I remember in school being told the story of Robin Hood and
his Merry Men. My teacher thought it was a wonderful story of a romantic hero who robbed from the rich and gave to the poor. My rich dad did not see Robin Hood as a hero. He called Robin Hood a crook.
Robin Hood may be long gone, but his followers live on. I often still hear people say, “Why don’t the rich pay for it?” or “The rich should pay more in taxes and give it to the poor.”
It is this Robin Hood fantasy, or taking from the rich to give to the poor, that has caused the most pain for the poor and the middle class. The reason the middle class is so heavily taxed is because of the Robin Hood ideal. The reality is that the rich are not taxed. It’s the middle class, especially the educated upper-income middle class, who pays for the poor.
Again, to understand fully how things happen, we need to look at the history of taxes. Although my highly educated dad was an expert on the history of education, my rich dad fashioned himself as an expert on the history of taxes.Rich Dad Poor Dad
And here’s the big one! In my podcast down below, you’re going to here an article first on the 2008 financial crisis (plus the build-up). Then, some little snippets from the movie The Big Short. Longggg podcast, but truly mesmerizing.
You’re going to listen to (in the podcast) the Credit Crunch. I would like you to match the ideas (a-f) to the paragraphs (1-6) that the information an be found in.
a. A surprising bankruptcy despite government intervention ___
b. The effects of interest rates on banks and property owners ___
c Examples of proposed changes to the banking system ___
d Institutions that the author believes helped to create the financial crisis ___
e The impact of the financial crisis on a manufacturing industry ___
f The first signs that banks were in trouble
Are you a poor, middle, or rich cash-flow possessing individual?
Well, let me try to break this down in blog form. If you want the amazing podcast, make sure you scroll down to the bottom for it.
Cash-flow of a poor person
Your job gives you your salary, which then goes to your expenses: taxes, food, transportation, clothes, etc. That’s all you have. You have zero assets, and fortunately, you have zero liabilities.
Cash-flow of a middle-class person
Your job gives you your salary, but instead of going to expenses, it goes down to your balance sheet in the category titled “liabilities.” This has your mortgage, car loans, credit card loan debt, school loans, etc. After you pay for your liabilities, then the remaining money goes back to your expenses: taxes, etc.
Cash-flow of The Rich
You do not have a job or salary. Better yet, your money starts in your balance sheet in the assets category which has real estate, stocks, bonds, notes, intellectual property. Those assets never get paid with liabilities. In fact, it goes back up to your income statement, which is the rental income, dividends, interest, and royalties. The only monthly expenses you have are taxes and a possible mortgage payment.
Which one are you?
“Because it is ignorance about money that causes so much greed and fear,” said rich dad. “Let me give you some examples. A doctor, wanting more money to better provide for his family, raises his fees. By raising his fees, it makes health care more expensive for everyone.
It hurts the poor people the most, so they have worse health than those with money. Because the doctors raise their fees, the attorneys raise their fees. Because the attorneys’ fees have gone up, schoolteachers want a raise, which raises our taxes, and on and on and on. Soon there will be such a horrifying gap between the rich and the poor that chaos will break out and another great civilization will collapse. History proves that great civilizations collapse when the gap between the haves and have-nots is too great. Sadly, America is on that same course because we haven’t learned from history. We only memorize historical dates and names, not the lesson.”
“Aren’t prices supposed to go up?” I asked.
“In an educated society with a well-run government, prices should actually come down. Of course, that is often only true in theory. Prices go up because of greed and fear caused by ignorance. If schools taught people about money, there would be more money and lower prices. But schools focus only on teaching people to work for money, not how to harness money’s power.”
“But don’t we have business schools?” Mike asked. “And haven’t you encouraged me to go for my MBA?”
“Yes,” said rich dad. “But all too often business schools train employees to become sophisticated bean-counters. Heaven forbid a bean- counter takes over a business. All they do is look at the numbers, fire people, and kill the business. I know this because I hire bean-counters. All they think about is cutting costs and raising prices, which cause more problems. Bean-counting is important. I wish more people knew it, but it, too, is not the whole picture,” added rich dad angrily.
“So is there an answer?” asked Mike.
