Critique on rich dad poor ways to make small money dad – paradite

Recently I have finished reading the book rich dad poor ways to make small money dad by robert T. Kiyosaki. For someone who has never ventured into the personal finance ways to make small money and investment world, it is certainly an eye-opener. I learned a lot of new ways of thinking regarding ways to make small money money, but also kept critically thinking about the deeper issues beyond ways to make small money the sugar-coated words in the book. So here is my critique on the somewhat short book: assets vs liabilities what the book said

My take on this is that it opens up a ways to make small money different perspective on personal finance for me. For very long I have believed in pure meritocracy – work for reward. Reward for work (thanks to the singapore education system). I view money as primarily income, expense and savings, and never really considered the idea of an asset. The idea of using the money to generate more money ways to make small money was directly against what I see as a fair and ways to make small money meritocratic society.

This view has been shaken quite a bit by the ways to make small money time I finished the book. I still despise the nature of capitalism in the sense ways to make small money that it creates income inequality, but I do see why it is justifiable to a ways to make small money certain extent. The justification has to do with the concept of taxation ways to make small money and business, which I will touch on more below. Suffice to say, I recognize that investing in assets is a sensible thing ways to make small money to do with my income.

But there is a catch. The author seems to equate all forms of investments to ways to make small money assets and encourage people to buy stocks, bonds, real estate. However, by looking at the definition provided by the author himself ways to make small money and applying some common sense, this can be easily shown to be false. Price of stocks and bonds goes up and down, so do the real estate. There is no guarantee that these forms of investments would ways to make small money be assets. In fact, if you buy a stock that is losing value, it becomes a liability, much like – to borrow the author’s words – “electronic doodads”. On the flip side, if you just put your money in a savings account, you will get some kind of interest, no matter how little. And that, according to the author, is considered an asset.

However, the author’s claim is that the rich have ways to avoid ways to make small money the tax, such as keeping the assets in investments and spending money ways to make small money via their business. People who don’t have investments or business would end up paying tax ways to make small money on 100% of their income and then spend the money, while the rich don’t pay tax on their investments until they liquidate them ways to make small money and spend the money via their business, using pre-taxed money. Hence, although the rich are taxed the most, the majority of their wealth is not subjected to tax, because they are either not in the form of income, or wrapped in a corporation and spent before the taxation. My take on “taxation and business”

I do believe whole tax and business tactics are real. At least in singapore, I can see how people are investing and expensing through ways to make small money their business. The question is: are they ethical? And does it matter? The tax laws and business laws are there. As individuals, we can only follow them in most cases. Even if we did try to change it, would the rich be able to find alternative ways to ways to make small money preserve their wealth?

This got me thinking: ultimately, who is suffering from these laws? The rich who try to use them to their advantage, or the poor who simply follow the pre-defined path as a normal worker or employee? If we can’t change how the world and other people work, what is the best course of action for an individual ways to make small money like me? We can turn to game theory for some answers. Applying game theory to getting rich

The logical consequence of such as a setup is close ways to make small money to a zero-sum game without coordination between the player. So the best course of action is just to maximize ways to make small money your own gains assuming the most adversary opponents (who are also maximizing their own gains). However, this theoretical plan on its own is flawed. What if everyone stops working and creating physical values and ways to make small money turn into investors or business owners (the most adversary opponents)?

From this experiment, we see that there is a hidden assumption about the ways to make small money real world that allows the rich to behave as they ways to make small money are: there will always be enough people who are the creators ways to make small money of physical values (farmers, workers), and not the most adversary opponents in terms of collecting ways to make small money capitals. Only then, this course of action would make sense. In other words, the poor enable the rich to become richer. A cruel way of looking at things, but hey, that’s capitalism in its purest form.

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