How many of you have read it?
Those who have, what do you think about it? What have you learnt from it and how have you used the principles in your life, if at all?
Those who have not read it, should.
Re: Rich Dad Poor Dad
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*Originally posted by Faisal: *
Those who have, what do you think about it? What have you learnt from it and how have you used the principles in your life, if at all?
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I have heard of this book but haven't read it so far. Would have been nice if you had answered the above questions yourself to start with.
It will be nice to see atleast some people who have read the book so we can start a meaningful discussion.
Like Some1, I havent read the book. Unlike Some1, I havent even heard of it.
I dont really understand why Im posting here then.
I was chatting with my supervisor about pursuing my masters and he ended up telling me about this book; describing how the poor father dreams of his son being a high ranked official etc (somewhere down the same line). Seemed interesting ... I'll try to find an online version of it and read the whole thing :p
I haven’t read the book. But I checked out some of the reviews and I am just guessing but I reckon most of the book is about is how to use money to make more money out of money. So in that respect is it any different from countless other get-rich-quick manuals? I mean to start off with it’s not as if the author is doing this out of the charitable goodness of his heart - these books are the man’s own personal get richer gimmicks.
I think to understand how to be rich, you can copy and adopt the attitude of rich people, you know, like think rich act rich kind of attitude and basically there are some qualities that are common to every rich (say multi-millionaire) person and their financial success. My view of the rich person profile is that they are always shrewd, excellent manipulators and exploiters. That’s the essential entrepreneurial spirit. They are often high risk-takers who make the most of any opportunity and sometimes even create opportunities for themselves. Even when things don’t go their way they can somehow manage to have a quick turnaround, turning bad fortune into good. Most of them have probably broken every tradition and normal convention around, not stayed long in traditional employment and can always find ways to screw everyone for as little as possible to get as much as possible back. So to sum up, is there anything new in the book? Otherwise I suggest you ask for your money back, you’ve been made a couple of dollars poorer! Even if you haven't, copy the essentials and go return the book! Start getting rich today.
Well, this is not a get-rich-quick manual. If anyone buys the book, thinking it will give some secrets of how to make a million bucks, they are wrong and should spend the dough some place else (its actually 17 bucks) :-)
It just redefines the way you look at your 'wealth' and think about your assets and liabilities.
I'll wait to see if there are any who have actually read the book, before deciding on whether/how I want to provide a synopsis.
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It just redefines the way you look at your 'wealth' and think about your assets and liabilities.
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That does sound better. Although I bet most of it is ground-breaking common sense. But do let us know what you think.
I have read the book, excelent read and approach... now only if I can change my thought process and put it in to action.... it is a different mind set you have to adopt to... will be intrested in your take on it...
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*Originally posted by nos: *
I'll try to find an online version of it and read the whole thing :p
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You will find tonnes of online resources on this. What I will recommend, though, is for you to go to your nearest book store and buy the book and read it completely. Then you will be in a much better frame of mind to utilize the online resources available. Trust me, its probably the best $16.99 you will spend.
ChaChoo.. I will come back to this in a while. This is some seriously good stuff.
I read it long back, forgotten much of it. But found it 2 thumbs up. There's another similar book called Rich man of Babylon. All about creating wealth and mantaining it, and not feeling guilty about it. The poor dad with the poor ideas teaches his son to get a safe job and scrimp and save. The rich dad tells his son that desiring wealth is the first step, going after it the second. Think rich, get rich, act rich, stay rich. Did I get it right?
Faisal Bhai,
I have listened to the Recorded version of this book on Audible Books, it made very Intresting listening on my commute to and back from work.
It was a few years back, but what I clearly remember is that.
1 - You dont need a high salary to become rich
2 - Your house is not always your asset.
3 - School Education dosent necessarily prepare you for the real world.
I may be worng on some issues here, like I said it was a few years back.
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*Originally posted by karina: *
...
The poor dad with the poor ideas teaches his son to get a safe job and scrimp and save. The rich dad tells his son that desiring wealth is the first step, going after it the second. Think rich, get rich, act rich, stay rich.
...
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Yup ... now I remember. That's some of the stuff that my superviosr told me :)
Ok... its good to note that there are some people who have either read the book or are familiar with the concepts. I think the book should be a compulsory reading for all intelligent people. Its not possible to do justice to a book by trying to summarize it in one post.
There are many things that Rich teach their children, and these are not taught by Poor and the middle class and these are certainly not taught in the school.
Some of the most obvious points presented in the book are...
Develop your financial intelligence. Learn the rules of the game. Don't be afraid to lose.
Clearly understand what are your assets and what are your liabilities. E.g. if your house is your biggest asset than you are in serious trouble.
If you are earning big bucks in your job, likely you will have big expenses as well plus bigger liabilities. The more the salary the more the expenses. You are in a "Rat race". You should instead focus to get more assets, less liabilities, more income and less expenses.
