Rich Dad, Poor Dad

1. The poor and the middle class work for money. The rich have money work for them.
2. Rich people acquire assets. The poor and the middle class acquire liabilities, but they think they are assets. An asset is something that puts money in your pocket, a liability is something that takes money out of your pocket. The rich buy assets and the poor only have expenses.
3. Poor people buy liabilities to look rich. Rich people buy assets to get richer.
4. The rich get richer because they continue to do things that make them richer. The poor get poorer because they continue to do things that make them poorer.
5. Rich people learn how to manage risk. Poor people are afraid of risk.
6. An intelligent person surrounds himself with people who are more intelligent than he is.
7. Wealth is accurately measured by a person’s ability to survive so many number of days forward without working. Or stated another way: If you stopped working today, how long could you survive? Wealth is determined by Net Worth, NOT by income. You can have a huge income, but still be poor.
8. You can never be too rich.
9. Rich people buy luxuries last, while the poor and middle class buy them first. Assets buy luxuries.
10. Once a dollar goes into your asset column, never let it out. It becomes your employee. The best thing about money is that it works 24 hours a day.
11. A house is not an asset - it is a liability. It produces no income, only expenses. (Mortgage, Interest, Taxes, Insurance, Maintenance, Utilities, Furnishings). Don’t be “House Rich and Cash Poor”.
12. Building wealth is like planting a tree. You water it for years and then its roots grow deep enough that it takes care of itself. Then it provides you a nice shade to rest under and it takes care of you.
13. A true luxury is a reward for investing in and developing a real asset. Buy yourself nice luxuries but make sure you have earned them and can pay for them first.
14. Rich people invent money.
15. Great opportunities are not seen with your eyes but with your mind.
16. Many people are one skill away from great wealth.
17. Rich people talk about money and learn from other rich people. The poor do not.
18. Don’t let life or people push you around. Don’t quit. Fight!
19. Don’t blindly follow the “conventional wisdom”. Have the courage to “go against the flow”.
20. It’s not what you make that counts, but what you save and invest.
21. Don’t listen to poor or frightened people.
22. Master a formula and learn a new one.
23. Rich people take advantage of economic downturns. Rich people take advantage of opportunities.
24. Rich people don’t make excuses for their financial success or failure.
25. Mind your own business. Think of your household as your own business. Profit vs. Loss and Assets vs. Liabilities. It’s “You, Inc.”.
26. Advice for those of you in debt: If you find that you have dug yourself into a hole, STOP DIGGING!
27. He who has the gold makes the rules. The rich make the rules.
28. Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth. The reason positive thinking alone does not work is because most people went to school but never learned how money works, so they spend their lives working for money instead of having money work for them.
29. Don’t turn yourself into a slave to money and liabilities. Choose power and freedom.
30. You always want to make sure you’ll be cash-flow positive in any prospective real estate investment. Your rents collected should always, at minimum, cover your mortgage and expenses even while you’re building equity.
31. Investments typically fall into two groups: they either eat you or they feed you. Whenever you consider an investment, ask yourself if it will eat you or feed you.

Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not!
By Robert T. Kiyosaki, Sharon L. Lechter

got pretty lucky with real estate. bought 4 plex for 100k put 120k renovations in it and its worth 450k. bought house for 27.5k put 72k in it now its worth 250k

past couple of years been working in construction as a contractor and that financed my purchases.

this book gives you the right 'mindset' but aside from that doesn't offer much

i listed the 31 gems i got from it.

Impressive. Especially for 8 years. Do you have a really high income or is this mostly attributed to the strong economy of late 2010s?

You might be surprised to find out how rewarding it is. My only goal at this point is to do more for more people. In just this last year I bought a family a Honda Fit and gave away I think 6 computers.All of this makes sense but you can do more if you wanted.

24. Last few months.

well yeah, anything would have been better than pissing it away. where is your ex now? is he remarried? did he trade up for a newer model? how's he doing?

Might be there by ~40 at this rate depending on investment gains and continued income growth


Parents are in their early 60s and my childhood was spent in borderline poverty, lets just say my dad wasn't a great provider when he was young and I was born. They're doing alright now but inheritance isn't even on my radar whatsoever, I just want them to be around for as long as possible. A big chunk of money won't add real value to my life anyways, already to the point where extra money just goes into investments etcYup the true benefit of a big mortgage is it being essentially a forced savings plan, even if values generally just track inflation over the long term

yawn. None of this stuff will make you rich. If you're starting from a **** place and want to be really rich you have to grind your ****ing ass off towards something and take high risk. None of this saving $1 ****ing dollar.

Also the credit thing is absolute bull**** imo too. I don't know how it works in the USA but I'll give you an example for here in the UK. People say buy a £10,000 car straight out of your own pocket. In my mind it's better to buy a nicer car off of finance (because flexing and feeling good is nice) and financially it's better as well. Because you will put down a £3000 downpayment for a £23k car. Pay around £275 a month and now you're free to play around with £6k for a year.

Obviously everyone has different situations but if you're single, no obligations, no family. Just yolo it man. You literally have nothing to lose.

