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Monday, 11 August 2014

The Essence of Rich Dad Poor Dad


Many people have been inspired by this book Rich Dad Poor Dad by Robert Kiyosaki.

But I noticed something quite interesting.

10 people read the book, 1 or 2 will have their own interpretations - based on their own life story and personal experiences. The rest of the 8 or 9 persons will tend to gravitate towards the interpretations of others even though they have read the book themselves...

Which is weird when you think about it. But upon reflection again, it's perfectly normal. That's human group behaviour.






Essence of Rich Dad Poor Dad

Let me share my own interpretation.

To me, the whole essence of the book is found in Chapter 1.

If you have the book, you may want to re-read this chapter before reading further.

What's the essence?

It's all about the advantages of being a Business Owner right?

To Chinese readers, this is nothing new. There is a well-know Chinese saying that you don't get ahead working for others. 



Spinoffs and splinter groups

As with all Spiritual movements, sooner or later, spinoff and splinter groups will appear as more shepherds offer their own interpretations to the words of the founder. How else to be Indian Chief of your own flock?

Same goes for Rich Dad Poor Dad. 

I shall share 2 prominent spinoff groups I noticed.



Cult of Passive Income

This is quite popular in recent years. 

Makes a lot of sense.

Not everyone has the stomach and temperament to aspire to be Business Owners. Which brings up the question: Are entrepreneurs born or nurtured?

If you belong to the nurture camp, what's stopping you? Go for a course and there you go!

If you lean towards the born camp, either way, you feel better now.

90% of new business start-ups fail in the first 2 years you know? Exactly! 

That's why selling Passive Income is so much easier. Anyone and everyone can do it! (At least that's what the marketing sell says)

I don't know about you, if something can be done by anyone and everyone, the first thing that pops in my mind are "minimum wage" types of jobs...



Temple of Positive Cash Flow

Before Rich Dad Poor Dad, most have one interpretation of what counts as an asset. The brilliant contribution from Rich Dad Poor Dad is that it offered another interesting interpretation of asset that caught the imaginations of its many readers.

The problem is that some readers have swung their pendulum too much to the other side now.

To these readers, any asset that does not yield a positive cash flow is not an asset???

Huh?

Can you think of a great long term asset that has negative yield? You may want to ask or discuss with your parents or grandparents on this one. How?

Can you think of an asset that has no yield yet all empires and dynasties covet it throughout the ages? OK, you may need to know history. 

But if you are Asian, then you don't need history. It's part of our cultural DNA - Asia has been through so many wars, famine, and natural disasters that we even wear this asset on our bodies. 

 

Which quadrant is Robert Kiyosaki?

Do you listen to what others say or what others do?

Enough said.




13 comments:

  1. When i get older, i realized I'm more easily influenced in some way and not so easily influenced in other ways. Right now, I'll just like to be in a zen-o-sphere call balance. :)

    子曰:“中庸之为德也,其至矣乎!民鲜能久矣。”

    ReplyDelete
    Replies
    1. Hey pf!

      Another Zen walker I see ;)

      Life can be a bit confusing if we listen to a thousand flowers bloom at the same time.

      With benefit of experience and wisdom of time, we realise if we stick with that ONE THING, everything becomes much clearer :)

      出污泥而不染

      Delete
  2. Hi SMOL,
    No offence, having read/watch books/vids of Robert K, I am definitely not one of those greatly influence by him. While I appreciate his analogy, I do not like the fact that he "seems to undermine" his poor Dad just because he is not so wealthy. At least poor dad is honorable and trueful! Also RK philosophy "in my opinion" focus on earning money as main driver, but instead it should be passion, integrity and sincerity. Particularly when he is in education industry. I prefer Warren Buffett and Steve Job over RK and his good friend Donald Trump. The former two are more real and follow their hearts. They should be role model for youngster rather than the latter two and focus on earning money. Nevertheless the ideology of RK 4th quadrants is quite ingenious and definitely good to know.
    Ooops... Am I getting too serious!
    Rolf

    ReplyDelete
    Replies
    1. Hello Rolf,

      None taken.

