Author

Books,

Summary #1 – Rich Dad Poor Dad

This is my summary of the book Rich Dad Poor Dad. Keep in mind that this is my Rich Dad Poor Dad summary, i.e. it may not be an accurate summary of the book.

I should say straight ahead that the Rich Dad Poor Dad book is one of the best books I have ever read, and I actively recommend it to everyone looking for the best financial advice. If you send me a message, I can send you this summary of Rich Dad Poor Dad in pdf, for free. Important: one reader just asked me for Rich Dad Poor Dad pdf – to make it clear, what I could send you is the pdf of this rich dad poor dad summary, not the book!

Rich dad poor dad summary

rich dad poor dad summary review

Introduction

Robert Kiyosaki introduces the context, says that his poor dad went to Stanford and earned a PhD, and his rich dad never finished the eighth grade. Having two dads advising him so differently regarding money turned out to be very valuable for Robert Kiyosaki and made him think more in the long run. Then, he goes on to explain more differences between his both dads and their attitude regarding money. Kiyosaki chose to listen to and learn from his rich dad, who taught him 6 lessons over five years, described in the next chapters.

Chapter 1: The rich don’t work for money

At a very young age, Robert Kiyosaki had his first business partner, his schoolmate Mike. They worked for Mike’s dad, who taught them lessons on how to make money. The first rule they learn was that the rich don’t work hard for money, their money works hard for them. The first thing Mike’s dad did was to pay Robert and Mike 10 cents/hr so that they could see what is like to get a salary they find short – and imagine how would that be if multiplied over the time-span of 50 years. Then, rich dad had them working for free, which taught them two lessons: 1) most people are guided by fear (of not being able to pay for their bills) or desire (e.g. greed) and 2) we need to think of alternatives to make money, which Robert and Mike did – at a very a young age they set up a small library room, where they provided leftover magazines to other kids for a small fee.

Planning,

What will be the next bubble and crash?

We investors are always trying to figure out what and when the next bubble and crash will be. If we guess correctly, we will have an edge, because we’ll be prepared to scoop up a lot of assets at a much lower price.

Although I foresaw a big market crash in the next 2/3 years, I think that the fact that Mr. Trump was elected president of the US will change this quite a bit. I believe that markets will actually start to go up, the American economy will recover and the European economies will simply follow the pattern.

But what will cause the next crash? If you know about economy, you know that crashes are inevitable, because the economy works in cycles. And my gut has been telling me that the current markets are too high to be sustainable.

But what exactly will cause the crash? My answer may be a little bit out of the box. I believe that the next big bubble will be higher education. Let us take a look at the facts. So first, let us recall recent history:

bubbles

Blog,

Blog makeover!

Ladies and gentleman,

I’ve been investing a lot of time into this blog, so that your experience here is the best you can possibly get. Yesterday itself, I worked on the blog the whole day. I ordered a new logo for the blog, adjusted the margins so that everything reads well, etc. This is why the blog was offline for a few times in the day.

Also, make sure you visit my net worth page: www.fromcentstoretirement.com/my-net-worth/ ; some people asked me repeatedly for a way to back trace my monthly reports easily, so there ya go! Also, the books page also looks much better now.

You can notice these aesthetic changes right away, but I have some news too. I will include an Article section for guests and articles from other sites on the internet, making sure that only the best among the best are selected. Essentially, I want people to be able to follow the latest developments on macro-economics in the world, so that they can take them into account when investing.

Daily life,

Because its all about enjoying the road!

Dear readers,

You guys know that I preach frugality a lot. But I’ve also told you many times that it is all about enjoying the road. Money is not the end goal. Many people would trade money for meaning relationships, health, experiences, etc. If you’re working towards an early retirement, you have to learn how to enjoy the road as well as you meet your expectations and goals, while being frugal.

While this may sound difficult or counter intuitive, I bring you a nice example. I recently flew from Lisbon to Frankfurt in business class, as I was able to upgrade my coach ticket with mile points. I enjoyed the whole thing pretty much, and I would like to share it with you!

