Rich Dad Book Series

[rizzmo]

Ok I read "Total Money Make Over" Dave Ramsey last week and just finished "Increase You Financial IQ" from Robert T. Kiyosaki. These are totally contrasting view points on the subject of money.

Which philosophy do you follow and why?

[maat55]

I think Kiyosaki's is reckless for the average person. I think starting with DR and progressing forward is safer.

I was inspired by Kiyosaki at first, but I desided that leveraging was a risky venture. Dave's plan is simple with low risk.

[Broken Arrow]

I like Kiyosaki as a person. He seems like a nice guy.

However, I do not recommend following Kiyosaki's financial advice to the letter.

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).

[anonymous_saver]

Option #3: Suze Orman

I like her book Young, Fabulous, and Broke b/c she promotes doing things that are financially better for someone, rather than psychologically better (Dave Ramsey's general plan).

Although, I think mixing Dave's and Suze's methods together is also a great idea.

#1: Contribute up to your match in any employer's retirement plan.
#2: Save a $1,000 or one month emergency fund.
#3: Pay off highest interest debts first, once 1 debt is paid off, use payment from debt 1 towards next highest debt.
#4: Save 3-12 months worth of an emergency fund.

#5+: I would say this depends on your situation. Could include saving for a home, increasing retirement savings, or increasing emergency fund.

[KGeary]

Option #3: Suze Orman

I like her book Young, Fabulous, and Broke b/c she promotes doing things that are financially better for someone, rather than psychologically better (Dave Ramsey's general plan).

Although, I think mixing Dave's and Suze's methods together is also a great idea.

#1: Contribute up to your match in any employer's retirement plan.
#2: Save a $1,000 or one month emergency fund.
#3: Pay off highest interest debts first, once 1 debt is paid off, use payment from debt 1 towards next highest debt.
#4: Save 3-12 months worth of an emergency fund.

#5+: I would say this depends on your situation. Could include saving for a home, increasing retirement savings, or increasing emergency fund.

Suze Orman is horrible. Not only is her advice not very sound (a lot of the time), but she's paid off by FICO. She's a sell out. Dave Ramsey all the way.

[anonymous_saver]

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!!!

[kork13]

Although, I think mixing Dave's and Suze's methods together is also a great idea.

#1: Contribute up to your match in any employer's retirement plan.
#2: Save a $1,000 or one month emergency fund.
#3: Pay off highest interest debts first, once 1 debt is paid off, use payment from debt 1 towards next highest debt. one note I'll add here, always make minimum payments on the other debts so you don't get into further trouble with them.
#4: Save 3-12 months worth of an emergency fund.
#5+: I would say this depends on your situation. Could include saving for a home, increasing retirement savings, or increasing emergency fund.

I've never really subscribed to anybody's "methods," but mostly based on common sense, this is almost exactly the general process I recommend to people myself. I generally switch your #1/#2 (same idea), with a "creatively minimize your expenses" thrown in at the front end.

So to answer OP directly, that's pretty much my "philosophy", and I follow it because it makes sense to me. Not because one 'expert' or other recommends it, just because it's simple, makes sense, and it works.

[amarowsky]

I wanna try reading a Ramsey book, if you guys suggest Him first. One of my best friends has Rich Dad Poor Dad and he said it was great, so maybe ill try n' nock out a DR book before i read the rich dad poor dad he's been begging me to. Or should i jsut read the one then go buy a DR book later?

[anonymous_saver]

Or should i jsut read the one then go buy a DR book later?

Don't buy either book. Just get it for free from the library!

[amarowsky]

Suggest me a book tho, aside from Rich dad poor dad. And just for you ill Library it . I want a good suggestion on a DR book, because so many of you have talked about him and his theories and viewpoints.

Maybe it' will help me think more similar to you folks. My buddy who just read Rich Dad is Gun-ho for starting up his business now, and I wanna learn more about keeping myself debt free, and passive wealth accumulation.

[kork13]

Suggest me a book tho, aside from Rich dad poor dad.

Actually, the book that first got me interested in money matters was "The Millionaire Next Door." I believe I got it on a whim, and reading it got me interested. It talks more about responsible finances as a lifestyle rather than a process, but in either case, I'd recommend it if you're looking for some personal finance type reading.

[amarowsky]

Think im gonna go look for that at the library tomorrow. "The Millionaire Next Door". Thank you very much

[kork13]

Actually, the book that first got me interested in money matters was "The Millionaire Next Door." I believe I got it on a whim, and reading it got me interested. It talks more about responsible finances as a lifestyle rather than a process, but in either case, I'd recommend it if you're looking for some personal finance type reading.

On second thought, it's more about frugality as a lifestyle... but whatever, still good. Talks about how the people next door could be millionaires but you wouldn't know it because they don't flaunt it. Sorry if I just ruined the plot there for you.

[Johansen8]

I so love it. Rich Dad Poor Dad is a book that teaches you to think how the rich think. It will teach you the difference between an asset and a liability and keep you from getting stuck in "the rat race"

[Broken Arrow]

I've never really subscribed to anybody's "methods," but mostly based on common sense, this is almost exactly the general process I recommend to people myself.

Yes, this I completely agree with.

In the end, I recommend to focus on what people have to say, not who they are. If I try, I find that I can learn a little bit of something from just about everybody... even Kiyosaki.

So, who they are is not as important as what they can teach us and help us grow. To simply follow any particular individual can be dangerous. It steps us away from open, critical thinking, and more towards close-minded zealotry. Even if it's someone like Warren Buffett.