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Vexer

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When I graduated and started working and my salary had been going thru my account for about three months, I got a call from the bank congratulating me on my achievements and offering me a cheque account with an overdraft facility as well as a credit card.

To be honest I was financially ignorant @ the time and I took up the cheque account and credit card bcoz I thought the bank calling me and offering me this credit meant I was making progress.

Anyway, predictably I maxed out the credit card as well as the overdraft and was paying interest on this to the bank for a while.

Sometime in late 2005 I read Robert Kiyosaki's books, "Rich Dad Poor Dad" and the "Cashflow Quadrant" as well as a bunch of other books dealing with similar subject matter. I also started reading a local magazine called "Personal Finance".

That's when I realised that I'd basically been pimped and that I needed to turn the tide by changing my financial habits and to start investing.

Anyway, I've almost managed to turn the tide in that I'm almost out of debt and my investments are steadily growing.

I however get frustrated when I think of all the time and $$ I wasted bcoz I was financially illiterate.

I really think we need 2 be educated about Finance in school bcoz I basically had to go out of my way to educate myself about Economics, how the financial system works and how best to take advantage of it.

As much as Hip-Hop had educated me in some respects it was completely lacking when it came to the issue of Finance.

Firstly, it limited my ideas to things involving physical labour i.e. "hustling", and secondly, it limited my ideas to things related to the music business like a record label, clothing line etc (u know the typical Hip-Hop entrepeneur ideas).

As much as I knew about Company law and all that jazz, I wasn't educated about it from an economics standpoint so it didn't really fit it into my financial frame of reference. It was just work, period.

Finances is one area Hip-Hop as well as society failed me dramatically. I've virtually had to re-educate myself and pull myself up by the bootstraps but the pain of paying back what u owe as well as the pleasure of seeing ur investments grow has taught me a valuable lesson.

Broadening my horizons has alerted to me to a whole new world of capital and investments which was right below my nose but I couldn't see it b4 bcoz I wasn't taught how to.

I was also shocked @ how cheap it is to become an investor.U can start for as little as R300.00 per month which is a sum of $$ most people can easily blow on one night out but the difference to ur life in the long term is enormous.

I also noticed how much as consumers we are bombarded by ads offering useless and expensive credit like clothes, credit cards etc.

However, the financial institutions offering investment products don't seem to advertise as much.I'm sure if the average joe knew how inexpensive it was to start off with, most people would opt to invest. For instance, Old Mutual is going to introduce a product that costs as little as R50.00 a month to purchase an interest in shares within a particular cla** on the Johannesburg Stock Exchange.

This financial ish is serious and I'd advise all the younger dudes out there to really think twice when someone offers them a credit card or an overdraft.

It may take u a while to undo the consequences.
I stay chiseled


TNGlive

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Quote from: "Vexer"
Robert Kiyosaki's books, "Rich Dad Poor Dad" and .


Best read I've ever read. Cover to cover, which I usually don't do. Kiyosaki had me hooked on that. The insight is something very important. Simple concepts if you think about it, hard to implement but very well worth the effort.

I co-sign recommending that if you have'nt read it, it's not just some hype, it's worth it.

Have'nt picked up Cashflow Quadrant yet. But have come across other literature based on it.


K'niep Tang

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i recently entered the job market, and my understanding of finance and economics is limited to first year varsity exposure. from the little that i've observed, i'v learnt that credit can be a good thing and if used correctly can help you acquire essentials that you'd otherwise have to go without. i think along with your idea of tutoring the youth on investments etc, managing credit should also be discussed because I'm sure your experiences have shown you both the good and the bad sides of credit. Time value of money is an important aspect of this argument, being able to delay repayments for as long as possible without incurring any costs or penalties can be beneficial as in the meantime the money can be used for something else and then paid just in time to satisfy the credit terms extended to you. this is just one example of the ways in which credit can be used to make life that little more comfortable. ofcourse, a credit free life is the aim. however the reality is that most people cant afford everything cash.only the small percentage at the top of the food chain can do that and even they will use credit to their advantage at times.

nice topic yet again  :wink:
I'm like a bunch of dynamite sticks - i'm bound to blow
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Vexer

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@ Tang I agree 100% with what u're saying.Unfortunately we're not educated enuff about financial management.

