So this book has been out for some time now. I ran out of reading material on the plane and stole this from MK, not sure why he was even carrying it around though. It was a quick read (finished in one flight) and didn’t really teach me anything I didn’t already know (your house is NOT an asset).
I don’t usually post about each book I read (that would be all I had time for) but after all the thought provoking issues the book raised, and the great discussions MK and I had, I thought I’d let you have a little feedback to entice.
My biggest problem with the book was the reiteration of the idea that there is no school teaching of finance. In college I took a Personal Finance class that taught everything from balancing a checkbook and valuing real estate to picking life insurance. So, it’s out there, you just have to look for it. I would certainly encourage (read: force) my children to take a class like that. Not all conversations need to be had at the dinner table. It’s more about setting a good example.
Other than that there were a lot of issues raised. With MK’s profession, we don’t have any problems with risk taking and our money not being in traditional 401(k)s. At our age, I haven’t met any friends that think they will retire on Social Security benefits. So, in the ten years since most of the examples occurred, what a different world we are in. That doesn’t mean that people are making all the right decisions.
What stood out to me was the political ramifications. We elect officials that don’t know how to run a business. And the government then spends too much. If you’re “Posters Inc.” you try to spend less money so you take home more. If you’re the EPA on the other hand, you want to use all your alloted monies in case they decrease your budget. There’s a fundamental problem.
If you haven’t read this book, I suggest it. It’s a simplest way to understand why some things aren’t working. I don’t honestly suggest going to “get rich” seminars, I doubt we’ll all be real estate moguls, but you can remind yourself where you stand, discover what you can do to improve your life, and stop thinking of money as evil.
Good review. Not really a book I’d read, but I did find some of your remarks interesting. Like you, we haven’t met anyone our age that will be able to retire. On the other hand, as my husband and I are completely debt free, we will be able to retire. Both of us came from poor households where money was a problem. We’ve worked hard, spent frugally, and made sacrifices when we had to. Many couples our age just don’t seem to get that through their head. You don’t need the new 2007 model car, you don’t need the bigger house, etc.
I missed this one somehow. Isn’t money funny? It teaches you a lot about a person, about a couple, about a family.
Just happened on this site while doing some research. I often recommend Robert Kiyasaki’s books Cash Flow Quadrants and Rich Dad, Poor Dad. It’s not because I think they are the end all/be all of financial education or real estate investing. I’ve simply noticed that so many people have absolutely no clue about personal finance or how to develope a healthy relationship with money. It’s easy to be smug about knowing what classes to take at university (I have multiple degrees myself) or with whom to talk for advise about planning for the future. But, the fact is, today’s younger generation have never heard of a home economics class, much less how to say no to that next overwhelming desire to have the best car, computer or house. The only examples presented to them are sports and music “heros.” (I use the term “heros” loosely:) They see money as simply something to be earned and quickly spent. What I like about these two books (and the game Kiyasaki created–Cash Flow 101) is that it provides the reader with a point-of-view that has somehow been lost today. While this point-of-view may seem overly simple to you or your colleagues, it can be an epiphany to someone of lessor or different experience. It gets the brain thinking about the possibilities. We all know that the power of thought is quite possibly the most important tool in the human arsonal. As you can tell by my website address, I did continue into real estate as a vehicle for my retirement portfolio. It worked for me and I really do enjoy it. I don’t recommend it to everyone. Anyway, thank you for the opportunity to comment.
Thanks for the comment – even though you called me smug. My theory is that since 1997, when most of this information was groundbreaking, there are just as many educated teenagers as there teenagers that watch MTV and want money for spinners and grills.