Book Review of Unfair Advantage by Robert Kiyosaki
Overall I Give Unfair Advantage a Thumbs Up
Book Title: Unfair Advantage
Author: Robert T. Kiyosaki
Readability: Easy to read.
Technicality: Not technical.
Provides Practical, How To Knowledge On: the steps you need to take to think like a business owner and investor instead of an employee.
Summary: Unfair Advantage provides principles you must abide by if you want to be a business owner and accumulate wealth in a way that goes far beyond saving what you can in your 401k plan.
I wholeheartedly agree with the primary principle this book teaches: the need for financial education that teaches people what it takes to build businesses and become true investors.
In his first book, Rich Dad, Poor Dad, Robert Kiyosaki hammers home the need to define the difference between an asset and a liability and explains that your home is not an asset; instead it is an expense item. In this book he hammers home the need to invest for cash flow if you want to reach financial independence.
He also makes a great distinction between being self-employed and being a business owner or investor. Many self-employed people have made a job for themselves. You transition to being a business owner or investor when the business can run without you and still generate cash flow for you.
Considering that he bashes mutual funds, 401k plans, and most financial advisors, it may be surprising that I would recommend this book.
I recommend it for the principles it teaches.
There are several things about the book, however, that I don’t like.
What I Don’t Like:
It can be condescending at times. When referring to the middle class at one point he says, “If they invest, they turn their money over to financial planners because they would rather enjoy life than take classes and learn how to manage their own wealth.”
And his point is what? That choosing to enjoy life and focus on more than just your money is a bad thing?
It does not adequately discuss risk. He briefly mentions one of his own business failures, but doesn’t tell you what the repercussions were. Both building businesses and owning real estate involve risk. The rewards can be plentiful, but no discussion is complete without covering the risks that you must take. (See 3 Things You Must Know Before You Buy Rental Property.)
It lacks a sense of mutual respect. I love learning and focusing on wealth building ideas. Not everyone does. Spending every waking moment learning will be heaven for some, and hell for others. He makes it sound like you are a fool if you don’t follow his path. I think it takes all kinds to make the world go round and I don't think you should disrespect someone because they may not share your passions. I say you’re a fool if you aren’t true to yourself, in whatever form that may take.
Best part of the book: my favorite part of Unfair Advantage is the opening question of the first chapter. It starts out, “I have $10,000. What should I do with it? What should I invest in?” The short answer he provides says “If you do not know what to do with your money, the best thing to do is...” Guess you’ll have to read it to find the answer.