Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 18.07.2010, 14:15
Annie_zh's Avatar
Newbie 1st class
 
Join Date: Feb 2009
Location: Zurich
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 5 Posts
Annie_zh has no particular reputation at present
Rich dad poor dad?

Hello

Anyone here who likes the books by Robert Kiyosaki? e.g. "Rich dad poor dad"? Maybe even put some ideas into action? Would be great to hear about your experiences!

Ann
Reply With Quote
  #2  
Old 18.07.2010, 14:19
economisto
 
Posts: n/a
Re: Rich dad poor dad?

yes I've read them all. There are no "ideas" as such to put in action. These books help as much as any other of the genre, in that they put you temporarily in the mindset of a businessman, especially helpful if you've wavered in recent month but spending time with public servants or socialists.
Reply With Quote
The following 2 users would like to thank for this useful post:
  #3  
Old 18.07.2010, 16:54
nomadic's Avatar
Member
 
Join Date: May 2010
Location: Vaud
Posts: 106
Groaned at 1 Time in 1 Post
Thanked 71 Times in 45 Posts
nomadic has made some interesting contributions
Re: Rich dad poor dad?

I read one book, believe it was his first, and noticed three useful points.

1) Pay yourself first.

2) Treat your personal finances as a business. (Use something like Excel to maintain a balance sheet; pick an update interval that's right for you: weekly, monthly, etc. Don't overdo it, but keep it up to date and think about what it tells you.)

3) Don't buy knick-knacks or do-dads or whatever he called them (boats, sports cars, weekend homes, basically things that distract your money from making more money... and cost a fortune to maintain.)

However, I was already *trying* to practice these points long before reading the book. And take these memories with a grain of salt: I read the book YEARS ago and I'm paraphrasing liberally...
__________________
"Only in Santa Cruz would you have biker wars over who's going to control pumpkin spice lattes."
Reply With Quote
  #4  
Old 18.07.2010, 17:58
beardsy's Avatar
Senior Member
 
Join Date: Jun 2008
Location: Thurgau
Posts: 448
Groaned at 1 Time in 1 Post
Thanked 303 Times in 125 Posts
beardsy has a reputation beyond reputebeardsy has a reputation beyond reputebeardsy has a reputation beyond reputebeardsy has a reputation beyond reputebeardsy has a reputation beyond repute
Re: Rich dad poor dad?

Sounds like you remember it quite well. I think he calls them doodads. He tells the story of how his wife wanted a new car, and he made her invest money to generate cash with which she could buy the car, instead of going into debt for it. So then she has the doodad, plus assets which still generate income.

I got interested in the Cashflow board game he keeps cross-selling, and went to play it once (it retails at a hundred pounds or something). It's a pretty decent game. I crushed all opposition by following the methods he talked about in his book.

So I enjoyed RDPD, but recently I read something he did with Donald Trump and it was pretty poor - 'We Want You to Be Rich'. There were a couple of interesting points in it, but it was basically a waste of my time.
Reply With Quote
This user would like to thank beardsy for this useful post:
  #5  
Old 19.07.2010, 04:25
Guest
 
Posts: n/a
Re: Rich dad poor dad?

Quote:
View Post
Sounds like you remember it quite well. I think he calls them doodads. He tells the story of how his wife wanted a new car, and he made her invest money to generate cash with which she could buy the car, instead of going into debt for it. So then she has the doodad, plus assets which still generate income.

I got interested in the Cashflow board game he keeps cross-selling, and went to play it once (it retails at a hundred pounds or something). It's a pretty decent game. I crushed all opposition by following the methods he talked about in his book.

So I enjoyed RDPD, but recently I read something he did with Donald Trump and it was pretty poor - 'We Want You to Be Rich'. There were a couple of interesting points in it, but it was basically a waste of my time.
The opportunity to delay consumption and make substantial gains with the unspent funds is largely a matter of generational luck, best seen in hindsight. The boomer generation benefited from huge stock market gains and real estate gains in many markets (much of the London market, for example, is still near its high; Montreux is booming). But with interest rates low, it takes more than luck right now to find an investment that will outpace inflation.

