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Book Review: Rich Dad’s Increase Your Financial IQ

Robert Kiyosaki's book publisher contacted me about their newest book: Rich Dad's Increase Your Financial IQAs I have read the other Rich Dad Poor Dad books, I was excited about getting my hands on this book.

For those of you who aren't familiar with the Rich Dad series, it's a financial education series which teaches you how to THINK like the rich, but it's a little light on specific details on how to actually make extra money.

Rich Dad's Increase Your Financial IQ is no different.  The premise behind the book is about financial IQ and how to be like the rich.  Robert Kiyosaki believes that the rich get richer while the poor get poorer because of the differences in their IQ.  No, not regular IQ, but financial IQ. 

Who is Robert Kiyosaki? 

I think the biggest claim to fame for Mr. Kiyosaki is that he is the author and creator of the Rich Dad franchise.  Along with being a successful author, he is also a real estate mogul owning millions of dollars in real estate assets.

The Topics Covered?

  • Financial IQ #1: Make More Money (the more the better)
  • Financial IQ #2: Protecting your money (pay less taxes)
  • Financial IQ #3: Budgeting your money (budget for surplus)
  • Financial IQ #4: Leveraging your money (the higher you returns, the better)
  • Financial IQ #5: Improving your financial information (problem solving is the key to wealth)

What I liked about the book?

  • In Financial IQ #1, the author explains why the rich are rich and why the middle class and poor stay that way.  Kiyosaki explains that the rich use their money to build assets which creates an ever building passive income stream (unlimited potential).  The middle class, on the other hand, use their limited TIME to bring home income.  
  • In Financial IQ #3, Kiyosaki explains to budget for a surplus.  Basically, this means to put your savings as a FIRST priority before everything else.  What he believes that if you are short on money to pay the bills after savings, you'll need to go out and make more money.
  • In Financial IQ #4, Kiyosaki explains that if you have control of your leveraged asset, then there is no risk involved.  That's why he invests most of his money in real estate and very little in the stock market. Maybe there is a lot of truth in the old saying "invest in what you know".
  • I enjoyed the Financial IQ #5 chapter which explained the different parts of the brain and how each part affects decision making.  Kiyosaki emphasizes that the best way to learn is through "doing" and "making mistakes".  I agree with this point as I have the tendency to get "analysis paralysis". 

What I didn't like?

Throughout the book, Kiyosaki has the message of NOT living below your means but to INCREASE your means.  I'm not sure if that is the best philosophy for most as I believe that controlling frivolous spending is key to financial health. My belief is to do both!  Why not live within your means AND aim to increase income at the same time? 

Final Thoughts:

For those of you who enjoy reading the Rich Dad series of books, then this one is a must read.  For those of you who already have their financial affairs in order, then this book may have some entertainment value, but probably won't enlighten your financial life.

Stay tuned for tomorrows post.  We will be giving away a free copy of Rich Dad's Increase Your Financial IQ.

Find out how you can save an additional 4% on this book from Chapters. 







28 Comments, Comment or Ping

  1. 1. David

    So I haven’t read this book, but if I could summarize it the main lesson is:

    If you make more money, spend less of it, you’ll end up with more?

    I’ve ready the rich dad books and they were OK but I’d rather people read The Millionaire Next Door if they want to learn how real rich people become that way.

  2. Very insightful review. Would you say this book is just like an updated version of cashflow quadrant, or does it provide some new useful information?

  3. Very good review FT. But i also agree with the other posters that this book is most probably a repetition of what RK has said in his first book ( with slightly different words and graphs).

  4. 4. Telly

    I haven’t read a single “Rich Dad” book (though I tried to listen to one on audio but never got through it) but they seem to be immensely popular. For that reason, the fact that Robert Kiyosaki’s publisher is asking you to review his book is a very good sign for your blog. :)

  5. 5. Melinda

    Hi,

    It’s great that the publishers want you to review their book. Shows how popular your blog has become. =)

    Unfortunately, I think people should take what Robert Kiyosaki has to say with a grain of salt. Seems like he’s only good at writing books & marketing himself. From other sites that I have read, he hasn’t actually made any money from any of his other ventures.

    For a review on the guy & his books, I’d suggest taking a look at the site:

    http://www.johntreed.com/Kiyosaki.html

    You’ll see what a fraud this guy really is!

  6. Hey guys, thanks for the kind words. With regards to the book, yes, i did find a lot of repetition between this book and his previous books (cash flow quadrant). Kiyosaki is a marketing machine and really knows how to sell books/money education.

    I will give him some credit though, he does get the reader thinking in a different manner.

    If you guys are interested, there will be a book giveaway tomorrow.

  7. 7. Dave

    #6: buy this book and make Kiyosaki richer

    If there is a better serial bullshit writer than Kiyosaki I’d like to know. Just curious, how much do you get paid each time someone clicks on the link to his book via jdoqocy.com?

  8. Dave, it appears that you have a strong opinion of Kiyosaki. :)

    With regards to the jdoqocy.comn link, it’s an affiliate link. Meaning I get $0 if someone clicks on the link, but a few pennies if someone buys the book after clicking on the link.

