So how did Rich Dad Poor Dad change your life?

[Juniper]

I felt kinda bummed, cos there's a lot of truth in the E and S thing. I'm an E going to S.

I was glad that I read the book while still in my 20s.

So how did that book change your life?

 

[CastorTr0y]

Funny you mentioned this. My boss was just telling me yesterday how I need to read that book. He said it changed his way of thinking a lot.

 

[Toasthead]

huh?

 

[thawolfman]

Originally posted by: Toasthead
huh?

 

[CastorTr0y]

It's a book

 

[Juniper]

Originally posted by: CastorTr0y
Funny you mentioned this. My boss was just telling me yesterday how I need to read that book. He said it changed his way of thinking a lot.

My friend recommended me to read it a few years back, but put it off until last week.

It explains a lot on how the rich will always get richer, whereas the employees will always be stuck because of taxes etc. It gives a different insight on how the world is.

 

[sciencetoy]

Funny you should mention that book. I read it back when it first came out. There are some good points, but I think he gets carried away.

I'm a business owner and I have been since I was a kid. I'm not rich (not poor, either), but I have some very wealthy relatives (they never speak to us poor relations).

Some things he gets right:
1. Don't buy stuff. My rich relatives are the cheapest people in the universe! But duh, if you spend it, you ain't got it.
2. Business ownership can have tax advantages.
3. People who amass money, have a different mindset from non-amassers. They think of interesting ways to have their money make more money.
(Example, poor person - buys a bottle of beer, rich person - buys a 6pack, drinks one and sells the other 5 for a profit)
4. People aren't taught the facts about acquiring & managing money

Not right:
1. Only business owners can get rich - nope, if you have a salary and spend less than you make, and invest the rest, you're way ahead of the business owner who's always scrambling to deal with unforeseen events.
2. Business is easy. Sorry, but he makes all that stuff sound easier than it is. Real estate investing? Business management? Stocks, bonds, financial investing? Whoa.
3. Salaried workers are idiots. (There are a lot of idiots running businesses, too.)

Anyway, good luck in your financial endeavors.

 

[CastorTr0y]

I think what he meant was that if you own a business, the sky's the limit. If you're a salary worker, you can only go so far up the ladder. If you owned a business, there's nothing saying you couldn't be the next Microsoft or whatever.

 

[Nitemare]

It's a nice work of fiction. It would have been better had he not lied about there being a person called rich dad instead of an amalgamation of different people. He also lied about purchasing real estate.

 

[Rudee]

Simply put, there is a needs/wants conflict that exists within us. We waste a lot of money buying things that we want, but don't need. Do you need that 52" TV or do you simply want it? Do you need that $60 pair of jeans or do you want it? If you become more conscious of your wants vs. your needs, you will be well on your way to much improved financial situation.

 

[CastorTr0y]

I think that having what you want is more important than your financial situation. As long as it's kept to reasonable terms. Not like buying a huge plasma screen TV when you can barely afford the mortgage payments and buy food.

 

[sciencetoy]

That's just what I mean about giving the wrong idea: when you own a business, the sky is NOT the limit. Only a very few, unusual individuals make it to the stratosphere (Bill Gates, Sam Walton, etc).

There are a lot of very wealthy people earning a regular paycheck - top management in most large corporations, for example, or a lot of professionals (Drs, lawyers - my brother in law the doctor earned - EARNED - over a million last year)(edit: he operates on celebrities). So you could say "the sky's the limit" in regard to salaries, too.

Owning a business is not a magical route to riches. The real question here is, what personality do you have, what is the best thing for you personally to do, in order to be wealthy? What kind of business, or job, are your talents suited to that will bring you the best return?

The same talents that give you a profitable business - attention to detail, attention to the bottom line, focusing on & expanding on the more profitable products and getting rid of the unprofitable ones, keeping your workers happy and productive, best use of your time, expanding your rolodex, etc. - are the talents that bring you success as an employee.

I've read most of the Rich Dad Poor Dad series and I think he makes a lot of really good points. I especially applaud his efforts to bring financial literacy to the masses.

BTW, where do you think he made his money?

 

[CastorTr0y]

I know what you're saying, about the sky is really not the limit. But I mean there are lucky people out there. I plan on just going for a salary job anyway. I'm not a business man.

 

[sciencetoy]

Watch out for the doo-dads. (Took me a while to remember that term!)

 

[Rudee]

Originally posted by: CastorTr0y
I think that having what you want is more important than your financial situation. As long as it's kept to reasonable terms. Not like buying a huge plasma screen TV when you can barely afford the mortgage payments and buy food.

