Book Review: Rich Dad’s Increase Your Financial IQ

Robert Kiyosaki's book publisher contacted me about their newest book: Rich Dad's Increase Your Financial IQAs I have read the other Rich Dad Poor Dad books, I was excited about getting my hands on this book.

For those of you who aren't familiar with the Rich Dad series, it's a financial education series which teaches you how to THINK like the rich, but it's a little light on specific details on how to actually make extra money.

Rich Dad's Increase Your Financial IQ is no different.  The premise behind the book is about financial IQ and how to be like the rich.  Robert Kiyosaki believes that the rich get richer while the poor get poorer because of the differences in their IQ.  No, not regular IQ, but financial IQ. 

Who is Robert Kiyosaki? 

I think the biggest claim to fame for Mr. Kiyosaki is that he is the author and creator of the Rich Dad franchise.  Along with being a successful author, he is also a real estate mogul owning millions of dollars in real estate assets.

The Topics Covered?

  • Financial IQ #1: Make More Money (the more the better)
  • Financial IQ #2: Protecting your money (pay less taxes)
  • Financial IQ #3: Budgeting your money (budget for surplus)
  • Financial IQ #4: Leveraging your money (the higher you returns, the better)
  • Financial IQ #5: Improving your financial information (problem solving is the key to wealth)

What I liked about the book?

  • In Financial IQ #1, the author explains why the rich are rich and why the middle class and poor stay that way.  Kiyosaki explains that the rich use their money to build assets which creates an ever building passive income stream (unlimited potential).  The middle class, on the other hand, use their limited TIME to bring home income.  
  • In Financial IQ #3, Kiyosaki explains to budget for a surplus.  Basically, this means to put your savings as a FIRST priority before everything else.  What he believes that if you are short on money to pay the bills after savings, you'll need to go out and make more money.
  • In Financial IQ #4, Kiyosaki explains that if you have control of your leveraged asset, then there is no risk involved.  That's why he invests most of his money in real estate and very little in the stock market. Maybe there is a lot of truth in the old saying "invest in what you know".
  • I enjoyed the Financial IQ #5 chapter which explained the different parts of the brain and how each part affects decision making.  Kiyosaki emphasizes that the best way to learn is through "doing" and "making mistakes".  I agree with this point as I have the tendency to get "analysis paralysis". 

What I didn't like?

Throughout the book, Kiyosaki has the message of NOT living below your means but to INCREASE your means.  I'm not sure if that is the best philosophy for most as I believe that controlling frivolous spending is key to financial health. My belief is to do both!  Why not live within your means AND aim to increase income at the same time? 

Final Thoughts:

For those of you who enjoy reading the Rich Dad series of books, then this one is a must read.  For those of you who already have their financial affairs in order, then this book may have some entertainment value, but probably won't enlighten your financial life.

Stay tuned for tomorrows post.  We will be giving away a free copy of Rich Dad's Increase Your Financial IQ.

Find out how you can save an additional 4% on this book from Chapters. 

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FT

FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
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Wealth Building Lessons
12 years ago

I’ve read his books, and I like them. they’re easy to understand and are quite motivational. the only problem is that they’re low on actual investing ideas, which is where other books are more helpful.

JR
13 years ago

Galla is right. A book, a seminar, any financial tools are for the observer to get out of it what they pay for in time & money.

Surely everyone knows time is money and knowledge is the key. Time well spent with a little effort on your part, should create more money for you… well!

So, if your interest is learning (Robert Kiyosaki’s approach) then knowledge must be the key to success, as long as you can carry through.

Ah, but Kiyosaki does not say which or what method brings personal success, or does he?

Could he simply be no more than a self made financial evangelist, or just a guy that found the key to success was selling the only asset he knew .. himself and his books on the lecture circuit.

Dont knock the guy, he has supposidly made the MDJ

Galla
13 years ago

I don’t unsderstand why people complain about everything, just take from the book what you think is positive and DO something…it is so easy to criticize. I read it and I am doing what I think, it is helping.

MD
13 years ago

I am in the process of reading this book and have read several of the author’s previous books. First, to tell people who have their financial affairs in order to read it for entertainment value is not true and a very vague term. What ‘in order’ means to one can mean entirely different to someone else. TO say he repeats the same information is doing the book a disservice. He does repeat some concepts in order to bring those, who haven’t read the previous books up to speed. It’s difficult to discuss what he’s trying to accomplish if someone doesn’t understand how he views assets, liabilities, etc. AS a US citizen I find the financial history on the Federal Reserve and changes in the gold standard very interesting as our government once again changed things within the last 30 days. At a minimum, people should go to the local bookstore and read the introduction for themselves. I’m enjoying this book and truly gaining some good insight. In addition, I think a nice complement to this book would be the books by David bach, ie. The Automatic Millionaire, Start Late, finish Rich, etc.

Weekend Links - Announcing The Money Writers Edition
13 years ago

[…] Dollar Journey reviews Rich Dad’s Increase Your Financial IQ. I’m a little jealous that Robert Kiyosaki’s book publisher didn’t contact me. […]

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13 years ago

[…] Book Review: Rich Dad’s Increase Your Financial IQ […]

Fiscal Musings
13 years ago

It’s interesting to hear people always say that his books contain a lot of the same stuff. Some of these same people run financial blogs that seem to rehash a lot of the same stuff over and over as well…

Earn money, save a lot, be frugal, invest in index funds. Sometimes people need to hear things over and over, or at least the people reading these blogs don’t seem to get upset when they read “new” posts about much the same stuff.

Just some thoughts.

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13 years ago

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13 years ago

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Dave
13 years ago

“That’s what all of us crazy PF bloggers are doing: accumulating income sources that require less of our time.”

I am a PF blogger and that is NOT what I am doing.