Rich Jems, Poor Jems

// March 21st, 2006 // Life, Obsessions

The recent financial crisis coupled with total lack of free time has led me down a path of thinking somewhat foreign to me. Yes folks, I’m now thinking RAMPANT CAPITALISM. I borrowed Rich Dad, Poor Dad from a friend, and though it was poorly written and somewhat right wing with its whole “poor people are doing it to themselves” mentality, it did make some very interesting points about financial literacy.

I have always know nothing about money, spent it when it was there, felt guilty, then poor when it wasn’t there, and basically relied on an increasing wage to keep me chugging through life. But I’ve had a sudden epiphany that this is a rather foolish way to prepare for one’s retirement and support one’s children. Time to get smart and use my brain for incredibly clever deal making and business genius, as well as for obsessing about Xena and atomic orbitals.

We have made a bit of capital from real estate but of course now it is all tied up in our house again.

So any rampant capitalists out there that can help me with where to begin to learn about money and how to make more of it?

6 Responses to “Rich Jems, Poor Jems”

  1. Martha says:

    I read that last year – pre-coffee cart (geddit?). I basically worked out that I’m not interested enough in being rich to put in the work and sacrifices.

    I daresay Rich Dad Poor Dad would suggest you sell your house, buy 2 houses in Taita, and become a slumlord.

    With your skills you should set up something clever on-line. Dating agency?

  2. Lynne says:

    I’m no financial genius, but I do have a few tips. Firstly, always save a little of your income. I have mine automatically transferred into a high interest account. $40 a week becomes around $3k after 12 months! Do the same with super (not sure how the super situation works in NZ though). Find somewhere to buy in bulk (a food co-op of some sort), bulk is cheaper and with a family it might make sense.

  3. hers says:

    I’ll be following this thread with interest. As the world’s most hopeless businesswoman I’m always stuffed up dollars wise!

  4. llew says:

    Get rid of personal debt! It is OK (I’m told) to hock yourself to the gills to buy investment properties, because that is tax deductable (cheaper debt).

    And get rid of your liabilities (as opposed to assets), for instance, your car(s).

  5. emily says:

    Hmm, thanks everyone, it’s all good advice. Look for the new improved fiscally responsible Emily at a store near you.

  6. tricia says:

    Have watched this thread with interest because we’re in similar situations on our side of the Pacific, ‘cept I work half time and only have one sprog to watch. Matty works mostly fulltime, but has been studying for his professional engineer (yeah, we’re geeks) exam (which has knocked him down to half time, too).

    I cut back my hours to the minimum I could work and still get benefits (health, retirement, etc.). We rent our granny unit to our friend. We try to rent it to her for a fair price (cheaper than other rentals in town, pay for utilities, and share some meals together). For years, we resisted the whole landlord thing and kept the granny unit empty. Renting it out means that we can still afford the odd chocolate and beer and help with the mortgage (that’s French for “death pledge” after all).

    We pay our credit cards in full every month. But we have our credit card tied to frequent flier miles, so we get to fly for free to NZ or Asia every few years.

    We sock away as much as we can in our retirement. I had the goal of being retired by 55, but it will be realistically more like 60. House will be paid off by then. Anytime we get a raise, we chuck it into the savings or retirement accounts.

    Have been putting $50 a month in sprog’s college fund (tax free interest and withdrawing for uni). Put any cash gifts he’s getting from rellies in there, too. We’ll start a savings acct. for him when he’s old enough to want things.

    Drive two beater Japanese cars we own in full.

    Buy food in bulk or when it’s on sale at the markets and mostly unprocessed. Same with detergents, soap, shampoo. Buy clothing only when it’s on sale and will be worn. Buy music quarterly and by then, things that I really want are still in the online shopping cart. Swap out old books at the used bookstore.

    Geocaching is good free fun (besides the gas. We don’t use a GPS) for the family.

    Have lots of potlucks in our backyard or at friends’.

    We ski, but only when we can buy discounted annual passes.

    Only get to the cafe once or twice a week for our espresso drinks. Drink French press on the other days. Saving heaps….like $20 a week…each!

    Good luck with the whole work/school/family thing. Seems like you get to spend quality time together. Worth not being a rat in the rat race for a while, eh?

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