Originally Posted by elainevdw
That's kind of what I figured. Rich Dad wasn't valuable to me because of its investing advice (I mean, he's basically just a real estate mogul, right?), it was valuable because of its psychological approach. When I said "financial IQ of an eggplant," I meant it. My fundamental relationship with money needs to change. I don't really expect myself to go from "what's an 'asset'?" to daytrading in a week!
I don't know the first thing about stocks, but I figure that there's got to be a better way to get my money working for me right now than opening a savings account at Wells Fargo!
I've been taking notes on all the books various people throughout the forum have been advising. Copla, thanks for your tips -- some of the books in other threads sound a bit advanced for me.
I was advised a while ago to open a money market savings account, but most require $2,500-$3,000 dollars opening balance, which, sadly, isn't in my near future. That's why the MSN article caught my eye.
Those are great distinctions all around, and it's fantastic that you've come to the realization that you need a personal financial education. Most people never do, and that's why most people never achieve the things they want to in life. About the books looking advanced, I think you'll find that after reading a couple of basic primers you'll be able to read them as long as you're smart and able to read between the lines and draw from the context. Most of these books have footnotes or definitions of their more esoteric terms in the back, or at least the good ones do. Just define your purpose in learning about your finances (do you want to become a professional trader? invest on the side?), and seek out any and all books on that topic. Some of them will be garbage, some of them won't, but that's the beauty of the library, free knowledge! Can't beat that.
About Rich Dad Poor Dad, though, just read this: John T. Reed's analysis of Robert T. Kiyosaki's book Rich Dad, Poor Dad
Basically, he has no background in real estate to speak of, it's his wife who does their real estate investment and only then she did it on advice of a coworker.
The big thing there, though, is this beauty:
The most common favorable comment I get about Kiyosaki from those who generally agree with my analysis is that “He got me to think about my finances.” That’s pretty lame. |
The IRS makes you think about your finances every April 15th. You have to think about your finances whenever you fill out a loan or credit-card application. I also think about my finances frequently when I pay bills or receive income. People who are unhappy with their financial lives—which is probably the typical Kiyosaki fan—probably think about their finances every time they get into their shabby car or return to their unsatisfactory home (e.g., living with parents, bad neighborhood, too small, etc.).
I think these “made me think about finances” comments are inarticulate at best and dishonest at worst. What is really going on is a lot of people are schlepping along doing a half-ass job of managing the financial aspects of their lives. Rich Dad Poor Dad slaps them up side the head and tells them to clean up their acts. That’s good, but the book goes on to deliver a pack of lies that make getting rich seem much easier than it really is and make education sound much less valuable than it really is. Basically, people want to get rich quick without effort or risk. Kiyosaki is just the latest in a long line of con men who pander to that fantasy.
Can the ordinary person get rich? Yes
Is it as easy as Kiyosaki makes it sound? Not even close.
Can it be done as fast as Kiyosaki says? Nope.
The author of that piece citing A Random Walk Down Wall Street is dubious at best, and shows that he hasn't looked into the markets in any depth, but in general it does a pretty good job of showing the overwhelming evidence that Kiyosaki is a fraud. There's too many great books out there by real successes to waste time with garbage like that.