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.
Making the Most of Your Money
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.
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:
So I have a lot to ingest and I haven't even finished the book yet. Will keep you posted!
Writing and writing...