Even if you are not all gung ho about increasing your income or wealth, I’m sure this name has been mentioned many many times. It could be friends, colleagues, family and the name is Robert Kiyosaki. His books are in many major bookstores and his books (those he claim he wrote or co-write) are best sellers many times over. Among the most popular are Rich Dad, Poor Dad, Cashflow Quadrant, Why We Want You To Be Rich (Kiyosaki and Trump).
Many people bought into his line of thought. Several years ago, friends and colleagues are dropping his quotes at every time possible. And if you have ever attended any MLM, get rich seminar, investment type of seminar, his name is sure to come up.
The one great thing about Kiyosaki is he knows how to sell books! In one of his video tapes I remembered him saying books are dinosaurs when it comes to making money. But he has 18 books and sold 26 million copies. I guess that’s something he doesn’t wants people to copy him.
Before you start thinking that he is the almighty when it comes to making money, or believing the people who are tying to recruit you into anything, read on. I aim to paint a better picture who he is. The information I gathered are from many sources online.
As far as we know Kiyosaki was involved in several business deals and in the 1970s and 1980s fell apart, leaving him bankrupt in the mid-1980s. He became heavily involved with Amway, a multi-level marketing system, and began to cultivate relationships with many of the “top” members. In 1985, Kiyosaki founded Cashflow Technologies, a company that was designed to pitch a series of books and other educational materials that eventually evolved into Rich Dad, Poor Dad.
By the mid-1990s, Kiyosaki had self-printed Rich Dad, Poor Dad and it was starting to appear in wide distribution among members of the Amway/Quixtar organization, as individuals higher in the pyramid would recommend it to people further down the chain looking to get ahead. Kiyosaki took these “sales” numbers to major publishing houses his books showed up on shelves everywhere and spawned an army of similarly-packaged books, board games, and so on.
RK found his success through network marketing, or better yet, selling his products through a network marketing organization. It is in the interest of network marketers to buy his product or convince their down lines to buy them since it directly paints the picture MLMers want to i.e. doing business and leveraging on others, jobs means Just Over Broke, better to have a business than to be an employee etc.
Spanner in Kiyosaki’s works
For years, Robert claimed that Rich Dad was real in order to get Rich Dad, Poor Dad accepted as non-fiction, but in the February 2003 issue of SmartMoney magazine, Kiyosaki said “Is Harry Potter real? Why don’t you let Rich Dad be a myth, like Harry Potter?”
Robert likes to attack the status quo – education system, mutual funds, government, don’t get a job etc. He doesn’t like mutual funds (unit trust), says that funds are too risky, while running your own company is less so. From my own experience, a good funds is way better than running a business.
Education? On the one hand, RK criticizes the education system while saying you need to learn financial education. While it is true that the education system needs many improvement in many areas, you don’t skip the basics and jump straight to stocks, bonds, compound interest and time value of money. Yet he promotes his type of education (books, tapes, seminar).
His advice is very general, and tend to focus on properties. His presentation makes it seem very easy to make money through property advocating borrowing money to do so. The truth is making money through real estate is neither simple nor as easy as Kiyosaki make it sound. It is time consuming intensive work.
Business is better than employment
Having been in a business and seeing others being in business, I have to say running a business is also not for everyone. I’ve seen employees make more money, are happier and have less worries than running a business.
While there are some good points in his books (egg. defining assets is something that generates income), I’d recommend that you read his books with a tinge of salt and a lot of brains.
Check out what the Wall Street Journal have to say about Robert Kiyosaki and Donald Trump. Google – truth about Kiyosaki for more info.