      My admiration of Robert Kiyosaki is purely from one snake-oil salesman to another ;)

      That's why I say the essence is just Chapter 1. The rest of the book and the other Rich Dad Poor Dad series are pure "marketing puffs".

      Applause on how he milks 1 "success" into so many spinoffs. Now that's how you squeese blood from stone!

      Anyone out there interested in how to market and sell yourself, how to find success as a snake-oil salesperson, you have a wonderful case study on HOW to DO it like Robert Kiyosaki.

      Listen to what he does; not what he says.

      This post is merely a "poke" to readers who may have "listened" too much to other people's interpretation on what Robert Kiyosaki have said ;)


      I am a cheerleader of finding your own voice and having your own independent thoughts.

      That would mean even though I am a fan of John Neff, Peter Lynch, and Jessie Livermore, I am constantly reminding myself not to be "poisoned" by their writings.

      They are not me; I am not them ;)

      Delete
  3. I took one step further to formulate it. My wealth formula:

    Wealth = Asset Value + Cash flow


    High asset value with little or no cash flow will not help us much to sustain our wealth as we are likely to drawn down some of these assets and become poorer.

    ReplyDelete
    Replies
    1. CW,

      That's why you have won my respect!

      We need to have our own opinions and our own voice.

      My own definition is:

      Wealth = I have enough


      Remember that naughty man's joke on how to tell the difference between excess and surplus? Shh...

      Don't know why, it just pops into my mind...

      LOL!

      Delete
  4. Hi SMOL,
    Well said. I like the last phrase "They are not me; I am not them"
    Most important of reading is to extract what is good and relevant for yourself. Before that, you must know yourself!. Therefore you must visit my blog post...."understand yourself - how to be happy" http://rolfsuey.blogspot.sg/2014/03/understand-rolf-suey-understand-yourself.html?m=1
    Hahaha now that is sales & marketing learn from Robert K.

    ReplyDelete
    Replies
    1. LOL!

      Wah! Your snake-oil is strong!

      "Must" some more!



      Delete
  5. Hi SMOL,

    I believe that when we read books, we are reinforcing the things that we know is true, either because we've thought about it before or we subconsciously experience it. So when the thoughts in your mind are expressed so elegantly in words on the books, you'll have this AHHA moment. Sometimes, even if the author means another thing in his book, you'll still interpret it according to what u want to see.

    That's why I love to go to the library and let fate bring me to the books I would borrow! More often than not, the books (these days I borrow in groups of 3) are thematically linked, though I wouldn't know at that moment. The theme would also be linked to whatever is Impt to me at that time.

    Don't know if I'm the one who is delusional lol

    With regards to kiyosaki's books, I really only feel for the first book. Subsequent books of his that I read feels empty, and repetitive, so I stopped.

    ReplyDelete
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    1. LP,

      Interesting... The way you approach books at the library is similar to how I approach life today - no prior goal setting; let fate surprise me ;)

      If you are delusional, I am hopelessly aimless!

      Perhaps that's why we ended up where we are today ;)

      Delete
    2. Quite true. Seldom we have better subsequent books from the same author writing on the same domain.

      Delete
  6. Hi SMOL,
    More "snake oil" request! 1000 hugs and kisses, if you can add me into your already very "heavy" bloglist. I added yours to mine aleady. You have the honor to be the few added in my bloglist haha. Did Robert K teaches a mutual win-win marketing strategy? Thanks in advance.

    ReplyDelete
    Replies
    1. Rolf,

      Please stay at arm's length. Ahem. I a skirt chaser.

      Unless you look like Harisu, I won't mind if you were a man ;)

      Men don't do hugs and kisses.


      Can you give yourself a gentle slap?

      Once you have closed a sale, you don't reopen it.

      Scroll down to my "heavy" Ebony and Ivory list and under "R", you will find your blog. I added it in 2 weeks ago ;)

      I don't do the link exchange game despite having read Blogging for Dummies.

      I am like the prostitute who insists on no kissing on the lips. I'll like to keep my principles on relation building despite being a man-whore :)

      All my blog links were added without any expectations of reciprocation.

      Yes, I am that cool!

      And shameless!

      LOL!

      Delete

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