£1.2tn given to old from young

fc123

Harry_Powell wrote: »

But that's the point dopester, is that RDPD doesn't advocate buying a big house and getting debted up - quite the opposite!!

It's ALL about "long term sensible saving, cautious attitude to risk and debt, diverse investing" and paying off the mortgage, etc.

I mean, has anyone actually read the book in here or do we just quote each other's misquotes?

I have just read the second and he deff didn't say 'sit tight, be MSE and be cautious''...the opposite in fact.

Mega read for someone like me and I am about to drag my family (well, the cats and OH mainly as the kids are big now and are cut loose) into a high risk strategy (after a period of 'build up' an and paying down mortage to zero over the next 2 years) so 2012..watch out.

[Deleted User]

Harry_Powell wrote: »

"Rich Dad, Poor Dad
As narrated by Robert Kiyosaki

My two dads had opposing attitudes in thought. One dad thought that the rich should pay more in taxes to take care of those less fortunate. The other said, "Taxes punish those who produce and reward those who don't produce."

One dad recommended, "Study hard so you can find a good company to work for." The other recommended, "Study hard so you can find a good company to buy."

One dad said, "The reason I'm not rich is because I have you kids." The other said, "The reason I must be rich is because I have you kids."

One encouraged talking about money and business at the dinner table. The other forbade the subject of money to be discussed over a meal.

One said, "When it comes to money, play it safe, don't take risks." The other said, "Learn to manage risk."

One believed, "Our home is our largest investment and our greatest asset." The other believed, "My house is a liability, and if your house is your largest investment, you're in trouble."

Both dads paid their bills on time, yet one paid his bills first while the other paid his bills last.

One dad believed in a company or the government taking care of you and your needs. He was always concerned about pay raises, retirement plans, medical benefits, sick leave, vacation days and other perks. He was impressed with two of his uncles who joined the military and earned a retirement and entitlement package for life after twenty years of active service. He loved the idea of medical benefits and PX privileges the military provided its retirees. He also loved the tenure system available through the university. The idea of job protection for life and job benefits seemed more important, at times, than the job. He would often say, "I've worked hard for the government, and I'm entitled to these benefits."

The other believed in total financial self-reliance. He spoke out against the "entitlement" mentality and how it was creating weak and financially needy people. He was emphatic about being financially competent"

I especially like the bits where the "rich dad" says a house is a liability and if that's your greatest asset then you're in trouble. And the bit about being financially self-reliant - too many people, especially in this country just give up financially and expect the state to take care of them.

p.s. I interpret the "paying Bills" bit to mean that they both pay bills on time, but 'rich dad' paid his once the work was done to his satisfaction (i.e. last) not before the work was done (first).

Yes, that's the gyst of what I remember.

And my dad was very much the 'poor dad' - "Work hard, get decent qualifications so that you can get a good job, buy a house and earn a good pension. Never borrow (other than for a mortgage) and NEVER take risks with investments (other than to buy a house)".

And I conceed that his attitude would never make you a millionaire. However, in the current climate those that did things the 'poor dad' way are doing OK. They've got their pensions, they've never built up debts, they've got savings and they've got houses worth a fortune. My dad spent most of his career in the Civil Service at fairly lowly ranks. He ended up running the department he worked for, but even so, Civil Service pay wasn't great. But by the time he had retired their income was exceeding their outgoings. The combination of interest on savings and various pensions meant that rather than eating into savings they kept growing!

I inherited my dad's intollerance of risk. We paid off our mortgage at the first opportunity. I have quite a large sum of money that I inherited from my dad but nothing on god's green earth would convince me to invest in shares or in a business. I'd much rather have the certainty that my money was earning interest above the rate of inflation. I'll perhaps take a tiny gamble on a high interest account with some of my money. I do in fact have my own business and whilst it's doing well I have to say that it's not like any other business that you can imagine. We've never invested any money in it. And we wouldn't risk having our own business if it weren't for the fact that the mortgage is paid off and we have savings that would keep us going for years. And even with that we weren't really relaxed about it until we inherrited from our parents.

But anyway. My point is that the people that have taken the 'poor dad' approach are doing OK right now. Those that have tried to 'manage risk' and 'own businesses' rather than simply knuckling down and working for someone else are more likely to be coming unstuck. I think in the last decade the 'Rich Dad' approach worked for many. But many have been stung. And I can't help but feel that many of the disatisfied, angry people that post on these boards about being 'robbed' by the older generation are in fact kids that have been raised on 'rich dad' ideals. They aren't willing to settle for just knuckling down and working your way up slowly. Which is fine if you can make it work the other way!

Not really relevant, but I always pay my bills the second they land on the mat (Just like my dad did). I know I could earn a tiny bit of extra interest if I pay them at the last possible moment but it just seems dishonest to me. I always go the extra mile for my customers that have a simillar attitude. I think more highly of the prompt payers. Squeezing the last penny out of everyone isn't a nice way to live. To me it seems almost sordid that you have to stoop to such levels.

fc123

Deleted_User wrote: »

Yes, that's the gyst of what I remember.