U're right its impossible to live without credit and a good credit rating. But we're not taught what credit is good and which is bad.U're just bombarded by all these options and bcoz we're financially illiterate we don't know which credit to choose and/or why.

As a result I feel like had I known all these things beforehand I'd have made completely different choices and would be better off than I am now.

Fortunately, I didn't default on any accounts so I wasn't blacklisted or nothing like that but I wish I had known the meaning of terms like "exposure" bcoz it would have dramatically altered my thinking and my choices.

I just think of the lost opportunity but at least I'm still young and I'm sure I'll make it up in time.Rather now than never.
I stay chiseled


Dpleezy

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i feel you 100%.

all i can say to anyone out there who has any kind of income is this: go see a reputable financial advisor and get a plan in place. you don't need to be high rolling to start investing.

the relatively healthy state of my finances has always been due to luck more than judgement - i bought a house when i moved to SA and i got lucky with house prices.

i'd always laughed at the idea of going to see a financial advisor, incorrectly thinking that they were only for rich people with lots of a**ets. a friend of mine put me on to this dude and told me i'd never look back if i went to see him. eventually i decided to check this dude out and he was right,,, i have never looked back.

first thing he did was put a financial plan in place for me, then he opened an investment account with investec. he gave me options and advice and then he took care of everything i decided on. most of the time i just leave the investment decisions to him - all i do is decide what level of risk i want to take.

the other great thing is that you don't pay him any cash up front, he works on a commission basis - and trust me, it's a tiny price to pay unless you happen to be an investment expert yourself (which i am not).

obviously i'm not gonna go into details, but let's just say my finances are actually looking good for the first time in my life.

if anyone wants my financial advisor's contact details, just PM me.


Dpleezy

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good amazon review of 'Rich dad, poor dad'...

"I know this book was a best-seller and has a 4.5 star average on Amazon. This does not make it good, and I will explain why.
First, most people focus on his inspiration and pointing out that you need to save money instead of spending it. To put it bluntly, "Duh." To be more constructive, there are much better books on this subject - for instance, "Your Money or Your Life." It's easy to spout platitudes about why you should save, but Kiyosaki doesn't tell you how.

Second, his real estate advice. Kiyosaki emphasizes making money in real estate, since it seems clear that is how he made his fortune. But he does a terrible job explaining that as well. People have lost fortunes in real estate; Donald Trump went from being a billionaire to losing most of his empire. It isn't easy. Kiyosaki himself says that winners learn from their failures; where are his failures?

Perhaps he should refer people to other books about real estate, but one of the books he recommends was written by a man who had a half-million dollars in tax liens filed against him and declared bankruptcy - all before "Rich Dad" was written. That isn't exactly the kind of advice I was looking for!

Third, experts in the fields he talks about generally agree that his advice is bad. A review by an experienced real estate professional is here: http://www.johntreed.com/Kiyosaki.html. His advice on making money via IPOs is completely wrong; you can't invest that little money so close to the IPO filing for such a large discount. It just isn't done that way.

Fourth, his emphasis on making money. I like money, don't get me wrong. Like most people reading this review, I'd like to be a millionaire. But, I think, there is an underlying current of meanness in Kiyosaki's book. The way his "rich dad" kept people waiting and intimidated them with his power, the way Kiyosaki himself resented being left out of the parties held by the "rich kids." It's disturbing.

Fifth, for all the talk about spending less, Kiyosaki clearly lives up the high life (or claims to.) Rolex watches (why?), Porsches (again, why?)... all these are types of liabilities, which he spends most of the book saying you should avoid. It's flash, which I think ties into his rejection as a 'poor' child, and also meant to impress the reader by letting them think that, someday, they too will be able to show off their wealth.

Most millionaire's aren't this way. "The Millionaire Next Door", which cannot be recommended highly enough, has interviews with real millionaires who live modestly - in fact, probably living on less than you are - and yet they accumulated their fortunes through hard work. (Real estate and owning your own business qualifies as hard work!) It is a much more educational book, but is also more inspiring to see people like yourself who did make it.

Summary: this book has some decent information in it (but there are better books), is inspirational at points (but inspirational books are a dime a dozen!), and didn't really do squat for me."


Vexer

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D.I see where u're coming from.I think Rich Dad & the Cashflow Quadrant are general overview books explaining economics in layman's terms but they don't provide u with specific strategies.

