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 IQ. As 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?
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.