Many are searching for the road to riches – especially in the economic climate of recent years. “Rich Dad Poor Dad” hits the spot snuggly between “self-help” and popular economy books. On the way it gathered thousands of fans and admirers.
But what does he actually say? Conventional way of financial thinking is obsolete. Since the ’30s-’40s of the 20th century, a cushy job in a big company does not offer any financial security and stability anymore. Your pension is not guaranteed.
These days, people roam from one job to the other, and loyalty between an employer and employee is considered a naive concept. One has to make sure he’ll have a nest egg for retirement – otherwise he might stay with nothing.
Kiyosaki portrays the employee life as a life of servitude. The government and banks join up forces and push the regular joe to expand spending more and more, get into as much debt as possible – in order to move the wheels of the economy and make sure that those who make plenty of money – will only make more. This, by the way, is the source of the big financial crisis of 2008. Cheap loans, less scrutiny, none or little securities pushed people to bury themselves under mountains of debt that eventually was partially lost and required the government to financially aid the banks failure to avoid a further economic landslide.
Kiyosaki is against mortgage. He believe the price you pay for this “dream house” puts you into dozens of slavery years to pay back that huge loan. In that period of time, you’re always a few months away from bankruptcy and financial ruin.
He is not against buying real estate as an investment, but only when the financing is done smartly and does not land you in a deep hole of debt.
Kiyosaki is for building special kind of lucrative businesses. Almost automatically and independently running companies. The kind of business he talks about may be left to run on its own – using trusted people – and can be returned to a year later to be seen still making money and running smoothly.
By the way, almost a year ago, one of Kiyosaki’s company filed for bankruptcy due to a 24 million dollar debt. He is still worth over 80 million dollars and invested in multiple ventures.
There are countless books and self-appointed gurus out there that are trying to convince us that the pot of gold is really quite reachable. And yet only chosen few ever reach to touch it. So, it’s not that simple. But it’s possible.