December 2017 Open Book Group Read: Rich Dad Poor Dad #BOM-dec-2017

[Quantum]

This month's open book read is Rich Dad, Poor Dad. There are several editions and variations published. So, you can pick a different one. Here are some examples:

Rich Dad Poor Dad for Teens: The Secrets About Money--That You Don't Learn in School!

Why We Want You To Be Rich: Two Men, One Message

Rich Dad Poor Dad: What The Rich Teach Their Kids About Money - That the Poor and Middle Class Do Not!

[Quantum]

I checked out the ebook from my library and just started reading it.

Rich Dad Poor Dad: What The Rich Teach Their Kids About Money - That the Poor and Middle Class Do Not!

[Jen Pattison]

I missed this one, it's on my list of books to get - I know Dec is almost over but I'll comment when I've read it!

[Quantum]

Quite behind in my reading and reviews, but I finally plowed through yesterday.

Here are my thoughts.

Anyone who has read it, what did you think? What do you think I missed or think was unimportant on my list?

What I learned or what was worthy of being reinforced:
* Don't quit your day job to become an investor!
* Keep learning, especially about finance and investment.
* The required financial knowledge is (1) accounting; (2) investment strategy; (3) market research; (4) law, specifically tax law.
* Paying yourself first means buying assets first and then paying your expenses, even if you miss a payment--with the admonition against piling up consumer debt, mainly credit card debt. (My thought is probably because it immediately accrues interest, late charges, and other fees. He could do a better job of explaining this.)
* Assets are things that generate you income without you being there. For example, royalties from books. Yay!
* Don't invest in something or buy an asset that you don't love; you won't take care of it.
* Go broke before you're 30; you'll still have time to recover.
* The US income tax was made permanent in 1913.
* Passive investments (for example, stocks, bonds, mutual funds, real estate) are generally taxed less than regular income.
* Corporations (probably LLCs too--but they are also superior to sole proprietorships) are not taxed as heavily as individuals and they can deduct many more expenses than individuals.
* Because the "rich" are more heavily invested in passive investments and corporations, they are not taxed as much as the poor or middle class.
* 1031 tax-deferred exchange = if you buy another property with the proceeds of another property sale, then you can defer taxes on that sale. Don't know if it still exists.
* Teach your kids how to invest.

[Quantum]

I was thinking about what assets to buy and his recommendation to invest in something or buy an asset that you love is really important--although some people just like making money or getting a good deal. So, I like books. ^_^

[Jen Pattison]

Alex wrote: "I was thinking about what assets to buy and his recommendation to invest in something or buy an asset that you love is really important--although some people just like making money or getting a goo..."

Maybe you'll get lucky at a flea market with a rare first edition. :) I remember a post a few months back, Michael I think, about a friend finding a photo album for a few bucks that was worth thousands, you never know your luck!

[Quantum]

Or maybe find a diamond in the rough and become the author’s literary agent. ^_^