Hi, Vapour here

[Vapour]

I read it and made notes from it.

Meant your thoughts on it.

 

[Signalian]

Meant your thoughts on it.

He presents a mindset. A clarity on "money". How to use it, what to do, what not to do. He talks of psychology and human traits. The experiences that we face in life that define us and we leave that impact in everything we do. Whether we as humans want to be employees with a safe and secure job or do we have it in us to step away from the rat race. He presents the psychology of changing "cant have" to "how to have it".

I read Kiyosaki many years ago, i followed some of the things he wrote in that book. He wrote about his life, from childhood till then. It intrigued me that financial education is not given in school. It made me think about myself and the life i want, if i can have that life. Since i followed some of his methods as i found them useful so I would say that mostly what he says is correct. He has critics who are very critical of him. That doesn't bother me, i am not his spokes-person.

Kiyosaki talks about building assets then loans in the form of "good" debt but the main point he emphasises is - not to use own money. This is where a conflict may come in many muslims since majority stay away from loans and interest or usury. Everyone has their own understandings and walk in life according to their understanding of religion and money. Therefore, some of his methods are applicable in Pakistan and some are not. Getting 100% financing is not easy, infact next to impossible sometimes, but then some people say to destroy credit cards and never use them. Most people want to get out of debt. He says debt brings money in the world. He likes to invest in real estate by getting mortgages from bank and wants renter to pay them off. He is interested in tax incentives and is inclined towards 'zero' Tax concept. I liked how he presented his own life to give a real picture to the reader, not just theoretical concepts.

 

[Vapour]

He presents a mindset. A clarity on "money". How to use it, what to do, what not to do. He talks of psychology and human traits. The experiences that we face in life that define us and we leave that impact in everything we do. Whether we as humans want to be employees with a safe and secure job or do we have it in us to step away from the rat race. He presents the psychology of changing "cant have" to "how to have it".

I read Kiyosaki many years ago, i followed some of the things he wrote in that book. He wrote about his life, from childhood till then. It intrigued me that financial education is not given in school. It made me think about myself and the life i want, if i can have that life. Since i followed some of his methods as i found them useful so I would say that mostly what he says is correct. He has critics who are very critical of him. That doesn't bother me, i am not his spokes-person.

Kiyosaki talks about building assets then loans in the form of "good" debt but the main point he emphasises is - not to use own money. This is where a conflict may come in many muslims since majority stay away from loans and interest or usury. Everyone has their own understandings and walk in life according to their understanding of religion and money. Therefore, some of his methods are applicable in Pakistan and some are not. Getting 100% financing is not easy, infact next to impossible sometimes, but then some people say to destroy credit cards and never use them. Most people want to get out of debt. He says debt brings money in the world. He likes to invest in real estate by getting mortgages from bank and wants renter to pay them off. He is interested in tax incentives and is inclined towards 'zero' Tax concept. I liked how he presented his own life to give a real picture to the reader, not just theoretical concepts.

Firstly, I'd like to mention that I always try to read your posts because they provide a great learning experience and deep analysis of the topic at hand. I can only aspire to do so currently, but such a mentality applied to anything is very useful.

From a general perspective, I agree with what he says per the above. Most people tend to "rely" on their day-to-day job to provide them their livelihood, but it is prudent to at least attempt to branch out and try out some side ventures. However, this is where the point about financial education comes in, where to spend your capital and where not to. Real Estate, using the mortgage route is a safe bet but as you've mentioned, there's a moral dilemma attached to it too. Stock investment and trading is good IMO, there are quite a few different options but generally mixed funds are the safest, which still provide decent returns, especially if you invest regularly. There's other avenues such as actual businesses, be it online or physical ones, with those however, the risk is a lot higher and thus less likely to succeed.

We all have to pay our fair share of tax, unless you belong to the "elite" class like MNS... but there's always legal methods that can be used to limit excessive payment.

Recently, haven't really read many books, particularly those pertaining to motivational/lifestyle/financial-improvment as learning about tax is very consuming in itself! However, does sound worth the read, particularly for two things you've mentioned- his glass "half-full" rather than "half-empty" mentality and also the analogies to relate to the real world.