Book review: I will teach you to be rich by Ramit Sethi

I will teach you to be rich – Ramit Sethi

Synopsis:
As the title implies, this book is focused on teaching you to be rich. The book is focused on young people (in their 20s). A six week program is explained in detail on how to look at every aspect of your situation and improve it. From optimising your credit cards and bank accounts, to tracking your spending and simple investments. The book also looks at how you can negotiate to get a raise or even get a better deal on a house or car. The book uses plain English without any complicated formulas or number crunching.

What I gained from reading this book:
A more accurate title for this book would be ‘I will teach you to be in control with your money’ and if you follow the steps, you will be in control. This book can make you rich if you do follow the instructions. You won’t get rich tomorrow, or even in a years’ time, but eventually you will. Studies show that people who have a strong control over their income and spending become richer as time goes on. The great thing about this book is it is easy to implement.
This book was straight forward and very easy to read. My biggest gain from reading this book was seeing a fresh perspective on personal finance that I actually enjoyed. I had already implemented the steps that the author suggests, so although I didn’t learn anything new (I’ve read so many books on this subject), I did get much needed reinforcement that I am doing the right thing and one day it will pay off.

Positives:
This book is extremely easy to read and is enjoyable. Young people will relate to the author and his writing style. The advice given is practical and it works.

Negatives:
I thought that maybe it could go into more detail, but then readers would get bored and not implement the plan. So the fact that the book is short and basic is a good thing. The most important thing here is that the reader takes action, and I think the book will do a great job encouraging it.

Recommended for: All young people
Every young person (from teenage years onwards) should read this book. Even if you hate the word finance and don’t want to think about it, you should check it out. In forty years time you will be so glad you did.

Genre: Personal finance

Overall rating: 8 out of 10 stars

Australians can buy the book by clicking the picture below:

Where to from here:
If you want to go into more detail on the topics covered, I have reviewed many other books on personal finance that go into great depth. Click on ‘List of book reviews’ at the top of the page to see the ones I have reviewed.

If you have read this book, feel free to give it your own rating by posting a comment below.

Four books you must read before starting your own business

If you are thinking about starting your own business, the hardest part is probably the very start. There is a wealth of information out there on a wide range of topics that business owners must know. Rather than guessing where to start, I have made this list of books that will give you a basic starting point with essential principles and concepts. After you read these books, you will know what needs to be done next.

1. The E-Myth Revisited

This book is an essential starting point for anybody considering starting their own business. The author explains to Susie, somebody who has already started their business, why her results have not been what she expected. A wide range of topics are explained very well from lessons in franchising all the way to the mindset a business owner must have.
By the end of this book, you will have a much clearer idea of what you need to do, and more importantly, how you must think.



2. MBA in a day

For those who don’t want to spend 3+ years studying business at university, this book is a way to gain a basic understanding of the principles and concepts that would have been taught. By no way am I saying that this book compares with three years of study, but it does give a good summary of the topics. Everything from accounting and finance to marketing and strategy is discussed.
After reading this book you will have a very basic understanding of all the topics you will need to understand to successfully run a business. From there you can find more books or even short courses on the specific subjects you want to learn. It is important to be aware of what you need to learn and why you should learn it. This book does a good job in increasing your awareness in business subjects.



3. How to win friends and influence people

No matter what type of business you plan to start, you will be involved with people. Even if you are starting an internet only business, your customer service and networking skills will determine your success or failure. This book teaches essential people skills that everybody in business must recognize and apply. Ever walked out of a store disgusted by the lack of customer service and decided never to go back? Well if you don’t have first class people skills, there is the chance that people will react that way to your business.
This book will teach you everything from improving customer (or supplier) relationships to handling conflicts and arguments. Applying the principles in this book is an easy and effective way to improve your business’ reputation.


