Friday, May 18, 2007

Rich Dad Poor Dad

I just re-read this great book. It was reccomended to me for the first time six months after I had finished University. I was working a $500 per week job, taking the train each day, 90 minutes each way, to work. I had no car, a hugely negative net worth and absolutely no idea how to manage or build wealth.

My future goals consisted of working my way up in my current job, or finding a better one, and impressing my current and future bosses enough to get a high paying salary.

This book opened my eyes. After I read this book I knew I would only work for others as long as was necessary to put its advice into action.

My parents were and are poor. After I read this book, I was no longer poor. I was broke, but not poor. As Kiyosaki states in the book, 'broke is temporary, poor is eternal'.

I'll give some highlights of the book but you really should let the author work his magic and read it yourself. If you have any interest in becoming wealthy, you are only hurting yourself NOT to read it:

1. The poor and the middle class teach their kids how to 'climb the ladder': the rich teach their kids how to 'own the ladder'

2. The rich earn, spend all they can, and pay taxes on what is left over. The poor earn, pay taxes, and spend what is left over.

3. You want to acquire assetts and minimize the acquizition of liabilities.

There is a whole lot more but thats what initially came to mind.

What this book did for me:

It has made me an absolute fanatic about acquiring income producing assets. Websites, debt, bankrolling players, CD's, stocks...whatever I can find. Next up on this list is real estate. If I can find a piece of property where the monthly rent will cover the mortgage, chances are, I'm going to buy it. The problem is that hasn't been possible really in the US for years, but I think it may be soon.

I live a rather lavish lifestyle, at least compared to most people my age, and I cannot yet stop working and have my assets fund my lifestyle...acheiving true financial freedom. Though if I were to lead a more modest existance I could. So theoretically speaking, at the age of 26, I could retire.

Sure I've done some of this myself and had guidance and help from other places and people (and a lot of luck!) but this would not have been possible if I had not read this book...or learned its lessons some other way.

I suggest you read it as well, be sure to send me an email thanking me after you make your first million!

Thanks for reading, now get back to the tables!

Wild Bill