Review of Unfair Advantage by Robert Kiyosaki
This is the latest book published by the New York Time's best selling author of Rich Dad, Poor Dad Robert Kiyosaki. He states that year 2010 was the best year for his entire life, despite the fact that it is the worst year for millions of people around the world.
During the last few years, millions of people have lost their jobs, trillions of dollars have wiped off from the global stock markets and people's pension pots have been shrank by half. Then why Robert Kiyosaki and the rich are becoming richer and richer , while the poor is becoming poorer and poorer? Why even some of the middle class have fallen into the poor class?
Robert Kiyosaki states that this is because he has superior financial education than most people. He has made his fortune during the bad times, while millions around world are struggling. He can see opportunities as a real capitalist, while others only see the danger. He decided to write this book not to brag about his good fortune, but to financially educate people, as brag is never cool, especially about money.
He summarises the unfair advantages he has over the majority of other people as follow:
Unfair Advantage No.1: Knowledge. Why accumulating assets and focus on cash flow are more important than having a job. The problem is that many people do not distinguish assets from liabilities, and have no idea about their cash flow and balance sheets.
Unfair Advantage No.2: Taxes. The rich uses Limited Companies, Limited Partnerships and Corporations to legally pay less taxes. For employees there is nothing they can do to pay less tax.
Unfair Advantage No.3: Debt. Today debt is money, currency is no longer money. Central banks are printing trillions of fake money globally and inflation is higher than ever. It is silly to save money, where the interest rates are less than the inflation. Lean how to invest your money wisely and increase your financial IQ to use good debt to become rich.
Unfair Advantage No.4: Risk. Investing is not risky, financially uneducated is risky! The higher your financial IQ, the lower your risk and the higher your Return On Investment.
Unfair Advantage No.5: Compensation.
Law of Compensation 1: Reciprocity, Give and you shall receive.
Law of Compensation 2: Lean to give more.
Law of Compensation 3: Leverage the power of compounding financial education.
Robert Kiyosaki did mention all of the above topics in his previous books, but he uses new examples, concepts and stories to emphasise that why financial education is more important than ever!