How To Be Rich

Am about half way through Rich Dad, Poor Dad, and wished I'd read it 15 years ago and am currently realising why my better educated friends all went about owning their own business rather than joining a corporation. Hmm, so this is what private education may pay for. They all figured that they were more interested in building their own dreams rather than help build someone else's. My background and parents have taught me to study hard to earn a good education, apply yourself at a job and climb the corporate ladder if you're able. The problem sometimes lies with whether your ladder is leaning up against the building for you.

Why I hate Finances

​At the same time, I haven't drank from the cool-aid and seen a whole new world just by reading a book. There has been nagging feelings inside me for years and I've tried numerous things: writing a book; starting a business; travel; writing blogs. All of which I have enjoyed, all whilst absolutely ignoring financial management because I don't like it. As with most things you don't like, including people, there is a reason, and it's usually fear (or they're a complete dick, that could be true too). For me, it lies in utter boredom of financials - my brain checks out as soon as someone mentions a balance sheet. But this may not be because it's boring, but perhaps I find it difficult and I use the excuse that it's boring. Or it could be boring as batshit, am open to everything.
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Making the Most of Your Money

I'm not about to decry my past or wish for a different education, however the book does make valid points around learning financial management in schools. I think the term 'financial literacy' speaks absolute volumes, and it's probably something I've been avoiding my entire life. I save money, I don't indulge in vast expenses, and yet am I making the most out of my money? Nowhere near.
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Paying Less Tax

​Rich Dad, Poor Dad is not a greatly written book - there are lots of spelling mistakes, some stories should drive home the point and others just tail off. But as a narrative it's excellent in illuminating how the world works without doing anything illegal. If you've been reading the news for the last five years, you'll have seen just how much tax is being paid by the huge corporations: thousands of people employed across tens if not a hundred nations, paying tax to countries that amount to pittance. A great article in The Independent cited that Google paid £36million in the last tax year in the UK, with revenues of around in £1 billion. More on that here, but it comes down to profits, and Google claim on their tax statements they are making very little profits.
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Beating the System

​For us mere humans, this seems wrong when we're taxed on our earnings and then taxed on our savings and then taxed on anything we buy. If then we invest into shares or start a business to make a bit of money, you're then taxed on any profits you make. They key is to keep investing in assets as part of that corporation to then reduce your profits, which means you pay less tax. (The rich really do just keep getting richer). All this is perfectly legal and you're not putting your money into offshore bank accounts, which to me at least is effectively cheating the system but here is the rub: if the system lets you cheat, is it the fault of the people that do the cheating or the people that make the system? The fact that the people that make the system largely own corporations, all went to the same schools (Eton/Harrow then Cambridge/Oxford in the UK, Harvard/Yale/Princeton/Stamford) and, at the higher echelons, have entered politics as a hobby or passion project amongst their independent wealth is not to be trivialised. 

Book Summary...so far!

​The book, so far at least, has a few recommendations:

• Own a corporation so that you too can invest your profits and pre-tax in assets. If they don't depreciate in value e.g. brand new cars, that's just great. But if they can appreciate in value over the long term, then that is something magical
• If you are in a corporate already (or any business large enough to have different departments), understand the inner workings of a company by working in or gaining mentors in different parts of the company. Embrace finance, technology, legality, sales, operations, communications/marketing and support. Build a broad church of knowledge to help you make better decisions in your current role and guide to where you would like to be in future
• Be confident and be bold. You look at that moron running the White House and wonder how that happened? He sells himself. You don’t have to believe what he sells but clearly many do. The same applies for all those awful advertisements for a new mop, hairdryer, tanning lotion or healthy eating on morning breakfast shows. To me they are the epitome of utter bullshit. And yet, they are still there because it works: people buy those products. As I've sat in countless interviews and told many of my employees, the job is to sell yourself. If you can't do that, you won't get the job. Extract your interview game-face and put that into your life.
• Teach financial management at an early age
• Keep learning, keep reading, keep going to courses and widening your horizons. It's effectively training the mind: athletes don't become the best they can be by skipping training, and neither should you.

 
So I have a lot to ingest and I haven't even finished the book yet. Will keep you posted!