In Lisbon, the first / business class lounge is pretty much crazy. High quality espresso and all sorts of sandwiches, fruit, all newspapers and magazines, you name it. There is tons of space too. The chairs are super comfy:

Lisbon first class lounge

Lisbon first class lounge

Stock Market,

Why am I happy that Trump won?

I will also share a somewhat unpopular opinion. Please proceed to read my answer with that in mind.

I am clearly for Trump (especially if the opponent is Hillary). I mean, its not necessarily that I like the person, but I like the policies he intends to apply. The fundamental difference between them, in my view, are the economic policies of each other.

Trump proposes to use what is called trickle down economy policies, lowering taxes aggressively, which will dramatically help the economy. Trump proposed the biggest tax cuts since Reagan’s presidency. Reaganomics, as they went on to be known as, ended the 1980 recession in the US. Trump’s idea is to reduce corporate tax to 15%, to start off.

Hillary, on the other hand, wanted to increase the taxes on the wealthy (and use the extra money to invest in infrastructure, thus stimulating the economy). She emphasized this a lot in the debates, if you followed them. She proposed a 5% increase on whoever earns over $5 million, to start off.

Daily life,

Going mad over 20 bucks

Hi guys,

I am traveling between Germany and Portugal this week. Since I got a much cheaper flight route from central Germany (instead of northern Germany, where I usually flight from), I decided to take that route for what I needed to stay at an hotel (altogether I probably saved 200 bucks, if not more). On top of that, my employer pays for hotel stays in cases like this, so it is kinda of a win-win.

However, they don’t pay for beverages from the mini-bar. I happened to be very thirsty at some point, so I decided to go for a water bottle from the mini-bar. I knew they are usually more expensive than anywhere else, but I was thirsty and could not buy it elsewhere. When I checked out, to by biggest surprise, it cost about 5 bucks! Yes, the price was probably there all along, but I never imagined a water bottle would cost so much. This left me angry, but the story doesn’t end here.

Real Estate,

#RP3 started!

My dear dudes,

new rental property

How it will look inside, soon…

I am sorry this heads up took a while more… I’ve been busy… if you follow my blog you’re aware that I bought rental property 3 (RP#3) and I was waiting for the official purchase to be confirmed, as the process when back and forth a few times. Well, I finally transferred it into my name. 🙂 This is sort of a game changer, so I need to explain this deal in detail.

This is a 6-unit rental property (yes I more than doubled my unit count)! Although extremely cheap, I will have to throw a LOT of dollars into it. I payed about €33k for it and I will have to throw another about $15k so it is ready to rent out. Total, I expect to invest about €48k in the purchase, renovation and furniture.

My contractor hasn’t picked up a hammer yet, and I’ve already thrown over €5k into it, distributed among requests to federal and local taxes and bank fees. 🙁

Either way, I added another 6 units to my portfolio and I am finally at 10 units! Shit, the dream is happening… with this rental property, I now have 10 units! I will probably be the landlord of about 25 people, assuming an average of 2,5 people per unit. And you know what? I like this game so much I just submitted another offer (more to come later on…).

Planning,

If you woke up being 20 years old again…

…what would I do to become a millionaire? This was such a good exercise… maybe I will be hustling to make it happen!

OK, I would wake at age 20. I estimate it would take me 5-7 years to reach a million bucks of net worth. During this time, I would be living as frugally as possible and working part-time for the first 2 years to cover my expenses and build up my credit score (through secure loans).

The “Education”

  • 20 years old: For starters, I would not have done my PhD; instead, I would get a PhD directly from millionaires. Think about it, people spend tens or even hundreds of thousands on a degree to learn from professors, but the majority spends less than $1000 over their lifetime on books. Why would you not want to read a book written by a millionaire, who is basically giving you his formula in exchange of something like 10 bucks? I would read all these Books, understand that money is a tool, which I should use and not be used for.OK, so education is almost solved (after all at this point I know all the formulas from the major businessman on earth), but to top it off I would look for a mentor. Knock on doors and show my excitement to learn from them. I estimate this would take three to six months.