Customer Reviews

Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

5 star:		(26)
4 star:		(9)
3 star:		(4)
2 star:		(6)
1 star:		(5)

 

 

I have been a great fan of Kiyosaki for some years now, and have made good money following his principles, so I owe him a debt of gratitude. Also, I have read the greater part of his increasing panoply of books.

This book was quite disappointing. Like most of Kiyosaki's books, this one was filled with repetition. Now, I do subscribe to the theory that "repetition is the mother of learning," and so a bit of repetition to reinforce an important point is quite acceptable, and indeed beneficial.

But this book is full of mind-numbing repetition, and the content of its nearly 200 pages could easily have been boiled down to 50 pages.

There may be a clue as to the reason why this book was written on page 89 where the author says, "One of the benefits of being an author is that when I want a new liability [read: luxury item], I first write a book, like this one, and the royalties from the book pay for the liability."

That might indeed explain why this particular book was written.

For those who have already read Kiyosaki's books, especially the first three-- RDPD, Cashflow Quadrant, and Rich Dad's Guide to Investing-- this book would be quite superfluous. On the other hand for those totally new to Kiyosaki's work, this book may serve as a valuable primer.

Still, there are a few excellent "take-aways" from this book:

1) The world no longer runs on Money (a medium of exchange backed by real value--traditionally silver and gold, or other hard assets), but on Currencies (totally fictitious media of exchange based on debt and manipulation by central banks). Historically, every currency has eventually gone to its intrinsic value--ZERO. Therefore, it is essential to NEVER SAVE A CURRENCY, but to keep a currency moving, buying real assets which generate cash flow, or buying items with a real intrinsic value. This insight, mentioned in other Kiyosaki books as well, is an extremely valuable bit of information, and is the one big gem to take away.

2) The greatest "asset" in today's world of economic change and volatility is Financial Intelligence itself. Only by developing "Financial IQ," will one be able to weather the storms which are shaping up on the world economic horizon. And the time to get educated is RIGHT NOW!

3) Kiyosaki's grouping of the five types of Financial IQ is also worthwhile, and gives a workable template for developing and IMPLEMENTING a greater financial awareness: 1) Making more money; 2) Protecting your Money; 3) Budgeting your money (there are some unique insights in this one!); 4) Leveraging your money; 5) Improving your financial information.


All in all, this book is useful for Kiyosaki newbies, although even they may be put off by the repetition. I think long-time Kiyosaki fans may be disappointed.

I was really disappointed by this book. There's some new (or at least new perspective for me) items, but they could probably be condensed down to a single chapter. But then Kiyosaki couldn't really sell a book of just 1 chapter, so instead, he drifts off topic (a lot), and wrote a lot of filler material.

I don't know what he repeats more often -- his relationship with Donald Trump, or how (in his opinion), going off the gold standard was a bad idea. Neither of which, by the way, increased my Financial IQ.

There is a lot of filler. There are stories about the Merchant Marines. About Vietnam. About his surfing wallet empire. Chapters and chapters and chapters of this -- maybe, if I was in the right mood, it might be interesting. But *so* much of this has nothing to do with Finanace.. I can't help avoid thinking that Kiyosaki wanted another to buy another Bentley, so he wrote this book to pay for it...

Oh, and there's several instances where he makes glaring math errors or logic errors. These further detract from thinking of this as a "finance" book.

Pick another book. I wish I had.

I found this book to be a little rushed and not Robert's best effort. As I read this book it seemed to me he thought, perfect time to write a book and make some money. A line like this really supports that claim too, "One of the benefits of being an author is that when I want a new liability [read: luxury item], I first write a book, like this one, and the royalties from the book pay for the liability." I have to admit when I read that particular line I was a little ticked. Yes I know when he writes a book he makes a lot of money and can buy his luxuries however it came off as a shot at his fans. At this point, many people buy his things based on his brand. He mentions that in his book. He formed a great brand that is known to be quality, however this book is a letdown. It does have some good information but a lot of it is a repeat from his other books. This book could have truly either not been written or condensed to under 100 pages. If you never read a Rich Dad book, then you may love it. As for me, I have read better from the Rich Dad collection. This book could have been better if it was not rushed or written just to pay for his new luxury.

