Quote: (09-23-2016 02:54 PM)Bury Zenek Wrote:
Hi,
I recently read two books of the same author, one called 'Rich Dad, Poor Dad', the other 'Cashflow Quadrant' and I just want to confront them with someone else's opinion to make sure they're not giving a fake advice somewhere. Anyone read them too?
Jesus was a horrible carpenter, his teachings were pretty good though.
With that out of the way,
- The books are poorly written
- The author may or may not have gotten rich before the book, he definitely got rich after the book
- The "rich dad" may or may not be a real person. (I've worked professionally in that industry and there are wealthy believers who know the Hawaii Real Estate Investor, and there are wealthy guys that "know" Kiyosaki is full of it
The basic lessons
- To get ahead, you need to work smarter not harder
- To get ahead, you don't trade your time for dollars
- To get ahead, you don't get a job and hope people pay you for your knowlege
- To get ahead, you don't buy things and hope they appreciate.
- To get ahead, You don't buy investments that are actually liabilities
- To get ahead, you focus on buying something low/something mispriced and reselling.
The best way to understand what he means, in my opinion, is the one that gets the most flack.
He says that buying a house, for you and your family to live in, is not an investment. A family home is a liability
People that have a huge attachment to home ownership say
- paying rent is throwing money away
- mortgage deduction
- appreciation
Because Kiyosaki is not good at rhetoric, he doesn't have a good answer for them.
What Kiyosaki should say is
- buy a duplex. You have a place for your family, you're stuff. And the other side of the house is someone paying you rent.
That's making you money in the here and now.
It's something that's within you control.
What do most people do?
They go to school to become employees.
Before they touch any money, their employer sends taxes to uncle sam.
Then poor people take their after tax dollars and spend spend spend.
They have to beg for raises.
The smart investments that they think they're making - they have no control over. (see 2008, see 1999, see 1987..see 2017?)
Rich people, according to him, don't do that.
They go to school to learn something, that can make them money as opposed to getting them jobs.
They make money as a business, and buy the things they need (and can write off), then they pay taxes.
The investments that they make are in real estate where they see cash flow and sometimes appreciation, where they buy into businesses with cash flow. Maybe they're buying stock - but they aren't going to the exchange, they're angel investors.
I can tell you having read those books - i have not become rich.
I don't think very many people have.
People buying those books have made him rich. (and I think that pisses people off)
However using his basic idea and my own imagination, I have made money.
If you understand what he's saying - that you should spend your time, effort, money on producing/creating, and not on spending and consuming - you'll benefit.
Most people just can't seem to do it. I know it's been hard for me.
WIA