And my dad was very much the 'poor dad' - "Work hard, get decent qualifications so that you can get a good job, buy a house and earn a good pension. Never borrow (other than for a mortgage) and NEVER take risks with investments (other than to buy a house)".

And I conceed that his attitude would never make you a millionaire. However, in the current climate those that did things the 'poor dad' way are doing OK. They've got their pensions, they've never built up debts, they've got savings and they've got houses worth a fortune. My dad spent most of his career in the Civil Service at fairly lowly ranks. He ended up running the department he worked for, but even so, Civil Service pay wasn't great. But by the time he had retired their income was exceeding their outgoings. The combination of interest on savings and various pensions meant that rather than eating into savings they kept growing!

I inherited my dad's intollerance of risk. We paid off our mortgage at the first opportunity. I have quite a large sum of money that I inherited from my dad but nothing on god's green earth would convince me to invest in shares or in a business. I'd much rather have the certainty that my money was earning interest above the rate of inflation. I'll perhaps take a tiny gamble on a high interest account with some of my money. I do in fact have my own business and whilst it's doing well I have to say that it's not like any other business that you can imagine. We've never invested any money in it. And we wouldn't risk having our own business if it weren't for the fact that the mortgage is paid off and we have savings that would keep us going for years. And even with that we weren't really relaxed about it until we inherrited from our parents.

But anyway. My point is that the people that have taken the 'poor dad' approach are doing OK right now. Those that have tried to 'manage risk' and 'own businesses' rather than simply knuckling down and working for someone else are more likely to be coming unstuck. I think in the last decade the 'Rich Dad' approach worked for many. But many have been stung. And I can't help but feel that many of the disatisfied, angry people that post on these boards about being 'robbed' by the older generation are in fact kids that have been raised on 'rich dad' ideals. They aren't willing to settle for just knuckling down and working your way up slowly. Which is fine if you can make it work the other way!

Not really relevant, but I always pay my bills the second they land on the mat (Just like my dad did). I know I could earn a tiny bit of extra interest if I pay them at the last possible moment but it just seems dishonest to me. I always go the extra mile for my customers that have a simillar attitude. I think more highly of the prompt payers. Squeezing the last penny out of everyone isn't a nice way to live. To me it seems almost sordid that you have to stoop to such levels.

I hadn't realised Rich Dad/Poor Dad had been around through the last few years. Deff explains a lot...I had to sit through a dinner do with a couple who proclaimed 'Debt = wealth' and let others service the debt and so on.

I read the 2nd book last week and, though slightly different angle to the first, could see more clearly what we have been doing the past 2 decades.


Essentially, one needs a core skill or knack for something and to work on that. Problem with a natural skill is that one doesn't value it that highly as to oneself, it comes easily, requires little effort.

Once you know your core skill and accept it as a skill worth developing into something that can generate an income from....then it's plain sailing.


The Hotel Rescue Baby Boomers didn't acknowledge their core skills as one tends to value things one has to struggle at and have angst about them.
Jazz music producer had made a fat wedge out of producing Jazz. He had a natural flair for it and cleaned up.....then he thought he could replicate that knack with buying a big FO Georgian house and running it as a wedding venue.
Running a wedding venue is a whole different ball game to producing jazz.

carolt

Yes, I've heard of the book but never read it - reviews on Amazon seemed to vary from 'waste of money' to 'inspiring'.

So - regardless of your exact interpretation - is it worth buying? Or - more mse in case it's pants - borrowing it from the library?

Or does that mere suggestion make me = poor mum?

treliac

Harry_Powell wrote: »

I got a different message from that book than what you did. My perception was that the Dad who lived in a "high value" (i.e. expensive area) and tried to keep up with the lifestyle of his "high value" neighbours with fancy cars (BMW, Merc, etc), kids in private school, expensive holidays and all the other trappings would be a LOT poorer than a Dad on the same income but who lived in a 'nice working class' area and had a similar lifestyle as his neighbours.

The other thing he went on about was not spoiling your kids - basically you raise them well and pay for their education and then set them free in the world, which is pretty much what my parents did with me and my bro.

There was nothing in there (IMHO) about taking mad risks to get rich, quite the opposite, it was all about making the best of a modest income (very MSE).

Basically "Poor Dad" was the one who looked rich but had large liabilities and "Rich Dad" was the one who looked poor but was financially independant.

A true and wise perception, to do with attitude and approach to life. It can be an uphill battle at times but I agree.... the best thing you can do for your kids is to instill in them the value of their education - as the best route to choice and freedom.

I think we shall see a growing divide and consequent ability to cope with life between those who have kept their heads screwed on and shunned ostentatious display and those who have worshipped at the altar of 'wealth' bought through unsustainable debt.

fc123

carolt wrote: »

Yes, I've heard of the book but never read it - reviews on Amazon seemed to vary from 'waste of money' to 'inspiring'.