4. Getting to YES (Negotiating agreement without giving in)

Like this book states “like it or not, you are a negotiator”. Regardless of your business, eventually you will need to negotiate with somebody. How you handle that negotiation (and all future negotiations) will have a huge impact of your business’ performance. Whether you are hiring somebody and negotiating their pay and benefits, or negotiating with your suppliers, having an understanding of negotiating and how to effectively do it is essential. This book is most effective to protect you from people who will try to take advantage of you or use dirty tactics. The small cost of this book outweighs the raw deals and manipulation you could have encountered had you not read it.
This book will introduce you to what negotiating is and what it is not. Most people don’t really understand negotiating to begin with so reading this book will already put you at an advantage. With starting businesses, the more advantages you can get, the more likely you will be successful. Even if you think you are a good negotiator, you can always improve. Grasp hold of any advantage you can get your hands on. A solid understanding of negotiating is a clear advantage.



I have chosen these books because they are topics that many people would neglect or completely overlook. The main lesson is that the right frame of mind is essential for success. Topics such as accounting or marketing are easy to learn, so after you read these books you can continue to study them as you like. On the other hand, developing the mindset capable of running a successful company is so important, yet many people don’t even consider learning how to do it.

What books do you read?

Hi all,

I hope you have found my reviews useful. If you have any recommendations for educational books or have read one worth mentioning, please leave a comment here on the book and your rating. It would be great to see what books you read and find useful.

More reviews to come,

Aaron

Book review: The four pillars of investing by William Bernstein

The four pillars of investing: Lessons for building a winning portfolio – William Bernstein

Synopsis:
This book explains how to build an effective portfolio in plain English. The book is split into four parts (pillars): Theory of investing, History of investing, Psychology of investing and the Business of investing. The book explains why an understanding of these four key areas is crucial to achieve good returns. Examples are given for different people and how they would allocate their capital to different assets and why.
Many areas are discussed such as the history of bubbles and collapses, behavioural finance, the pitfalls of mutual funds and why your broker is not your buddy.

What I gained from reading this book:
I can easily say that this is the best investment book I have read to date. This is a big statement because I have read many investment books during my time at university studying finance. If I had to choose between reading four finance books that I read during university or this book, I would read this book. There is so much insight and valuable wisdom.
The great thing about this book is that you don’t have to be an experienced investor to follow these principles. The author clearly explains the process and why each point is important. So many other books fail to cover both aspects. The advice given in this book is top class and even top investors such as Warren Buffett recommend people do the same. Not only does this book explain why the advice is sensible, but it explains why the advice given by journalists, brokers and mutual funds shouldn’t be followed.
The overall gain I received from this book was a clear understanding of the industry, the markets and exactly what I should do to achieve the best results.

Positives:
Fantastic advice for all investors. The entire book is written in a very logical way and is very easy to understand. Important insight into the investment industry and why the advice given by brokers and advisors should be ignored.

Negatives:
I wish this book was longer and more in depth.

Recommended for: Everybody
I whole heartedly recommend this book for everybody. Not only is it easy to understand, but everybody can follow the advice and construct an effective portfolio from it.

Genre: Investments

Overall rating: 10 out of 10 stars

Australians can buy the book by clicking the picture below:

Where to from here:
If you are interested to hear from a different viewpoint on investing try this book:
Five key lessons from top money managers by Scott Kays

Book review: Principles of corporate finance by R. Brealey, S. Myers and F. Allen

Principles of corporate finance – R. Brealey, S. Myers and F. Allen

Synopsis:
This book discusses a wide range of topics relevant to corporations and financing. The book opens by explaining the concepts value and risk and other basic finance principles. From there the topics become progressively complex, from project analysis and net present value calculations, to debt policy and option valuation. Other topics include mergers, agency problems, credit risk, working capital management, etc. The book concludes with an important discussion on the limitations on finance and what we do and do not know.
This book uses a great number of examples and case studies to explain the concepts. Worked examples show step by step how outcomes are determined. Excel files are available on the internet that helps explain the examples. The examples are either real world companies or imaginary companies so the reader can learn how to analyse real life situations.