“Yes,” said rich dad. “Learn to use your emotions to think, not think with your emotions. When you boys mastered your emotions by agreeing to work for free, I knew there was hope. When you again resisted your emotions when I tempted you with more money, you were again learning to think in spite of being emotionally charged. That’s the first step.”
Another area that creates huge trust issues in personal relationships is money. As many marriage counselors affirm, money problems are a key cause of divorce. While many such problems are caused by lack of character (selfish or impulsive spending, attempts to control or restrict a partner’s access to shared resources, or efforts to hide spending from a partner), many are also caused by lack of competence (lack of education or experience in money management). In addition, two people coming into a relationship are often scripted in different ways by family experience — for example, one may come from a background of spenders, while the other comes from a background of thrift.
Here’s a story from Stephen Covey’s book
“For years, my husband and I had problems managing our money. We would agree to spend our money in a certain way, then he would come home with some new thing we hadn’t agreed on. It was very frustrating, and I eventually withdrew emotionally as a financial partner.
Over time, however, we both came to realize that this situation was negatively affecting the trust in our relationship, and we decided to change. He worked on being more responsible to act based on our agreements; I worked on expressing my opinions better and participating more fully in financial decisions. And together, we became involved in learning more about good financial habits, including budgeting and investing.
It’s taken quite a while to shift old habits, but through it all, we’ve become amazingly close and more unified in our financial values, goals, and habits. In fact, I’d say that now financial units is one of our strengths. Doing something together that was this challenging has created even strong bonds of trust in our entire relationship.
Last year, my friend bought me a book that captured my attention about Malaysian youth unemployment that was higher than our Southeast Asian neighbours. Here the question popped up, ‘why Malaysian millennials like me can’t secure employment with a better pay cheque and move up the corporate ladder?’ and ‘did it have something to do with our flawed education system and higher education institutions that only produced unemployable fresh graduates that aren’t competitive with unmarketable skill sets?’ After all, youth unemployment was a problem back in the early 90s that coincided with the Age of Information! It just kept me wondering back then when I was in upper primary, secondary and college days as I always heard these words being whispered” “nowadays, college/university students can’t secure good jobs with good pay cheques.”
As the world economy makes the transition to a new type of economy; the higher education system, which is still built on an archaic model that required students to work in factories, has never gone through a radical reform except for the curricula of schools on school white paper. Here is the catch, it explained why youth unemployment is a real problem for policymakers at the same time they managed successfully to experiment on alternative education, which was student-centric. What is did was put emphasis on hands-on learning by getting students to work on projects. These students had higher chances of getting employment!
The book that I read was ‘The End of Jobs’ by Taylor Pearson. He was invited to give a talk about his book ‘The End of Jobs’. In his book, he argued that with the internet, you can build a product’s prototype by hiring freelancers from the marketplaces like Upwork, Freelancer, Fiverr and Guru. Also, you can buy products by sourcing them from AliBaba, a marketplace for suppliers or manufacturers. He even went on further to propose about the educational credential had its own intrinsic value as he had drawn up two scenarios of two graduates who were employed where the other one went on a different route because of he or she was pissed off about the traditional 9 to 5 by becoming a lifestyle entrepreneur just like Taylor Pearson, himself, who took that kind of route. It sounds familiar among the modern day fresh graduate to have the call of the wild.
Taylor Pearson proposed that the economy is undergoing a transition from jobs to an entrepreneurial economy just like hundreds of years ago where society in the past used went through many transitions of the economy. Later, with the success of the Gutenberg press that distributed the printing of the Bible into mass circulation that led to the printing of knowledge to be distributed massively to the people in Europe. Here, another transition from powerful royalty and aristocrats into the rule of the people due to a distributed knowledge that has already been through the power of printing.
“The principle he learned and the one that you also can employ will now be stated in a very few words. In reading The Richest Man in Babylon, Mr. Osborn found that wealth could be acquired if you:
(a) Just save one dime out of every dollar you earn;
(b) Each six months, invest your savings and interest or dividend returns from these savings and investments; and
(c) When you invest, seek expert advice on safe investments and thus you won’t gamble and lose your principal.”
