Financial Intelligence

I got Robert Kiyosaki's book titled "Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not!" . The book gives insight into Financial Intelligence & Financial Freedom. The author explains the need for making the 'Money To Work For Us' and 'Not To Work For Money'. He compares the thoughts & actions of the Low/Middle Class People with the Rich People to convey the methodologies to get rich. He narrates by using a Rich Dad who creates money and Poor Dad who works for money. One dad struggled to save even little amount of money . The other simply created investments.

But, i do not agree that all rich dads and poor dads are as portrayed by the author. Only, poor people can become rich . So, only if the poor dad has the quality of the rich dad as portrayed by the author, they can become rich. Rich people can become More richer only. A rich dad with the quality of the rich dad as portrayed by the author can make them More richer only :-)

He correlates the life to a 'Rat Race' made of 3 points that gets looped in life -
1. Fear - This is present initially for survival & that will drive ones earning requirement,
2. Greed - The later desire to get many nice things & greed drives the earning requirement.
3. Earn more - Pay more Bills . To pay more, earn more.
The only way to get out of this Rat Race is by using the Accounting & Investing.

I agree that switching to a big pay job and earning More Money cannot solve problems, Given more money, one will enhance his lifestyle & increase his needs & pay more bills & might also get into debt. Thus enters into Rat Race.

He stresses the need for 'Financial Intelligence' by having a complete understanding over the Income Statement, Asset Cash Flow Statement & Balance Sheet.

He says that we should never be arrested by Money such that we need to surely work to lead our life & we should avoid a situation of working at a job just because of fear for paying bills.
He states that we should have automatic Cash Flow From Asset -
1.A business owner who has a system in place can leave the business to a manager and still earn income.
2.A web site owner can stop working on the site and still earn income (e.g. from “automatic” advertisements like Google AdSense).
3. A book writer can stop writing and still earn royalties from the books she has written.

His examples for teaching the difference between 'Real Asset' and 'Liabilities' are good.
Asset - Automatic money/income generators
Liability - Home for middle class. It is not a asset if on loan. Car is never an asset.

Real Asset - Patents ,Investments (MFs, other bonds ..), Others work for you and you need not spend time to get the money (Amway / Quixtar), Mutual fund, Stock Business tools or equipment, Real estate (from which you earn rental income), Education

His concept of stock value getting increased whenever a company downsizes its resources appears strange to me though he substantiates stating that people like company that has low labor costs.

He also stresses the needs to achieve 'Financial Freedom' by asking the below questions -
Ask yourself - 1.For whom are you working for ? 2.Whom are you making rich ?
He tells us to have our own second level job along with the mainline job. His idea to join MLM to get trained in Marketing/Sales to get over fear of failure is interesting.

He also cautions by saying 'Mind your own Business' (continue with your wages based job and save to the maximum) and not to jump into business unless you are completely aware/convinced about it.

His 10 steps for awakening the financial genius are excellent.

I think, he can give more indepth information for Financial Freedom/Intelligence.

This book is simple & excellent ! The info conveyed are very practical and useful . I recommend it for everyone.