Posted by CAT on December 07, 1998 at 07:20:07:
Thanks Marla for the address.
Rich Dad, Poor Dad in practice - Posted by Matt B
Posted by Matt B on December 03, 1998 at 06:27:46:
What an awesome book! Everyone around me is getting that for Christmas!
I now have 2 mobile home notes that have paid off my original investment and provide me with $400 a month income. One of the concepts he discussed specifically was that when his wife wanted a new luxury car, he didn’t pay for it, one of his assets did!
When I went out to put some rehab work into one of the mobile homes that I bought, I had to borrow a friend’s minivan to take carpeting and linoleum out to the home. I also thought that I would really like to get a car to replace the 108,000 mile, rough-running 91 Grand Am that I was driving. Then the concept of having an asset buy me a vehicle occurred to me.
I just picked up my new (not brand new) Dodge Grand Caravan last night. It is in awesome shape compared to what I was driving, and has TONS of room just in case I want to do any more fixers. The best part about it is that my “employees” bought it for me! Since I put my money to work for me instead of going to work for my money, I am paying NOTHING for this new van! My employees (my $400 a month-producing assets) were nice enough to give me this awesome early Christmas present! The payments are $202 a month, which still leaves $198 left over for my “employees” to spend on me!
Just thought I’d share another success story. Not exactly real estate, but it certainly applies, doesn’t it? (By the way, I used my super fabulous Kirby sales techniques to get this van at my price, also, which happened to be $1,700 below the sticker. (Can’t lower a used car all that much. I guess I’ll have to live with it!))
Re: Rich Dad, Poor Dad in practice - Posted by Scott (OR)
Posted by Scott (OR) on December 05, 1998 at 02:21:07:
Just wanted to add a little something to ponder. The amount of money a person saves between buying a new car and making payments versus owning and maintaining a used car is $250,000. The lesson to be learned is “own your car, don’t let your car own you.” I realize many people in this newsroup have enough insight to see that financing a car eats up your income in an expeditious manner. However, many may fall to the consumer trap too prematurely and want to finance something themselves, completely defeating the purpose of a good investment foundation.
Now, I am not implying that this is what you did necessarily, but I think you should pay this Dodge off very quickly and use your new vehicle for making deals work. It’s great you are increasing your net worth with stocks ect, but real estate will get your financial portfolio to grow tenfold if you quit buying things and let it grow. Anyway if anybody is interested Juliet B. Schor has a book called “The Overspent American” that truly is an eye opener to the motivational factors that result in our consumption of various items.
My 2 cents
Re: Rich Dad, Poor Dad in practice - Posted by Rob FL
Posted by Rob FL on December 03, 1998 at 20:44:15:
Congrats on the car, it is important to have a good vehicle. I have a Jeep Cherokee and love all the room. I can carry everything from washing machines to lumber in it. I do however agree with Jpiper, it is best to pour your investment income back into investments. I believe the porsche he refers to in Rich Dad Poor Dad came after he was well on his way to success with a large apartment building. Don’t blow your money early in the game. Car payments are especially a killer. I bought my Jeep with no money down, but quickly paid off the 5 year loan in 12 months. In my opinion debt is only good in 3 instances. (1) emergencies (2) to buy a home (3) for business/investment purposes.
Best wishes. You are a winner.
Re: Rich Dad, Poor Dad in practice - Posted by JPiper
Posted by JPiper on December 03, 1998 at 12:51:50:
I haven’t read Rich Dad, Poor Dad, so I guess I’m at a disadvantage here. I’m waiting until he comes out with the Old Dad series!
In any case, it seems to me that buying a car is consumption, regardless of whether the money comes from your investment income or otherwise. I understand that perhaps you needed the car…but sometimes delaying consumption and/or gratification is THE best course.
Re: Rich Dad, Poor Dad in practice - Posted by Stewart
Posted by Stewart on December 03, 1998 at 11:42:52:
Where is this book. I’ve searched this site and must have missed it. Do I need to go to the book store?
I read these post nearly every day and suddenly there are a dozen different post talking about it. Have I missed something?
My wife wants a new car too! - Posted by John (KS)
Posted by John (KS) on December 03, 1998 at 10:01:40:
Great story, Rich Dad, Poor Dad is one of my favorite books also. I also will be giving it for christmas. Thanks for the great story, I also have a little over $400/month income from my MH deals. I have been trying to get my wife involved with REI and get her as motivated as I am. I think you helped me out. I am using my $400/month for future investing and not planning on using it for anything else but investing until I hit that $1000/month. My wife has been bugging me for a newer car, reading your post gaave me great idea. I am going to offer to give my wife some of my investment money to make an RE investment of her own, and with that income, she could get her car. Thanks for the great idea!
