Why I Don't Recommend 'Rich Dad, Poor Dad'

-- Voicemail caller jokingly criticizes David for not recommending Robert Kiyosaki's "Rich Dad, Poor Dad" series of books on personal finance
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Broadcast on January 24, 2023

#davidpakmanshow #richdadpoordad #books

[dangerousdays]

Rich Dad, Poor Dad opened my eyes to the true sociopathic nature of the capital class. In the book there is a story where Robert and his friend Mike work for Mike's businessman dad for free in exchange for him teaching them how to get rich. Months go by and Mike's dad teaches them nothing and every time they ask he tells them to just keep working a little longer. Eventually Robert and Mike get sick of it and demand that Mike's dad teach them something or they'll quit. Mike's dad is basically like, "I already taught you everything you need to know to get rich." and Robert was like "What, to exploit your workers?" And that's when it hit me. Yes, that's the key to becoming rich. Be a part of the capitalist employer class and ruthlessly exploit your workers with any lie or promise that you can to squeeze as much cheap labor out of them as possible that you can profit off of. Probably not the lesson the book wanted me to take away from that story, but that's basically what it was saying regardless.

[jennk]

I met someone that invited me to an event where you played a “rat race” game and they used his RK’s techniques for getting wealthy in real estate. The guy running it used two approaches that never felt right to me…one was they were basically fire truck chasers, they would prey on people that just had fires in their homes and would swoop in and buy the homes dirt cheap and pocket money from insurance and the seller. The other was even more grim and that they would look for opportunities after someone would pass away and jump in on the probate in hopes that the family would not know how to fight for the property.
It was also very telling when Robert Kiyosaki and Dave Ramsey showed their true colors when it came to finding humor in raising rents of their tenants astronomically and then evicting the families around the holidays.

[ArtOnWings]

Basically, find a scam and you’re a hero vs. a hard working person playing by the rules

[viperX]

You forgot the most important part when referring to those books, borrow them from your local library!

[charleskra]

Rich Dad declared bankruptcy in 2012. So, unless you don't want to do the same, I really wouldn't follow his advice.

[nicked_fenyx]

I remember reading the first book - and even playing the PC game - put out by Kiyosaki several decades ago when a friend was super into it. I ran Kiyosaki's real estate heavy advice by my grandma who, at the time, was our area's top selling realtor. She pointed out several flaws in his advice. The biggest being that you need money to make money using his method. She even showed me a few homes that would have been *great* starter investment houses - places you could buy, fix up, and sell for significant profit based on their location. But could I afford a single one? Not even close. Nor did I have the credit built up to even consider getting a loan.

Tl;dr: Kiyosaki's advice was bunk. Some of it was decent for folks with extra money just laying around, but it wasn't for the average reader who struggles just to get from paycheck to paycheck.

[jamesfanshawe]

My parents made me read it when I was in high school and I didn't think there was a whole lot to it even then.

[wtmayhew]

Rich Dad, Poor Dad was real popular in the new-age / prepper community about 15 years ago. A friend really hyped up the book. I agreed to read it and it was a slog of sort of extended aphorisms or long winded text explaining the obvious: if you have money, then you can make money. I didn’t really need all that text to tell me believing I can be successful is fundamental to being successful.

Perhaps an attitude adjustment will get some self-doubters off the ground, but I really didn’t find anything there to teach me how to be fundamentally smarter with my finances.

[Swnsasy]

I've read them and it reminded me of what my grandmother said.. "If you want to get rich, don't ask me because I'm not and don't ask someone who is trying to sale you a book because they got rich by skirting morals." That's what I take from his books...

[AdamasOldblade]

A friend gave me this book to read when I was 20. He knew I was skeptical about literally everything and asked me to read it before I looked up the criticisms of the book. Honestly that’s not the best sales pitch. Nevertheless I read it and whilst it was an easy read and enjoyable, I literally learned nothing except this guy just seemed like yet another, “let me tell you how to get rich quick without actually telling you anything.”

Let me put it this way. Books like these that do not help you at all in terms of finance and promise great rewards are total scams. When you think about it, who’s the one who is benefitting fro, these books? You, the person who paid money to attempt to make money fast. Or them, the person who just sold you an idea full of air and pocketed actual money?

[The_Opinion_of_Matt]

My wife read it about 10 years ago. She said the book was basically the author bragging about how smart he was and that is why he is rich.

[mgarcia]

You did pop up on my feed. Hopefully the algorithm is starting to pick up in your favor again.

[JohnnyOstentatious]

Yeah, I read the RICH DAD, POOR DAD book about 20 years ago, and the one part where he said to not pay your bills on time or at the last minute struck me as stupid advice. Plus, I got turned off how he looked down on his "Poor Dad" who spent his life teaching.

[GummyBearWA]

I read that piece of drivel when it came out in 1997. My best friend, at the time, his parents were Amway grifters since the early 80s, and they sent him the book in '97. He knew his parents would ask him about the book, and he paid me read it and give him the bullet points. I can read extremely fast when I have/want to, so it was quick cash.

[Silverman]

To be fair Rich dad Poor dad got me thinking about inflation.
I never thought about inflation like that before.

[Dodgerzden]

Your Money or Your Life by Vicki Robin is on the list, and I read that sometime in the late 80s which practically saved my life from having to continue working three jobs. I see there's an updated version now.

[jamestravis]

To be fair the book had a few good sentences in it. Working to learn vs working to earn & understanding the difference between assets and liabilities stood out to me but beyond that the book was filled with fluff. There are better books out there if you want to learn the specifics of personal finance

[BobPagani]

The whole story behind his "rich Dad, poor Dad" tale is a lie. It has been well-documented and he's made excuses about it. Why fund a fraud by buying his book?

[LotusHart]

Did Pak ever say why he doesn’t recommend Rich Dad Poor Dad in this video? I’m reading it currently.

[tundevirag]

I read it when I was a young(er) adult, and I thought it was a smart enough book, but one thing struck me back then. At some point Kiyosaki writes about how his rich friends don't just retire (which is what a poor person would do), but go out with their capital to create more value. Like one of his friends, who is about 50, and just now gets into a new market called... Multi level marketing.