This is the second book I've read from Robert Kiyosaki and it was a quick read but very informative. If there's one thing that successful people tend to mention is that their thinking process is usually the opposite of what most people think. Kiyosaki gives a number of examples of that in the book. He explains how the economy of the US changed forever in the early 1970's and that the government prints more money, essentially decreasing its value. So most people are conditioned to think that in order to make it in this world, one must save money and invest in "safe" things such as mutual funds. Kiyosaki argues that in order to get ourselves out of this economic situation, we need to spend.
He goes on to explain a number of times in the book that following this same formula will lead to one living below their means and never expanding their financial IQ since this process does not lead to growth but instead a routine where one constantly saves money and depletes their own paper assets. The way that Kiyosaki was able to increase his assets was through the real estate market and explained how the price and value of homes may increase or decrease but the need for housing will always be there. After introducing this concept, he talks about his purchases of major apartment complexes.
I enjoyed the book and I believe that any book that introduces ideas that are different and make the reader think critically about what is written is a good book and Kiyosaki does just that. He encourages the reader to think on their own and to have the courage to go out and be successful. After all, he was a "C" student who expanded his financial knowledge and had the courage to become successful.
The author explains some classic notions aimed at making big money. For instance, gather assets not bad debt, pay down taxes and acquire only good debt. i.e. an example of good debt would be a mortgage on an income-producing property or a bank loan to buy a "cash cow" business. The author encourages us to utilize the bank's money instead of our own in order to leverage a transaction. Sound budgeting and planning … more
I love basketball, exercise, reading, business, movies and occasionally some brainless reality TV shows =P I am more than happy to help anyone out with anything here on Lunch and definitely looking forward … more
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For years, Robert Kiyosaki has firmly believed that the best investment one can ever make is in taking the time to truly understand how one's finances work. Too many people are much more interested in the quick-hitting scheme, or trying to find a short-cut to real wealth. As Kiyosaki has preached over and over again, one has to truly under the process of how money works before one can start out on trying to escape the daily financial Rat Race.
Now, in this latest book in the popular Rich Dad Poor Dad series, Kiyosaki lays out his 5 key principles of Financial Intelligence for all to understand. In INCREASE YOUR FINANCIAL IQ, Kiyosaki provides real insights on these key steps to wealth:
o How to increase your money -- how to assess what you're really worth now, what your prospects are, and how to start mapping out your financial future.
o How to protect your money -- for better or for worse, taxes are a way of life. Kiyosaki shows you that "it's not what you make....it's what you keep."
o How to budget your money -- everybody wants to live large, but you have to learn how to live within your budget. Kiyosaki shows you how you can.
o How to leverage your money -- as you build your financial IQ, knowing how to put your money to work for you is a crucial step.
o How to improve your financial information -- Kiyosaki shows you how to accelerate your wealth as you learn more and more.