So - regardless of your exact interpretation - is it worth buying? Or - more mse in case it's pants - borrowing it from the library?

Or does that mere suggestion make me = poor mum?

You could read his book and dismiss it as Cr49 if you read it word for word and take everything in it at face value.

The Cashflow Qaudrant was written in 1998, updated in 1999 and, bits are out of date and it's very US of A centric too.
However, a lot of it resonated with me especially the difference between a self employed person and a Business Owner. I kind of knew the difference but it took this authour to put it into words for me.

I skipped a couple of chapters about property investment and US tax breaks as they weren't relevant to me, myself and now.

The probelm is your own mindset and how you are. Some just can't cope with excessive risk...by can't cope, I mean the fear of not knowing what £££ will land in their account each month makes them physically ill. So, it's not a good book for someone like that to read. It comes over a a critism of how they are as a person..but humans are all different and have different tolerance levels, so, for a person to whom risk just feels dreadful, the book could come over as a critism on their soul.

The world needs risk takers and cautious types..a blend makes the world tick.
Snag with these types of books is that they sort of imply that if one is risk averse, then one is 'not good' which is rubbish.

It's in my personality type to take massive risk in my work, my job everything. Things I don't take risks with are my marriage (having illicit affairs is an example) and bringing up the kids and their education.

I haven't known 100% what I will earn each year for over 2 decades...each month sometimes but have high living expenses. Doesn't make me any 'better' than the next person who knows to the penny what comes in each month...it's just a different way of living.
However, in my personal life I am very risk averse and work hard at maintaining the status quo.

Did anyone read about the bloke with the accountant job for many years that led a high risk doubl;e life? I will go google. It's kind of the opposite.

fc123

There we go.... accountant at Toys R Us spends zillions on prostitutes

fc123

carolt wrote: »

Yes, I've heard of the book but never read it - reviews on Amazon seemed to vary from 'waste of money' to 'inspiring'.

So - regardless of your exact interpretation - is it worth buying? Or - more mse in case it's pants - borrowing it from the library?

Or does that mere suggestion make me = poor mum?

If you wanna be MSE I will lend you mine...;)

Harry_Powell

I read a review (on Amazon?) that said the book was really just a guide rather than a 'step by step' approach to becoming wealthy. I guess, as such, the book is open to interpretation and for people to 'cherry pick' what really resonates with them personally. Perhaps that's why we seem to have different viewpoints on this book?

I really liked the bit about managing your own risk level (i.e. some people on here find anything but cash in a mattress as being a risk, others will put their entire fortune into a single property - my risk level is somewhere between, the point being that once you know your own risk level, you can tailor your investments accordingly ("know thyself").

The other bits about 'living within your means' also hit home with me, as it is something my folks instilled into me from an early age (again, talk about money wasn't banned from our dinner table, hence my interest in finance).

Perhaps I brushed past anything where it said you should invest riskily in property, etc because it wasn't relevent/particularly of interest to me.

All in all, I think it's a good idea to read these sorts of books (and it certaily fills the time while travelling to work on the old Heathrow Connect), taking in what you feel is applicable to your own circumstances.

fc123

Harry_Powell wrote: »

I read a review (on Amazon?) that said the book was really just a guide rather than a 'step by step' approach to becoming wealthy. I guess, as such, the book is open to interpretation and for people to 'cherry pick' what really resonates with them personally. Perhaps that's why we seem to have different viewpoints on this book?

I really liked the bit about managing your own risk level (i.e. some people on here find anything but cash in a mattress as being a risk, others will put their entire fortune into a single property - my risk level is somewhere between, the point being that once you know your own risk level, you can tailor your investments accordingly ("know thyself").

The other bits about 'living within your means' also hit home with me, as it is something my folks instilled into me from an early age (again, talk about money wasn't banned from our dinner table, hence my interest in finance).

Perhaps I brushed past anything where it said you should invest riskily in property, etc because it wasn't relevent/particularly of interest to me.

All in all, I think it's a good idea to read these sorts of books (and it certaily fills the time while travelling to work on the old Heathrow Connect), taking in what you feel is applicable to your own circumstances.

This is a good one for the train journey too.

''Enough' By John Naish; Breaking free from the world of more.

I read it a couple of years back (and recomended it to Generali but he didn't read it ) and it was a good read.
My shop is referenced in it too as he is local to me. I had put a tongue in cheek sign in our window in 2006 and this authour thought I was being serious. He wrote out my sign and used it as an example of a store trying to encourage consumerism without guilt (or something like that).

I was actually just having a dig at my chainstore neighbours and being a bit worthy at the same time. Power of one and all that.

I liked Rich Dads guide to financial freedom but there were lot's of gaps like how did he manage to just set up a manufacturing company to make surf zip purse whatsits that turned over millions from nothing?