Rich Dad, Poor Dad

clowboy · 29 June 2006

I havent finished reading that article but I would have to say it seems like a case of going from one extreme to another. I know many people that are extremely sucessful and have limited education. Bill gates is an example that springs to mind. As for the book being fiction. So what? The richest man in babylon is a book of tales also, is it not.....still an important read.

At the end of the day the 15-20 odd dollars that the book cost is unlikely to send you broke and if it contains just one sentence that helps you build wealth then it is a bargain IMO

professor_frink · 29 June 2006

To anyone thinking about buying this book-

Don't bother.

Here's my tip, it won't cost you any money or time wasted reading a largely useless book- spend less than you earn each week, fortnight or whatever. Invest said surplus income. Repeat. That's about all there is to it. You don't need to buy a book from a "guru" to learn this.

Ageo · 29 June 2006

professor_frink said:
To anyone thinking about buying this book-

Don't bother.

Here's my tip, it won't cost you any money or time wasted reading a largely useless book- spend less than you earn each week, fortnight or whatever. Invest said surplus income. Repeat. That's about all there is to it. You don't need to buy a book from a "guru" to learn this.

Frink thats harsh to say. As for me personally it has made me alot of money in the way i think. Personally if it wasnt for that book i would be working a job.

As simple as the book may seem he puts it into a very easy to read perspective. Some people need that.

Put it this way if he's helping people then isnt that a good thing? I go out with my mates and blow $100 for what? a good night out. $40 is not a large investment.

professor_frink · 29 June 2006

Ageo said:
Frink thats harsh to say. As for me personally it has made me alot of money in the way i think. Personally if it wasnt for that book i would be working a job.

As simple as the book may seem he puts it into a very easy to read perspective. Some people need that.

Put it this way if he's helping people then isnt that a good thing? I go out with my mates and blow $100 for what? a good night out. $40 is not a large investment.

It is critical, but I don't think it's unreasonable. If you follow the simple rule of spending less than you earn, and then invest any surplus, then you don't really need to read the book! I say spend that $40 on a book that will further your knowledge of investing, don't spend it on something like rich dad poor dad. Can you tell me ageo, exactly what ideas did you get from the book? I'm trying not to be too critical of you, so please don't take it that way! I'm just curious as to what he says that has specifically helped.

Ageo · 29 June 2006

professor_frink said:
It is critical, but I don't think it's unreasonable. If you follow the simple rule of spending less than you earn, and then invest any surplus, then you don't really need to read the book! I say spend that $40 on a book that will further your knowledge of investing, don't spend it on something like rich dad poor dad. Can you tell me ageo, exactly what ideas did you get from the book? I'm trying not to be too critical of you, so please don't take it that way! I'm just curious as to what he says that has specifically helped.

Ok well the best story in the book is about the Villagers who 1 man carried buckets of water to a town to make money and the other 1 creak a pipeline to river. The person building the pipeline took much longer but eventually once set up water was continuous as was the money flow.

There are many positives he taught me but here are a few examples:

* Dont work for money let it work for you

* The difference between exployers/self-employed/businessman/investors

* Money doesnt make money it just multiplies it faster. We make money and if we teach our brain that than money can be made anywhere.

* Basically he not teaching you to invest but rather educating you financially (manage your money etc..)

They are the main points that i took which have allowed me to not work a job (im 22) and not only that but to have lots of time up my sleeve.

So $40 was priceless to me.

Adrian

tech/a · 29 June 2006

Agree with the Prof on this one.

Its a very basic book for those who are just above the capability of preparing a household budget.

Its not how much you earn but what you do with it

Saving is the very first step in the very true adage of

Money Makes money

The exponential rise in your wealth from the best use of your money and in the end other peoples can only come about from a capital base,its really that simple.

Anyone in Business knows the power of using others money---trick is to be able to have it work for you well in excess to what its costing you.

Simply.

If you had a way of consistently gaining 15-30% a year and you can get Money from lenders at 8-9%---why wouldnt you borrow to the maximum you could get---reveiw every 12 mths and retire early!

Ageo · 29 June 2006

tech/a said:
Simply.

If you had a way of consistently gaining 15-30% a year and you can get Money from lenders at 8-9%---why wouldnt you borrow to the maximum you could get---reveiw every 12 mths and retire early!

