RichDad PoorDad Criticism

John T. Reed’s Analysis of Rich Dad Poor Dad

RichDad PoorDad is New York Times Best selling book. The author is Robert Kiyosaki. It is my favourite Personal Finance Book. But unfortunately this book has received many criticisms. Many Finance Gurus & Personal Finance don’t agree with many advises given in the book.

One Most Common advise in the book which has received tremendous criticism is - “Your Home is not your Asset but it is your Biggest Liability.”

For many people their Home is their Biggest Asset. But according to the definition in RichDad PoorDad, an Asset is something which puts money into your pocket (Cashflow). Means anything which generates positive Cashflow for you is an Asset while anything which takes money out of your pocket is a Liability.

Your Home is something which doesn't put money into your pocket at the end of month. But instead of that, it takes money out of your pocket. So its your Liability. But according to the definition, if you own a rental property which makes money into your pocket after deducting all the possible expense than its your Asset.

Many Finance Gurus don’t agree with this funda. But I personally believe this definition and this funds.

There are several other critics about various financial advises in the book. You can read the detailed negative analysis of RDPD by going on the above Link (John T. Reed’s Analysis).

The another common critics about the book is – Robert teaches us that, how to use the power of Corporate Structure to avoid taxes. How you can show your vacations and personal expenses as Business expanses and save taxes. In fact, rich people do this. But many Finance Gurus say that, Robert is teaching us to break the Tax laws.

Another criticism is about Robert’s “Rich Dad”. Many people believe that, there never was a rich dad. Because don’t reveal his rich dad’s identity. Many people and competitors of Robert say that, Robert had never ever any rich dad.

Many critics say that, Robert is a Liar. Because he claims his net worth US $ 50-100 Million while in reality, his net worth is $ 9 Million only. Robert apparently lie about his bankruptcy in 1985. But he never went Bankrupt.

Even after so many of negative criticism about Robert Kiyosaki & his Best Selling Book Rich Dad Poor Dad, I still believe him and his advises. In fact, this one Book has changed my mindset from Self-employee to Business-owner & Investor. I have build my own Internet Business “MY Journey To Billionaire Club” Blog after reading RDPD and the advises in this book.

Today I own my own Cashflow Producing Internet Business (This Blog) & feel Financially Free & Secure. Thank you Very Much…. Robert Kiyosaki….!!!!!