Yea its all good in theory except half the cars I see are Cadillac, Lexus, and Infiniti etc.Here's my take. There are pros and cons to all methods of wealth building strategies.
Entrepreneurship requires lots and lots of time, energy, and risk. At some point in time this risk can give big rewards, but only after a lot of very hard up front work. There are no guarantees.
"Wage slave" earners enjoy working a set schedule, the compensation and benefits are typically pretty good, and you can build wealth for your retirement years pretty quickly if you get out of debt fast and the save/invest like the dickens. Job security is sometimes an issue and there are no guarantees. You typically have to work hard to earn higher and higher wages over time using this method as well.
In short, whatever you do, you're going to have to work hard to attain a greater than average measure of financial success in life. In either method, if you buy too much stuff to impress people you don't even know or like, then you're never going to be financially independent.
Yet Warren Buffet hasn't rented a house in a over a half century, and had a mortgage.
Buying a house to rent, then renting, is self defeating. Buying a house, then buying another house to rent, is a "business owner".
Housing is something you need and in most cases it is a better idea to buy than rent.
I'm pretty sure the book says not to do any of that...... including the wife part
I love how people think that there is even an option or chance of getting rich (to an extent of course, I know there is, but just small, VERY small).
Most wealthy people are born into it.
If you look or think of a person as a "liability" you are already failed the relationship before it even begun.
In 21st century in the West you NEED a significant other and support JUST TO GET BY!!! This is not 50s/60s anymore.......good luck getting by on your own or building any kind of assets (have fun with that)
2. No, you can do fine on your own. You do not "need" a significant other to "just get by."
Yet Warren Buffet hasn't rented a house in a over a half century, and had a mortgage.
Buying a house to rent, then renting, is self defeating. Buying a house, then buying another house to rent, is a "business owner".
Housing is something you need and in most cases it is a better idea to buy than rent.
Warren Buffet is a billionaire. Rich Dad/Poor Dad wasn't written for someone like him. It was written for people who know jack sh*t about investing. It was written for people who think their little 401k is enough for retirement.
I asked my brother if he keeps tabs on his 401 k. He told me no. He hasn't looked at it in years. He also spends money on ipads, big screen tv's, etc...
I'm no better. I've spent money like water. I have little saved in retirement and I'm nearing 40. At least in my case I know I need to do something quick. Most people aren't even aware until they get old and reality hits them squarely in the chest.
I also like "The Millionaire Next Door." The book is nearly 20 years old, yet the still hold a lot of weight today.
I know quite a few very wealthy people and *all* of them own a home with a mortgage.
No one's saying you shouldn't buy a home! Just don't buy a home thinking it's a financial investment. It's a place to live.
A home or real estate can be a means to increase wealth. That makes it an investment.
Spending money makes you poorer.
If you buy a house to rent it out, that's an asset. That makes you a business owner. :thumbsup:
A house costs money even after the mortgage is fully paid off. That's a liability. :thumbsdown:
If you sell your only house for 440k, you don't have a place to live. :thumbsdown:
If you turn your only house into a rental property, you don't have a place to live. :thumbsdown:
It was Warren Buffet who said "If you buy things you don't need, soon you will have to sell things you need." You can't just sell your house at a moment's notice to make a profit. You need a house.
Currently, you're a homeowner and not a real estate agent. There's a huge difference.
Assuming you can sell it for more than you bought it for. Until that time, it's a liability because it creates expenses: services, taxes, maintenance, repairs, etc. Unless you are renting it out & making money on it as an asset, then it is a liability. It can become an investment asset IF you make money on it when you sell it, but even then, all of those years prior to selling it, it's still a liability because it's still sucking up money & creating expenses. That's the point they're trying to make: it's a thing that ongoingly costs you money to have.
What you wrote is completely asinine. If my mortgage is paid off, I'm sitting a 440K asset with a small cost of carry.
Likewise for anything else - I just sold my 911 this past month and all the sudden I'm xx thousand dollars "richer"; how could possibly this 4 wheel "liability" all the sudden turn into stacks money? Per your argument, the car went from being worth negative amount of money (it cost me every month) to somehow being worth thousands of dollars... must be black magic.
Real estate agent is a weekend bullshit course. I went to grad school for finance and worked for a commercial real estate brokerage the entire time.
Honestly If your grasp of finance comes entirely from that book, it's terrifying how much disservice that book does; you literally couldn't be more off base on the subject on hand.
Your head will explode with this. He took out a mortgage, even though he could have paid in cash. He must now have gone through the middle class fleecing know as the book in the o/p.
http://www.sfgate.com/business/article/Mark-Zuckerberg-s-mortgage-rate-1-05-3711118.php
People act like Warren Buffet is still living in a hovel he kept.
The annual taxes for that place in a more or less low tax area of our country is $13k per year.
Assuming you can sell it for more than you bought it for. Until that time, it's a liability because it creates expenses: services, taxes, maintenance, repairs, etc. Unless you are renting it out & making money on it as an asset, then it is a liability. It can become an investment asset IF you make money on it when you sell it, but even then, all of those years prior to selling it, it's still a liability because it's still sucking up money & creating expenses. That's the point they're trying to make: it's a thing that ongoingly costs you money to have.
Assuming you can sell it for more than you bought it for. Until that time, it's a liability because it creates expenses: services, taxes, maintenance, repairs, etc. Unless you are renting it out & making money on it as an asset, then it is a liability. It can become an investment asset IF you make money on it when you sell it, but even then, all of those years prior to selling it, it's still a liability because it's still sucking up money & creating expenses. That's the point they're trying to make: it's a thing that ongoingly costs you money to have.