What I gained from reading this book:
This book really enhanced my understanding of finance within a corporate situation. This was a required textbook for a third year finance unit so I already had a good understanding of basic principles. What I learned was how to apply the basics of finance in complex situations and find optimal solutions.
This book enhanced my understanding of options and different methods to value them. Other benefits I gained included an increased understanding of tax shields to effectively reduce my tax liability and the ability to analyse the difference between leasing and buying to make the best possible decision.
I found this book was easier to understand than my lecturers and I still keep this book as reference for the future. The principles in this book won’t be obsolete in ten years (unlike other university books I have) so even if I forget how to apply a principle, I know I can easily re-learn it.

Positives:
The book starts off explaining simple finance principles before going into complex issues so those new to finance won’t struggle from the start. The examples and the excel files on the internet made the learning process so much easier. The principles in this book are useful in a wide range of situations, not just for corporations.

Negatives:
Some people may have difficulty with this book, especially if you don’t already have a good understanding of the basics of finance. Some topics are very complicated.

Recommended for: Business and finance students
If you are taking a course in business or finance, you will probably benefit from learning these advanced concepts. If on the other hand you are thinking of starting your own business, having a strong understanding of complex issues raised in this book will definitely put you at an advantage.

Genre: Finance

Overall rating: 7 out of 10 stars

Where to from here:
After reading this book you will probably want to learn specifics on other topics such as taxation or accounting. I haven’t reviewed any of those books so have a search for some on the topics your interested in.

Australians can buy the international edition by clicking the picture below:

Book review: The richest man in Babylon by George Clason

The richest man in Babylon – George S. Clason

Synopsis:
This book is a collection of Babylonian parables that the author wrote in the 1920s. These parables were made into pamphlets that banks handed out to customers. The stories are used to explain the basic principles of finance such as compound interest, investments, saving and controlling expenditure.
The parables are based on ancient Babylon, a wealthy and educated city from over 5,000 years ago. The stories are written in the old ‘King James’ language (eg: thy, thou, morrow). Tales of how one person became a slave and managed to buy his freedom through hard work instead of shirking, how one person who ran away from his massive debts managed to repay them over time by planning, etc.

What I gained from reading this book:
This book was very interesting to read because I haven’t read anything else like it. The old language used was very unusual but served well in painting a picture of an ancient time in Babylon. The stories are well written and quite clearly show what it could have been like living back then. The principles that the parables are based on are very fundamental principles of personal finance, so I already knew them. It was refreshing to read them used in a story.

Although the principles are very basic and can be learned in any personal finance book, so many people don’t even know them or don’t bother to apply them. I have many friends who don’t even know about these principles or they come up with excuses why they don’t apply them. Reading these tales rejects any excuses by effectively saying “people managed to apply these principles 5,000 years ago so you have no excuse not to”.

I did have trouble with the old language used and some parts I got lost and couldn’t understand what was being said. From what I understand, another version has been published using current language that people will be able to understand. Even know I had difficulty with the old language, I prefer it. The old language is effective in the storytelling and I think the other version would not be as enjoyable.

Positives:
Explains sound principles that have stood the test of time and that everybody should use. Interesting storytelling of an ancient time and the old language adds to the authenticity.

Negatives:
Some people may have trouble understanding the old language. The book is quite short, but in a way that’s good because it gets right to the point. People who already understand the basics of personal finance won’t learn anything new.

Recommended for: Everybody
I recommend this book for people who want to get a basic idea on how to manage their money but don’t like the idea of reading a finance book. The storytelling is an effective way to understand the principles without being bored unlike so many educational books.
Genre: Personal finance/Wealth

Overall rating: 8 out of 10 stars

Australians can buy the book by clicking the picture below:

Where to from here:
After reading this book you will probably want to learn more about personal finance and how to apply the principles. There are many books that explain how to effectively manage your money.

I recommend the following to gain more insight into building your wealth or improving your financial situation:
The millionaire next door by Thomas Stanley and William Danko
Rich Dad Poor Dad by Robert Kiyosaki

What to spend your economic stimulus handout on

STIMULUS HANDOUTS
In Australia, the government is giving a range of taxpayers a small sum of money to help stimulate the economy. As far as I know, many other countries may do the same thing. So if you have received (or will receive) some money, you are probably wondering what to spend it on. There are smart things you can spend it on and there are dumb things to spend it on. Being a book review blog I’m sure you can guess what I suggest you spend your money on…

That’s right, educational books. Now don’t go running away now, let me explain why!

