Wednesday, May 15, 2013

Book Review: Rich Dad’s Conspiracy Of The Rich

Author: Robert Kiyosaki
Publisher: Business Plus
Rating: (3.0/5)

RICH DAD’S CONSPIRACY OF THE RICH THE 8 NEW RULES OF MONEY is another book from the Rich Dad Poor Dad series of Robert T Kiyosaki. It shares author’s view of global economics and explores why people are finding themselves challenged during turbulent times. He challenged the world’s known principles of investing which talks about mutual funds and retirement planning.

During global slowdown it was the conspiracy of the Rich dad (rich people) to take money from the lower class to compensate for their mistakes. The authos says that the money which was taken from public by the rich banks in the form stimulus, TARP were not disclosed to them. Instead it was discreetly used by them to cover their bleeding balance sheet,and not to save the economy.

He says, it is not the financial experts or government or elected leaders who will decide more secure financial future but one has to make themselves their financial decisions through financial education that is studying the relationship between tax, debt, inflation and retirement.

Debt is not as bad as we think about it but it need to be used properly. There are two types of debt; good debt and bad debt. The bad debt takes money out of your pocket and good money puts money in your pocket. Good debt increase positive cash flow and put money in your pocket.

The author repeated a number of things number of times and explains the history of money in non-technical language. He seems correct by saying dollar is now no more money but only a currency. But still there are a number of things that need more explanations. For example, cash flow not the capital gains should be the game, but common person fails to understand that in stock market cash flow is in the form of dividends only and is meager so purchasing stock only for dividends is not justified.

Money is education, financial education to be very precise. Roberts puts more onuses on the individual to be rich and financial IQ or financial education is the only way. The education  system does not support the financial lessons leads to poor financial education to the people. Financial education is for the rich only.