For instance, Kiyosaki fails to mention that u can go and see ur Financial advisor-a simple but important step in financial empowerment.

Instead he derides this as "retail investing" virtually downgrading investments like Unit Trusts and Exchange Traded Funds which can provide up to a 40% return on the Equity markets in exchange for minimal fees to the investment firm.

This is obviously bad advice.

He also fails to point out how easy it is to become an investor. For instance u can be an investor when u're an employee, its not some "top of the food chain" thing like he makes it out to be especially in the Cashflow Qaudrant.

However, those books r important bcoz they help u to start revising ur thinking process but Kiyosaki has also been elevated into a pop culture phenomenon and his books have become pop culture Gospels which is misleading and problematic.

U must still do more research and adapt the general outlook given in the books to ur own specific situation.

At least he gets u to think about economic realities in a different way which is is the beginning in mapping out ur financial future.Plus his language and examples are simple and accessible.
I stay chiseled


A pimp named Sarkozy

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Ha! ha! i never knew Robert has so many haters,after he said buying a house is not an a**et,its a liability.check out the net,what they saying.Ha! ha! even the Old man(pops) said  Rich dad Inc is a cult :lol:

Anyway
Only read cashflow quadrant in 2000.
it shifted my mindset towards business,im still in the S qudrant,& im happy where i am,got my shit straight.U dig.


A pimp named Sarkozy

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Quote from: "Dplanet"
good amazon review of 'Rich dad, poor dad'...

"I know this book was a best-seller and has a 4.5 star average on Amazon. This does not make it good, and I will explain why.
First, most people focus on his inspiration and pointing out that you need to save money instead of spending it. To put it bluntly, "Duh." To be more constructive, there are much better books on this subject - for instance, "Your Money or Your Life." It's easy to spout platitudes about why you should save, but Kiyosaki doesn't tell you how.

Second, his real estate advice. Kiyosaki emphasizes making money in real estate, since it seems clear that is how he made his fortune. But he does a terrible job explaining that as well. People have lost fortunes in real estate; Donald Trump went from being a billionaire to losing most of his empire. It isn't easy. Kiyosaki himself says that winners learn from their failures; where are his failures?

Perhaps he should refer people to other books about real estate, but one of the books he recommends was written by a man who had a half-million dollars in tax liens filed against him and declared bankruptcy - all before "Rich Dad" was written. That isn't exactly the kind of advice I was looking for!

Third, experts in the fields he talks about generally agree that his advice is bad. A review by an experienced real estate professional is here: http://www.johntreed.com/Kiyosaki.html. His advice on making money via IPOs is completely wrong; you can't invest that little money so close to the IPO filing for such a large discount. It just isn't done that way.

Fourth, his emphasis on making money. I like money, don't get me wrong. Like most people reading this review, I'd like to be a millionaire. But, I think, there is an underlying current of meanness in Kiyosaki's book. The way his "rich dad" kept people waiting and intimidated them with his power, the way Kiyosaki himself resented being left out of the parties held by the "rich kids." It's disturbing.

Fifth, for all the talk about spending less, Kiyosaki clearly lives up the high life (or claims to.) Rolex watches (why?), Porsches (again, why?)... all these are types of liabilities, which he spends most of the book saying you should avoid. It's flash, which I think ties into his rejection as a 'poor' child, and also meant to impress the reader by letting them think that, someday, they too will be able to show off their wealth.

Most millionaire's aren't this way. "The Millionaire Next Door", which cannot be recommended highly enough, has interviews with real millionaires who live modestly - in fact, probably living on less than you are - and yet they accumulated their fortunes through hard work. (Real estate and owning your own business qualifies as hard work!) It is a much more educational book, but is also more inspiring to see people like yourself who did make it.

Summary: this book has some decent information in it (but there are better books), is inspirational at points (but inspirational books are a dime a dozen!), and didn't really do squat for me."


Yo D.

I hear you, some of the parents who have read these books are reluctant to pa** them to their children, bcoz of the "infamous" teaching(as they said) like drop out of school or varsity & start a business.

I think the point Robert is tryin to drive home here is that,Since we are way past the Industrial Age,people should embrace this new phenomenom of the Information Age.


cash

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this is definitely the most insightful thread so far!
im a big fan of kiyosaki! before reading the concepts of financial intelligence and the not so simple concept of MONEY, i was walking in the dark! D is right though in the sense that some people read his work,get insipred for a few days, then miss the point totally and revert to thinking they should jus quit their jobs and stop working hard! i believe he is talking about being smarter and learning about the concepts!