I majored in Finance at university so I am always focusing on the best ways to improve my personal financial situation. As a finance graduate, I strongly recommend you spend a little bit of your handout money on personal finance books. Even one book will help you out greatly. I suggest this because if you start improving your financial education now, by the time the next recession begins you will not be in a delicate situation and suffer like countless people are now. So I whole heartedly recommend spending (some of) this ‘stimulus’ money to improve your personal financial situation now and for the future. A new HDTV may be extremely tempting, but in ten years it will be obsolete junk. The knowledge you can gain from reading up on personal finance will improve your entire future.

HOW CAN A PERSONAL FINANCE BOOK HELP YOU?
If you find yourself in a situation where bills keep piling up and you find it hard to get ahead financially despite having a decent paying job, it may be due to a lack of financial education. Don’t be put off by hearing that, the majority of the population don’t even understand the basics of money. That’s why so many people see financial planners – so somebody else can ‘fix’ their problems. The truth is that it is a lot easier and cheaper to learn how to fix your own financial problems on your own. By understanding why the way you spend your money is not helping you, you can learn and stop doing it in the future. Compare that to paying a financial planner to tell you the same things a book can tell you. The bottom line: just reading one personal finance book can teach you to improve your situation now and in the future.

WHAT TO SPEND THE REST OF THE MONEY ON?
If you buy a couple personal finance books and read through them, you should have a good idea what to spend the rest of your handout money on. If you read the right books, you should hopefully realise that buying a new TV or some other gadget may be fun in the short term, but won’t put you in a better position in the future. That TV will depreciate so fast it will be worthless before you know it. So what should you spend the money on? That’s why I suggest buying personal finance books, to be able to answer this question on your own! I could go into a very lengthy article on investments, but learning from a reliable investment book is better than any article I could write. So go buy a couple personal finance books and investment books to learn how you should properly spend your money. If you do so, I strongly believe that in ten years time you will be glad you did.

WHICH BOOK SHOULD I GET?
I will be reviewing personal finance books as I read them so check back here often to see what books can help you out. But if you want to find a book on your own type in ‘personal finance’ in the Amazon search box to the right. Many of the personal finance books will teach the same thing so just make sure the book you choose has been given a decent rating. To see what investment/wealth books I have already reviewed, click on ‘list of book reviews’ at the top of the page.

Book review: Rich Dad's Retire Young Retire Rich by Robert Kiyosaki

Rich Dad’s Retire Young Retire Rich – Robert Kiyosaki

Synopsis:
Robert Kiyosaki is the author of the book Rich Dad Poor Dad (I have also reviewed his book Cashflow Quadrant). This is the fifth book he has released under the ‘rich dad’ brand. The basis of this book is explaining how he was able to start with nothing and retire nine years later financially free. The focus is on the different forms of leverage and how you can use them for your benefit. The main message is to expand your ‘context’ or your reality. The last section in the book discusses specific investments such as real estate, paper assets (shares, options) and businesses.
Like the other Rich Dad books, the author contrasts the things his ‘rich dad’ and his ‘poor dad’ have said to him in the past. The focus is on helping you understand that what you believe and say will ultimately determine what type of person you end up as (as in poor, middle class or rich). As the author would say ‘the words became flesh’.

What I gained from reading this book:
I gained so much from the Rich Dad Poor Dad book. Read through that review to see how important I feel it is. This is the third book of his that I have read. He has made some really good points in this book and other points I didn’t agree with. But I did gain from this book. The idea of expanding your context and opening your mind is a powerful one. While I was reading certain chapters I wasn’t too interested in what was being said but after I finished the book I began to notice the truth in the points he made. The examples he made of people not willing to open their mind to possibilities would fit some of my friends perfectly.
I already knew the points he made on shares and options (I studied them at university) so I didn’t learn anything new there but the explanations are well done. This book really does a good job at improving your ‘context’ as the author would say. In other words, it opens your mind to the possibilities of doing things that you would normally never consider.
Although I am not rich yet, I do feel that these books are helping me and improving my future prospects. This book doesn’t look at investment specifics because there are plenty of books on the topic. This book looks at helping you accept that it is possible to get rich (which many people including my friends don’t accept as a possibility).