I dont see a problem with that and i know of people (personally that do it) hehe including myself

Been doing it for now over 2 yrs

professor_frink · 29 June 2006

I'm glad you got something out of it ageo. Apart from learning how to manage your own personal finances(which I've already stated doesn't need an entire book), I think the book is borderline irresponsible.
Is it possible to get rich? yes.
Are there secrets rules that the rich follow? No.
Is getting rich as easy as the book implies? No.
Do "rich" people not get an education so they can solely concentrate on wealth creation? No.
Do I think the book could be a danger to one's potential wealth? Yes I do.
I believe that giving that book to a high school student who is starting to make plans for their future would be a very irresponsible thing to do. The impression he gives in that book is that people who go to school and get an education are involved in the "rat race", a very undesireable thing for the "rich".
For me the most dangerous part about it, is that it combines alot of motivation, without the specifics of how to go about it. Meaning that there will be people who read this, think they know about wealth creation, and run off making bad decisions because they don't have the skills to do so. Phrases such as "Dont work for money let it work for you" are all well and good, but it doesn't actually mean anything without a strategy to go with it.

I'm sorry if I sound harsh here, but I hated this book almost as much as "what I didn't learn at school but wish I had". Utter nonsense both of them. And no surprises, rich dad poor dad was on the recommended reading list for that book.

Ageo · 29 June 2006

professor_frink said:
I'm glad you got something out of it ageo. Apart from learning how to manage your own personal finances(which I've already stated doesn't need an entire book), I think the book is borderline irresponsible.
Is it possible to get rich? yes.
Are there secrets rules that the rich follow? No.
Is getting rich as easy as the book implies? No.
Do "rich" people not get an education so they can solely concentrate on wealth creation? No.
Do I think the book could be a danger to one's potential wealth? Yes I do.
I believe that giving that book to a high school student who is starting to make plans for their future would be a very irresponsible thing to do. The impression he gives in that book is that people who go to school and get an education are involved in the "rat race", a very undesireable thing for the "rich".
For me the most dangerous part about it, is that it combines alot of motivation, without the specifics of how to go about it. Meaning that there will be people who read this, think they know about wealth creation, and run off making bad decisions because they don't have the skills to do so. Phrases such as "Dont work for money let it work for you" are all well and good, but it doesn't actually mean anything without a strategy to go with it.

I'm sorry if I sound harsh here, but I hated this book almost as much as "what I didn't learn at school but wish I had". Utter nonsense both of them. And no surprises, rich dad poor dad was on the recommended reading list for that book.

Frink everyone has there views on differenct things and thats fine mate. For some people it could be a bad thing but for others it could be a winning lotto ticket. Thats why its good to have so much choice out there, that way you can choose whats good for you and whats not.

P.S up 18 points with materials atm so im in a happy mood.

professor_frink · 29 June 2006

ageo said:
Frink everyone has there views on differenct things and thats fine mate. For some people it could be a bad thing but for others it could be a winning lotto ticket. Thats why its good to have so much choice out there, that way you can choose whats good for you and whats not.

Fair enough. The person who originally asked probably should just go out and read it. Probably the best way for them to find out.

ageo said:
P.S up 18 points with materials atm so im in a happy mood.

Congrats mate! I hope it continues to go well for you

Ageo · 29 June 2006

professor_frink said:
Fair enough. The person who originally asked probably should just go out and read it. Probably the best way for them to find out.

That is probably the best way if there is 50/50 good/bad response.

professor_frink said:
Congrats mate! I hope it continues to go well for you

Thanks mate, i have been noticing the end of day breakouts lately. Interesting........

cuttlefish · 29 June 2006

Prof Frink I'm curious whether you've actually read the book?

I'm not going to hold it up as a bible or anything, but I've been a good saver and investor for many years and still found the book a worthwhile read. I wouldn't hesitate to give it to a teenager to read. I've certainly obtained real value from the messages contained in it.

The main areas that I found useful were some insights into the value of looking at cashflow when investing, the old chestnut concept of counter cyclical investing is also touched upon but with a slightly different slant (i.e. to some extent helps to safely identify the difference between a countercyclic opportunity and a dead horse). Exploring the differences between earning a lot of money, having a lot of money, and keeping a lot of money are worthwhile as well.

I would also say I don't think he's down on education - he makes the point that if you're going to get educated know why you're doing it.

