I am going to be reviewing Rich Dad Poor Dad the book. This is the first motivational book I picked up probably about two years ago, and I don't think I ever did a review. It's absolutely life changing. This is a book that will get you to a point of thinking outside of the box, but it's your job to take it from there. The author of the book is Robert Kiyosaki, and he is actually one of my favorite self-made successful people I respect the most. The book is about Robert's life as a little boy and how he grew up with his real father, his Poor Dad, and his best friends father he considered his Rich Dad. He tells the story as he was a little kid, probably around the age of 9, all the way up to an adult, and what he has learned from both fathers, he also tells his success and how he failed many times, lost all of his money and ended up living in his car. The story is not only very educating, it's very inspiring. Robert really covers a lot in this book, he covers his thoughts on financial literacy, and his belief on the school system, how the school system isn't teaching our kids about money, how to manage money, and how to invest it properly. His belief on the school system is that they basically pump out educated kids who are good enough at what they need to know to work for someone else for the rest of their lives. He educates you a little bit on taxes, and how the rich benefit from tax laws, and how the rich pay less in taxes. This book changed my perspective, gave me a grip, inspired me, and revealed the truth. You can dig even deeper, and read his other books which really opened the doors for me, his writing is phenomenal.

This book is a must buy, and an absolute must read right now.

He explains how your house is a liability and not an asset. It's actually quite funny, I posted this question on Facebook, and got a bunch of replies, 100% of them saying it's an asset. Read the conversation below, and tell me what you notice.

The Facebook Controversy

There is only one person in the conversation who understands the Rich Dad concept, because he read the book, so don't count Joe Jackson for now Sorry Joe, lol. Now I am a firm believer of Rich Dad's theory, because I am here to make money, not listen to what we have been grown up to believe. It comes down to such simplicity, and common sense. Liabilities take money from you, assets put money into your pocket. Now I know that may be hard to grasp at first, because you're saying to yourself, the value of my house went up last year. Oh it did, well have you sold it, are you going to sell it? That's great, but what Rich Dad is trying to do is open your mind to the world of cash flow, and making money. You really do need to read his entire book to understand his meaning of the definition fully. Go ahead and take a look at his video. httpv://www.youtube.com/watch?v=P1KO_Sjsq2U

Liabilities

Your house, your toys, your boat, your Rolex, your $2000 Armani suit, they are not assets. Your bank has been lying to you. It cost money out of your pocket to maintain all of your toys, insurance, maintenance, rent, HOA, electricity, roofing, the list goes on and on. If the bank defines a liability debt you have to repay, why are they telling you it's an asset, they are not assets just because you own them. These toys are debt, technically speaking the bank owns your asset if you miss a payment. So who the hell really owns it. Your house and toys are not assets. They are liabilities, they cost you money, and you are in debt to them.

Liability: Something you own that takes money out of your pocket

I always thought that owning a bigger house, better cars, and more expensive toys meant I was rich, it doesn't. You're an idiot if you think that. I learned this the hard way, reality agrees with Rich Dad's definition, and so does the rich.

Assets

So what the hell is asset? An asset is something that puts money into your pocket, the complete opposite of a liability, look at that. For example, you own two houses, the 2nd house you decide to rent out, the rent you charge less expenses = cashflow. Cashflow is what defines a true asset. The 2nd house is an asset. Say you own a business, and the business is profiting each month, your business is an asset. Say you have a stock that pays dividends, your stock is an asset. Say you have a 100k car, and you rent your car to people every month and you make money, then your car would be an asset. Say you own a 12 unit apartment building, and you rent it out, and you are cashflowing, that piece of real estate would then be considered an asset. Now I know you are saying right now in your head, but my house went up in value, good for your house, you still owe your house to the bank, get a grip. Capital gains is pure speculation, it's a myth. Yes, if you decide to sell the roof over your head and have no place to live and your house does sell and you make more then what you put into it, good for you, you sold your house and made some cash, it still doesn't define it as an asset. The last 15 years you were living in it, was debt you owed to the bank to have a roof over your head, you were losing money. I know you are not investing into your house for capital gains, you are buying your house to put a fucking roof over your head. I am sorry if I offended you, but the reality is clear, and the bank is lying to you. So remember, capital gains is capital gains, it's profit from an investment. Yes your house is an investment, but it's not an asset, it's a liability. Capital gains is means to end, an exit strategy, a way out, and you invest purely for capital gains. Your house, and your toys are for you personally to pleasure and take care of yourself, and you pull out loans (liability) from the bank to have these toys, and you are in debt to them, if you don't play nice with the bank, their little piece of paper gives them the right to sweep it from right under your feet. So remember, cashflow is what defines an asset, not capital gains. Stop thinking losing money to debt you owe to the bank (liability) is an asset.

Asset: Something you own that puts money into your pocket each month or year

Conclusion

My conclusion is this, I already said the book is a must buy. I know if you are reading this for the first time, or this is the first time hearing something like this, it won't make sense, it will be an absolute shock, and you will probably deny it. I say you pick up the $10 book, read it, and then I invite you to come back here, and tell me what you think. So go buy Rich Dad Poor Dad, read it, come back and talk to me. I read the book in 2 nights, and I am sure you can too. I strongly believe it too, will open your eyes. Don't resent or envy the rich, get financial education, learn how the rich are rich, do what the rich do, and start right now. Not tomorrow, now, go to the book store, and buy this book now. Robert Kiyosaki is a self-made multi-millionaire who made it to the top being raised from an average family. He reached the top on his own without any money from his family, which is why I respect him so much, he was able to do it on his own. He went from broke to rich, to broke, to rich again. He made millions, and lost it all, and ended up living in his car, and reached the top again. Even before his book, him and I had the same outlook on life, which is another reason I connect so strongly with this beliefs.