  9. 10. walk

    I think in terms of the financial IQ test, maybe Q#4 was trickiest…

  10. 11. Al

    The idea of having control of a leveraged asset eliminating the risk is nonsense. If the asset is collateral against the debt then you can lose control with no say in the matter (ie foreclosure). If the asset isn’t tied to the debt you can be forced into bankruptcy in which case all your assets could be in jeopardy.

  11. 12. AV

    I agree with Al about IQ #4 – any thing that claims there is “no risk involved” is misleading at best.

  12. 13. Dave

    You can find a lot more about Kiyosaki here:
    http://www.johntreed.com/Kiyosaki.html

    Also, how to detect a “real estate B.S. artist”:
    http://www.johntreed.com/BSchecklist.html

  13. 14. JB

    Having read other Rich Dad books, I found the questions fairly simple. I enjoy his books, but there is no doubt repetition between books. Kiyosaki is easy to read and offers food for thought.

  14. 15. germain

    i found that question 8 was the trickiest since i really don’t think I am ready to give up my scotch. (or any other little pleasure of life that I enjoy)

  15. 16. Apollo

    I think that any of the books by Kiyosaki are meant to get you thinking and not to tell you how you need to proceed or what you need to do. He mentions what he did/does and just illustrates how simple it is.

  16. 17. Pauls

    Good review FT, tahnks. Tell me this guy doesn’t make money wrighting this stuff!?

  17. 18. Gates VP

    Thank you Melinda, Dave and Pauls.

    Maybe I’m late to the game here, but do us a favor and don’t hand this one out. (despite the giveaway post)

    #2: Protecting your money is pretty obvious, but giving the book to a Canadian PF blogger when it’s pretty clear that they’re not covering Canadian tax information is just dumb. There’s 20% I can’t use!

    Goodness, this is the reason I don’t tell anyone to read “Die Broke” (10% philosophy, 90% tools that don’t apply to Americans). And really, I don’t want to hear any “success stories” from people who made money in real estate over the last 15 years.

    What he believes that if you are short on money to pay the bills after savings, you’ll need to go out and make more money.

    Yeah, he said this in “Rich Dad, Poor Dad”, there’s another 20% of useless book. And sure, strapping yourself for cash may be a good way to get the creative juices flowing, but it is (at best) a temporary solution. Sure I can spend more time trying to make more money, but that’s not the point. I want to spend less time making just as much money.

    That’s my approach, that’s what you’re doing FT. That’s what all of us crazy PF bloggers are doing: accumulating income sources that require less of our time.

    Kiyosaki emphasizes that the best way to learn is through “doing” and “making mistakes”.

    So in other words, the best way to learn is to… learn? Do stuff, make mistakes… what other method of learning is there? Osmosis?

    Do Stuff: read, write assignments, write tests
    Make Mistakes: realize that you did something wrong on the assignment, get red marks on the test paper

    Sounds like every course I’ve ever taken.

    OK, so that’s 60% of the book…

  18. 19. Dave

    “That’s what all of us crazy PF bloggers are doing: accumulating income sources that require less of our time.”

    I am a PF blogger and that is NOT what I am doing.

  19. It’s interesting to hear people always say that his books contain a lot of the same stuff. Some of these same people run financial blogs that seem to rehash a lot of the same stuff over and over as well…

    Earn money, save a lot, be frugal, invest in index funds. Sometimes people need to hear things over and over, or at least the people reading these blogs don’t seem to get upset when they read “new” posts about much the same stuff.

    Just some thoughts.

  20. 25. MD

    I am in the process of reading this book and have read several of the author’s previous books. First, to tell people who have their financial affairs in order to read it for entertainment value is not true and a very vague term. What ‘in order’ means to one can mean entirely different to someone else. TO say he repeats the same information is doing the book a disservice. He does repeat some concepts in order to bring those, who haven’t read the previous books up to speed. It’s difficult to discuss what he’s trying to accomplish if someone doesn’t understand how he views assets, liabilities, etc. AS a US citizen I find the financial history on the Federal Reserve and changes in the gold standard very interesting as our government once again changed things within the last 30 days. At a minimum, people should go to the local bookstore and read the introduction for themselves. I’m enjoying this book and truly gaining some good insight. In addition, I think a nice complement to this book would be the books by David bach, ie. The Automatic Millionaire, Start Late, finish Rich, etc.

  21. 26. Galla

    I don’t unsderstand why people complain about everything, just take from the book what you think is positive and DO something…it is so easy to criticize. I read it and I am doing what I think, it is helping.

  22. 27. JR

    Galla is right. A book, a seminar, any financial tools are for the observer to get out of it what they pay for in time & money.

    Surely everyone knows time is money and knowledge is the key. Time well spent with a little effort on your part, should create more money for you… well!

    So, if your interest is learning (Robert Kiyosaki’s approach) then knowledge must be the key to success, as long as you can carry through.

    Ah, but Kiyosaki does not say which or what method brings personal success, or does he?

    Could he simply be no more than a self made financial evangelist, or just a guy that found the key to success was selling the only asset he knew .. himself and his books on the lecture circuit.

    Dont knock the guy, he has supposidly made the MDJ

  23. I’ve read his books, and I like them. they’re easy to understand and are quite motivational. the only problem is that they’re low on actual investing ideas, which is where other books are more helpful.

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