In my opinion this is NOT the best Robert K book. It is full of slight misrepresentations, fallacious political opinions and etc. I don't care to hear or read about that stuff. My knowledge of Economics sees things differently than Mr. Robert K. Don't scare me about issues,and then ask me to pay $10k for a seminar to hear the same "opinions". It is good that he is trying to educate people how money works; but he does not have to do this to sell books. His principles can stand up against time. He has done a lot of positive things also.
If I were new to Robert K, start with "Rich Dad/Poor Dad","Cash Flow Quadrant" and "Rich Dad's Guide to Investing". These books are the foundation of the philosophy, and they stand the test of time. The first three books focus MORE on true paradigm shifting and changing from being a consumer to business owner/investor versus providing fallacious verbose. Some of the books written after these just validate the original principles from these 1st three books. Save your money and buy the 1st three and read them OVER AND OVER. Then buy the games Cashflow 101 and 202; play the games over and over again. You will get more out of that than buying this book. In my opinion after reading those first three books, you will raise your financial IQ, then you must take action to increase it even higher.

In what may be his best book to date, Robert Kiyosaki challenges his readers to wise up about their own financial situation and what they need to know to become financially intelligent because, he says, if you can increase your financial IQ, you can become richer.

Increase Your Financial IQ: Get Smarter with Your Money is classic Kiyosaki: part story-telling and part textbook with plenty of motivation and no tolerance for excuses. Kiyosaki doesn't tell you what to do; he tells you how to find out what you need to know so you can make good decisions for yourself. He writes: "It is not real estate, stocks, mutual funds, businesses, or money that makes a person rich. It is information, knowledge, wisdom, and know-how, a.k.a. financial intelligence, that makes one wealthy."

Kiyosaki details the five financial IQs: Making more money, protecting your money, budgeting your money, leveraging your money, and improving your financial information. The book closes with practical applications for developing your financial IQ.

Kiyosaki challenges the reader to develop a true understanding of money and the rules of the money game-as well as of the fact that the rules change over time. This isn't a feel-good, "do as I tell you and all will be fine" book. It's a book about empowerment. Kiyosaki clearly intends to provoke the reader into taking action-something he does well. It's a must-read for anyone interested in improving their financial circumstances.

Jacquelyn Lynn
author, The Entrepreneur's Almanac: Fundamentals, Facts and Figures You Need to Run and Grow Your Business

So far I have read the first 4 chapters of Increase Your Financial IQ by Robert Kiyosaki. As of this moment, I have mixed feelings about the book. These are my thoughts so far and are subject to change as I finish the book.

The Good

One of Kiyosaki's initial remarks is the need for better financial education. I cannot agree with him more on this issue. Everyone should graduate high school with a good understanding of: how credit cards work; how to create a budget; how stocks, bonds, REITs, mutual funds, 401ks, and Roth/Traditional IRAs work; the difference between actively managed and passively managed (Index) funds; how the tax system in America works; and various investment opportunities. Kiyosaki however does not point out all the things I just did; he simply states we need more of an education.

Kiyosaki in chapter 2 discusses the 5 "Financial IQ #'s" all of which can generally be accepted as wise ideas: making more money, protecting your money, budgeting your money, leveraging your money, and improving your financial information.

In chapter 4, he talks a little about brokers and their commissions which is very important for people to know about. He suggests finding a broker who will educate you even if you don't have a lot of money. This is good advice for those that are extremely time crunched. However, I question the need for a broker in the age of the internet when you can invest in nearly anything and learn nearly anything for yourself if you are will to put the effort in. If you plan on investing in real estate (an area where I am currently admittedly unfamiliar), you may need a broker to help you out...however I would lean more toward looking into a REIT index fund so that your eggs are not in one basket.

Kiyosaki is big on creating passive income which is money you don't have to work for. It is generated from your investments. This is important for people to accomplish if they want to live comfortably in retirement. Kiyosaki is correct that in some cases investment in mutual funds alone may not generate the passive income needed in retirement.
Kiyosaki mentions that it is important to have control over your emotions for investment purposes. This is generally agreed upon as excellent advice. Market ups and downs are not for the emotionally weak.

