Rich Dad Book Series

[KGeary]

So what specific advice is bad that Suze gives? If you read her YF&B book, it gives a lot of information that can help people get out of debt. It's always good advice to contribute up to your employers match in your retirement account, it's good to save for an emergency fund, it's a good financial decision to pay off higher interest debt first, etc.

At the very least, I'm glad people are reading and trying to do things better financially!!!

First of all, her first step is wrong for most people. An emergency fund is more important than a 401k. If your car dies or your child gets sick, a 401k isn't going to help you.

Second, it's not a good financial decision to pay off lower interest rates first. The majority of people that use that method fail. Finance is more about behavior than math. It's much more effective to pay off lower balances first and work your way up.

Third, on her TV show she has a "can I afford it" segment. She tells people they can buy a big ticket item without asking how much debt they have, how big their emergency fund is, etc. It's a gimmick.

Four, she's paid by FICO. She's one of those "financial advisors" that will tell you to get a credit card for the sake of increasing your credit score. That's bad financial advice.

those are just off the top of my head. If I sat down and examined the other stuff she says, I could probably come up with more.

[Hot dog]

Try reading David Bach Automatic Millionaire. It is one I really liked. DR is good for getting out of debt.

[rizzmo]

Some of the advice that I've seen is unrealistic and unnecessarily risky (such as buying and owning businesses.) Others are so vague it's not actually helpful (such as "what you should invest in" according to his guide in Rich Dad Investing).

How is buying a business urealistic? Business sell for less than you think, and with SBA loans they are no more or less affordable than a typical persons home. I agree it is risky for the typical person, but then too most people can't control their own spending. His advice is very vague, I think that is because very few investment vehicles meet his requirements of his method of thinking. Basically, businesses, rental real estate, and intellectual property. Everything else falls outside of his control, cashflow, appreciation theme.

[kork13]

How is buying a business urealistic?

Realistically, it takes a certain type of person to be able to effectively (and successfully) run a business. That fact alone, IMO, imposes significant risk. For those individuals with the abilities for it, great. For most, however, ....

[Broken Arrow]

From what I understand, there is a high rate of failure (90%?) within the first two years of any home or small business. The reasons are varied, but the bottom line is, most go in without adequate knowledge and experience of the downside and risks involved to make it work.

And that's the problem I have with Kiyosaki's books. As far as I know, he only sells the dream of being a small business owner, but don't really go into details about how to manage the risks and downside. The nitty gritty of how to make it work and keep it on track. Though his parables are encouraging, few really needs to be sold on the idea. What's important is knowing how not to end up being a part of the statistic. And that's why I find Kiyosaki's ideas to be unrealistic.

[Ima saver]

I did not care that much for rich dad's advice. Ramsey is easy to understand, but you need your own plan. I like the weathy barber (name of book) for beginners. It is very easy to understand.

[glock35ipsc]

Kiyosaki's books aren't worth $0.02 IMHO. My favorites, in no particular order, are:

* Total Money Make Over, by Dave Ramsey

* The Millionaire Next Door, by Dr. Stanley

* The Millionaire Mind, by Dr. Stanley

* Richest Man in Babylon, by George Clason

[Ima saver]

I like the millionaire next door also. Plus "all you ever need to know about investing" by Andrew Tobias.

[poundwise]

My take:

Robert Kiyosaki has some good thoughts, mainly in the realm of how to think about money. I particularly like his views on being a 'business owner' as opposed to 'self-employed' and the like. I don't care for any of his real estate investing advice. His book I recommend is The Cash-Flow Quadrant.

Dave Ramsey is effective when it comes to his primary focus, which is eliminating debt and breaking bad money habits. People criticize him for being simplistic and putting emphasis on the psychology of money handling, however, the fact that so many have benefited from his books, etc. and have climbed out of debt is a testament to the value of his advice. When it comes to other areas beyond this, like investing, Dave's advice is fairly weak. His book I recommend is The Total Money Makeover though I think his DVDs Cash Flow Planning and Dumping Debt may be his best offerings.

I do not personally care for Suze Orman. I don't think her advice, in general, is poor but I didn't enjoy either of her books that I read/listened to (one was an audio book.) She has an overdeveloped focus on matters concerning credit scoring and her investing advice is weaker than Ramsey's.

David Bach. Yawn. I don't mean to put anyone down who likes him or who benefited from any of his books but I found his material to be very drawn-out, repetitive, and boring.

Speaking of boring, Grow Your Money (audio book) by Jonathan D. Pond contains a lot of good information, if you can sit through the droning and dry presentation.

Lastly, another book I recommend is Die Broke by Stephen Pollan and Mark Levine. They also have a book called The Die Broke Complete Book of Money but I've not read it.

[maat55]

Lastly, another book I recommend is Die Broke by Stephen Pollan and Mark Levine. They also have a book called The Die Broke Complete Book of Money but I've not read it.

I've read Die Broke, I found it interesting, but I cringe at the idea of not leaving something behind. It is a good book overall, for those who under achieve saving for retirement, and want a decent less stressful retirement.

[poundwise]

I've read Die Broke, I found it interesting, but I cringe at the idea of not leaving something behind. It is a good book overall, for those who under achieve saving for retirement, and want a decent less stressful retirement.

Yes, I didn't care for every point either, however, I think I can say that about virtually any book on finance I've read. Overall, I think the concepts in the book are well thought-out and the approach is refreshing.

[themarkettrader]

You can combine the two approaches. Dave is very focused on paying off the debt and Robert is focused on investing.

And to me if I pay off a credit card with 12% interest than it's like guaranteed rate of return. The best part is you are not paying any taxes when on this return since you don't pay taxes when you pay towards your loans.

[kork13]

And to me if I pay off a credit card with 12% interest than it's like guaranteed rate of return. The best part is you are not paying any taxes when on this return since you don't pay taxes when you pay towards your loans.

Well, you're not actually getting any return whatsoever, except negative. All you're really doing is losing LESS money. $1000 invested in the market might gain you $80 in a year. $1000 used to pay off debt will give you... $0. Solution: Avoid debt (where possible) in the first place.

[Angio333]

I think that Rich Dad/Poor Dad's advice can be very dangerous to your average person.

I love Dave Ramsey, but do noy follow his plan to the letter. My wife and I kind of blended Dave Ramsey's plan with Daid Bach's plan.

Check out David Bach's "Automatic MIllionaire" or "Start Late, Finish Rich" for info on his plan. I reccomend one of those two books, since all of his books are almost exactly the same.

[rizzmo]

I think that Rich Dad/Poor Dad's advice can be very dangerous to your average person.

Thanks for the input. What is your definition of the average person?