I’ve been reading the latest book from Rich Dad author Robert Kiyosaki called; Who Took My Money. By the time I was a few pages into the first Rich Dad book, I confess that I was hooked, and I believe that my thoughts about money have been transformed to the point that I probably never need to read another word to continue this way of thinking. With that said, I am really enjoying this book.
Here’s the official blurb from RichDad.com:
Are you tired of the same old advice of â€œsave money, invest for the long term and diversify?â€ Do you want to learn how and why professional investors increase the speed of their money, rather than park it? With job security at an all time low, itâ€™s never been more important to take control of your financial life.
Yes, that would be me.
Another memorable quote:
A smart investor focuses on becoming a smarter investor, the average investor focuses only on making money.
This is in the same spirit as my previous post where I make the case that the focus should always be on improving the business’s processes rather than making money. Who Took My Money is built around a visit that Robert’s Rich Dad took him on to two farms. One was a cattle ranch, where the rancher made money by raising cattle and then slaughtering them and selling the meat. The other visit was to a dairy farm where the cattle were being milked every day and the milk was the product. The book points that most investors make is that they look for something to buy, hold and slaughter, rather than something that produces a return and enables you to still keep the original asset.
Another key concept is that average investors fail to insure their investments. Would you buy a new car and drive it without insurance? Then why do the same with your investments. A professional investor knows how to hedge to provide insurance to the original investment.
As usual, the book leaves me with a feeling of hope for improving my financial situation. Overall, what I like about Robert’s books is they are the opposite of the many “Get Rich Quick” gimmicks that are sold in other books and websites. Making money comes down to good advice (and knowing it when you hear it), having a strong network of business associates, and first and foremost, knowledge. Rich Dad always told Robert that the first thing to invest in was a financial education. I know from reading these books that that is good advice.
[All of the links on this page are affiliate links - if you click on the image you will be able to shop at the Rich Dad site directly. The amazon.com links below have excerpts, table of contents and back cover photos.]
Pick up Who Took My Money by Robert Kiyosaki on Amazon.com [us$11.53]
or the CD [us$16.49] – free shipping on orders above $25.