Tuesday, May 25, 2010

Rich Dad Poor Dad



There it is, the first business book I ever read. It only took me 31 years, better late than never, eh? So what is in this book? Why it's the secrets of the rich: How they avoid paying taxes, how to think like the rich, and of course...how to make money without having a real job! No more working for the man, much better to generate passive income.

What's passive income? Well in Rich Dad Poor Dad passive income is mostly comprised of real estate and dividend yielding stock. Now I'm sure there are plenty of people in the world making a killing off those two things right now, but everyone I know has lost their collective asses on their house and stock investments in the last few years. So no thanks.

So how do you avoid paying taxes? It's simple, you incorporate! You see, when you form a corporation you get to pay your expenses first, taxes later. I can't believe it took me so long to learn this! Except when I started looking into forming a corporation, it turns out it's not quite so simple. We're actually looking into forming a LLC, a Limited Liability Corporation. Essentially a mini-corporation, but even trying to do this can be quite challenging, and guess what? There are quite a few fees involved with the process. Further down the road I'll share my LLC experiences.

If you haven't guessed it by now, I didn't find Rich Dad Poor Dad to be a very useful book in the aspect of reading it and putting its information to use. It always felt like I was just a few pages away from a big revelation, but when I got there it was just pushed back a little further. Then I hit the end of the book. I even read his follow up book, Cashflow Quadrant: Rich Dad's Guide to Financial Freedom. Also interesting, but again, mostly the promise of great knowledge as opposed to the supply of great knowledge.

So if I wasn't able to read this book and go use the teachings to make a fortune, why would I so highly regard it?

Because it opened my mind. It made me think about business and money in ways that had never occurred to me before. This book was a springboard that has taken me to so many different realms of understanding. Robert Kiyosaki is a fantastic writer of self help books. He gets you excited about the material. It is no wonder that he's created an empire out of this book, his enthusiasm is contagious.

I will not get rich from real estate, I have no interest in it. I will not, at this time anyway, get rich from stock investments. The market scares the crap out of me. I might however be able to use the core ideas of Rich Dad Poor Dad to carve out a niche for myself in the new world of on-line business. I'm trading real estate for advertising, high dividend stocks for affiliate marketing. I've already learned how to incorporate them into this blog!

See that link at the top of the page? It's linked to Amazon, and if anyone clicks that link and buys that book, I get a percentage. That's affiliate marketing. See the Google ads on the side of the page? Anytime someone clicks on those I get a small payment from Google. That's advertising.

When I post this blog and then walk away to go back to my real life, those two aspects will stay here attempting to make me money. Generating me passive income. Does it work? Absolutely, I'm positive that it works. Will it work for me? I have no idea, but I'm learning a ton on the trip.

That's what Rich Dad Poor Dad taught me, that it's the knowledge that is the true wealth. I may make money, I may lose money, but I'll always have access to the things that Rich Dad Poor Dad taught me.

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