Rich Dad Poor Dad Was A Liar

Robert is a good guy and he wrote a good book, is how usually a lot of these video start when ever someone is going to say some critical about another person, and partially, I don’t know if Robert is a good guy or not, but I do know that his book which is based on fiction although I use to think was a real story, is a good book or people just getting started and learning about money.

But once you read enough and live enough, you figure out that a lot of the advice was not that great, it was actually a little crazy. So in this video I’am going to share 5 main things I disagree with Robert on.

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Use Assets to buy Liabilities

Well first of all, assets according to Robert, put money into your pocket and liabilities take money out of your pocket

So when I realized I could buy a house, and use the rental income to buy me a financed car, I was like, this is awesome

Now I thank the Lord, this plan of mine never happened with any reasonable amount of debt. ( which is false, because money could be coming our but it could be saving you a lot of cash, likebiuing a home and not having amortgag )

Here is the Problem

If you borrow money to buy something

And you use the little cash you get from it

To borrow more money and make payments that use your other money to pay, it’s a house cards wating to fall

Eventually

If the money stops coming in, then what are you going to do

You not only lose the income, but you lose the abilitity to make payments

And nefore you know it, everythig comes down crashing

Good Debt and Bad Debt

Good debt makes you rich and bad debt makes you pooor

Getting into debt to make more money is good and getting into debt to buy things you don’t need bad

Sounds good until you realize you are worrying about the wrong thigns, all debt increase your risk

Here the Truth:

I spoke to a friend who was making 125k per year

And he had about 700k in debt and was making a little over $1000 per month from these properties

And I asked why are you doing this, beucase I want to be rich he said ( and he was just one wrong move from lossing evertyhting )

Good Debt and Bad Debt

Doesn’t exist when your definition is risk

Because debt increase your risk

Its best to only use debt responsibly, to lower your cost of living

Reinvest the Profits and Repeat the Cycle

I had this habit along time ago too

Whatever money I made, I would keep reinvesting and keep putting it to work

You need to learn to pay yourself first

And this example
– the cycle Rober is talking is to keep buying more home and more home

Remings me of a guy who bought a bunch of cars for duru and was rednint them out and he financed them

When the business slowed down, he got scared beucase he was worried he wouldn’t make the payments

Use debt to get rich

By this point you probably notice the art of rober is to speed thigns up by using leverage

But leverage creates risk

So I don’t think I have to keep going here

Your House is not an investments but instead a liability

The problem when you fillow rule of thumbs Is that it can lead you to some very dumb ideas

A home you cant afford is a liabiltiy, because you wont be able to payoff until year 30

But a home you can afford, you should be able to payoff in 15 years or less with only 33% of your income

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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