Re: Rich Dad, Poor Dad in practice - Posted by Matt B
Posted by Matt B on December 04, 1998 at 07:46:52:
Believe it or not, I do agree with you and JPiper on your advice concerning money in general and consumption. I have a couple of very good reasons for the purchase, though. #1 is that without a working vehicle, I cannot even get out to look at property, show it, etc. I realize that I could probably work with a friend to get out and do these things, but that would cut even further into a cramped schedule. I also realize that I could simply concentrate on working deals over the phone, spending only a small amount of time actually going out and checking into deals. I do not want to limit myself, however, to limited mobility. This has been the biggest reason for the purchase of this vehicle. Mine was about to die, and I need to get out and look and research and show, etc. #2 played a smaller factor. That being the fact that a much larger Grand Caravan would have the room to haul necessary materials for rehab work, if I choose to pursue that option. It looks to me that the benefits have outweighed the drawbacks, financially. I have already improved my net worth with stock investments, and now real estate. I have not cut off funds necessary to performing future deals. My current money is continuing to grow. At the same time, I believe that I have just made further options available to myself by ensuring that I have a good running vehicle, as well as a huge time savings by not having to borrow someone else’s vehicle to contribute to making a particular deal work. I don’t make ANY financial decision lightly these days after having read the book. Everything I do with money is like playing a chess game now. I am thinking the next 4 to 5 moves ahead. This was not an impulse buy. I also visited 20 car lots, drove 6 different vans, made offers on 3, and negotiated for 3 days to get the van that I wanted at the price that I wanted! (Talk about due diligence!) This is the first time I have put so much thought into the act of purchasing a vehicle. I did not pay any money down, and my investment income makes the payments and then some.
Believe me, I appreciate the advice and always welcome it to point out anything that I have missed. I guess I just didn’t explain enough the whole story behind this deal. Let me know if you see any further flaws with the way that I have thought about this deal.
Re: Rich Dad, Poor Dad in practice - Posted by Bud Branstetter
Posted by Bud Branstetter on December 03, 1998 at 16:17:55:
At least he did not buy it brand new and suffer the immediate loss in value.
Re: Rich Dad, Poor Dad in practice - Posted by Tracy
Posted by Tracy on December 04, 1998 at 02:43:22:
I have just seen the book at http://www.barnesandnoble.com/ for $12.76
I also HIGHLY recommend the book!
Re: Rich Dad, Poor Dad in practice - Posted by Stacy (AZ)
Posted by Stacy (AZ) on December 03, 1998 at 11:57:13:
You can order it from www.amazon.com for about $15. We’ve been posting about if for a few months. The author is Robert Kiyosaki, who will be the keynote speaker for the CREO convention.
Re: My wife wants a new car too! - Posted by Matt B
Posted by Matt B on December 04, 1998 at 09:51:05:
Excellent idea. I think one of the problems that I have seen a lot of people write about is a spouse not understanding the business. This would definatly help! The idea of having a specific goal in mind (new car) will probably provide exactly the right motivation for taking action.
I am starting to look for flips in addition to the mobile home deals that I have been pursuing. I agree with you that mobile homes deals are too good to give up. Hopefully we can exchange notes. We seem to be headed down the same path. Will you be at the convention? I promised Jackie that I would use the proceeds of my first flip to go.
Re: Rich Dad, Poor Dad in practice - Posted by Rob FL
Posted by Rob FL on December 04, 1998 at 17:42:54:
Sounds like you are doing great. The only flaw I see and this is somewhat trivial is the debt, but like I said I did the same thing went into debt for my Jeep but quickly paid it off.
barnesandnoble.com - Posted by Chris(FL)
Posted by Chris(FL) on December 04, 1998 at 08:11:18:
b&n.com has it on back order, despite what it says on the web page. I ordered it over a week ago, and just got an e-mail this morning saying it would ship in 5 days. This after I cancelled my order yesterday because they didn’t respond to my e-mails asking what was up. I guess I’ll try amazon.com next, or order it through a local book store. It’s not carried here for some reason.
Re: Rich Dad, Poor Dad in practice - Posted by Cat
Posted by Cat on December 04, 1998 at 07:04:50:
Does anyone know the web address for Mr. Kiyosaki’s website??? Thanks