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"When ! get a raise, I'll buy us a bigger house ...
Posted on 2010-Mar-17 at 07:21
"When ! get a raise, I'll buy us a bigger house "Mutual funds are safe "Tickle Me Elmo dolls are out of stock, but I just happen to have one in back that another customer has not come by for yet
Many great financial problems are caused by going along with the crowd and trying to keep up with the Joneses Occasionally, we all need to look in the mirror and be true to our inner wisdom rather than our fears
By the time Mike and I were 16 years old, we began to have problems in schoolWe just began to separate from the crowdWe worked for Mike's dad after school and on the weekends Mike and I often spent hours after work just sitting at a table with his dad while he held meetings with his bankers, attorneys, accountants, brokers, investors, managers and employeesHere was a man who had left school at the age of 13, now directing, instructing, ordering and asking questions of educated peopleThey came at coco chanel earrings his beck and call, and cringed when he did not approve of them
Here was a man who had not gone along with the crowd He was a man who did his own thinking and detested the words, "We have to do it this way because that's the way everyone else does it 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 people
But because of this, both Mike and I just could not go along with the standard dogma that our teachers preached, And that caused vintage rolex watch 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 understand why our rich dad told us that schools were designed to produce good employees instead of employers
Occasionally 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 follow
The more we knew about the power of money, the more distant we grew from the teachers and our classmates
My highly educated dad never pressured me about my grades But we did begin to argue about moneyBy the time I was 16, I canvas gucci bags 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 teachers
One 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 thought a house was not a good investment
The 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 liability
I 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 column
Today, I am still challenged on the idea of a chanel cambon handbags 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 pocket
So here is the argument I put 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 gucci women's watches on
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