Yeah, if you don't use coke and sleep with the interns.

50% chance she takes you for 50%. More if kids are dependent. Bad odds.

Prenups are often worthless, I dont care where you are

Look at the historic chart. It was not until all the pension plans went away and everyone had to put their retirement savings in that it really started taking off. I do not know what to think of it since it seems like a scam of sorts. Every paycheck I have money automatically going in like everyone else regardless of what is going on.

do tell us more about how to be a trust fund leech, its very useful

As I get older, I see how fulfilling that is.

There is no unique advice. Maximize your income and minimize your expenses.

I will say though that people get ****ed up on their priorities when trying to live within their means. You should be minimizing your biggest expense which for nearly everyone is rent, which is also a fixed cost. Learn to live at a rent of 15% of your income vs 25% of your income and you unlock a ton of value and flexibility that you won't get by couponing or having a cheaper phone. Plus then you've got more income you can allocate how you see fit, your emergency fund is lower since your monthly expenses are lower, and you can flex your spending down way easier in a pinch.

How does it feel knowing it isn't really your money? I struggle to see how you get real satisfaction from that. If I get any inheritance I'll shift it towards a charitable fund. Feels good knowing I built from $0

I'll admit to wearing golden handcuffs - I don't like talking about net worth or income beyond ranges. In fact one of my bosses sees what I do with clients and has asked me why I don't just open my own. But I don't have the "need" or the "drive" for that, because I'm doing quite well for myself, and have a fantastic work/life balance.

If I opened my own company it'd be an entirely different ball game - for one, to be able to recruit people to do what I do, as well as I do it. Without having to spend years teaching them (and then they become nearly as niche as I, and go out on their own too).I'd go as far as saying that "being in a healthy, stable relationship" has the greatest positive impact and is key. The lockdown here has shown me just how awesome it can be to walk into my wife's home office, wave, and we sit and have an iced coffee for 10 minutes.People who write things like this ^^ artificially cap their potential due to embitterment disorder, which masquerades as some sort of "realistic outcome" spiel.I have had years in my job where I worked over 100 hours a week. As in, from 6am, until 3am - 5 days a week in busy times, and then constantly "on" on weekends. "Walking in a park with my wife" had me always on my phone, taking calls, coordinating for next week - and I was surrounded by people who were like that too. My female boss once commented that "You are more of a husband to me than my husband is, and I might as well have put my daughter up for adoption" - and then it "clicked" for me, that I'd rather take a step back.

And in doing so, save my marriage, quit chain smoking and other abuse, and focus more on what I'm "taking" and investing myself, than giving so much to my work environment. I can still remember napping in the company car (I had a driver) who would drive me home so I could shower and power nap for an hour or so before driving me back to the office.

I learned so much in those years that I don't 'regret' them, but I'm far happier where I am now. So is my wife.

It is hard to say since it was never realized capital. I would say around 32 and with two young children. It was only due to property prices going up though. When it is property you live in it is hard to consider it cash on demand since even if you sell you need to buy something else.

My concern is the inflation taking place. Property prices have been rising too quickly. I do not trust money invested or in the bank, but think luxury property in major cities is safer. We have purchased more, but prices are too high now to buy without it being a potential mistake. Yes, I am a rent seeker, but also provide services in my full time job. Rent seeking gets a bad name for being a leech on the system, but it is safe if done correctly.

In the back of my mind I always think of the people throughout history that have had everything taken from them. Having skills and the ability to make money is more valuable than guarding a nest egg.

Sure money provides security and opportunity, but is not permanent nor the most important thing. Living in a way that gives yourself dignity along with having and caring for loved ones is what gives meaning to this existence. Be the best human you can be.

Good, thoughtful charity is honestly fukn awesome when you start making more money. Last year my woman and I hit up a grocery store when they were doing a Stuff the Bus campaign for the local food bank. We normally use baskets in the store but grabbed a cart this time and legit loaded it to the brim with non-perishables. The look on the girl’s faces when we wheeled the cart out and told them the entire thing was for the bus, seriously feels good af

Would love to do something related to animal rescue as well

Unless you value kids and them being taken care of more than money.

you listed that ish from memory? impressive


11. A house is not an asset - it is a liability. It produces no income, only expenses. (Mortgage, Interest, Taxes, Insurance, Maintenance, Utilities, Furnishings). Don’t be “House Rich and Cash Poor”.

I invest in real estate and this point stood out to me. if you treat buying a house as a business instead of letting emotions dictate your actions then houses can be an asset.

for example i bought house for 27.5k put in 72.5k in renovations. total investment is 100k cash after repair value is 250k. I live in the home for 2 years as primary residence and can sell without paying taxes on capital gains up to 250k.

A lot of the pensions are invested in it too though. They have the grow the pension money just the same.

Though some state gov pensions got wrecked with exotic chit, buying private companies and chit because someone was making a buck and talked their buddies high up in the state gov into it, lost them a lot of money.

Thread motivates tf out of me

Give me 5-6 years and I’ll be able to contribute in a thread like this