule is 'You must know the difference between an asset and a liability' but then he proceeds to claim that your home is a liability, not an asset. The author praises learning correct accounting but then proceeds to butcher even the most fundamentals. 'rat race') where 'even if you win you're still a rat.' For example, not adhering to diversification. He also gives poor advice in finances and investing. I agree it isn't essential (and possibly not even helpful in rare circumstances), but the high correlation in the general public between education and wealth cannot be ignored.

Saying that higher education isn't worthwhile is misleading.

Didn't go to college? Can't hold down a stable job? Good for you! You haven't fallen for that waste of time and stupid rat race like all those other suckers! I suspect it was written to appeal to those who are failing in the world's conventional definition of success. I believe this book does a disservice to the public. This book may do a good job of getting you excited about your financial future but the false information it teaches negates any benefits.

John t reed kiyosaki