The Difference between Robert Kiyosaki and Suze Orman

April 6, 2007 · Filed Under Achieve Financial Freedom, MISC

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I found that there are a lot of discussions on the financial advices from both Robert Kiyosaki and Suze Orman. Both of them are right and have their own point of views on personal finance. So before you take any advice from them, why donâ€™t you know the difference of their advices? If you want to know the difference between Robertâ€™s and Suzeâ€™s personal finance advice, then you must read the following paragraph:

I think it’s the other way, really, both Robert and Suze are right, because they’re talking to totally different sections of the population and using it a totally different way. If you look at what Robert talks about, he says right up front that Real Estate is a capital intensive system of investing. That’s why he talks about getting a successful “B” business up and running first. Robert’s target market for most of his real estate strategies are based on the idea that you’ve taken steps first to have an overflow of cashflow or a large sum of free cash from businesses and other vehicles. Are there ways and people that can jump into this sort of investing without having done that first? Of course, there are so many ways to structure a deal it’s overwhelming at first. So I’d say that the philosophies here are not necessarily in direct opposition but meant for different people with different levels of risk aversion and income models.

From what I’ve seen, Suze talks mostly to the debt-heavy people that need help getting their financial house in order. Of course she’s going to be more conservative, these people need that kind of conservative approach before they can go into anything else. If you can’t handle the basics of a checkbook, then you’re definitely not ready for investing or business.

Robert’s basic idea is general financial education and changing how you view money, but I’d consider most of his real estate advice to be specific to people that have secured capital and have a good deal of cashflow coming in or at least a good pool of disposable income. The reason he tells you to start with small deals isn’t because he’s expecting you to start with little money (though you can and he says he did), it’s so you can learn the basics without spending a big chunk of your pool. Like that “Turn 40 Dollars into 400″ business thread in one of the other forum topics. He says on several audio tapes and in several books that he doesn’t really subscribe to the zero down school of investing.

That’s my take on their approaches, at any rate. I could be wrong, but the only way to know for sure would be to ask both Robert and Suze directly. So really, I think it’s a different reality they’re coming from and they do deal with different rules in the end, though I think a lot of the fundamentals are the same.

But that also means that what you’ve posted here is probably going to be very useful to others who are in a position to use that knowledge when appropriate. Thanks for sharing that, I definitely learned something reading it.

Well, I really agree that Robert and Suze are concentrating on different markets. The theory of Robert Kiyosaki is more on how to invest your money and then retire rich and financial free. On the other hands, Suze Orman is trying her best to help those in financial disaster and deep in debts. To make it simple, Suze Orman is helping people in financial negative to get back to financial positive and Robert Kiyosaki is helping people to be more positive.

For those in financial disaster or just in a stage of â€œbreak evenâ€, they may feel that Robertâ€™s advices are too risky. Of course, donâ€™t you think it will be risky to invest especially you are in deep debts? However, if you are in a security stage or comfort stage where your personal finance is under control and have a stable extra income, Robertâ€™s advices may help you.

Source : Richdad.com

Tags: What I Learn from Others