Is Rich Dad Poor Dad good investment?
We've got to stop recommending Rich Dad Poor Dad as a good book on finance. Getting into loads of debt can get you in trouble. Investing all your money in one asset is incredibly risky. Buying gold isn't guaranteed to protect you from recessions as we learned in the 2020 stock market crash.
Principle #1 – Your house is NOT an asset
Rich Dad Poor Dad says not so fast. He says that having a mortgage payment is actually a liability and NOT an asset. Instead, we should focus on investing in assets that put money in our pockets in order to grow our wealth.
According to Robert Kiyosaki, not anyone can generate investment income. Investment income generation starts with saving money. Saving money is as difficult as investing money. It takes maturity and perseverance to accumulate savings.
One of the most empowering lessons rich dad taught in this section of Rich Dad Poor Dad was to “keep using your brain, work for free, soon your mind will show you ways of making money far beyond what I could ever pay you. You will see things that other people never see.
Kiyosaki kept it a complete mystery citing a written agreement with the family of Rich Dad to keep him anonymous. Meanwhile, the general consensus is that Rich Dad is a completely made up character, a combination of all the influences in Kiyosaki's life and therefore Rich Dad was not actually a real person at all.
To avoid such pitfalls, Kiyosaki's “rich dad” taught his son the number one rule — “the only rule” — for getting and staying rich: 'You must learn the difference between an asset and a liability and buy assets.
Saving money does not protect you from market conditions such as inflation and economic downturns. In essence, saving money creates opportunity, but investing is the way to capitalise on the chance to create more wealth. The value of money decreases over time.
- Avoid (and Pay Down) Debt. Debt is not necessarily bad in all instances, but it is something to be avoided most of the time. ...
- Spend Intentionally and Minimize Costs. ...
- Invest as Much as Possible in a Diversified Portfolio. ...
- Work On Your Career. ...
- Find Extra Work.
- Plan and set goals. Rich people are goal-setters. ...
- Don't overspend. ...
- Create multiple streams of incomes. ...
- Read and educate yourself. ...
- Avoid toxic relationships. ...
- Don't engage in negative self-talk. ...
- Live a healthy lifestyle.
Investing Only in Intangible Assets
Ultra-wealthy individuals invest in such assets as private and commercial real estate, land, gold, and even artwork. Real estate continues to be a popular asset class in their portfolios to balance out the volatility of stocks.
What is the true meaning of wealth?
What Is Wealth? Wealth measures the value of all the assets of worth owned by a person, community, company, or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Essentially, wealth is the accumulation of scarce resources.
That guru, businessman and “Rich Dad Poor Dad” author Robert Kiyosaki, said in a May 12 tweet that “Bitcoin crashing” is “great news.” He went on to say: “As stated in previous Tweets I am waiting for Bitcoin to crash to 20k. Will then wait for test of bottom which might be $17k.
Kiyosaki defines an asset as anything that puts money in your pocket. A liability is anything that takes money out of your pocket. The big mistake that poor and middle class people make, according to Kiyosaki, is spending their lives buying liabilities instead of assets.
Richard Kimi's Son Supports The Claim
Eventually, one journalist tracked down Alan Kimi, the son of Richard Kimi, who confirmed that his father was the basis for the Rich Dad character. But this didn't convince everyone, and there's still speculation that Rich Dad is made up.