Create assets that produce income. Use that income to buy more assets.
If you are afraid to lose and wanna play it safe, then start early.
More later.
Faisal 
Do you do infomercials? I run my house like a retail bank. The more loans I give out the more assets I develop on the balance sheet.
Faisal is half right… it is simply not about building assets. Otherwise you will end up like China with 60% of your personal revenue financing NPA’s.
Hi spoint number 4 is th emost important point..
in the process of reading faisal unkil tell u wat i have learnt after my exams :p
I would like to share my thoughts about the points listed by Faisal, just so as to better understand them.
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*Originally posted by Faisal: *
1. Develop your financial intelligence. Learn the rules of the game. Don't be afraid to lose.
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These three things are a given in any case, I think. I mean to make money you got to know money so its pretty much obvious.
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- Clearly understand what are your assets and what are your liabilities. E.g. if your house is your biggest asset than you are in serious trouble.
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Partially same as point number 1. Know the stuff better. Please elaborate on house being the biggest asset implying serious trouble. My undestanding is, my house is a necessity not a luxury. Its not something that I can ultimately use to make more money and certainly not something that I should gamble on. Is my understanding correct?
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- If you are earning big bucks in your job, likely you will have big expenses as well plus bigger liabilities. The more the salary the more the expenses. You are in a "Rat race". You should instead focus to get more assets, less liabilities, more income and less expenses.
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I dont understand "more salary, more expenses, bigger liabilities". Its only upto you. Some people can earn a lot while still living as miserly as Faisal here in sharing his comments about the under discussion book :--p Some people earn awesomely well from their jobs and live a decent life while doing good amount of saving.
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- Create assets that produce income. Use that income to buy more assets.
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hmm, ok. Any examples of such assets? First thing that comes to mind is to deal in estate.
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- If you are afraid to lose and wanna play it safe, then start early.
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This is interesting. Safe players should start early so that they can start saving earlier since their savings are not going to as big as the risky players. Right or wrong?
Faisal, would you like to answer my questions?
*Originally posted by Wane: *
*These three things are a given in any case, I think. I mean to make money you got to know money so its pretty much obvious. *
You will be surprised at how many people just carry on with their jobs, spend most, save a little and think they are doing ok with their savings. To develop financial literacy is critical.
Please elaborate on house being the biggest asset implying serious trouble. My undestanding is, my house is a necessity not a luxury. Its not something that I can ultimately use to make more money and certainly not something that I should gamble on. Is my understanding correct?
Typically houses are bought on mortgage. Meaning you have a huge liability in your personal balance sheet that you are paying off. Unless you sell the house, you are not making money off the house. Its fine to have a house (ofcourse, you have to live some place), but don't consider your home as a (productive) asset. Good assets are those that generate money on a regular basis.
I dont understand "more salary, more expenses, bigger liabilities". Its only upto you. Some people can earn a lot while still living as miserly as Faisal here in sharing his comments about the under discussion book :--p Some people earn awesomely well from their jobs and live a decent life while doing good amount of saving.
Point is not how much you save. Point is, the savings you are maintaining, are they enough. And more importantly, if you stop working today, how long will these savings last you? And perhaps, more fundamentally, are these savings producing any income for you? Thats where financial literacy becomes most important.
*hmm, ok. Any examples of such assets? First thing that comes to mind is to deal in estate. *
There are plenty of assets that produce income - some great income, some so-so income. Real estate, is one that can produce immense windfall. There are many other kinds of businesses. Stocks are another. Bonds etc are more on the safe side, so they have less income potential.
*This is interesting. Safe players should start early so that they can start saving earlier since their savings are not going to as big as the risky players. Right or wrong? *It just doesn't mean that the actual amount you save will be more if you start early but it goes back to the power of compound interest. Someone starting to save at age 25 is better off than someone starting at age 35 (even if the one who starts at age 35 is earning/saving more). The following is just a demo example, to show the power of compound interest.
Manhattan Island was purchased by Peter Minuit from the Indians in 1624 for $24 in "knickknacks" and jewelry. If at the end of 1624 the Indians had invested their $24 at 8 percent compounded annually, it would be worth over $88.6 trillion today (by the end of 2000, 376 years later). That's certainly enough to buy back all of Manhattan. In fact, with $70 trillion in the bank, the $80 to $90 billion you'd have to pay to buy back all of Manhattan would only seem like pocket change. This story illustrates the incredible power of time in compounding. There simply is no substitute for it.
This is just a response to your questions. I am not going to pretend that you will get all the answers in this thread. That is why I strongly recommend actually reading the book (borrow it from the local library if you are not willing to part with the 17 bucks). Don't rely on second hand responses to give you a full picture. And that is why I said up front, that there are tonnes of online resources available for this book, but its always best to first read the book completely and then go to other resources. Unless you read the complete book you will neither understand the total concept nor will grasp the nuances I am talking about.
Thanks.