Case Study: Robert Kiyosaki, part 1

Case Study: Robert Kiyosaki, part 1

I have done case studies on the rich and famous such as Warren Buffett and Donald Trump, who are of course undeniably rich and famous, but for various reasons - one for shares and stock investments, and the other for real estate, books, merchandise and even a famous TV show.

I think this new case study will take some time to complete and will be of interest to many people - Robert Kiyosaki and his ideas on making money and how to become rich.

I have been a fan of Robert Kiyosaki for a long time, but I have also realised that many of his teachings have been proven controversial and that many others have also written bad things against him. My site here is all about Ideas on how to Become Rich, and hence will take a long hard look at Robert Kiyosaki and his ideas on how to make money and become rich. I used to think that Robert Kiyosaki was totally great and that all that he said was wise, but is that truly the case? Are all his ideas on making money and how the rich get richer correct, or is there something fundamentally wrong with what he says? I provide the research and the analysis and evaluations, and you can make up your mind. Do join me here as I analyse Robert Kiyosaki and his ideas on how to become rich!

Robert Kiyosaki has many ideas on how to become rich, so I will take a book by book approach, similar to what I have done with Donald Trump's books and outlook.

The first book in my analysis today is Rich Dad, Poor Dad.

Needless to say, Robert Kiyosaki's Rich Dad, Poor Dad book is the most famous one of his series of money making books. Here are the key ideas according to my research:

1. financial independence comes about from investing, real estate, owning businesses, and the use of finance protection methods and mechanisms (Wikipedia)

2. do not be an employee, but be someone who controls the means of production (Wikipedia and Seah)

3. formal education is not the correct education in the knowledge based economy (Seah)

4. we can earn money using passive income and active income, not just active income alone (Seah, Wikipedia)

5. The Cashflow Quadrant idea according to Robert Kiyosaki - ESBI, where

Employees work for others
Self employed owners are their own boss earning money
Big business owner with a system for making money
Investor who spends money to earn money

6. Financial literacy is important (Seah).

The question is, although these seem to be commonsense and very valuable ideas on how to make money and become rich, are they valid? Do they make sense? Robert Kiyosaki would have us believe so, and indeed they may make sense and make us rich in the process. Yet others have said no.

I will now show why I think these are valid, leaving criticisms for later:

1. investment, real estate and businesses do indeed make money, so Robert Kiyosaki got those points correct

2. being an employee is not necessarily bad, but Robert Kiyosaki may have a good point - that it is harder to become rich being an employee, and the idea is that it's better not to be an employee rather than "employee = no good"

3. the third point isn't very good - education is always a good thing, because education can help you make money, keep money, become more money minded, as well as help you in social skills, networking, improving your intelligence, curiosity and basically helping you in life, so that's not true where he says that education is an industrial age idea etc...

4. passive income is a good idea - although he does not say how to do it - and many other books and speakers have advocated gaining more passive income (or, the key idea is to make money work for you)

5. his games seem to be rather educational - and may have financial literacy and financial education value (in stark irony and contrast to what he said on education, or formal education)

6. yes, he is right that financial education is key and very important in this world today.

More to come on criticisms of Robert Kiyosaki, Robert Kiyosaki's money making ideas in his other books with all his ideas and wisdom on money, and much much more, here on my money making site full of ideas on how to make money. You have been reading the Robert Kiyosaki case study series on ideas on how to make money. Thanks and cheers!

Ideas on how to get rich!