Dave Ramsey vs. Robert Kiyosaki (Rich Dad Poor Dad)
Two schools of thought and I'm somewhere in the middle. I'm not going to wait until I can pay everything in cash to enjoy myself a little bit, but I also don't go hog wild and won't borrow money on more than one toy or vehicle at a time. Ex: I really want a new dirt bike, but not until the current sled is paid off. Also really want a new flatbed for my pickup, but not until the truck is paid for. Some people get severe anxiety over owing money on something so the 0-debt, cash method works best for them. I say do what works for you without becoming a burden on someone else.
Here are a few things to think about. My dad who pays cash for everything had a mortgage as we were growing up. But all cars were paid for but were crap boxes. Refused to borrow money for a new car but spent money on cars that would nickel and dime him. My dad made a lot of money. Saved all his money for retirement. He got cancer when he was 45 he has been fighting it for 27 years. Has a few million in the bank. His favorite saying was if you don’t earn it you don’t deserve it.
I asked him one day would you change anything about our relationship or child hood. He looked at me with a sadness in his face something I rarely seen. He said I want you to really think about something. “When you are young you have your health and time but little money. When your middle aged you will more money, little time and old age starts creeping in your body will not allow you to do the things you did when you were younger. When you get to retirement age you will have lots of money all kinds of time but your health will be diminished not very often do you have all 3 at once. My biggest regret is teaching you kids to save and not live.
Don’t do the same to your kids. I look back on it and in my day interest was 14-17% so borrowing money costs a lot in the long run. Now it’s 8% and still expensive but I want you to think of borrowing money as entertainment when your driving a new car riding a new snowmobile or a boat what ever it may be the intrest is nothing more than an entertainment cost. If you have a truck payment for 4 years and the interest amount is $1500 over 48 months essentially your monthly entertainment cost is $32 per month plus what your insurance costs are but your going to have full coverage on a vehicle either way if you paid cash for a nice vehicle. Now add a trip with your son could you pay cash for 2 new snowmobiles when you were 40 and afford the trip. I said no. But if you go back to the entertainment factor if you borrowed the money on the sleds it’s now more affordable for you to make memories with your son.
Yes it cost you over time but if you wait as I did the trips I had hope for will not happen as I was always trying to make more money to go on trips but it stole all my time.
As your dad I really want you to consider my advice life is not promised to anyone. You can get a lot of things back in life but time is not one of them. Once time is gone you can’t go back and try and make things right.
Don’t make the mistakes I did live life now tomorrow is not promised and if the lord takes you at young age it doesn’t matter how much money you had in your bank account it’s useless to you your dead.
But the memories you had on snowmobile trips, fishing trips building muscle cars ect. Will stay etched in your son’s mind for the rest of his life. Now I want you to think about the memories we have together how many do you remember can you count them on one hand?
I honestly can’t think of that many good ones I said as you always didn’t have time or said we couldn’t afford it. My dad now says now think about all the memories you have with your son and how good they are. You spend money a little easier than I did but you’re not living for the enjoyment of life.
Retirement is not a life retirement is when your to old and frail to work. You can save money for rainy days but when you have enough to pay all your bills for a year. Go live life.
From that day forward I looked at things differently I have many memories with my son and family that I would have never had if I had not had the conversation with my dad.
I am 48 years old I have a brain tumor time is not on my side if I would have followed the pay cash for everything plan like I was thought I may not have had many memories doing fun things with my son or family at all. All the money I. The world does you no good if you’re dead or dying.
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