“Rich Dad’s Prophecy” by Robert Kiyosaki

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The end of the world as we know it?  Unlikely.

However, Rich Dad’s Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming… And How You Can Prepare Yourself... is my favorite Rich Dad book of those I’ve read so far here on Enwealthen.

Written in Robert Kiyosaki’s usual simple narrative style, it presents thought-provoking information in a more structured way than usual.

Early on, he presents the story of Noah and the Ark, then builds on the ark metaphor throughout the book – the ark being your financial success that will protect you from the coming financial storms.  Several chapters have call outs with additional information, case studies, and thought exercises to help you absorb the material.  On the whole, engaging and surprisingly well-structured.

Looking at the content, there is too much to summarize in any meaningful way.  However, here are a few things which caught my attention.  Most importantly was his lesson in character – when asked what he wanted to be when he grew up, his rich dad wasn’t looking for doctor, lawyer, Indian chief, he was looking for character – honest or cheat, hero or coward, etc.  We all choose in every moment who we are going to be, so choose wisely and by so choosing become the person you want to be.  This is a lesson I wish more parents would teach their children, and that mine had done the same.

Rich Dad frequently underscores the power of words, and rightly so, as words become thoughts, thoughts become actions, actions become habits, and habits become a force for good in your life.  If they’re the right habits.  So picking the right thoughts can lead to having the right habits.

Classic Kiyosaki example is to think “How can I afford it” and not “I can’t afford it”.  Another example I liked from Rich Dad’s Prophecy is saving versus investing: poor people save, while rich people invest, whether for retirement, college funds, etc.  I invest for my retirement.  How about you?  The next time you find yourself being negative or upset about something, pay attention to the words you’re using – you may surprise yourself by finding a more powerful way to restate your needs.

Prophecy or Fact?

Kiyosaki spends a lot of time on background material, with comparisons to ancient Rome, and the “perfect storm” of conditions approaching that could make for a huge drop in the U.S. stock market. One of his primary concerns is the forced withdrawals required as the Baby Boomers begin to retire and the huge sucking sound as their money floods out of the stock market.

One of the things that makes this book so compelling is that it was written in 2002, well before the 2008 meltdown, and while the timing of some of his predictions is off, much of what he has written has, or is, coming about.  It’s rare to find someone in the popular media making predictions who has any of them come true, so when it happens, I sit up and take notice.

Very impressive, Mr. Kiyosaki.  Even more impressive is the thought process he takes you through Buckminster Fuller‘s ephemeralization process and how to recognize other similar trends for yourself going forward.

Then there is the construction of your ark.  Another reason I like this book so much is it is definitely more action-oriented than others I’ve read.  He breaks down the building of your financial freedom into types of control.  While he calls out several categories of control, in my mind, they are all different aspects of taking control of yourself:

  • Your fears
  • Your excuses
  • Your environment
  • Your investments
  • And more

The collapse of Enron is used in several examples throughout the book, for example, to demonstrate the lack of control Enron employees, or any 401k investor, had over their investment.  Control.  Control.  Control.  If you can’t control your investments, you can’t control your future.

Related Information

Most of the Rich Dad books I’ve read so far either fail to provide additional reading outside the richdad.com education system, or when provided, fail to summarize it in one place.  Here are the books Richard mentions in Rich Dad’s Prophecy:

Some are written by Rich Dad partners, and unless I’ve reviewed them here, I can’t comment on their value.

As I said, Rich Dad’s Prophesy: Why the biggest stock market crash in history is still coming… and how you can prepare yourself and profit from it is my favorite of the Rich Dad books so far.  I highly recommend it, and will be adding it to my permanent library.

Want more?  You can read more reviews or purchase Rich Dad’s Prophesy on Amazon, and join the free Enwealthen mailing list for updates as they are published.

Already read Rich Dad’s Prophesy?  Share your thoughts on his book in the comments below.

 

Photo of crystal ball on the lake courtesy of Lee Jordan.

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