Intergenerational transfers -- a generation of grandchildren effectively buying their grandparents' homes with the proceeds (less estate duty or inheritance tax) going to their parents, so to speak) -- are well understood. That worked when women started going into the professions and there were two incomes to pay the mortgage. It's less stable an economic situation right now: what sort of income is needed to pay for a 1 to 4 million home in Chelsea, for example? Or a Montreux flat priced at CHF 1 to 2 million? (Just to cite prices I've been looking at lately.)

The ideal is for everybody else to be spending, creating a boom that will allow your own investments to grow. That isn't happening right now, apparently: http://www.marketwatch.com/story/wea...une-2010-06-29 (wealthy consumers aren't buying)

Last edited by andy02; 19.07.2010 at 04:38.
Reply With Quote
  #6  
Old 21.07.2010, 17:24
nomadic's Avatar
Member
 
Join Date: May 2010
Location: Vaud
Posts: 106
Groaned at 1 Time in 1 Post
Thanked 71 Times in 45 Posts
nomadic has made some interesting contributions
Re: Rich dad poor dad?

Quote:
View Post
The opportunity to delay consumption and make substantial gains with the unspent funds
I think if you would remove the word "substantial" from your statement, it would be more in line with the thinking behind RDPD. He wasn't emphasizing large gains on a savings account, but rather avoiding interest payments. Saving for a car in a lousy 0.92% interest-bearing account is still a substantial improvement over paying out 6-18% interest for a car that you *just* can't wait to have. And to take it even further, getting a $15,000 car instead of the $30,000 car you really want... or, figuring out how to do without a car altogether.
__________________
"Only in Santa Cruz would you have biker wars over who's going to control pumpkin spice lattes."
Reply With Quote
  #7  
Old 25.07.2010, 06:48
Annie_zh's Avatar
Newbie 1st class
 
Join Date: Feb 2009
Location: Zurich
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 5 Posts
Annie_zh has no particular reputation at present
Re: Rich dad poor dad?

Quote:
View Post
He wasn't emphasizing large gains on a savings account, but rather avoiding interest payments. Saving for a car in a lousy 0.92% interest-bearing account is still a substantial improvement over paying out 6-18% interest for a car that you *just* can't wait to have.
Yes exactly, I think this is one of the most important points in RDPD. It's also about the fact that most people buy liabilities = things that loose value over time instead of buying assets that can generate income and grow in value.
Reply With Quote
This user would like to thank Annie_zh for this useful post:
  #8  
Old 26.07.2010, 09:20
tomcat's Avatar
Forum Veteran
 
Join Date: Jun 2007
Location: Stewdguard, Germany
Posts: 2,051
Groaned at 45 Times in 31 Posts
Thanked 929 Times in 609 Posts
tomcat has a reputation beyond reputetomcat has a reputation beyond reputetomcat has a reputation beyond reputetomcat has a reputation beyond repute
Re: Rich dad poor dad?

... works well when read together with "The Millionaire Next Door" ...
Reply With Quote
  #9  
Old 26.07.2010, 10:17
Member
 
Join Date: Nov 2009
Location: ZH
Posts: 104
Groaned at 2 Times in 2 Posts
Thanked 58 Times in 18 Posts
vastor is considered knowledgeablevastor is considered knowledgeablevastor is considered knowledgeable
Re: Rich dad poor dad?

I read it. What I remember from it is: "Buy assets, not liabilities." And the respective definitions are:

asset - an investment, something, what brings money in.
liability - a spending, something what cost money and brings nothing.

now, what is exactly an asset and what is liability?

It is easy to say, especially when looking backwards in time. The only receipts, which are given, are investments in real estate, backed with credits. So, there was a man, who had 10K, he wanted to buy himself a car, but he read a smart book and instead of buying a car he bought a house with 10K of downpayment and 90K credit, he rented a house, he paid mortgage with a money he received from tenants, than in 5 years the house was worth 200K so he sold it and made 100K out of his 10K. Than he bought a whole building with his 100K, which he used a downpayment, took 900K from the bank, paid the mortgage using money he got from tenants. After 5 years his building was worth 2M so he sold it - now he had 990K which he made out of his initial 10K.

I believe, the example above is extremely simplified. As we have recently seen, the prices of real estates are not going up forever. Althought it seems to be relatively safe investment, they sometimes go down, and the example above does not take into an account maintnance and administration costs. I believe, that the house, which was bought thirty years ago would be worth exactly nothing today, or even required some demolition costs, if the owners were not investing in it constantly.