Credit companies must love you. Anytime you have to go into debt for something you don't need, it's not a wise purchase by any means.

 

[gopunk]

Originally posted by: Rudee
Simply put, there is a needs/wants conflict that exists within us. We waste a lot of money buying things that we want, but don't need. Do you need that 52" TV or do you simply want it? Do you need that $60 pair of jeans or do you want it? If you become more conscious of your wants vs. your needs, you will be well on your way to much improved financial situation.

well the question is really whether the stuff that only rich people can get (lear jet, rolls royce) will make you happy enough to warrent suffering through not having what you want for 10-20 years, or however long it takes for you to get that rich.

 

[gopunk]

Originally posted by: sciencetoy
That's just what I mean about giving the wrong idea: when you own a business, the sky is NOT the limit. Only a very few, unusual individuals make it to the stratosphere (Bill Gates, Sam Walton, etc).

i disagree, simply because most people don't make it to the stratosphere, does not mean that there is some lower limit than the sky. "sky's the limit" doesn't say anything about whether this limit is easy to obtain or not.

 

[Rudee]

Originally posted by: gopunk

Originally posted by: Rudee
Simply put, there is a needs/wants conflict that exists within us. We waste a lot of money buying things that we want, but don't need. Do you need that 52" TV or do you simply want it? Do you need that $60 pair of jeans or do you want it? If you become more conscious of your wants vs. your needs, you will be well on your way to much improved financial situation.

well the question is really whether the stuff that only rich people can get (lear jet, rolls royce) will make you happy enough to warrent suffering through not having what you want for 10-20 years, or however long it takes for you to get that rich.

My idea of being wealthy is financial independance, not necessarily about owning things that wealthy people own, but being able to retire 10 years earlier and live a comfortable lifestyle in which my bills are paid and I have enough savings to take a nice vacation and enjoy the things I occupy my time with.
The "Rich Dads" in the book are frugal people who live by the philosophy "if you take care of the pennies, the dollars will look after themselves". I think this is the more realistic approach.

 

[Nitemare]

I would recommend The Wealthy Barber instead

 

[gopunk]

Originally posted by: Rudee

Originally posted by: gopunk

Originally posted by: Rudee
Simply put, there is a needs/wants conflict that exists within us. We waste a lot of money buying things that we want, but don't need. Do you need that 52" TV or do you simply want it? Do you need that $60 pair of jeans or do you want it? If you become more conscious of your wants vs. your needs, you will be well on your way to much improved financial situation.

well the question is really whether the stuff that only rich people can get (lear jet, rolls royce) will make you happy enough to warrent suffering through not having what you want for 10-20 years, or however long it takes for you to get that rich.

My idea of being wealthy is financial independance, not necessarily about owning things that wealthy people own, but being able to retire 10 years earlier and live a comfortable lifestyle in which my bills are paid and I have enough savings to take a nice vacation and enjoy the things I occupy my time with.
The "Rich Dads" in the book are frugal people who live by the philosophy "if you take care of the pennies, the dollars will look after themselves". I think this is the more realistic approach.

oh ok, i'll admit that i haven't read any of the books, i thought this was just something about how to get filthy rich, but i guess it sounds more like it is more about how not to be poor.

 

[Looney]

Originally posted by: Nitemare
I would recommend The Wealthy Barber instead

I was just going to say the same thing. Much more down to earth, and applies to everybody, students, business owners or not.

 

[SoylentGreen]

I'm up to listening to chapter 5.

 

[FeathersMcGraw]

Originally posted by: sciencetoy

Some things he gets right:
1. Don't buy stuff. My rich relatives are the cheapest people in the universe! But duh, if you spend it, you ain't got it.

I'm guessing that the argument here is against unbridled or conspicuous consumption, but amassing wealth for the sake of amassing wealth strikes me as no better a lifestyle than being forced to work at the grindstone constantly to keep up with the credit card bills.

It's all about keeping a balance (and I don't necessarily mean in a savings account).

 

[GasX]

the take home lesson of this book is that you should save every dollar you can and evaluate the utility of purchases carefully before making them.

 

[JImmyK]

What people are NOT recognizing is the EXTRA stress and work that comes with owning your own business, we made millions when my dad had his business but our family fell apart.


We may not have millions right now, but we live very well, AND!!! our family life is amazing.

Not just us either, I have 3 uncles on my dads side that are all worth between 5-15 million a peice and all of them have VERY VERY stressful lives.