The Unofficial Guide To Other Guides That Will Make You Wealthy

     Yes, as the title says this is a guide to many guides that will absolutely make you wealthy.  One thing I have learned over the years is that the path to any goal in life is always filled with twists and turns, and never in a easy straight line. 

     In every Bigger Pockets Podcast, interviewees are always asked about their favorite books or recently read books. Several things do emerge out of those interviews over and over again. Some of the most popular books for real estate investors tend to include Rich Dad Poor Dad, and The Richest Man in Babylon. One thing is for certain that there is more than one way to build wealth.

     Let’s look at human behavior and the certain books that break behaviors/thought processes that refrain us from actually understanding and increasing wealth. I can absolutely say Rich Dad Poor Dad should be the first book to recommend to anyone and everyone at an early age. Why? Because Rich Dad Poor Dad breaks down decades old myths that pertain to the American Dream that are just not true today.

• Your House is an Asset
• Get a good education
• Get a good stable job
• Save money for retirement

     By reading Rich Dad Poor Dad, your view on money will absolutely change. If it does not read it three more times because something is just not clicking. While many will argue that the book was an absolute list of principles to abide others say its just a high over view about money in our life.  I agree that to increase wealth, the intent and spirit of the book is a high overview on how we need to change our views of life and money. Here are the principles in the book that will be learned and change your behavior (hopefully).

• Understanding that a house is a liability and you must constantly work to make the mortgage. No work/income = Foreclosure
• An education is not guaranteeing you financial security, especially not today with student loan debt. Pursuing a degree financially responsible is smart, as studies do support that it leads to higher income. But being in debt is not smart. Especially if landing a job in a field doesn’t come support high income. An education does not necessarily mean a 4-year degree, it does mean to be constantly learning because life never stops teaching.
• A stable job does not hold today. Businesses are in constant flux due to technology and innovations. One must be prepared to change jobs and pursue more income and opportunities. General Electric, Sears, and Toys-R-Us are great examples of once stable business that failed due to constant change in consumers and business processes.
• Saving for retirement is subjective, a dollar in a savings account is subject to inflation with low returns. Robert Kiyosaki emphasis on diversification and leveraging your dollars for more returns and more stability. Solely saving in a 401k that is subject to fluctuations in the stock market can hinder one’s retirement plans especially if your retirement years fall in a recession such as 2008-2009. Diversifying to real estate and other investments will provide a better chance for survival (financial survival).

     The next book that should be in your Kindle list, or book shelf is The Richest Man in Babylon. The book represents a series of stories and events to lead to an idea  and common theme that many newer financial books speak of. That number one principle is pay yourself first (10 Percent to be exact and a good starting point). Robert Kiyosaki says this, Dave Ramsey implies this (7 Baby Steps-the first step is to save $1000 to start an emergency Fund), Grant Cardone speaks of this when he talks about his start into investing to save as much money first, and T. Harv Ecker speaks of this in his seminars. If one cannot pay themselves first than the required behavior for money management will not occur. Practicing that behavior will ingrain a sense of accomplishment, motivation, and repeatable action that will eventually bear fruit. As a consumer nation we are sold countless products and services that somehow force us to pay debts and bills first and we are failing to pay ourselves before anyone else. Schools do not teach this, and banks do not teach this.

    Dave Ramsey’s Total Money Makeover is a must read. Now, this almost contradicts Rich Dad Poor Dad’s philosophy but not when you begin to think about it dynamically. Rich Dad Poor Dad focuses on leveraging debts for assets to produce cash flow and build equity. Which is absolutely fine. However, there is such a thing as over leveraging and not having a good cushion for when times are bad. The 2008 recession was a great example, everyone that over leveraged debt for real estate ended up losing when cashflow was in the red. Those with too much debt and not enough liquidity to cover those debts ended up losing countless assets and event worst having to file bankruptcy. Dave Ramsey’s philosophy is get rid of debt and the result will be more cash in hand in order to create more wealth.

    Dave Ramsey has millions of followers and they are doing just fine, Robert Kiyosaki also has million followers and they are doing just fine. The key here is to balance and respect all these different forms of pursuing wealth. Do this safe, responsibly, and with honest work and wealth will come. I personally started purchasing real estate by following Robert Kiyosaki’s methods. Then about a few years ago Alaska started to enter it’s own recession, at which point my philosophy steered towards applying Dave Ramsey’s principles. I am paying down debt aggressively until I feel it’s safe to pursue real estate aggressively again by leveraging.

     Grant Cardone, emphasis on 10x rules. Simply put take what your plans are and multiply it by 10. I have heard many investors state that such a plan is prone to failure or too risky. Fact is, Grant’s not wrong. Hec, we all have had parents, teachers, and idols tell us to do everything in life 110 percent, give it all you got and more. Frankly we do it only when we expect the reward. Fact is if you did this more routinely in life, things would get done faster, your value to your workplace could be much more, and the drive to wealth will be much faster than costing through life. I absolutely agree with Grant on 10x. One comment he makes is how we tend to think that saving at least a million dollars for retirement will suffice. However, developments are emerging as to how it might not be enough, and we should proactively increase our retirement plan to be ready for the unexpected. This is especially true when you think about medical costs increasing. Technology and medical breakthroughs are providing humans with more abilities to live longer, and by having more than enough means gives us a fighting chance to be able to purchase that miracle drug when the time comes.

     For me each train of thought worked at just the right time. So, don’t get caught up with all the negativity out there comparing and dissecting known book writer’s on their methodology to the pursuit of wealth. It’s absolutely wrong to analyze one book and say their principles are wrong and a recipe for disaster. If anything, use each and everyone book of knowledge out there about wealth and self-development to increase your tools in your bag, because you never know when that guidance will be your life saver (financial life saver).