Cashflow Quadrant: Rich Dad's Guide to Financial Freedom
||List Price: $17.95
Amazon.com Price: $12.57
- Media: Paperback
Publisher: Warner Books (01 April, 2000)
- Average Customer Review:
Based on 187 reviews.
Amazon.com Sales Rank: 120
A few good points poorly and repetitively written
Make your first step toward financial freedom a decision to not spend money on this book. The back cover of the book had three quotes, two by the authors and one by Galileo. I doubt any of the three read this book which is virtually identical to Rich Dad Poor Dad, which I also read and do NOT recommend.
The authors do make some good points (and then repeat them ad nauseum): 1) Rich folks don't have jobs 2) Rich folks aren't worried about security and 3) they pay less tax by using corporations. The thesis here may seem obvious, but he spends a great deal of energy convincing you.
If you're an "employee" or "self-employed," plan on being offended because you're apparently too uninitiated to know the difference between an asset and a liability--don't worry, he'll explain it again and again and again. But not technically, just approximately and slowly and with very large pictures. If you know anything about accounting (I'm a Director of Finance), you'll be put off--The book transmogrifies the meaning of simple accounting terms while attempting to provide "financial literacy." (See how the authors describe a home as a liability with no mention of equity or non-monetary value of ownership).
Unfortunately, there are some basically good ideas here buried in a lot of silliness. If you want financial literacy, go to school or buy some technical books on financial analysis and accounting. If you want motivation seek books by Anthony Robbins or Steven Covey. If you want smart information on buying distressed properties try Goldmining in Foreclosures by Achenbach and for investing try the "Motley Fool" investment site...where you'll find a list of investment resources.
I would suggest reading everything you can to assist you in your struggle for wealth, but this reasource is not that valuable in a world of limited time and attention.
Throw out the misconceptions and think for yourself.
Naturally, someone who has bought into the whole home "ownership" myth would have a lot vested in boo-hooing this book (or CD in my case). It takes a strong ego to realize that THE BANK owns most of your homes. THE BANK owns many of your cars. These things draw money AWAY from you and are, by definition, liabilities. Not until you sell them, (and only when you sell them) and produce a positive cash balance are they "assets."
Simple concept; money comes in = asset, money goes out = liability.
This CD explains, in simple terms, how the banking system and the government's tax scheme owns you...unless you change the way you think. There are no "get rich quick" ideas contained on the CDs and the ideas are not for the weak of heart or stubborn minded. That's o.k. though. As long as there are plenty of people to ignore this "cashflow quadrant" concept, there will continue to be opportunities for those few who adopt this method.
I have begun adopting this approach to our businesses (JLilly.com) and our wealth has started growing.
Financial Common Sense We Should All Know
It is true that Kiyosaki's books repeat the same general theme, but it is the brute simplicity of his message that make these books both powerful, and popular.
To be wealthy:
1) There are many ways to earn money, but to be wealthy you cannot work for money. You must have the money work for you; you have to be a business owner (B) who owns assets than make money or an investor (I) who invests in those assets. If you are an employee or self-employed specialist, there is a limit to your income because there are only 24 hours in a day.
2) Become financially literate. Have a basic understanding of how assets create income, and liabilities create expenses. Then, simply collect assets.
3) Once financially literate, hire the best advisors who can help you to play the game. Don't penny pinch on financial advice; good advisors will pay for themselves.
4) Don't let the government needlessly take your money (Earn -tax then spend). Start a corporation and legally pay taxes after expenses (Earn - spend then tax).
4) Start small and learn from your mistakes. "The only difference between a rich person and a poor person is what they do in their spare time." (page 65)
5) Become a sophisticated investors who is willing to take educated risks. "True investors make more money in bad markets" (page 64)
6) Don't take on debt that will not take care of itself. If you take risk, make sure you get paid for it, just like banks do.
RECOMMENDED Finance, Business & Investment books
- Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
- Cashflow Quadrant: Rich Dad's Guide to Financial Freedom
- Retire Young, Retire Rich
- Financial Risk Manager Handbook, Second Edition
- Monte Carlo Methods in Finance
- The Sweet Potato Queens' Big-Ass Cookbook and Financial Planner
- Financial Peace: Revisited
- AWAKEN THE GIANT WITHIN : HOW TO TAKE IMMEDIATE CONTROL OF YOUR MENTAL, EMOTIONAL, PHYSICAL AND FINANCIAL
- The New Financial Order: Risk in the Twenty-First Century
- The Laws of Money, The Lessons of Life: Keep What You Have and Create What You Deserve
- Investing for Dummies, Third Edition
- Mortgages For DummiesÂ®
- The Total Money Makeover. : A Proven Plan for Financial Fitness
- Millionaire Real Estate Mentor : The Secrets of Financial Freedom through Real Estate Investing
- Infectious Greed: How Deceit and Risk Corrupted the Financial Markets
- The Intelligent Investor: The Classic Bestseller on Value Investing
- The Intelligent Investor: The Definitive Book On Value Investing, Revised Edition
- Good to Great: Why Some Companies Make the Leap... and Others Don't
- Investments + S&P Card + Powerweb + StockTrak discount coupon
- Essentials of Investments with Standard & Poor's Educational Version of Market Insight + PowerWeb + Stock Trak Coupon
- Real Estate Finance and Investments (Real Estate Finance and Investments, 11th Ed)
- Getting to Yes: Negotiating Agreement Without Giving In
- Adventure Capitalist: The Ultimate Road Trip
- Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life
- Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not!
- Real Estate Loopholes: Secrets of Successful Real Estate Investing
- A Mathematician Plays the Stock Market
- Investing in Real Estate, Fourth Edition
- Yes, You Can Time the Market!
- Seven Habits Of Highly Effective People
- Now, Discover Your Strengths
- Dictionary of Finance and Investment Terms
- Personal Finance for Dummies
- Fish! A Remarkable Way to Boost Morale and Improve Results
- Flipping Properties: Generate Instant Cash Profits in Real Estate
RECOMMENDED MICROSOFT EXCEL TIPS