I first read the Robert Kiysaki Rich Dad, Poor Dad books nearly ten years ago. Reading those book taught me some great lessons, and opened my eyes in new ways to how to think about financial security and wealth. It’s taken me a long time to figure out how to apply it (teaching old dogs new tricks isn’t impossible, but it’s still damn hard!), but I’ve been teaching my 10-year old too, and he gets it right out of the gate. Economic downturn be damned – this is a good time to get your stuff in order and plan to grow rich with opportunities all around.

But of all the Rich Dad products, the one that turned my head the most was playing his game, Cash Flow 101. In this game, you attempt to gain eneough passive income to cover your expenses, all while bumping into those speed bumps of Life. You keep track on an actual financial balance sheet, and learn what it takes to get wealthy.

I learned something in playing that game, that I couldn’t have noticed in real life as it unfolds – how I approached risk, and money, and what would have to change if I wanted to make money and grow wealth. This game was a priceless lesson. It was a way to “model” behavior, just like “real” economists do, and see how different strategies and actions would pan out – without suffering the real financial losses that could occur, and building confidence in making seemingly risky decisions that actually are the path to great wealth.

If you’ve never played Cash Flow 101, it’s a real eye opener. There are also groups all around the country that get together to play periodically. Give it a shot – it’s a financial literacy education you can’t get anywhere else.

And at the very least – if you  haven’t read his books – get your hands on Rich Dad, Poor Dad, at the library even if you are short for bucks.  (I saw at Barnes & Noble a compilatoin of his first three books for under $15!)  If you read Rich Dad’s Prophecy – he called everything that is happening now, and is likely to happen, except it was years ago.  He recommends that you start a business (and a good way to get started today is with online business ideas), so that you control your future income and wealth. There are tons of great ideas to pursue in these books.

Another benefit of reading these books are to answer the difficult economic questions of today. People are asking: Should I be in stocks? Should I get out of the market? Should I buy bonds? Should I be investing in real estate? Have we hit a bottom?  Believe it or not, the Rich Dad series helps you figure out how to answer these questions – for yourself.  This is the kind of education people need to avoid being at the mercy of brokers, advisors, television “experts”, in a time of economic downturn, but also great opportunity.  Start – or enhance – your personal finance literacy with these books and games.

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The first time I read about the problems inherent in 401(K)s, it was reading Rich Dad’s Guide To Investing by Robert Kiyosaki.  Whatever else you think of him, his discussions of how the tax laws were written and rewritten to benefit the rich and not the middle or lower classes are invaluable, as well as his concern over why 401(k)s don’t work for the vast majority of people.  (Pick it up for a couple bucks used, and while you’re at it read Rich Dad’s Prophecy too for a real hair raiser…)

Here is an article today in the Washington Post saying the same thing, (although where were these articles  five, six ten years ago…)

Jim Cramer too has ALWAYS said to only put into your retirement account what your employer matches.  Beyond that, use a ROTH or some other self-managed vehicle where you can invest in individual stocks, bonds, CDs or investmetns that YOU control, not the ubiquitous index fund or “diversified” global funds.

You may argue with some of the recommendations of these writters, but the underlying logic makes sense, and is borne out by the results in the real world for the vast  majority of people.  It’s worth taking a step back and looking at the big picture.

I have some links and ideas I’m in the process of compiling, from financial types who recommend where to invest now, if at all.  Also some additional ideas for finding cash.  Here’s one for today:

- Get rid of gas cards, which have extremely high interest rates.  Pay cash, and start carpooling once a week or more. Just be sure to bank the savings.  Sounds trivial like most of htese savings tips, but they add up, and in changing your lifestyle you’ll become more financially sound.

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