newnoise1 reviews the genius of Robert Kiyosaki

Some nights I wake up in a cold sweat after a recurring nightmare. In this dream Robert Kiyosaki first publishes his books on money, saving and investment in 2030, five years before I retire.

I feel like Allison DuBois in Medium when I wake up and realize I still have a year or two to get what he's saying. My only wish is that he said it when I was twenty and not forty. Not that I would have cared one dot about what he was saying then. I felt, as a writer, that money is not what it is about. Little did I know that, even if you are some kind of artist, money is still what makes the world go round. Like someone once said show business is one part business.

Like most twenty year olds I never imagined I would make it to forty. Like the majority I am just as surprised. Frankly, during that time my life was about pursuing experiences as a writer. These experiences often centered on going to dozens of parties in the tradition of The Great Gatsby. Don't let me go there . . .

No matter, even if you are 80 years old you can learn from Robert. However, it would help if you can start reading Robert's books when you are 6 years old. This will provide you with a priceless foundation to start off your investment career and your life in general.

Writers of genius make their readers adjust their focus. Robert's magic is that he turns how average people think about money on its head. He bluntly reveals that the average salary earner has many reasons to panic. He forces you to take a reality check on what you think of as a safe and secure monthly income.

He will inspire you if you had a hard time at school. He had a worse time. If you lost money, he lost more. Don't be fooled, no matter how easy he makes it look it's hard, hard work that takes extreme discipline.

His books are not textbooks. You won't need a degree in Economy or at least an MBA to understand them. His sophistication and knowledge is of such a quality that he can share his life experiences in simple terms. You have to concentrate or you will miss what he's saying.

Which is basically don't buy crap. Rather save or invest your money until you find something worthwhile buying. Something worthwhile is something that will provide you with an income in the long term something that will not depreciate in value.

Furthermore, learn about money, know how it works. Not knowing anything about money, savings and investments is the root of all evil. Ever heard of the guy who won a million in the lottery and was bankrupt three years later? That explains why having money does not mean you know what to do with it.

Don't go overboard with Robert's advice. Once you get what he's saying in Rich Dad's Cashflow Quadrant and Rich Dad Poor Dad don't hand in your resignation and start your own business or buy three houses with your nest egg. First read Before you Quit Your Job and The ABC's of Real Estate Investing.

The minute you think you know it all read Rich Dad's Guide to Investing.

We can't all be Robert Kiyosaki but we can at least find out how and why the minds of the rich and wealthy work.

newnoise1 on teaching children about money

Teaching children that money is a literary notion



Parents often give their children classic children's books to read and this is a good start.

The thing is that, while these books build character and stimulate children's imagination and creativity, it's not enough. If we can teach them to read and be interested in money matters at a young age we have provided them with a crucial tool to survive the financial hazards of life.

Children can not be kept innocent about money and how it works until they leave home and find that out through the school of hard knocks.

There is an informative article on Why literacy is an important financial building block on www.savingsadvice.com/.

I wrote something to support my point:

Annie learns to read a balance sheet

Annie read a thousand books
from Hemingway to Walter Crooks.

She read between the lines
She knew a thousand rhymes.

Her character grew strong
her favorite words quite long.

Then suddenly life was a mess
of words like 'reposes'.

Annie frowned deeply at the mystery
of its meaning.

Then, at last, she knew
she was in a stew.

Yes, Annie could read,
read that she could.

Still, it took her four years
to catch up on arrears.


My point is, why let children learn at 40 what they could have learned at sixteen?

Any suggestions on books that can help children understand money matters are welcome.

newnoise1 on frugality

Is frugal a four letter word?

Five years ago I knew a thing or two about money. One was you had to work to get it if you liked to sleep at night and two was that you need money to pay for stuff. Little did I know . . .

Everything changed when I was forced, no not at gunpoint but it felt like it at the time, to do research about a subject I found vaguely disgusting - money. I had to read a considerable number (okay hundreds) of articles about how much money you have to save to retire without hoping you die soon.

It took me about two weeks of reading to become hysterical. Overnight I became one of the most obsessed money researches in town, pouring over the business sections, my hands clasped together in panic. I freely admit I spoke to strangers in fast food franchises to help me calm down. I am embarrassed to admit how much my need to talk about money scared them off.

Eventually, I considered buying some shares as it seemed many people thought this a good idea. Like newsreaders for example. I envied them the confidence to let money-words roll off their lips like some exotic language. The thing is I knew millions of people listened to that language but I never dreamed anybody in their right mind took it seriously. Headline earnings per share . . . I repeated the words like mantras too open the windows to wealth. Headline earnings per share. This is an amazing concept. It means . . . well it's nearly like price earnings per share just different.

The broker was silent for a long time when I called and asked if R5 000 would be enough to buy some shares. Hearing his sophisticated snigger I could see myself sitting, a little old lady on my little rocking chair staring into the distance sharing my wild memories of the sweet café lattes of twenty years ago with my cat. Of course I won't be able to afford a cat. I will rock and rock waiting for students from an outreach program to bring me an extra blanket in winter. I called a financial adviser to hear more about pension plans and unit trusts and indexes and took an aspirin.

Once upon a time the word 'budget' could put me to sleep faster than the word 'staff meeting' now that word kept me awake into the early morning hours. As the Reserve Bank increased the interest rates, I kept the lights burning trying to figure out how to beat the bank. I listened to Pink Floyd singing about money being a crime and considered that despite their music being quite depressing in this instance they had a point.

In my quest the word got around that I was seriously researching the subject of money and a friend bought me the Wall Street DVD. I watched it like a documentary and at some point just after the son gets arrested, his Father advises, "Rather start doing something creative with your life than making money from what people are buying."

The man had a point I thought. On the other hand how am I supposed to do something creative if my financial advisor is convinced I have to save just about my entire salary every month to survive my retirement? I thought he was joking but the flinty look in his eyes confirmed his utter lack of humor. I stopped crying and laughing intermediately and started saving . . .more . . .

To conclude, as I read in one of the thousand blogs on frugal living - frugal, frugal, frugal . . even if it sounds like a four letter word it's still the way to get what you really want tomorrow by doing something about it today . . . as far as I can see.

Money reads that inspire

The Millionaire next Door
The Richest man in Babylon
The Power of Positive Thinking
Rich Dad, Poor Dad
The Fountainhead

If you want to read more about the money subject I can recommend Joshua Kennon's inserts at About.com.