Hey BP family. I'm just starting out and want to go over something super basic. I have read "Rich Dad, Poor Dad" (like every other person it seems) and I have also learned a couple things that Dave Ramsey teaches.
Robert Kiyosaki loves debt (good debt), yet Dave Ramsey hates it (all debt).
I kinda looked at my personal finances with more of a Dave Ramsey outlook, but separately looked at investing with more of a Robert Kiyosaki outlook.
I understand that paying off debt is a good thing, but how much of a good thing is it in REI?
Does anyone have any advice as how they view these two outlooks that are so fundamentally different?
I see that there was a post on this subject from about 3 years ago, but I would like to revisit the idea.
Thanks for reading!
Dakoda: I love this kind of stuff. Probably too much. Anyway, you should read The Millionaire Fastlane by MJ Demarco. Not so hot on the grammar, not gonna win any literary awards, but a great book for thinking about your personal finances and investing. And I can admit my bias against the stock market. I don't like debt but right now I own a house with total payments of $680 per month including taxes and insurance, and the rent is $1300 per month. I'll take as much of that debt as I can get.
Dave Ramsey is not a real estate investor and would never make a very good one. He is ideal for people who have trouble managing their money and debt and has done a lot of good for people like that.
If you have to pick one then it would depend on your relationship with money. If you are drowning in debt and don't know where all your money goes every month then go with Ramsey. If you have a rudimentary understanding of finance and are looking to go next level. Kiyosaki is your man.If you can separate the two, then managing your personal finances according to Ramsey and your investments according to Kiyosaki would probably be a winning combination.
Look at everything as ROI and what risk is involved.
@Dakoda Spencer what is the debt being used for? Is it to buy toys? Then I agree with Dave. Is it earning you money (ie...real estate)? Then use the leverage to make more money.
As Robert Kiyosaki often says "Dave Ramsey has great advice if you want to be middle class but if you want to be rich you'll take Rich Dad's advice." Dave Ramsey is anti-debt which is not the basis for scaling your real estate business.
Dave Ramsey = Middle Class, work 40 years, hope your 401K is there when you retire getting taxed at 40%
Robert Kiyosaki = Upper Class, the rich don't work for money, leverage debt, Savers are Suckers
@#%^% &(*) *^() %(*) ^)) #@^$
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