He does mention that after reading his books you MUST seek further info by attending seminars and programs and reading more from other people similar to himself to empower yourself. Most people just think its done after they finish rich dad poor dad! They think they know it all now and continue the viscious cycle of financial ignorance, then blame kiyosaki and the rest of the world!

this is what we should be doin! getting our minds right!
Unfortunately like Kiyosaki said - most of us are brainwashed into thinking wealth and money and aspiring for financial freedom is nothing but a greedy evil thought!

Nice 1 Vex!
ps.the next guy who tells me he gone cop another whack cd by selwyn or jub jub or prokid! ima tell him to go get a book on financial intelligence! niggas jus dont read man!!!!!!!hahahahahaha :lol: its like kryptonite to us maf***ers!!!! :lol: hahaha!

great thread!
@cash_sog


ExOdUs-82

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bravo-cash
the first logical thing u said since u came to AG


am really impressed



take it as a compliment man........


Dee; The Black Blooded

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Quote from: "Vexer"

I really think we need 2 be educated about Finance in school bcoz I basically had to go out of my way to educate myself about Economics, how the financial system works and how best to take advantage of it.


mos def we need such education and interestingly enough people like Napoleon Hill (author of Think and Grow Rich) said the same thing back in the 1930's. somehow we still don't have such info readilly available, basically you need to already be financially enlightened to be able to seek out such knowledge...

if I got a rand for everytime I had to tell consultants "I DO NOT NEED CREDIT, I DO NOT NEED ANOTHER CREDIT CARD, I DO NOT NEED A LOAN..." I'd be a wealthy man...


**MORALE**

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I NEVER THOUGHT I WOULD AGREE WITH YOU ON ANYTHING VEXER, THIS TIME YOU'VE SPOKEN LIKE AN OLDER BROTHER.

COP THE RISING SON I MENTION THE BOOKS YOU'VE READ....FININCIAL FREEDOM IS WHAT I'M TRYIN TO f*** WITH......

Listen to my music

Productions of da chains

RHYMES N FLOW ON POINT

www.myspace.com/neoshantyentertainment


zoolooo1

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This is it.....Another book thats a good read is Capitalist Nigga...man!!!
No matter what my issues or perceptions i have about the next man, they come second to my goals of living my financially free!!! I can handle any kind of challenge or responsibility as long as it has nothing to do with money!!! Money problems kill a n!ggas spirit and u become a victim instead of accepting and facing ur reality and doing what needs to be done in order for u to get where u need to be! Nobody in life should have to worry about money problems....if u r u aint living...ur surviving!!! And thats not a way to live....
m the illest and realest entertainer there is out there....im the best at what i do and i not about to compromise my music or character to try and fit in this comedy showcase they call a music industry......


Vexer

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Quote from: "**MORALE**"
I NEVER THOUGHT I WOULD AGREE WITH YOU ON ANYTHING VEXER, THIS TIME YOU'VE SPOKEN LIKE AN OLDER BROTHER.

COP THE RISING SON I MENTION THE BOOKS YOU'VE READ....FININCIAL FREEDOM IS WHAT I'M TRYIN TO f*** WITH......

Listen to my music

Productions of da chains

RHYMES N FLOW ON POINT

www.myspace.com/neoshantyentertainment


Good 2 c we could find some common ground at last!! 8).

U must be in a better position than most people given that u're a Broker and all.U've had a headstart in this financial ish especially on the inner workings of the financial system.

Some of us were only taught to think in words, its been a struggle training myself to also think in numbers & to understand that everything basically boils down to the numbers and that numbers don't lie (Except in the case of Enron that is) :lol: .

Altho I'm not exactly where I wanna be, I'm learning and trying to improve my financial game and I'm sure the payoff wil be worth the effort in the long run.

I'll give ur music a shot.Thanks for not taking things personally.Niggaz tend to get touched way toooo easily nowadays.

I'd like to think I'm not that much older than everyone else, I'm 27 @ the moment, but if I come across like an older brother then I suppose it means I got some wisdom.Thanks for the compliment.  :wink:
I stay chiseled