Most of the message he teaches probably are commonsense to an experienced and wealthy investor, but the reality is those people are a small proportion of the population, so for the rest of the population there's useful stuff to be learnt from this book.

professor_frink · 29 June 2006

Yes cuttlefish I've read the book
It's interesting that you still found it useful even though you already saved and invested. I'm with tech- I think it's a very basic book aimed at people with little or no financial knowledge. I still think there are comments in there that can be damaging to people with that level of knowledge. No wonder amway are a big fan of his work! Giving people the idea that they can be financially successful and providing very little insight into how to go about it can be a dangerous combination.

i go to seminars. I like it when they are at least two days long because I like to immerse
myself in a subject. In 1973, I was watching TV and this guy came on advertising a three-day
seminar on how to buy real estate for nothing down. I spent $385 and that course has made me
at least $2 million, if not more. But more importantly, it bought me life. I don't have to work
for the rest of my life because of that one course. I go to at least two such courses every year.

Combining this kind of comment with the last property boom, is it any wonder that people like henry kaye found so many suckers with their dodgy seminars.

there are forms of insider trading that are illegal, and there are forms of insider trading that
are legal.

This is specifically the kind of comment that should be kept away from financialy illiterate people.

The reason I minimize my income is because I don't want to pay it to the government.

This kind of coment, and the ones above are why I wouldn't recommend noobs read it. If I had a son and wanted to start him on some financial education, I wouldn't want him reading that. what I would possibly do, is condense it down and eliminate all of this kind of rubbish, as well as get rid of most of the waffle in the book(and I think there is alot of that!). I'd be left with about a 20 page long summary of the whole book. So I guess by saying that, I am conceding that there is some good information in it, so I'll concede that my earlier comments may have been a touch harsh!

if you watch CNBC, which is a goldmine of investment information,

This was one I found tonight whilst skimming through for some quotes to illustrate my earlier points. Whilst I'm not directly critical of this comment, as cnbc does contain investment information, it will also have the side effect of turning viewers into permabulls who think the bullmarket will run for ever. "mad money" indeed folks

wayneL · 30 June 2006

professor_frink said:
Whilst I'm not directly critical of this comment, as cnbc does contain investment information, it will also have the side effect of turning viewers into permabulls who think the bullmarket will run for ever. "mad money" indeed folks

LOL Amen!!

pacer · 30 June 2006

Yeah man, big ides to confuse the little man, but nevertheless a motivational book too, had read two of his books and realised I'm better at gambling than invesing SO I PLAY THE STOCKS AND WIN MOSTLY (except for on nuenco, but have just bought back in)

BUT there are also alot of deals and profit still to be made if you buy in the right spot at the right time.....just take this for example.....

My mate asked me if he should buy this 80k 4brm house in Newman 3 years ago when we were working there, I said..........

pacer · 30 June 2006

Cntd...........buy it.......stocks and land are up...... and now it's worth 450k
in 3 years, and paying $500 per week in rent!!!!!!!!!!!

cuttlefish · 30 June 2006

prof frink - fair comments - I must admit I didn't recall any of those statements in the book so maybe I did a fair bit of subconscious filtering as I went through it. I might have a look through the books again, I do recall a fair bit of repeitition like most books of that nature, but I also know that I've gotten value from the book. I don't think that he's got anything to offer in relation to share investing (and the parts of his books that talked about this were pretty much waffle as I've said earlier in this thread), but I did find that some of the stuff in relation to both property investing and overall focus on cashflow did cause a change in some of my thinking about certain area's of investment.

To some extent, an unsophisticated investor is at risk from any kind of book they read, the only way of truly learning is to do it, and if a book stimulates them to have a go then thats probably a good thing. Until someone loses money that they've worked and saved hard for they probably don't truly undertsand investing lol. But the comments you've lifted out are definitely not helpful.

Something that annoys me about the Henry Kayes etc. of the world is that someone somewhere funds this sort of irresposible activity - and surprisingly often it turns out to be the banks - either directly or via mortgage brokers. In the same way as during the 80's they irresponsibly lent to 'entrepenuers' for leveraged buyouts at the height of speculative idiocy that failed, they are now lending to 'entrepeneurs' that are doing leveraged property investments at the height of speculative idiocy that (surprise, surprise) also fail. I'm always amazed that these institutions also never seem to learn.

Rich Dad, Poor Dad

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