He also hated the word "can't If you wanted him to do something, just say, "I don't think
you can do it
Mike and I learned more sitting at his meetings than we did in all our years of school, college includedMike's dad was not school educated, but he was financially educated and successful as a result He use to tell us over and over again "An intelligent person hires people who are more intelligent than they are So Mike and I had the benefit of spending hours listening to and, in the process, learning From
intelligent peopleBut because of this, both Mike and I just could not go along with the standard dogma that our teachers preached, And that caused the problemsWhenever the teacher said, "If you don't get good grades, you won't do well in the real world," Mike and I just raised our eyebrowsWhen we were told to follow set procedures and not deviate from the rules, we could see how this schooling process actually discouraged creativityWe started to
fake birkin understand why our rich dad told us that schools were designed to produce good employees instead of employersOccasionally Mike or I would ask our teachers how what we studied was applicable, or we asked why we never studied money and how it workedTo the later question, we often got the answer that money was not important, that if we excelled in our education, the money would followThe more we knew about the power of money, the more distant we grew from the teachers and our classmatesMy highly educated dad never pressured me about my grades But we did begin to argue about moneyBy the time I was 16, I probably had a far better foundation with money than both my mom and dad I could keep books, I listened to tax accountants, corporate attorneys, bankers, real estate brokers, investors and so forth My dad talked to teachersOne day, my dad was telling me why our home was his greatest investmentA not-too-pleasant argument took place when I showed him why I
chanel tote thought a house was not a good investmentThe following diagram illustrates the difference in perception between my rich dad and my poor dad when it came to their homesOne dad thought his house was an asset, and the other dad thought it was a liabilityI remember when I drew a diagram for my dad showing him the direction of cash flow I also showed him the ancillary expenses that went along with owning the homeA bigger home meant bigger expenses, and the cash flow kept going out through the expense columnToday, I am still challenged on the idea of a house not being an assetAnd 1 know that for many people, it is their dream as well as their largest investmentAnd owning your own home is better than nothingI simply offer an alternate way of looking at this popular dogmaIf my wife and I were to buy a bigger, more flashy house we realize it would not be an asset, it would be a liability, since it would take money out of
our pocketSo here is the argument I put
prada borse forthI really do not expect most people to agree with it because a nice home is an emotional thing And when it comes to money, high emotions tend to lower financial intelligence 1 know from personal experience that money has a way of making every decision emotionalWhen it comes to houses, I point out that most people work all their lives paying for a home they never own In other words, most people buy a new house every so many years, each time incurring a new 30-year loan to pay off the previous oneEven though people receive a tax deduction for interest on mortgage payments, they pay for all their other expenses with after-tax dollarsEven after they pay off their mortgageMy wife's parents were shocked when the property taxes on their home went to $1,000 a monthThis was after they had retired, so the increase put a strain on their retirement budget, and they felt forced to move4 Houses do not always go up in value In 1997, I still have friends who owe a
rolex chain million dollars for a home that will today sell for only $700,000The greatest losses of all are those from missed opportunities If all your money is tied up in your house, you may be forced to work harder because your money continues blowing out of the expense column, instead of adding to the asset column, the classic middle class cash flow patternIf a young couple would put more money into their asset column early on, their later years would get easier, especially as they prepared to send their children to collegeTheir assets would have grown and would be available to help cover expensesAll too often, a house only serves as a vehicle for incurring a home-equity loan to pay for mounting expensesIn summary, the end result in making a decision to own a house that is too expensive in lieu of starting an investment portfolio early on impacts an individual in at least the following three ways:
1Loss of time, during which other assets could have grown in
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