Positives:
Introduces people to some basic concepts in shares, real estate and options. The conversational style of writing is easy to understand. The book can really help open your mind to possibilities that many people would never accept. The explanations on the different forms of leverage are very useful in real life.

Negatives:
Some people may not like the use of fairy tales to make points. Others may not like the repetition the author uses. Basically, if you did not like his other books, you won’t like this one. If you haven’t read his other books, I recommend Rich Dad Poor Dad over any others.

Recommended for: Those wanting to be rich or successful
I recommend this book for people who seriously want to be rich or successful one day. I say ‘seriously’ because I know many people who say they want to get rich but won’t do anything about it. If you don’t want to put effort in, this book won’t be useful to you. If on the other hand you really aim to put the effort in to try to get rich, this book (as well as his others) can really put things in perspective.

Genre: Investments and personal finance

Overall rating: 7 out of 10 stars

Australians can buy the book by clicking the picture below:



Where to from here:
If you are interested in reading other books by Robert Kiyosaki, I have reviewed other ones here:
Rich Dad Poor Dad
Cashflow Quadrant
Why we want you to be rich by Robert Kiyosaki and Donald Trump

On the other hand, you may want to consider reading books looking at ways millionaires become rich:
The millionaire next door by Thomas Stanley and William Danko
Ten roads to riches by Ken Fisher

Gaining an advantage in a recession

THE CURRENT SITUATION
The current (2009) global economic position isn't too flash. With many countries in or nearing recession, companies are more likely to downsize and people are more likely to lose their job. Increasing your skill base not only improves your chances of keeping your current job, but it also improves your competitiveness if you look for another job. Recruiters are known to be pickier in times of recession and maximising your skills and knowledge can help you stand out of the crowd.
If you currently have a job you like you should be happy because many people wish they could say the same thing. If you are concerned about the real possibility of losing that job, reading up on the following topics will put you in a better position to hold onto your job.
On the other hand, if you are unfortunate enough to have lost a job already, don't let it get you down. Read up on these topics to help you stand out of the crowd when looking for a new job.

WHAT TO LEARN
For those who are looking at improving their skills and knowledge to gain an edge in the business world, I recommend learning the following topics.

1. Negotiation
It doesn't matter what type of job you have or want, you will need to know how to negotiate. People have a common misconception about negotiating, thinking it is only for union leaders or board room meetings. In fact, it is an everyday skill that everybody uses without even realising it. By reading up on this skill, you will not only have more control of your current situation, but you will have more control over your future situation. This is number one on the list because of the positive impact it can have on your career. It’s not just used to ask for a raise, it can be used to get more favourable hours, flexibility, increase possibility for promotion, etc.

2. Communication
Look at almost any job advertisement and under the list of skills required will almost definitely be 'good communication skills'. It is so important and yet, many people don't even bother to learn about it. Even reading one book on the subject puts you above the majority. So find a book on the topic and read about it. Then go out there and apply the information you have read. Recruiters put a very high emphasis on communication skills.

3. Body language
Most people either don't have a clue what body language is or they have an extremely limited understanding of it. This is why it is so important to learn. If you learn about body language, you will have a clear advantage over most people. Body language is the non-verbal language everybody uses without realising it. You can accurately read other people's signals and gestures to determine their thoughts and feelings. This is great for most jobs when you work with other people. Reading other people's body language can help you a great deal.

4. Business basics such as accounting, economics, management, marketing
Even having a basic understanding of these areas can put you at an advantage. Most people are happy with their limited understanding and don't care about learning other areas. Those who learn even the basics of other business areas have an advantage. If you have ever heard somebody use jargon and you were left scratching your head over it, you should learn more about the area. Not only will it make your life easier by understanding more, but other people will recognise and value your wide understanding.

