Book Review: Unfair advantage by Robert Kiyosaki
One of the major aspects discussed in the book “Unfair Advantage” is that, debtors are considered to be winning while servers looses. This means that, the money looses value day after day as the federal bank keeps on printing more money to solve the many problems experienced today. Kyosaki gave the solution to be that, buying of more assets will generate more flowing of cash and this can be achieved through getting appropriate education on matters of finance (Kyosaki 1).
Kyosaki argues that, we have good and bad debts. The good ones insert money in one’s pocket while the bad ones take away money from one’s pocket. An example of a good debt is when one gets into debt for an investment with higher returns as compared to the interest rate of the loan borrowed. An example of bad debt is whereby; investments do not bring back returns, for instance; holiday tours, one’s car, yacht, among others.
Kyosaki advises that, it is good for one to have a good foundation of financial education, so as to get an investment that will bring a higher return than the interest of the loan borrowed
Kyosaki as an advocate of education and personal development of quite a long period of time believes that, anyone who wants a rich life that is spiritually, emotionally and financially fulfilling can grasp it. The only thing to do is to realize your goals and work towards them. He further says that, only those who will do something about their goals and dreams and commit themselves fully towards them will achieve these desires. One has also to have financial knowledge to fulfill the desires. The knowledge will enable one to transform his or her life from the old unfulfilling life to the new and fulfilling life desired by every one (Kyosaki 6).
The unfair advantage gives new solutions and ideas for unpredictable and shocking climates of economy that we often find ourselves in. A poor person for instance or a middle class man will never understand the usage of taxes and debts in the creation of wealth. The rich on the other side of the coin have kept these financial tools to themselves for quite a long time.
The book considers all factors that affect peoples’ lives all round as they try to overcome the challenges of their financial lives. The author highlights five unfair advantages that can be learnt by all people globally on how to approach the unfair advantages. These advantages touch on debt, taxes, compensation, risk and knowledge. The author of the book further says that, we should prepare for the worst as it is on the way. The book is aiming at preparing us for the coming rough future, but the future can be converted into a prosperous one with the right financial education (Kyosaki 14).
Kyosaki advises us to invest in financial education and that, investing in 401ks is no longer reliable due to increasing inflation economy. He does not consider the aspect of not all people have the opportunity of accessing education. There are people in the society who are very poor and do not know means of accessing education. Some grow into old age and die illiterate. The author of the book could have also provided other alternatives of solving the problem of frightening economic fluctuations, instead of giving just one option of investing in financial education. With the option of multiple options, an individual not comfortable with investing in financial education can have a different option to work out the problem.
Generally, the book is a good one as it challenges people to consider the financial challenges of the today’s world and do something to save the situation.
Kyosaki, Robert. Unfair Advantage. Sweden: Plata Publishers, 2011.