Saturday, April 21, 2012

Money - Trading vs Investing follow up

One of my favorite authors is Robert Kiyosaki.  I would say that he is the reason why I decided to finally get financially educated.  His website Richdad.com has a wealth of information.  You should check out the site and look through his material...much of it is free.  A couple of the areas worth noting is his shooting of scared cows, and conspiracy of the rich.  The links are located at the bottom of the page.

I previously wrote and article on trading vs investing.  Robert Kiyosaki wrote an article that I thought I would share with everyone.  It is titled "Why the Cheap Will Never Get Rich".  He explains in detail why you should look at value rather than price.  If you could read just one article in your life...READ HIS ARTICLE.  It could change your life and how you think.  Which is why his books are a recommended read.  Personally, I think this was probably the worse book he wrote (only because he has gotten even better at writing).  However, it is critical to start at the beginning.  All of his books continually grow your knowledge, and more important, how you think about the world.


A great video game (and board game, I prefer the video game) that is available at the website for free is the game CASHFLOW.  This game is a great game to help you understand accounting and finance.  The ultimate goal for your finances is to have enough income or cash flow each month so that you do not have to work.  Think about it...people spend their entire lives living paycheck to paycheck up until you hit the government standard for retirement.  Then magically you will retire and have enough money to live on?  All the while doing this without financial education?


Sounds pretty far fetched if you ask me.  Most people will be lucky if they get 1/3 of their income replaced by social security.  Where does the other 2/3 come from?  Your 401k, 403b or TSP?  Fortunately for government workers we still have our defined benefit plans.  This will replace one third of your income if not more depending on how long you plan on working.


Hopefully this information will give you something to think about.  Remember check out the website.  If you have questions...post your comments.

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