5. Personal finance
This topic is more for your own personal needs rather than career need. Having a better understanding of personal finance can help you improve your situation so a recession won't have as much of an impact on you. Unfortunately for many, the recession has already hit hard. In either case by learning more on personal finance you are improving your future prospects. If you know the basics you should continue your learning by reading up on more advanced areas. Doesn't matter what your current situation is, you can improve your situation through learning. Even if you have a financial planner you go to, you should still read up on it. You may even find out that the principles are so basic you can do it yourself without any help from a financial planner.

THE FUTURE SITUATION
By reading up on these topics you put yourself in a better position for the future. If you read up on the basics of economics, you will find out that recessions (like the current one) will end. When the recession ends you will be better prepared for the next expansion (opposite of recession) and be at an advantage when looking to improve your career. While I can't guarantee that learning about these topics will be enough to get you a new job or keep your existing one, I am sure that it will help you to do so. Just remember, the more you learn the luckier you get.

Have a look at List of Book Reviews to find books I have reviewed on the topics above. If you can think of any other topics that are useful to gaining an advantage in a recession and could be added to this list, feel free to let me know by leaving a comment.

Book review: Cashflow Quadrant: Rich Dad's Guide to Financial Freedom by Robert Kiyosaki

Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom – Robert Kiyosaki

Synopsis:
This book is the sequel to the Rich Dad Poor Dad book. It expands on the concepts and principles explained in the first book. The focus in this book is on the different ways people earn money and more importantly, the psychological mindset of the type of people in each area. The author splits up all ways to earn money into four ‘quadrants’. The quadrants are: Employee, Self-employed (or small business), Big business, and Investor. The author then looks at each quadrant and explains why the people in certain quadrants have an advantage over others. Differences in people within the quadrants are explained. The book concludes with steps to become financially successful.

What I gained from reading this book:
I gained so much from the first Rich Dad book and this book was great to expand my understanding on the concepts that the author discusses. Reading about all the different types of people and the different quadrants was a great way to take a look at myself and my personal situation. By the end of the book I had a clearer understanding of where I currently am (financially and psychologically) and where I want to be in the future. Just like the first book, there were great tips and advice that were never discussed in my University years studying finance and investments that I feel are so important for everybody.

Positives:
Expands on the valuable concepts in the first Rich Dad book and introduces new concepts. Great explanations on the different types of people and ways to earn money. This book can be a great tool to assessing your situation.
The concepts are very simple to understand which means anybody can read it. You don’t have to have studied accounting or finance before to understand the points the author makes.

Negatives:
If you did not like the first Rich Dad book, you probably won’t like this one either. If you haven’t read the first book, you probably won’t understand what this book is discussing. The author uses repetition as a teaching tool and some people may not like learning this way.

Recommended for: Everybody
Everybody who has read the first Rich Dad book should read this book to expand the understanding of the concepts explained. I recommend this book for everybody because having a basic understanding of cash flow can improve your personal finance situation.

Genre: Self help and personal finance.

Overall rating: 7 out of 10 stars

Australians can buy the book by clicking the picture below:



Where to from here:
If you are interested in reading other books by Robert Kiyosaki, I have reviewed other ones here:
Rich Dad Poor Dad
Retire Young Retire Rich
Why we want you to be rich by Robert Kiyosaki and Donald Trump

On the other hand, you may want to consider reading books looking at ways millionaires become rich:
The millionaire next door by Thomas Stanley and William Danko
Ten roads to riches by Ken Fisher

Book review: Five key lessons from top money managers by Scott Kays

Five key lessons from top money managers – Scott Kays

Synopsis:
This book is based from the information received in interviews between the author and five well known money managers: Bill Nygren, Andy Stephens, Christopher Davis, Bill Fries, and John Calamos. Discussing investment principles and valuation methods, the author has come up with five key points that each of the five money manager follows. The concepts such as intrinsic value and developing a valuation model are discussed in detail.
Basic finance principles such as the time value of money, dividend discount model and Internal Rate of Return (IRR) are also discussed with examples. Examples are used to explain how to use these tools in real life such as analysis of a situation when Home Depot’s stock provided a significant opportunity to profit. The process of screening stocks to match certain criteria is explained in great detail.

