Robert Kiyosaki made a fortune by teaching people how to manage their finances. That’s the thing with financial advisers. Whether the advised benefit or no, the adviser definitely benefits from the advice. But Kiyosaki is different in that he has always been pragmatic in both the topics he chooses and the advice. Amidst all his seemingly outrageous advices through his Rich Dad series, the Japanese genes of his frequently make an appearance. The Japanese are even better at saving than Indians. But Kiyosaki is the torchbearer of that community that knows that knowing your money and its behavior well is the key to growing it and getting rich. Simply saving is not enough is his mantra.
Originally Published : 2008
Publication : Business Plus
Pages : 197
Genre :Personal finance, entrepreneurship, business, investing, economics, Non-Fiction, Financial IQ, Self Help
In this book with a preface by none other than Donald Trump who highlights that making good of the opportunities that present themselves underlines how you get rich. Trump and Kiyosaki together wrote Why we want you to be rich in 2006. With every passing year, the rules of money keep changing. If it was gold and precious metals for the longest time, it evolved to bitcoins, tech and the comeback of the real estate on the investment scene worldwide. Kiyosaki has been a huge fan of gold, oil and real estate and has been both lauded and criticized for that. Looks like Kiyosaki understands the pulse of money problems well. If the poor are saddled with problems of lack of money, debt, mortgage, lack of opportunities to earn money, sacrificing numerous dreams for self and family for lack of money, the rich have their own peculiar ones- how to keep the money safe, where to invest, spoiled kids, inheritance issues and overall trust issues with excess money as the chief cause of concern. The difference between the two, according to Kiyosaki, is that the poor see money problems as agonizing problems and tend to ignore them while the rich see them as opportunity to earn more. While the poor tackle money demands by borrowing, ignoring or simply bypassing the pressing need for money, the rich know exactly how to make the money work to grow more money.
The whole book revolves around the five financial IQs
Making more money – most people know the ways and means of making money. It’s only the quantum that differs and which is again dependent on your Financial IQ
Most autobiographies of the world’s successful people are replete with anecdotes of them jumping at every opportunity that they encountered. Or at least the suitable ones. Opportunities are lost either because we can’t spot them in time, we hesitate to grab, we’re ill prepared and under-skilled to make use or we simply underestimate them.
Protecting your money- – just earning it and continuing to pay taxes is bad financial management. Know where your bucks leak from- money has more feet than you can see. Investing your time, money and efforts in gaining financial knowledge goes a long way in handling money well. Kiyosaki writes a lot of his stuff from self experience and hence readers can relate well to what he says.
Budgeting your money –the age-old wisdom of earning-saving-investing and then spending what’s left, bodes well for this IQ. Wisely allocating money for essentials, splurging, investment goes a long way in maintaining the financial health of your portfolio.
Leveraging your money – merely saving money in bank, especially in the current scenario where bank interest rates hover around a meager 6 to 7 % is bad mathematics. Put the money to work and let it grow healthy.
Improving your financial information –
it’s the first step towards developing financial intelligence. The logical second step is sound financial knowledge. Putting information to practice and learning from the lessons is the key.
We all have seen several people saying ‘I know to earn but I can’t handle money well’. You better learn the ropes for without learning to handle money, you will be a fool in moneyland. Kiyosaki has wisely listed academic , professional and health intelligence as important aspects of keeping your finances healthy at all times. If the earlier book ‘Rich Dad Poor Dad’ was full of anecdotes, this books presents ample examples that speak for themselves. However, the former was a book that could appeal to the novices as well as the experts, but this book will definitely be a must read only for those who have mastered the finance vocabulary and jargon and are well into money making already. The author has tried to cram in a lot of information in one book, making it a tad too technical at times, full of anecdotes, examples, tables, charts, advice, even sauntering into neurology of the brain; unless of course you realize the importance of every written word in it. You will enjoy it of you have listened to your dad.
- Merely knowing how to earn is not enough, invest in developing financial IQ
- The money’s real work begins after it has been earned
- Learn to differentiate between information and knowledge
- A good financial advisor is worth every buck paid
- Know the difference between your worth and net worth
Why I recommend this book
Although not an easy – read, the book is a must – read if you value your hard earned money.