The Bad

I would not exactly classify his book as one on financial advice...it is more an inspirational book for entrepreneurs. The initial premise of his book in the author's note is entirely flawed from a biblical worldview as are later parts of his book. 1 Timothy 6:10 states "For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows" (NKJV). Kiyosaki states in the first 2 paragraphs of his author's note "Educators seem to think that money has some sort of quasi-religious or cultlike taint to it, believing that the love of money is the root of all evil...As most of us know, it is not the love of money that is evil--it is the lack of money that causes evil." A Christian at this point should do one of two things: set the book down and leave it alone or read the rest with a skeptical mind realizing they are reading a book from an author who blatantly denies the Scripture. Kiyosaki's approach promises to bring Christians "many sorrows."

The second issue I have with Kiyosaki is that he seems to suggest at the end of chapter 2 that being an entrepreneur is what the smartest people do. He neglects to realize that some smart people think there is more to life than money. Some people choose to be "employees" at non-profits or in education because they love what they do more than the "love money." He also seems to think that only entrepreneurs are true investors; however, employees can be investors too. Being an employee does not mean that one does not have a high financial IQ. His CASHFLOW Quadrant is quite logically flawed and has greed as its foundation.

Thirdly, it is very important to note that Kiyosaki is married to a woman who also has a similar mindset on entrepreneurship as he does, and they do not have children. Kiyosaki as noted in chapter 3 of his book had several highs and lows in his experience as an entrepreneur. He views those as learning experiences. Everyone should view their failures as learning experiences. However, his approach in the business world would be reckless for someone who has children or who has a wife who does not have the same mindset on entrepreneurship. Taking his route with a family unlike his will certainly set your family up for very troublesome and emotionally distressed times. It would be wise for anyone with a family unlike Kiyosaki's to find stable employment and slowly establish their business on the side. Once again, it appears clear that Kiyosaki's motivation as well as his wife's is monetary. Providing for my family with a stable job comes before any desires I have to be an entrepreneur.

Kiyosaki flippantly dismisses traditional advice concerning finances specifically, "Work hard, save money, get out of debt, invest for the long term in a well-diversified portfolio of mutual funds." He calls is "old advice for the financially ignorant." He justification for this statement is that "the rules of money have changed" in 1971 when we came off the gold standard. Kiyosaki does not provide any further explanation of his reasoning and we are supposed to take him at his word. Now he is correct that the dollar is different now than it was sixty years ago. However his points are not clear and could be easily misunderstood. In regard to "working hard and saving money," Kiyosaki needs to be clear in that HARD WORK is required to start a business, but you should not have to work hard your entire life for you money. Eventually, your money should start working for you which bring ups the next point. Money will not do much if left in a traditionally banking account as pointed out by Kiyosaki. It should work for you through investments generating passive income. As for "getting out of debt," Kiyosaki has not mentioned much about this. However his suggest that this is now irrelevant is absurd. By his own reasoning, debt does not preserve you money and should be reduced. As for "portfolios," Kiyosaki is too quick to dismiss mutual funds (though I have not finished reading his book). Many mutual funds are money losers and do not preserve your money and true diversification can be complicated if you invest in a hodgepodge of funds. However, there is much to be said for investing in index funds of differing arenas. At the age of 25, you cannot tell me that if I invest in the 500 largest companies in America today they will not be better off financially in 40 years when I retire. Kiyosaki mentions all the people who are near retirement and have much of what was in their portfolio. These people did not follow traditional advice. As you near retirement your portfolio should switch from investment such as stocks that change widely in value to investments such as bonds where the value is maintained. This process of rebalancing and reallocating is done over the course of a life time and protects against such losses as experienced by many elderly in the market today who grew accustomed to the ever increasing stock market value. I HIGHLY suggest reading "The Four Pillars of Investing: Lessons for Building a Winning Portfolio" by William Bernstein, "The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today" by Larry Swedroe, and "The Bogleheads' Guide to Investing" by Taylor Larimore, Mel Lindauer and Michael LeBoeuf. All these books provide sound financial advice and have actual data and research baking their advice. Kiyosaki's advice has no data or research; it is simply his stories and opinions.