What I gained from reading this book:
This book was fantastic to read as it gave very clear analysis of the methods used by money managers and how to put together your own investment system. The principles are very clearly explained (better than many of my finance lecturers did) and very useful. The concept of valuation is extremely important but many people neglect to learn about it (think of all the investors at the peak of the dot-com bubble).

The chapters are very clear and well explained. I gained a lot from the step by step explanations and examples. This book taught me how to compute IRR better than my second year finance lecturer did. This book not only gave me valuable information that I can use with my own investments, but it also made my finance studies a lot easier. Although I don’t plan on investing in a way that is explained in this book, knowing the principles and how to correctly apply them is extremely valuable. I think anybody who is interested in investing can gain from this book as I have.

Positives:
Very clear examples and explanations. The information provided can be very useful in deciding whether other investments are worthwhile or not.
Detailed explanation on creating your own investment strategy and what should be included. Explains how by using a simplified strategy. Very easy to learn thanks to the author’s clarity.

Negatives:
Although the concept of valuation is simple, it is quite hard to come up with reliable valuations for companies in real life. This isn’t a negative for the book because the author explains the problem. I am just making this clear for those who may think it is easy to apply what it taught. I don’t really have any negatives for this book. Well, I wish it was longer. But there are plenty of other books to add to this information.

Recommended for: People interested in investments
I recommend this book for people who are serious about investing on their own. I gained more from this book than quite a few finance units I took at university. The small price tag of this book compared to the high cost of university fees makes this book priceless. The concepts were explained better in the book compared to my university lecturers.
By understanding what is needed to create your own investment strategy, you are more likely to succeed. In other words, if you don’t know what this book is teaching, you are at a disadvantage.

Genre: Investments

Overall rating: 8 out of 10 stars

Australians can buy the book by clicking the picture below:

Book review: Rich Dad Poor Dad by Robert Kiyosaki

Rich Dad Poor Dad – Robert Kiyosaki

Synopsis:
The basis of this book is comparing the advice poor and middle class parents give their children to the advice rich parents give their children. The advice from the poor and middle class parents is along the lines of ‘go to school, get good grades and get a secure job’. The author suggests another path and shows why the conventional advice of getting a ‘secure job’ may not be good advice anymore.
The author uses his childhood experiences and compares advice he received from his real dad (his ‘poor dad’) and his friend’s dad (his ‘rich dad’).

What I gained from reading this book:
I am a Bachelor of Commerce graduate with majors in Finance, Economics and Commercial Law. Before I read this book I had already graduated and studied finance for quite some time. Throughout my finance studies my instincts always bothered me. Almost every finance lecture, I understood what the person was saying, but I knew that something was amiss with their advice. As soon as I started reading this book everything clicked. The author was discussing many of the same issues that bothered me. The number one point that bothered me like nothing else was that almost 100% of the financial planning students I talked to had never invested anything during their studies. The author of the book makes a similar point that ‘Wall street is the only place where people drive up in Rolls-Royces to get advice from people who take the subway’. It concerns me that many financial planning graduates who will eventually become financial planners and advise other people have never invested on their own.

This book was an eye-opener for me and it will be for many people. Even with my financial studies behind me, I have gained some valuable investing advice that my lecturers never discussed. I have kept in mind the concepts this book discusses and I believe it has positively impacted my investment returns more so than the advice from my third year ‘advanced investment’ units. Because of this book I was able to understand why much of the advice given by my finance lecturers is obsolete.

Positives:
Can open your mind to a different way of making a living other than the conventional 9-5 job. If you apply the way of thinking to your life you may find improvements in your finances.
It gives good explanations of simple situations and how they relate to income statements and balance sheets. This is great for people who know nothing about accounting. Teaches the basic principles of cash flow and why you should understand it.