Excerpt From: Napoleon Hill. “Success Through A Positive Mental Attitude.” iBooks. https://itunes.apple.com/us/book/success-through-a-positive-mental-attitude/id381618319?mt=11
Oh, yes! The habit of saving, one of the best kept secrets and a principle I went over quite some time ago. Guys, it was July 3rd, 2017….my brother (as most negative stories from my childhood revolve around him) came home and was yelling at me. He said I was selfish (although I was a poor college student) because I was allowing my mother to pay for my phone bill. I remember crying and leaving to my best friend’s girlfriends’ house — Dominique. The next day we watched Transformers (the original motion picture) before going to a fourth of July party in the evening — where my brother actually greeted me with a handshake — acting as if nothing had taken place a day before.
Over the next year I stood up to him gradually….but all arguments and problems between 2005-2013 stemmed over money. Either I wasn’t giving my mom enough money, or I should get a job. From that point going forward, I was an aggressive saver.
Of course this doesn’t relate to investing, but I became self-aware that being broke, was not fun. Yes, I had $10 to my name at one point here in Thailand, but never again was I ever that broke again.
You have to be consciously aware of your spending. In my Darren Hardy blogs, I emphasized how you can curb your spending or just be aware of how much you’re spending. I always put myself on a daily budget. Thankfully I’m working hard throughout everyday; therefore, I don’t have time to buy things I crave (carbing up with pizza or pancakes). Also, I follow a routine every morning. I have a fried egg, rice, and chicken (stir-fried basil)….so I’m constantly aware of how much I spend everyday.
Guys, I can’t stress enough how important it is to save. In my podcast I give you some stories that ultimately lead me to saving.
Let me first ask you some questions.
- Are you driven to a country because of sexual activities?
- Do you want to buy a car because of your insecurities?
- Does having a big house mean more to you than making a difference?
Those are the most basic questions in terms of these masks. From the sex tourists that have made Thailand the number 1 tourist destination on the planet as of 2017 (ok, not all are, but a significant portion of that 20 million came here to engage in sexual interaction), to the high society who lavish themselves in luxuries to cover-up what’s really wrong underneath their skin.
Welcome to the two most vicious masks of society (as most of them are).
Ok, maybe the material mask relates to women more than men, but if you put the #entrepreneurship hashtag in on Instagram, you will see a lot of men wearing super expensive suits (rented), wearing fancy watches (also rented) while standing in front of planes (jumping over fences to get to them) or standing in front of cars (without the license plate pictured). Yes, I’m calling out the Laguna boys who seemingly lost all perspective in terms of living.
Shows such as Jersey Shore made it much worse when it was all about body-building, money and the latest trends. This goes for both men and women.
Lewis Howes, at the time of writing the book, was sitting in a massive mansion in Beverly Hills. This mansion was owned by one of the most polarizing characters (and still is) by the name of Tai Lopez. Yes, the man who spouted “KNAWLEDDDGEEE” all over the net, preaching to people about the “good” life on a Ted Talk stage, and someone who would constantly show his materials. He also went on to say, “these materials don’t mean anything,” but it’s a selling point for you to get those weak-minded individuals into buying your courses?
Anywho, this is a man who’s hampered by the media-crazy materialistic America.
“The irony is, for so many people, all that materialism invalidates the quality of a person’s ideas. There’s nothing Tai can do to get those people to hear him, which just drives him further behind the Material Mask. It’s like someone trying to convince you that they care about you by screaming, “I love you!” louder and louder right in your face at the top of their lungs with the veins bulging out of their neck. You don’t hear the words; you only see the vulgar display.”
Excerpt From: Lewis Howes. “The Mask of Masculinity.” iBooks.
What’s available if you drop the mask?
Attracting people who are interested in who you are, not how much you have
Satisfaction with your achievements
I worked at a job in Pathumthani, Thailand who had about 13 anglo teachers (the emphasis is coming), all of which who escaped a terrible divorce, got shunned by their own children (who no longer speak to them) and ended up seeking refuge by marrying a poor woman from a village. This is the story of the over 45s here in Thailand.
Ok, those are wife-tourists.
Let’s put some focus on the sex monsters.