So, the idea of buiying assets is right, it is the definition of an asset, which is a problem. So, do not tell me what I should do ten years ago. Tell me what should I do NOW.
Reply With Quote
  #10  
Old 04.11.2010, 12:59
Newbie
 
Join Date: Nov 2010
Location: Basel
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
locopsu has no particular reputation at present
Re: Rich dad poor dad?

Have not read, but based on posts would recommend another author for those wanting to change the way they think about money. Dave Ramsey. We took a course he put together and it changed our thinking about money. It is pretty radical, no credit except for house. But key point in budgeting is to pay yourself first. Something we have a hard time doing. But we do keep a budget. It helps limit the binge spending.
Reply With Quote
  #11  
Old 04.11.2010, 13:07
bigblue2's Avatar
Forum Legend
 
Join Date: Mar 2009
Location: Glarus
Posts: 8,082
Groaned at 484 Times in 403 Posts
Thanked 14,715 Times in 5,780 Posts
bigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond repute
Re: Rich dad poor dad?

wow, sounds like a *really* fun way to live your life
Reply With Quote
The following 2 users would like to thank bigblue2 for this useful post:
  #12  
Old 04.11.2010, 13:51
dodgyken's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Democratic Republic Kenistan
Posts: 10,653
Groaned at 279 Times in 230 Posts
Thanked 19,403 Times in 7,402 Posts
dodgyken has a reputation beyond reputedodgyken has a reputation beyond reputedodgyken has a reputation beyond reputedodgyken has a reputation beyond reputedodgyken has a reputation beyond reputedodgyken has a reputation beyond repute
Re: Rich dad poor dad?

Quote:
View Post
wow, sounds like a *really* fun way to live your life
Life isn't about having fun!!!

Hey, wait a minute, yes it is. I'm buggered if I going to die without spunking every penny I have on enjoying life.
Reply With Quote
The following 2 users would like to thank dodgyken for this useful post:
  #13  
Old 04.11.2010, 14:11
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 3,480
Groaned at 18 Times in 16 Posts
Thanked 2,008 Times in 1,196 Posts
CH_Me has a reputation beyond reputeCH_Me has a reputation beyond reputeCH_Me has a reputation beyond reputeCH_Me has a reputation beyond repute
Re: Rich dad poor dad?

Quote:
View Post
Have not read, but based on posts would recommend another author for those wanting to change the way they think about money. Dave Ramsey. We took a course he put together and it changed our thinking about money. It is pretty radical, no credit except for house. But key point in budgeting is to pay yourself first. Something we have a hard time doing. But we do keep a budget. It helps limit the binge spending.
Just stop buying cr*p that you don't need. Works for us
Reply With Quote
  #14  
Old 04.11.2010, 15:12
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,989
Groaned at 295 Times in 199 Posts
Thanked 19,055 Times in 8,017 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Rich dad poor dad?

Quote:
View Post
Have not read, but based on posts would recommend another author for those wanting to change the way they think about money. Dave Ramsey. We took a course he put together and it changed our thinking about money. It is pretty radical, no credit except for house. But key point in budgeting is to pay yourself first. Something we have a hard time doing. But we do keep a budget. It helps limit the binge spending.
i don't see why people find it hard to pay themselves first. i don't like parting with my money (except at the poker table ).

it used to drive my ex mad as i would never pay any bills until they sent me a red reminder letter.
Reply With Quote
  #15  
Old 05.11.2010, 15:00
Member
 
Join Date: Jan 2010
Location: Coppet
Posts: 158
Groaned at 2 Times in 2 Posts
Thanked 132 Times in 54 Posts
acf69 is considered knowledgeableacf69 is considered knowledgeableacf69 is considered knowledgeable
Re: Rich dad poor dad?

A couple of comments:

1) although his concepts are valid and I live by them, he gained his wealth by investing mainly in real estate and using leverage (put 10% down and see money grow from the 90% I can loan, then take out the equity and invest in something else). This way of investing has quickly dried up. It is hard to find a cashflow positive real estate opportunity in todays market with no gain on value of house.

