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Robert Kyosaki - Live Above Your Means.

http://networkedblogs.com/aCUUz

This is an interesting way to look at personal spending. I just wonder what some examples would be of things that a poorer person could buy that would offset costs. Im not sure I could afford to go out and buy a storage unit business to fund a Porsche. What could an average person buy to offset the price of an avarage car and utilize Robert's advice?
Maybe this is just better for people who have money already.

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Certainly this works for people who are already

rich. And most likely is a recipe for how to turn middle class Americans into struggling and dead broke Americans.

I've read the book.

It simply does not consider its own advice in the context of not actually making much more than basic necessities. (or not even making enough for that)

If you don't have ANY disposable income, you can't implement his ideas. He is speaking to people who are already making well above their cost of living and have a healthy nest egg for emergencies.

If you are living paycheck to paycheck, with no debt, and you aren't splurging on anything, and you don't have an emergency fund, one trip to the mechanic, a flat tire, hell, just about ANYTHING beyond regular bills, and you're underwater and behind.

How does this guy think his advice helps these people? How is living above your means and going into debt going to help them? Because they "feel" rich? Isn't this the attitude that precipitated the Housing Bubble in the first place? Using your house as an ATM or "investing" in real estate (assets) so you could live above your cash flow?

This guy is a text book case of what NOT to do.

Personally, I'd rather stay out of debt.

The freedom that gives me, and the peace of mind cannot be valued against whatever short term ego boost I'd get from buying stuff.

The borrower is a slave to the lender.

I'd rather be free thanks.

Here's a detailed exposé on this guy:

http://www.johntreed.com/Kiyosaki.html

Great Link

I always like finding criticism on people who's advice I follow. I was introduced to Roberts "teachings" through his board game Cashflow. I think he does give a lot of good advice, but he also has a large number of conflicting interests with some of the advice he gives.

I look at Rich Dad Poor Dad like the Bible. If you know which advice to take you can become spiritually (or financially) free, however, you have to understand that there is a interest in the books authors not to have the reader become completely free, so if you take every word as Gold (or as the word of God) you may find yourself very confused and worse off then when you started.

As far as disclosure, Alex seemed to get some numbers and assets out of him in his interview:

http://www.youtube.com/watch?v=8Wvcbk8Hcuc

I'm sure you can see where some of his advice will only help maintain the status quo, as in when Alex asks him how to politically change the system to not favor the rich and Robert says (something like) "You can't, just become Rich."

However, he does have good priorities (as to how to spend and save/invest money), and gives good advice into what types of investments to make (Oil Production rather than refinery and sales, tangible assets such as Gold rather then stocks and bonds). Rental property, etc.

The whole "Go into Debt" thing however, I'm not a big fan of and would disregard. It can work (as in how Trump went from Bankrupt back to Millionaire within a few months). Taking a business loan, or homeloan is going into debt, if it is a smart purchase/investment it can work in your favor and help you move "up the ladder" quicker, but if it goes under you can end up in a lot of legal problems. I like to make investments I can pay for up front, so if it fails I already covered my loss.

Jack Wagner

like hiring a house maid to do the cleaning

as part of your "spending" that actually lets you save couple hours a week and let you use that time to be more productive and increase your income? bottom line is that the nature of your work has to be intensive enough to utilize every hour of uninterrupted attention tho. i think this is more practical than what he may suggest, since this is based on ergonomics of life in a sense.

That makes sense

Say if I were a lawyer, doctor or other professional that could use those saved hours to do more billable work, that would be an appropriate expenditure.

But just to go out and hire a maid when it doesn't directly increase your earning potential? and thereby 'pay for itself'? That doesn't make sense.

. bump

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Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.

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Right now you may not be able to afford to go out and buy anything. If you work hard at saving money, over 6 months, a year, or more then you will have enough. There are always ways to afford things, you just can't say "I can't afford it". Once you do that your brain shuts off its creative potential.

An example is saying "I won't ever be free." in a tyrannical govt. If they said that they are always going to be a slave to the state. BUT if you say "How do I get free?", their minds will open and dwell on that concept. Over time their minds will start to find opportunities to become freer.

Its all about how you think and your attitude, then taking action.

Exactly

As I mentioned above I use to play Robert's Cashflow board game. It helped me out a lot. The game does stress living under your means in order to raise capital, but then suggests that taking smart loans, say for a rental unit that pays the loan off and turns profit monthly, can help increase your Cashflow.

I'd say his best advice was to invest in yourself and your ideas. Create. That's the only way to "get rich quick" is to write or produce a best selling book, album, movie or invent something that you can sell the patent of to some large company.

Jack Wagner