Why we think you shouldn’t take “Rich Dad Poor Dad” seriously
The rich don’t teach their kids crappy stuff about money
Rich Dad, Poor Dad is a popular book by Robert Kiyosaki that has been read by millions of people around the world. The book presents itself as a guide to financial independence and wealth creation, and there are thousands of network marketing and MLM companies that swear by Kiyosaki’s “Cashflow Quadrant”, and clever as it seems, we think it’s really a load of bullcrap that promotes unrealistic and questionable business advice; folks who spent hours at Cashflow Quadrant clubs are probably better off playing Monopoly.
Strong words, you say? Not really. Kiyosaki is just as controversial in his personal life as his book. Let’s take a look at the hard truths (after all, that’s what BusinessBility is all about right?), and you can decide:
1. Lack of Specifics
One of the biggest criticisms of “Rich Dad, Poor Dad” is the lack of specific advice. The book is filled with anecdotes and generalizations, but it doesn’t provide concrete steps on how to achieve financial success. Kiyosaki often talks about the importance of having a good attitude, working hard, and taking risks, but these concepts are not new or unique. In fact, they are often repeated in other self-help books.
2. Overemphasis on Real Estate
Another issue with “Rich Dad, Poor Dad” is the overemphasis on real estate. While it is true that real estate can be a good investment, Kiyosaki seems to suggest that it is the only way to achieve financial freedom. He often talks about buying and flipping properties, but he doesn’t provide much guidance on how to do so successfully. Moreover, real estate investing requires a significant amount of capital, which may not be feasible for everyone.
3. Promotion of Get-Rich-Quick Schemes
Kiyosaki has been criticized for promoting get-rich-quick schemes. In one of his books, he recommends investing in penny stocks, which are often associated with high risk and volatility. He also suggests starting a network marketing business, which can be a legitimate business model, but it is also known for its pyramid scheme structures. It is important to note that not all get-rich-quick schemes are illegal or unethical, but they are often too good to be true.
4. Questionable Advice on Taxes
Kiyosaki has also been criticized for his advice on taxes. He suggests that the wealthy can avoid paying taxes by setting up a corporation or investing in real estate. While it is true that there are legal ways to reduce your tax liability, it is important to work with a qualified tax professional to ensure that you are following the law.
5. Lack of Credibility
Finally, it is worth noting that Kiyosaki’s own financial success has been called into question. Some have pointed out that he has filed for bankruptcy multiple times and that his real estate investments have not always been successful. This does not necessarily mean that his advice is bad, but it does raise questions about his credibility as a financial expert.
Rich Dad, Poor Dad may be an entertaining read (and by this we mean it really should be re-classified as fiction) but it is not a reliable source of business advice. The book lacks specificity, overemphasizes real estate, promotes get-rich-quick schemes, provides questionable advice on taxes, and has a questionable author. If you are looking for guidance on how to achieve financial success, it is best to seek out advice from qualified professionals who have a track record of success.
Tell us what you think! We’d love to hear your thoughts and opinions, and please, engage us in conversation/debate!
