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July 17, 2006


Toaster Strudel

I hate to break it to you but Rich Dad/Poor Dad is one of my favorite finance books. I see his basic premise as this: There are two kinds of people in the world. Ones with big hats and no cattle and ones with small hats and cattle and condos and businesses and, well, you get the idea. While I do not agree with everything in this book (his concept of being able to make millions of dollars off of real estate deals seems both far fetched and unrealistic), I like his emphasis on putting your money where it will do you good, such as into a business or into training to improve your business or professional skills, not into a fancy car or a bigger house. I also agree that many people, even if you do give them a raise or more money, will not save or invest the money but will just up their expenditures. People do not spend enough time thinking about how to get ahead, beyond just thinking "I need to make more money." They are usually, (and I am as guilty of this as is the next person), willing to sacrifice now to get ahead in the future.
Perhaps this book matched enough of my own beliefs that I picked them out of the text and just ignored the rest. I think there is too much emphasis on money and not enough on the bigger picture of being a good person and being happy. He does mention in the beginning that he feels it is important to give back to the community when you are successful. So he's not a total Donald Trump.
If you're looking for a general philosophy of personal finance, this is a good book to read. You may not agree with much of it but it will get you thinking.
I also think it has some thought-provoking comments to make on the nature of power in the business world. Rich Dad talks about many of the things people do that keep them from succeeding in the world, especially the world of business.
Another book you might like, Cathy, is The Millionaire Next Door. It talks about similar philosophies as Rich Dad/Poor Dad but in a more realistic and less bizarre manner. Basically the writers set out to find out who where the millionaires in our society and how did they get so rich. What they found surprised them.
Gotta go. I'll write and annoy you more soon.
Take care.
The Strudel

Toaster Strudel

Ok, correction to the previous post. I meant to say that people are usually NOT willing to sacrifice now to make things better for the future. There, now that makes more sense.
The Strudel


See, I much prefered The Millionaire Next Door. I thought it was much more straightforward; it didn't rely on a story that might or might not have any basis in fact and that featured such a vile character as Rich Dad. I'd totally recommend TMND to anybody, but I'd only recommend RDPD to people with active imaginations or people I actively disliked.


Oh yeah. If he made so much money, why did he write the book? Not out of the goodness in his heart! I'm sure there's a chapter in his book that says doing anything 'good' is not going to make you rich.

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