The Richest Businessmen

  • Thread starter LukeLewis
  • Start date


Aug 3, 2020
  • #1
I'm at a mental impasse here. I'm reading the next section in this chapter and while I appreciate Robert's sentiments when it comes to the importance of financial education, I honestly don't think it's that easy to change people's behavior. You can train someone to understand how money works until you're blue in the face, but they'll hop right back in their $70,000 Chevy Suburban and drive off to grab a Whopper from Burger King when you're finished. Sometimes, it really doesn't matter how educated a person is about their finances. Because they're addicted to spending, they'll always remain on that hamster wheel of working to earn. Earning to spend. Rinse and repeat. They'll never get ahead because they really don't want to badly enough.

I've come to conclude that there are very different types of people in this world; those who love to work and those who don't. Those who covet their money for the pure joy of coveting it and those who want money because of what it can buy. First off, if you don't love to work, you'll eventually spend every last dime of any amount of money you manage to obtain, no matter if it's from an inheritance, lottery winning, or job. If you're lazy and you don't see the value of being productive, you'll be the cause of your own undoing. However, if you're a hard worker and you do see the value in productivity, then you'll also value your earnings, no matter where they came from. There's a link between those two things.

I happen to be one of those types of people who likes to sit in the dark and count my gold. I don't have an appreciation for what money can buy, I have an appreciation for the fact that it merely exists. I'm on the production side of things. Work to earn and that's it. Set up a passive income structure, make my money, and that's it. Once I have it, I like to keep it. Hide it. Store it in the walls. I'm very miserly in that regard. When I make money, I don't run out to the mall to spend it. I don't run down to the car dealership to throw my money at them. When I need to buy something, I think about that purchase for far longer than someone normally would and then I hesitate again and again. This type of thinking usually gets in the way of the actual purchase, which is exactly what I want. I don't want to spend. I like to keep what I make.

Not many people are like me. There are far too many folks out there who hear the whistle blow on Friday afternoon, grab their paycheck and hightail it off to the bars. They spend all their money and are left penniless, again.

My point is, no matter how much Robert says that financial education is key, it really isn't. What's key is the motivation and the drive to be productive and miserly. Those two things lead to wealth. Don't believe me? When was the last time you spoke to someone who said, "Yeah, I don't do any work and I spend everything I get my hands on." and they were wealthy? How about never. And combinations of these options aren't any better. Someone can be totally productive, yet spend all their money. Big houses, vacations, cars, husbands, wives, kids - all these things eat up anything and everything a person makes. On the flip side, someone can be lazy, yet cheaper than anyone else out there. They're still broke because they don't want to produce, which doesn't translate very well into making money. It's only when someone is productive and cheap. That's it.

Okay, let's forget about the non-productive spenders for a moment and just focus on those who are like me. For us, is financial education the key? In this case, I'd say yes. For people like me, we may already be productive and cheap, but we're not getting very far because we don't know how the system works. And in this case, Robert's book titled, Rich Dad Poor Dad is instrumental.

There are a few concepts Robert discusses in this short section. First, he says that it's not how much money a person makes that counts, it's how much money they keep that matters most. I have to agree with him. Again, we've all heard stories of that guy who drives around in a brand new Corvette because he's making an insane amount of money one day, yet, for some reason or another, he's going bankrupt a short time later. People who make a lot of money and spend a lot of money have a tendency to live just on the edge of their earnings. And more than likely, they enjoy borrowing money. So really, no matter how much they make, they'll never be satisfied and once their expenses catch up and overtake their income, they're dead in the water.

Another concept Robert discusses has to do with building a strong financial foundation. If a person has a strong foundation, they can weather the ups and downs of life, the market, their income, anything. But they need to put the work into earning, knowing where to invest, knowing how to save, and remaining well diversified. Robert talks about the Empire State Building. In order to build that building, construction workers had to dig multiple stories down into the earth. They had to hit bedrock. The foundation needed to be sound. Once the foundation was set, it could have supported almost anything. If the construction workers had poured a thin concrete slab on regular soil and tried to build the Empire State Building on top of that, it was have sunk or fallen over or both. It wouldn't have been pretty.

My opinion is that you need to build a strong foundation, such as the Empire State Building's, and then a tiny house on top of it. If you do that, you'll be set for life and ready for anything.

This post is part of a series: Rich Dad Poor Dad by Robert T. Kiyosaki
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The Richest Businessmen was posted on 06-05-2021 by LukeLewis in the Finance Forum forum.