The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

The Bogleheads' Guide to Investing

The Four Pillars of Investing: Lessons for Building a Winning Portfolio

I was reading this book at Barnes and Nobles and I just couldn't continue reading. I had to put the book down because all the things that he talks about, were just things from his previous books. Things such as saving is not smart; Mutual fund is risky, ect; And once again, he goes on and bash is poor dad. I have read most of his books, and I can honestly say that he was just intereted making money from this book and there is nothing wrong with that. It is just that when I pay for a book, I want to learn something new; not a repeat of his previous lessons. This is an excellent book for people who have never read any of RK books, but if you have read the majority of his books, you may want to look elsewhere before puchasing this book. I was very dissapointed with this book and I just placed it back on the shelf of Barnes and Nobles.

Once again, Robert Kiyosaki will have enriched the lives of many people around the world about how we think about money. Even if you have read "Rich Dad, Poor Dad" and his other books, his latest book now stresses the importance of having a financial IQ and education like never before. With real estate prices falling and many owners/investors foreclosing, inflation, rising health care, etc., Robert gives you the advice on what you need to do with your own finacial situation. But its not just real estate; mutual funds, financial planning, the price of gold, are also mentioned here. That being said, Robert proves that many people now need to increase their financial IQ. And he gives 5 basic financial IQ's people need to stay ahead (and get rich).

Like his other books, he mixes advice with his own personal experiences in the past and gives money history lessons on why financial advice that have worked for your parents will no longer work for you or your children's future. I really enjoyed this book because he has so much to say. Not only does he make past references to "Rich Dad, Poor Dad," new historical economic and personal elements appear in this book.

If you haven't read his books before, these are not get rich quick schemes. Nor does he tell you exactly what to do. But he definitely motivates and points you in a direction.

Never judge a book by it's cover--"Increase Your Financial IQ" is the very antithesis of this wisdom. Initially, I was very enamored by the motivational content and the occasional anecdotes spread through out; however, there is little else to this book. I titled my review as fundamentals, which you will receive, and filler. The former comes packaged in newly-coined terms and phrases, but most of the info can be obtained in a more succinct and focused manner. On the filler side, Mr. Kiyosaki inundates the reader with chart after figure of simple concepts (oftentimes needlessly)!! The account sheets presented are sometimes BLANK, literally. He shows a change in liabilities or assets by first showing a blank account sheet and then adding 2 words to a box here and pasting that adjacent to the first one, thereby wasting an entire page. If you have a BS-detector then you know that the more wasted space, the less credibility. As an example, he divides the brain into 3 sections and shows his conceptual partitioning in a diagram that occupies almost an entire page! It is basically an oblong pie chart that is mostly left empty (presumably for presentation purposes and pushing an asinine point).

I gave the book two stars for a reason, because there is something to be derived from reading it: motivation. I was really geared up from reading the first half of the book as I mentioned earlier. Unfortunately, that enthusiasm immediately dropped off as soon as I started noting slight contradictions in his material and began to realize that the book is not worth the price. This spurred me on to investigating other, more scholastic and knowledgeable works though!

Do a little research (unlike my impulsive buying) and you will be rewarded with something that is isn't churned out and essentially useless. Or go my course, drop the $15, read the book in a day and then learn from your mistakes. Finally, back to my first statement: does a book this cheesy looking along with the other ten plus Kiyosaki books with 80's-inspired covers really seem that informative? That last bit is rhetorical, save your money.

Save yourself the money on this book. His advice is simple--buy real estate as an investment and rent it out for more than your mortgage.

This author irritates me because all his does is pitch his other books throughout. He does the same thing in another book I read of his. Fortunately this book was a gift to me, so I didn't waste any money. With his 14 books written, plus the other 10 he recommends along with his 2 Cashflow games, your new investment to raise your IQ is going to be in excess of $1,000 if you listen to his advice. In the end, it doesn't raise your financial IQ, it raises his financial security.

If you want to raise your financial IQ, purchase a book that has nothing to do with Kiyosaki (A Random Walk Down Wall St is great IMO). I've learned my lesson and I'll never purchase or read anything else from this greasy, copier salesman ever again!