2) I do like concepts of "taking your money off the table" and "if your neighbour is investinfg in it get out". So what is the new wave you can ride?

3) The notion of delaying consumption and not getting in debt is absolutely valid if you want to build wealth, but for most people it will still be their house that allows them to build wealth.

All in all I find these topics good reads, even though deep down there is nothing new!
Reply With Quote
  #16  
Old 05.11.2010, 15:11
slammer's Avatar
Forum Legend
 
Join Date: Jul 2009
Location: Lummerland
Posts: 5,387
Groaned at 207 Times in 140 Posts
Thanked 9,772 Times in 3,779 Posts
slammer has a reputation beyond reputeslammer has a reputation beyond reputeslammer has a reputation beyond reputeslammer has a reputation beyond reputeslammer has a reputation beyond reputeslammer has a reputation beyond repute
Re: Rich dad poor dad?

Never a borrower or a lender be.

A bit of Victorian wisdom.
Reply With Quote
  #17  
Old 05.11.2010, 15:24
jaudi's Avatar
Forum Veteran
 
Join Date: Sep 2007
Location: zurich
Posts: 574
Groaned at 4 Times in 4 Posts
Thanked 495 Times in 231 Posts
jaudi has a reputation beyond reputejaudi has a reputation beyond reputejaudi has a reputation beyond reputejaudi has a reputation beyond repute
Re: Rich dad poor dad?

Well, i've not read the books, but it sounds like i've been living the philosophy for years...and i've wasted a fortune on bad investments which I thought were a better way to use my cash than buying 'doodads'....
Reply With Quote
  #18  
Old 05.11.2010, 15:59
glennsche's Avatar
Senior Member
 
Join Date: Feb 2010
Location: zurich
Posts: 303
Groaned at 9 Times in 7 Posts
Thanked 425 Times in 139 Posts
glennsche has an excellent reputationglennsche has an excellent reputationglennsche has an excellent reputationglennsche has an excellent reputation
Re: Rich dad poor dad?

or, buy doodads that are appreciable assets. like firearms.

granted, they dont appreciate like gold or realestate, but theyre alot more fun on the weekends. and if the zombie apocalypse occurs, clunking zombies on the head with gold bars is far less effective than shooting them.

im not contributing to the thread am i. im sorry ill get my coat.
Reply With Quote
  #19  
Old 05.11.2010, 16:20
cannut's Avatar
Forum Legend
 
Join Date: Jul 2008
Location: canada
Posts: 6,913
Groaned at 182 Times in 142 Posts
Thanked 6,191 Times in 3,404 Posts
cannut has a reputation beyond reputecannut has a reputation beyond reputecannut has a reputation beyond reputecannut has a reputation beyond reputecannut has a reputation beyond reputecannut has a reputation beyond repute
Re: Rich dad poor dad?

Quote:
View Post
Hello

Anyone here who likes the books by Robert Kiyosaki? e.g. "Rich dad poor dad"? Maybe even put some ideas into action? Would be great to hear about your experiences!

Ann
S.O.B. dad B.R.I.C.K. dad
Reply With Quote
  #20  
Old 05.11.2010, 16:27
Swiss Cheddar's Avatar
Forum Veteran
 
Join Date: Jan 2008
Location: Zug
Posts: 2,139
Groaned at 40 Times in 27 Posts
Thanked 3,047 Times in 1,239 Posts
Swiss Cheddar has a reputation beyond reputeSwiss Cheddar has a reputation beyond reputeSwiss Cheddar has a reputation beyond reputeSwiss Cheddar has a reputation beyond reputeSwiss Cheddar has a reputation beyond reputeSwiss Cheddar has a reputation beyond repute
Re: Rich dad poor dad?

Robert Kiyosaki made more money from this book than anything he has ever done before writing it.

cheers
SC
Reply With Quote
This user would like to thank Swiss Cheddar for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Basel, Haircut for dad and son.. where? CheesyKiwi Daily life 21 08.03.2015 20:55
Entertaining a six year old and his dad Gastro Gnome Travel/day trips/free time 10 27.11.2009 16:45
S**t my dad says... Russkov Jokes/funnies 5 11.11.2009 18:09
Baby faced dad Castro International affairs/politics 163 20.05.2009 10:23


All times are GMT +2. The time now is 13:55.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0