Rich dad, poor dad – the story that formed my views on making money • Hacker News Board

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

#121

Post by AjithAntony » Fri, Jan 29, 2016, 8:10 PM UTC

branchless wrote: post #36

miseg wrote: post #28

Earlier quoted context omitted.

I agree with not agreeing with his debt-based asset-building approach. But you can still follow the same path in a tech way, such as selling your own product online. As you work on it, if it's producing income, that can begin to be an asset for you.

Sure, that I have no problem with. Go forth and create wealth. Do not take land monopoly in a flawed system and force others to give you their labour.

What if the value I create is a house that other people can live in? Am I allowed to collect payments from them, or was I supposed to gift it to them?

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

#122

Post by petercooper » Fri, Jan 29, 2016, 8:33 PM UTC

varlock wrote: post #15

petercooper wrote: post #11

Earlier quoted context omitted.

Sort of. I find reading other people's stories gives me "permission" to do and try things. I'm naturally quite a retiring person, but getting candid explanation of people's techniques and approaches has given me the "if they can do that, I can try it too" attitude numerous times (as has HN and numerous blog posts, to be fair - I can pinpoint certain things I've done to being inspired by specific pieces of content).

Could you give examples of things you've done and the HN posts that triggered them, please? I'm familiar with the feeling you describe (They can? Then I can too!) so I'm just curious to see what is in those posts that can inspire someone (content, semantics, anything).

http://jasonlbaptiste.com/commentary/email-newsletters-busin... was on HN 6+ years ago and inspired me to get into email newsletters, which I was very skeptical about. Now we're a company of 9 doing it :-) It's not a very self help style post, but just seeing examples of something was enough to inspire.

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

#123

Post by Kinnard » Fri, Jan 29, 2016, 8:37 PM UTC

tome wrote: post #113

Kinnard wrote: post #112

Earlier quoted context omitted.

No, the balance in the bank is not the loan. You need some understanding of double-entry bookkeeping to understand fractional reserve banking. The loan(promissory note), is on the banks balance sheet as an asset. Your balance which you can withdraw as cash is on the banks balance sheet as a liability. What is the bank risking when it creates the money and uses the anachronistically titled "loan" contract to distribut…

Hmm ... are we still on the same page? This is where the discussion started: https://news.ycombinator.com/item?id=10995433 You seemed to be claiming that a bank incurs no cost ("no effort") to issue a loan. Are you sticking to that?

Yes, we're still on the same page. The Banking system is rapacious and it should be done away with. Its capital allocative functions have been subverted by extraction. It's an emergent system so that isn't to imply that the people who work at banks are rapacious. That would be the fallacy of division: https://en.wikipedia.org/wiki/Fallacy_of_division

It is that bad.

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

#124

Post by jevgeni » Fri, Jan 29, 2016, 10:50 PM UTC

AjithAntony wrote: post #115

jevgeni wrote: post #49

Fun fact: in my almost 10 years experience in banking I've never met anyone in the industry, who'd consider the book not a scam. And you know you're in trouble, if even bankers consider you a scam.

Whether the autobiographical bits are true or not, the highlights as presented by the article are a valuable message for people who didn't already understand as such.

A friend of my is a zealous adherent of "Rich Dad, Poor Dad". So much so, that the first thing he did after saving up enough money on his first real job, was to follow the book's advice: take out two mortgages and get two apartments. That was around early 2008. In my opinion that is a very shitty outcome: you're stuck with real estate in a stagnant market, bogged down by mortgage payments, and thus totally lacking any professional mobility. Your only choice is to wait out, rent out what you can, and hope to break even sometime in the next 20 years.

In my opinion, personal financial stability (and even prosperity) can be boiled down to a few simple rules:

1. Earn more money than you lose.

2. Be very careful with debt.

3. Take risks, but be very aware of the downsides.

4. If you have to invest, invest in yourself first (education, connections, etc.) and in securities second.

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

#125

Post by branchless » Sat, Jan 30, 2016, 1:35 AM UTC

mywittyname wrote: post #111

branchless wrote: post #95

Earlier quoted context omitted.

Yes they are horrible and yes they are exploiting people. It's not a service, they are exploiting the capped supply of a basic need. The argument about "if nobody rents out" is just wrong. Are they going to knock the place down if they don't rent? Yes there is a need for rentals but this should be within a world where we have land value tax so the bulk of the gain is passed onto the state to reduce labour taxes, redu…

> The argument about "if nobody rents out" is just wrong. Are they going to knock the place down if they don't rent? They will construct a building that earns them money. So all those people who rented the apartments are now homeless and their former homes are now an office complex, a parking garage, or a CVS. Net result: land owner makes money (still), but now people are homeless. > this should be within a world whe…

I totally disagree and the arguments you are supplying show me you aren't on the same wavelength, for example citing land outside cities as being cheap or that most landlords self-build (no). I can't write an essay on this but I disagree.