|
Financial struggle is
often the result of
people working all their
lives for someone else.
column and will only help a person become more financially secure if
the additional money is used to
purchase income-generating assets.
The primary reason the majority of
the poor and middle class are fiscally
conservative—which means, “I can’t
afford to take risks”— is that they
have no financial foundation. They have to cling to their jobs and
play it safe.
When downsizing became the “in” thing to do, millions of
workers found out their largest so-called asset, their home, was eating
them alive. Their “asset” was costing them money every month. Their
car, another “asset,” was eating them alive. The golf clubs in the garage
that cost $1,000 were not worth $1,000 anymore. Without job
Chapter Three: Lesson 3
74
security, they had nothing to fall back on. What they thought were
assets could not help them survive in a time of financial crisis.
I assume most of us have filled out a credit application to buy
a house or a car. It’s always interesting to look at the “net-worth”
section because of what accepted banking and accounting practices
allow a person to count as assets.
One day when I wanted a loan, my financial position did not
look too good. So I added my new golf clubs, my art collection,
books, electronics, Armani suits, wristwatches, shoes, and other
personal effects to boost the number in the asset column.
But I was turned down because I had too much investment real
estate. The loan committee didn’t like that I made so much money
from rent. They wanted to know why I did not have a normal job
with a salary. They did not question the Armani suits, golf clubs,
or art collection. Life is sometimes tough when you do not fit the
standard profile.
I cringe every time I hear someone say to me that their net worth
is a million dollars or $100,000 dollars or whatever. One of the main
reasons net worth is not accurate is simply because, the moment you
begin selling your assets, you are taxed for any gains.
So many people have put themselves in deep financial trouble
when they run short of income. To raise cash, they sell their assets.
But their personal assets can generally be sold for only a fraction of
the value that is listed on their personal balance sheet. Or if there is
a gain on the sale of the assets, they are taxed on the gain. So again,
the government takes its share, thus reducing the amount available to
help them out of debt. That is why I say someone’s net worth is often
“worth less” than they think.
Start minding your own business. Keep your daytime job, but
start buying real assets, not liabilities or personal effects that have no
real value once you get them home. A new car loses nearly 25 percent
of the price you pay for it the moment you drive it off the lot. It is
not a true asset even if your banker lets you list it as one. My $400
new titanium driver was worth $150 the moment I teed off.
Rich Dad Poor Dad
75
Keep expenses low, reduce liabilities, and diligently build a base of
solid assets. For young people who have not yet left home, it is important
for parents to teach them the difference between an asset and a liability.
Get them to start building a solid asset column before they leave home,
get married, buy a house, have kids, and get stuck in a risky financial
position, clinging to a job, and buying everything on credit. I see so many
young couples who get married and trap themselves into a lifestyle that
will not let them get out of debt for most of their working years.
For many people, just as the last child leaves home, the parents
realize they have not adequately prepared for retirement and they
begin to scramble to put some money away. Then their own parents
become ill and they find themselves with new responsibilities.
So what kind of assets am I suggesting that you or your children
acquire? In my world, real assets fall into the following categories:
•
Businesses that do not require my presence I own them, but
they are managed or run by other people. If I have to work
there, it’s not a business. It becomes my job.
•
Stocks
•
Bonds
•
Income-generating real estate
•
Notes (IOUs)
•
Royalties from intellectual property such as music, scripts,
and patents
•
Anything else that has value, produces income or appreciates,
and has a ready market
Chapter Three: Lesson 3
76
As a young boy, my educated dad encouraged me to find a safe job.
But my rich dad encouraged me to begin acquiring assets that I loved.
“If you don’t love it, you won’t take care of it.” I collect real estate simply
because I love buildings and land. I love shopping for them, and I could
look at them all day long. When problems arise, the problems aren’t so
bad that it changes my love for real estate. For people who hate real estate,
they shouldn’t buy it.
I also love stocks of small companies, especially start-ups, because
I am an entrepreneur, not a corporate person. In my early years,
I worked in large organizations, such as Standard Oil of California,
the U.S. Marine Corps, and Xerox Corp. I enjoyed my time with
those organizations and have fond memories, but I know deep down
I am not a company man. I like starting companies, not running
them. So my stock buys are usually of small companies. Sometimes I
even start the company and take it public. Fortunes are made in new
stock issues, and I love the game. Many people are afraid of small-cap
companies and call them risky, and they are. But that risk
Do'stlaringiz bilan baham: |