Negatives:
I have read some negative reviews for this book* saying the advice it offers is dangerous. If you have no financial education and follow exactly what this book says, then yes it is dangerous (just like any financial advice). The author mentions many times that you must improve your financial education and I recommend the same. You shouldn’t buy a stock on a ‘hot tip’ without proper education or research, so don’t follow this advice without doing some extra research into personal finance.
Some people may not like this book because it doesn’t show ‘step-by-step’ instructions how to get rich. If you read this book looking for a formula to follow to get rich, you will be disappointed. Instead, read it with an open mind and consider the principles when you make financial decisions in the future.
There are some things written in this book that many people will not like to hear. For example: the author explains why a person’s house is not an asset. Try not to take offense with anything like this and understand why he says it.
These points aren’t really negatives because I don’t really have any negative things to say about this book. These points are warnings for people who could potentially be disappointed by certain aspects of the book. If you understand that this book is not a ‘formula to get rich’ and you keep an open mind to the concepts explained, you should find great value.

Recommended for: Everybody
I recommend this book for everybody because the concepts are so valuable once you properly understand them. Have a read of this book and continue improving your financial education by reading other books. Too many people neglect their personal finances and wonder why they struggle. By reading this book it can open your eyes to why people get stuck in financial problems and how to avoid them.
I found so much value in this book that I made sure every member of my family read it.

Genre: Personal finance

Overall rating: 8 out of 10 stars

Australians can buy the book by clicking the picture below

* There is a very popular negative review by John T. Reed that criticises every point the author makes and tries to explain why the book is terrible advice. It made me wonder why somebody would put so much effort into demolishing the book and its advice. Eventually I realised that the person did this to sell his own books (he has over 30) which he has links to on the same page. I wouldn’t take anything that person says seriously when you consider his main motive: ‘criticise the competition to sell my own books’.

Where to from here:
If you are interested in reading other books by Robert Kiyosaki, I have reviewed other ones here:
Cashflow Quadrant
Retire Young Retire Rich
Why we want you to be rich by Robert Kiyosaki and Donald Trump

On the other hand, you may want to consider reading books looking at ways millionaires become rich:
The millionaire next door by Thomas Stanley and William Danko
Ten roads to riches by Ken Fisher

List of book reviews

Here is a list of all book reviews I have uploaded to date. I will always update this page.

Personal Finance/Wealth/Investments
Rich Dad Poor Dad – Robert Kiyosaki
Ten roads to riches – Ken Fisher
Why we want you to be rich – Donald Trump, Robert Kiyosaki
Five key lessons from top money managers – Scott Kays
Cashflow Quadrant – Robert Kiyosaki
The Millionaire Next Door - Thomas Stanley and William Danko
Retire Young Retire Rich - Robert Kiyosaki
The richest man in Babylon - George S. Clason
The four pillars of investing - William Bernstein
The ultimate depression survival guide - Martin Weiss
The little book that beats the market - Joel Greenblatt
I will teach you to be rich - Ramit Sethi
Billionaire in Training - Bradley Sugars

People skills/Success
How to win friends and influence people – Dale Carnegie
What every BODY is saying – Joe Navarro
Body language (how to read others’ thoughts by their gestures) – Allan Pearse
The 7 Habits of highly effective people - Stephen Covey

Negotiation
Getting to YES (Negotiating Agreement without giving in) 2nd ed– Roger Fisher and William Ury
Negotiating for dummies - Michael Donaldson

Guitar/Music
Flamenco Guitar Method Vol 1 – Gerhard Graf Martinez
The complete idiot’s guide to Music Theory – Michael Miller

Business/Career
MBA in a day – Steven Stralser
Job interviews for dummies – Joyce Lain Kennedy
The E-Myth Revisited - Michael Gerber
Good to Great - Jim Collins
Good Business Bad Business - Roger Green

Economics
Freakonomics – Steven D Levitt
Microeconomic theory: Concepts and connections - Michael Wetzstein
Finance
Principles of corporate finance - R. Brealey, S. Myers and F. Allen