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Recently I was surprised about its clarity of content, when I stumbled about this book in a book store. Retire young, retire rich.
It’s very compact and an easy read, yet Robert T. Kiyosaki gives useful views on how everyone can retire young and rich. It’s all a matter of your context.
The core problem is that our ‘old fashioned’ education systems teaches us solutions from the industrial age. Financial knowledge is mainly transferred from parents to their children. Of course our parents mainly don’t have the solutions to the ever-faster changing economic cycles of today’s fast-paced life in the information society. They can hardly use a computer. That means, people become poorer and poorer, cause they struggle in the deadly cycle of learning at school, getting good grades, study to get some degree and get a well-paid job for life. What is well-paid anyway, if your government is taking 50% of your hard-earned money as taxes? Your money is taxed many times, as you pay GST/VAT and other taxes on top of income tax you paid already.
You still save money or pay-off the mortgage for your house? Is that a valuable asset? Or more another liability? Do you still believe in job security? Remember: there is no spoon!
Multiply your output! Give up your lousy paid job and create your own business and let OPM (Other peoples money) work for you. Accumulate lower taxed assets. Get the government to fund your investments. Establish a Cash Flow that works for you. And most important: Get out of the rat race early, before it’s too late! Use your time better.
It gives me pimples when I remember my former boss, who was a prime example of the rat race. He lost everything in the asian stock crisis in 1998, pays alimony to his wife for his first-marriage-kids, pays of the mortgage for his self-used house and plans to work until he falls dead on the floor. His health (and weight) is playing yo-yo with him, even though he gave up alcohol and struggles to cut down on smoking. Has anyone seen permanent rings under ones eyes? Ever seen a Panda Bear? Exactly. That’s what I’m talking about. 
Guess what – my old company had a history of sudden deaths, with managers up to CEO level dying of heart-strokes already in their late 40s – they literally worked their a**e* off….
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December 2nd, 2006 at 8:32 am
Anyone interested in Kiyosaki should read this first: http://www.johntreed.com/Kiyosaki.html
December 3rd, 2006 at 10:16 am
I read Retire Rich, Retire Young several years ago, I probably should reread it.
I find John T Reed’s view a bit on the harsh side, but his books on real estate investing are must-read. I have learned a lot from reading his works.
December 4th, 2006 at 9:44 am
I agree, that ‘Retire rich, retire young’ can really only be a start – I wish I had read it 10 years back, I only found it 1-2 years ago and it mainly confirmed what I found out through other sources before.
But still something I would recommend it to a 20-year old to start with, mainly to broaden the financial horizon.
After reading it, you have to find your own way on how to get to achieve your financial goals…
April 9th, 2007 at 5:56 pm
[…] To do the big bang and pack your bags and go, it surely takes some more in-depth planning. You could start with reading this book or this. Get an idea on how to create several independent income streams, invest in real estate, dividend titles, interest earners and not in luxury goods like Cars, Jewelry, Designer-Jeans, Manolo Blahnik Shoes or Bauknecht kitchens. […]
June 11th, 2007 at 4:18 pm
[…] You can generate Passive Income from a rented-out apartment in Europe, Australia or the US (aka Retire Young, Retire Rich). Another Income Stream can come from dividends of stable old-economy Dow-Jones/European Stocks, who pay out dividends regularly (quarterly) and with increasing amounts over the last past years. […]
October 21st, 2007 at 9:28 pm
[…] Find something what you like and try to make money out of it. Read more books about this topic. Calculate your needs. This website can only help with some ideas, but of course they don’t apply to everybody. You have to make it your way. After all it’s your own life you decide upon. […]
March 21st, 2008 at 10:01 pm
hi Chris,
I like to read your blog. The contain is very good, and inspiring.
your story of life also great. Really want to finish to read all the page.
Regards,
Anta
March 21st, 2008 at 11:10 pm
Anta, many thanks for the compliments! Hope you enjoy the reading. If you have any criticism or requests for further posts, let me know and I will see what I can do.
November 2nd, 2008 at 2:51 pm
Hi Chris,
I am very interested on how you make ends meet etc..like with money? Do you invest in stocks? or having some sort of passive income??
I am interested.
Thanks
November 5th, 2008 at 10:39 am
Bill, I survive on income deriving from interest, rent. dividends and a small bit of online income. Parts of it is from value stocks (food/drink industries, as those always survive, even through downturns. they pay dividends 3-monthly as well). As well I don’t need a lot of material things to be happy, in fact, the less I own, the happier and more secure I feel. That’s the whole secret.
August 27th, 2009 at 1:50 am
I think we must understand that Kiyosaki is not a Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA). So, some of his specific financial advices are not sound. These methods might work for some (eg. his ‘Rich Dad’) but not most people. But some of his ideas are good and inspirational. For example, the idea of creating a Passive Income that can sustain one’s expenses. All people should build up a portfolio that can reach such a target because it leads to financial independence. In other words, he doesn’t need to work in order to survive or even live well. For most people, there are 2 practical areas to look at:
1) entrepreneurship or/and;
2) investment (in stocks, bonds and property).
If you have some specialised skills or network, and most importantly also the passion, plans and capital, the most profitable way to invest is to invest in yourself. Look at the Forbes list of the richest people in the world. Most billionaires or their parents (from whom they inherited their wealth) had become rich this way.
But I was talking about the ultra-rich. What if you don’t have the passion, skills, talents, network, rich parents, etc like most people don’t? Then you should read “The Millionaire Next Door” which was written by a respected retired professor who specialised in rich people. He had based this book on solid research of how most of the millionaires (not ultra-rich billionaires mentioned above) made their money.
For most people, Chris and I included, it’s not necessary to become a billioniare to retire. Neither do we need to be as rich as Kiyosaki’s Rich Dad whom he claimed was one of the richest men in Hawaii, USA! So, this book is more relevant to those who aspire to retire younger. Not Kiyosaki. And certainly not Clement Chiang who holds an unaccredited PhD.
Basically, most people who want to make enough to retire young should lower his expenses, develop a habit to save regularly, and invest the savings in stocks, bonds and property (eg. through mutual funds). As the book reveals, most millionaires in USA had done this. They were not rocket scientists or PhDs. They were not born into a rich family. But they spent their money wisely, saved up habitually, and invested in mutual funds using down-to-earth regular savings approach, which means they didn’t speculate or time the market.
August 27th, 2009 at 11:45 am
Right!
June 11th, 2010 at 9:32 pm
I think everybody should be thinking about retiring early, especially if your working a job you hate. I’d hate to think I would be working until I was 60 before I’d see any reward.
It’s all about the mindset, here‘s a pretty good article which sums up the basic concept of positive thinking:
August 19th, 2010 at 2:20 pm
The content of the book is quite interesting and striking. But for me, you can only say that you are already retired if you had achieved all the things that you must and should do.
December 27th, 2011 at 12:56 am
I am always reminded, I’m the richest person I know. What you can’t purchase in life is the most valuable. And that I abundantly have. I also get my money for nothing. I sleep in palaces and fields. The sky is my ceiling and the earth is my ground. Anyone I choose becomes my friend. I’ll reach out into the dark only to find my callous lover running to me, once again. Leveling mountains or businesses on a whim I can do all things with the power of God. Money always was worthless, The more you have the poorer you get.
December 27th, 2011 at 10:27 am
Mike, nicely said. I hope, more people would see it this way.