Book Review – Who Took My Money?

I am personally not fond of writing style/finance concepts by Robert Kiyosaki, however some of his concepts are really cool and worth looking at.

I’ve read few of his books and also tried following his advise on some concepts. Best finance strategy is the one which works best for that individual.

Paddy, the wealth coach has forwarded this book review on AIII.
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Another successful addition to the range of financial books written by Robert T. Kiyosaki together with Sharon L. Lechter, Who Took My Money is a worthy read. It is divided into 2 main parts.

The 1st part aims at to address the importance of having a synergy of advisors as well as taking into account their different points of view.

The 2nd part is about the synergy of various assets and financial forces.

Take a look at the content page below.
Study it carefully, which part does it answer the question of Who Took My Money?

(Part 1)  —  What should I invest in?

  1. Ask a Salesperson
  2. Ask a Cattle Rancher and Then Ask a Dairy Farmer
  3. Ask Your Banker
  4. Ask Your Insurance Agent
  5. Ask The Tax Man
  6. Ask a Journalist
  7. Ask a Gambler
  8. Ask Newton
  9. Ask Father Time

    (Part 2) —  Ask an Investor!

  10. 4 Reasons Why Some People Can’t Become Power Investors
  11. The Power of Power Investing
  12. Gambling Rather Than Investing
  13. How to Find Great Investments
  14. How to Be a Great Investor
  15. Winner or Loser?

It is obvious that the book deals more with investments rather than money loss. In my opinion, Who Took My Money is just a provocative title aimed at boosting book sales. It is human psychology, books with cheeky titles fare better than books with boring titles. If this book were to be titled ‘Investments’, it would be competing with the numerous other books already titled this way. Misleading…because Kiyosaki does not spend many pages explaining where our money is disappearing to (taxes are your single largest expense). Criticisms aside, this book is developed in an unorthodox ‘interview style’, making it both intriguing and engaging at the same time.

Rather than doing a whole summary of the book resulting in a diluted book review, I want to share something I learnt from the chapter ‘The Power of Power Investing’, which I feel is the most important chapter of the book.

Conventional attitudes and wisdom lead us to be working in the E and S quadrant. Usually individuals in this group will only have 1 source of income which is their paycheck and they cannot survive prolonged periods without it. They save, reduce debt, pay off mortgage, buy paper assets first and invest in a long term retirement plan.

Turn your attention over the right side of the Quadrant.

Instead of operating from the E-S quad, the rich operate in the B-I quad. Instead of using their own money & time to invest, the rich also use other people’s money and other people’s time and money! Instead of investing in paper assets first, the rich invest in Business, Real Estate followed by paper assets last.

Professional Investors use various forms of leverage for their own gain. They use banks to leverage their money and keep it moving. An example would be putting 10% down payment of a piece of property and borrowing the remaining 90%. Whatever profits gained would not be shared with the banker, even though the banker has 90% of the risk. Bankers would collect interest, which is paid by the tenants.

While people on the left side of the chart work alone, people working on the right side of the chart have a whole team of advisors working together, ensuring their money is properly managed, leveraged and protected. Essentially, people on the left side PARK their money while those on the right side ACCELERATE their money, ensuring rapid growth.

‘This is the basic plan that the richest investors in the world follow.’

~Big Words from Robert Kiyosaki
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This book can be purchased from Amazon here.

4 comments to Book Review – Who Took My Money?

  • Just wanted to say HI. I found your blog a few days ago on Technorati and have been reading it over the past few days.

  • Thanks for posting the article, was certainly a great read!

  • This quote is so true “Instead of operating from the E-S quad, the rich operate in the B-I quad. Instead of using their own money & time to invest, the rich also use other people’s money and other people’s time and money! Instead of investing in paper assets first, the rich invest in Business, Real Estate followed by paper assets last.” I just wish I knew how to get onto the B-I quad.

  • shivu (sunny)

    i has been stuied dis book last few days ago it was good……..

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