The future trend that many people need to keep up with will be data science because the world is moving towards digitization; a world where many users would give their data in return for better services. Therefore, Deloitte suggested that data needed to be free and shouldn’t be like Orwellian like the dystopian novel ‘1984’ that popularised the word ‘big brother’; scrutinizing everyone’s daily lives. Even giving up on too much information could wipe out the concept of privacy which Deloitte called ‘data sovereignty,’ which encourages the government and technological companies to conserve their users and the government to protect the data privacy by freeing up data. The advantages of using data would make marketing agencies and enterprises become more competitive so they can know more about their customers. As the saying goes, ‘customer is king’ because the market will become more customer-centric and social.
Furthermore, the power of data would make products and services become more customer-centric where it allows the products and services to be customisable as sellers and buyers will be moving and incline towards marketplaces. Chelsea Rustrum once said ‘the future of economy will be the marketplaces as the economy is inclining and becoming more like a big marketplace.’ Therefore, as an employer, you need to empower your employees and give up your rights by giving rights them to your employee. This kind of trend was known as the “sharing economy” or “sharing capitalism” because of Airbnb and Uber, which pioneered giving and sharing. Also, the second generation of startups fully utilised the crowds for funds to kickstart a project known as crowdfunding. I still remember my short mentorship with the founder of Crowdsourcing Week, Epi, who showed me the future of crowd-basedbecause of the sharing economy like Airbnb and Uber and the p2p money network, Bitcoin, and its heart of technology that powered Bitcoin and other cryptocurrencies, blockchain, really revolutionised the status quo so that we can do things at a lower-cost and eliminate fixed costs.
This type of trend would disrupt traditional supple-chains where it used to be based on pickup and transporting goods. However, a data-driven supply chain would make things easier and sufficient as customers would pay for goods and services through online payment since there are many financial technologies like Venmo and PayPal (the company that pioneered online payment system), but with the blockchain, which could revolutionise the internet into the internet 2.0, it would make payment systems safer and more trusted by consumers as it would be more safe and unable to be compromised by hackers. Also, blockchain would possibly make huge disruptions to health services. A good example will be Estonia, a real futuristic e-Governance in the making and attracted many digital nomads and global citizens with their e-residency. It was a real inspiration for the Singaporean, Australian and New Zealand governments to have their own e-passports being issued by the government. At the end of the day, data and the cyberspace will be democratised and citizens would fully own their own data and the cyberspace through its decentralised framework of the blockchain.
The most important questions that schools do not ask students. I’ve done this before, and I’ve also replicated what Vishen Lakhiani did in one of his videos. These questions are vastly important for a lot of people, but yet they go undiscovered because of outside influences. With the PDF that I provided below and with plenty of empty space, get your life back together and take charge NOW!
Here are some of the questions I’ve answered….
What is my life purpose? To inspire people with my voice all around the world; to build an organization that brings innovation to rural villages and focus on the core geniuses of individuals; to make learning English as easy as possible and build a thriving community where people can help one another on a daily basis.
What are my dreams?
What are my goals?
What am I grateful for?
What makes me happy? Running, speaking, living and laughing. I make sure I do my exercise once a day to bring that fulfillment that’s needed at the beginning of the day. I also speak (with my podcasts, live video, or YouTube) on a routine basis (and that’s teaching, too). I feel most alive when I’m speaking and working out; therefore, I’ve dedicated an amount of time to do these things.
How would I like to grow personally? Become a better empathic listener. To build and nurture my relationships and not let go so easily.
How would I like to grow spiritually?
What would my perfect relationship look like? Walking anywhere and anywhere in the world, unattached to “our” surroundings while blissfully laughing the day away. Interdependency and not having to rely heavily on one another like traditional relationships.
What would my ideal family life consist of?
What is something that I’ve always wanted to do?
What would I like more of in my life? Free time. I’m dedicating far too much time to something that students can learn with (and will learn with) through virtual reality in the coming years.
What would I like to do more of in my life? Enjoy the little things. Spontaneity.
Where would I like to travel? Mongolia, Kazakhstan, Cyprus, Gibraltar, Macedonia, Kenya, Egypt, Morocco, Fiji, Samoa, Norway, Sweden, Croatia, Costa Rica, Colombia, Chile, Panama.
Where would I like to live? For now, Asia. In about ten years, I want to establish my presence in South America where I’ll retire.
What career would I ideally choose or create for myself?
What are my financial goals?
How can I give back within my community?
Which causes or charities would I like to be more involved with?
If I could change the world, how would I make it a better place?