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Rich dad, poor dad – the story that formed my views on making money

micaelwidell.com

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Re: Rich dad, poor dad – the story that formed my views on making money

#51

Post by reboog711 »

allwein wrote: post #27
pkorzeniewski wrote: post #5

The problem with all these "how to get rich" books is that they're full of anecdotes, quotations, fictional stories, motivational bullshit etc. which make you feel good while reading them, but as soon as you put the book back on the shelf, it's all gone. It's just a temporary boost of energy and motivation, because reading requires almost no effort and more often that not it's just another way of procrastination. Ser…

> do you think the majority of rich people prepared for "getting rich" by reading hundreds of motivational and self-help books? No, I don't. But you know what they do have? They've grown up in a household and a culture that teaches them thousands of small lessons in being and staying rich. They don't have to read about it, because their parents and friends and lawyers and accountants and country club associates have…

According to The Millionaire Next Door; I am not sure this is true. Many children of 'rich people' have their lifestyle funded by their parents and only learn how to spend beyond their means; which does not accumulate them wealth in the long-term.

Re: Rich dad, poor dad – the story that formed my views on making money

#52

Post by twistedanimator »

hammock wrote: post #38
twistedanimator wrote: post #25

Hands down the best book I have read on money is Your Money or Your Life: http://amzn.com/0143115766 I'm a naturally frugal person, but the book helped me formulate new ways of thinking about money and my relationship with it. The major concept being that money is a representation of your life energy. You work X hours a day at an hourly rate of $Y. Knowing those numbers allows you to think about purchases in a new wa…

That advice seems to apply to wage slaves (hourly rate) but not entrepreneurs or salespersons (not hourly). Many other financial books recommend developing income streams outside of selling your labor at an hourly or yearly rate, which would seem to be missing from your book.

Even the salaryman can calculate his hourly rate.

I am salaried, but when I sat down and calculated my hourly rate, I was a little shocked. I didn't factor in benefits or anything besides my after tax take home pay. It's as simple as $(2 week paycheck) / 80. What you get is effectively your hourly rate.

As a salaryman, knowing this value will help you avoid working overtime since overtime is unpaid. The more hours you work, the less your effective hourly rate. I would argue that if you are asked (either implicitly or explicitly) to work more than 40 hours a week, you should find a different job as you are diluting your own pay.

Re: Rich dad, poor dad – the story that formed my views on making money

#53

Post by branchless »

[deleted] wrote: post #46
charlesdm wrote: post #31

Earlier quoted context omitted.

Debt is a lever, in itself it's neither good nor bad. If I have a $10m net worth, I might want to lend someone $1m for a year on which they will pay me 5% interest per year. If that person can turn that million into one and a half million, what's the problem?

[deleted]

Also see social credit theory for the idea that the value of goods produced by workers is always less than their wages:

http://www.socred.org/

Plus banks have a monopoly on money creation and can create it with zero cost, ramping up land prices and soaking up all productivity gains into land. All the rentier need do is kick back and wait for the state to add value so they can charge more rent. Henry George knew it but it seems today nobody has the faintest idea how money works:

http://www.henrygeorge.org/pcontents.htm

Re: Rich dad, poor dad – the story that formed my views on making money

#54

Post by kznewman »

twistedanimator wrote: post #25

Hands down the best book I have read on money is Your Money or Your Life: http://amzn.com/0143115766 I'm a naturally frugal person, but the book helped me formulate new ways of thinking about money and my relationship with it. The major concept being that money is a representation of your life energy. You work X hours a day at an hourly rate of $Y. Knowing those numbers allows you to think about purchases in a new wa…

Money as "life energy" approach helps me be thrifty, but my real struggle is how do I asses risk when I want to buy an asset. If I wanted to use $500 from my work to buy a share of SpaceX, does it provide a better return than any other investment at some acceptable risk ? I don't see the life energy approach as helping this question but I need to read the book you recommend.

Note that SpaceX is not publically traded, but it represents assets I would like to own.

Re: Rich dad, poor dad – the story that formed my views on making money

#55

Post by branchless »

tome wrote: post #47
Kinnard wrote: post #39

Earlier quoted context omitted.

Not when it's only issued by a monopoly.

Who says only banks can make loans?

Only banks can create money. Bank of England official blog:

http://bankunderground.co.uk/2015/06/30/banks-are-not-interm...

Debt is not a lever it's a stick to beat the landless with in order to extract labour as tribute to the elite.

Re: Rich dad, poor dad – the story that formed my views on making money

#56

Post by bachmeier »

dsr_ wrote: post #2

The basic problem with Kiyosaki is that he wrote a work of fiction and passed it off as autobiography. No, wait, the basic problem is that he is passing inspirational advice off as financial advice. But don't take my word for it, read the critique: http://www.johntreed.com/blogs/john-t-reed-s-real-estate-inv...

This quote from that link sums it up best for me:

"But you have to admire a guy who can spin two or three paragraphs of very ordinary financial platitudes into such a range of books."

Luckily I bought my copy at a library book sale for something like 50 cents. I quit after reading half of it, because there's just nothing there.

Re: Rich dad, poor dad – the story that formed my views on making money

#58

Post by Kinnard »

tome wrote: post #47
Kinnard wrote: post #39

Earlier quoted context omitted.

Not when it's only issued by a monopoly.

Who says only banks can make loans?

That's the thing, they don't loan the money, they create it, banks haven't functioned the way they're popularly imagined to function for centuries. And it's so sad that this false image is the moral basis for banks going after borrowers assets.

The bank doesn't lend you someone else's money, it creates the money(no effort) and you have to work and put up real collateral to pay it back.

By G-d we should all be working to expose and undo this madness.

Re: Rich dad, poor dad – the story that formed my views on making money

#59

Post by charlesdm »

[deleted] wrote: post #46
charlesdm wrote: post #31

Earlier quoted context omitted.

Debt is a lever, in itself it's neither good nor bad. If I have a $10m net worth, I might want to lend someone $1m for a year on which they will pay me 5% interest per year. If that person can turn that million into one and a half million, what's the problem?

[deleted]

Doesn't this all depend on how you use that specific debt?

If you use the above example, if I can generate $500k each year using $1m in debt, how is perpetually serving the interest expense on that debt bad then?

Use it well, you can create additional profits. Use it poorly, you'll end up with nothing (or even lose capital).

Maybe you mean that the lever effect shouldn't exist, so that it's a zero sum game?

Re: Rich dad, poor dad – the story that formed my views on making money

#60

Post by branchless »

Kinnard wrote: post #39
charlesdm wrote: post #31

Earlier quoted context omitted.

Debt is a lever, in itself it's neither good nor bad. If I have a $10m net worth, I might want to lend someone $1m for a year on which they will pay me 5% interest per year. If that person can turn that million into one and a half million, what's the problem?

Not when it's only issued by a monopoly.

I'm with you on this brother. Keep telling people. Think back to 2006, you hardly saw anyone criticise the system in this way, now I see it all the time. It's coming.
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