Robert Kiyosaki and Suze Orman on Money

Robert Kiyosaki is coming to Singapore to speak. I wonder how many people in the past years has been under the influence of best selling author Robert Kiyosaki, the author of Rich Dad Poor Dad rather than Suze Orman. Judging from the current credit crisis in America, I'd say many has fallen under the spell of Kiyosaki instead of following the conservative advise of Suze Orman. I have not personally read the Kiyosaki book. All I know about Kiyosaki I heard second hand from my husband who listened to his audio book. The following are just some of the flawed principles I recalled to have heard that is directly relate to the credit and mortgage crisis happening in America:

• When buying a home on the upward market, max out on the credit the bank is willing to give because the bigger the investment, the bigger the gain.
• Money can make you more money when invested properly. Employ money to work for you. In another word, do not use your cash for purchases. Buy on credit if you can and invest your hard earned cash instead. Return on cash investment can be higher than the interest you incurred.

Robert Kiyosaki's book maybe more comprehensive in laying out all the principles, the pit falls, and the danger. Many people, however, either did not read the whole book or selectively remembered only what they liked to hear.

I watched the Suze Orman's show several times. She, on the other hand, always advocates the following:

• Use money to take care of your people first, safe a portion for retirement, and spend what's left.
  
• Get a mortgage size that suit your income (mortgage payment should not be more that 30% of your income after taxes, if I remember correctly).
• Buy on credit only for your residential home and college education. The rest buy only if you have the money. But make sure you take care of your people and save a portion for retirement. She often says, people first, then money, then things.

I don't claim to be a financial expert but I am not comfortable with Kiyosaki's reckless abandon way in investing. I also believe, Orman's conservative principles may not suit others. But so far, her advice has help me secure our family's financial future while still allowing me to sleep well at night.