Rich Dad Poor Dad | S5 – E12 | Assets vs. Liabilities | What’s Your Cash-flow Pattern?

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?

Podcast

Rich Dad Poor Dad | S5 – E9 | A Job is a Short-term Solution to a Long-term Problem

“Remember what I said before: A job is only a short-term solution to a long-term problem. Most people have only one problem in mind, and it’s short-term. It’s the bills at the end of the month, the Tar Baby. Money controls their lives, or should I say the fear and ignorance about money controls it. So they do as their parents did. They get up every day and go work for money, not taking the time to ask the question, ‘Is there another way?’ Their emotions now control their thinking, not their heads.”

“Can you tell the difference between emotions thinking and the head thinking?” Mike asked.

Rich Dad Poor Dad

The absolute TRUTH! I’ve never heard it put so eloquently. A job is a short-term solution to a long-term problem. Genetics maybe? Mother did the same thing — work hard for a dead end check and pay all the bills.

Why Teach Financial Literacy

Whenever I speak to groups of people, they often ask what I would recommend that they do. “How do I get started?” “Is there a book
you would recommend?” “What should I do to prepare my children?” “What is your secret to success?” “How do I make millions?”

Whenever I hear one of these questions, I’m reminded of the following story:

The Richest Businessmen

In 1923 a group of our greatest leaders and richest businessmen held a meeting at the Edgewater Beach hotel in Chicago. Among them were Charles Schwab, head of the largest independent steel company; Samuel Insull, president of the world’s largest utility; Howard Hopson, head of the largest gas company; Ivar Kreuger, president of International Match Co., one of the world’s largest companies at that time; Leon Frazier, president of the Bank of International Settlements; Richard Whitney, president of the New York Stock Exchange; Arthur Cotton and Jesse Livermore, two of the biggest stock speculators; and Albert Fall, a member of President Harding’s cabinet. Twenty-five years later, nine of these titans ended their lives as follows: Schwab died penniless after living for five years on borrowed money. Insull died broke in a foreign land, and Kreuger and Cotton also died broke. Hopson went insane. Whitney and Albert Fall were released from prison, and Fraser and Livermore committed suicide.

I doubt if anyone can say what really happened to these men. If you look at the date, 1923, it was just before the 1929 market crash and the Great Depression, which I suspect had a great impact on these men and their lives. The point is this: Today we live in times of greater and faster change than these men did. I suspect there will be many booms and busts in the coming years that will parallel the ups and downs these men faced. I am concerned that too many people are too focused on money and not on their greatest wealth, their education. If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer despite tough changes. If they think money will solve problems, they will have a rough ride. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.

So when people ask, “Where do I get started?” or “Tell me how to get rich quick,” they often are greatly disappointed with my answer.
I simply say to them what my rich dad said to me when I was a little kid. “If you want to be rich, you need to be financially literate.”

That idea was drummed into my head every time we were together. As I said, my educated dad stressed the importance of reading books, while my rich dad stressed the need to master financial literacy.

Rich Dad Poor Dad | S5 – E8 | Should Prices Go Up?

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.”

Interviewee #33 – Lenita Abouchabake on Youth Leadership

Another amazing connection that made way into my inbox. We got on a call, same day, and talked for almost an hour. This amazing Australia has come on to share some unbelievable thoughts. I will bring her on BeLive.tv (The Arsenio Buck Show) and Motivational Mentors, so please be sure to follow those Facebook pages, too! Here’s what we chatted about.

Another amazing connection that made way into my inbox. We got on a call, same day, and talked for almost an hour. This amazing Australia has come on to share some unbelievable thoughts. I will bring her on BeLive.tv (The Arsenio Buck Show) and Motivational Mentors, so please be sure to follow those Facebook pages, too! Here’s what we chatted about.

Lenita’s passion for health and young people always empowered her into learning ways to educate youth on how to become healthy, confident and resilient. This passion led her to becoming a Physical Education Teacher, to raise awareness on the importance of student wellbeing.

Wanting to expand her classroom, she left her teaching role to become a Youth Speaker and Teen Coach. She speaks in high schools to deliver resilient presentations and provides students with practical ways to help them overcome various hardships in their life.

With the success of her youth speaking business, Lenita supports leaders and experts in Personal Development and Financial Literacy, in becoming Youth Speakers to share their story and expertise with the youth around the world – essentially filling the gaps in the education system.

Get in touch with Lenita Abouchabake on Youth Leadership

Links:

Things we discussed:

  • Introduction given by Lenita Abouchabake to the listeners and the problem with traditional of education system and limited soft skills, building abundance and financial literacy in the Western world.
  • What are taught in Australian system?
  • What are the differences between non self-aware and self-aware people.
  • What are the big issues and the commonalities that are happening amongst youth?
  • What is the paradox of detention in schools?
  • Rejection & Resentment
  • The importance of individuals’ purpose.
  • Roadblocks and overcoming them.
  • How to create opportunities for yourself?
  • How to invest in yourself and make an impact.

Thank you for listening!

Thank you so much for joining me on this podcast. Please do write down some feedback and comments. Please do share this podcast to your social media.

Links:

  1. Facebook page: https://www.facebook.com/thearseniobuckshow/
  2. Instagram: https://www.instagram.com/thearseniobuckshow/?hl=en
  3. YouTube: https://www.youtube.com/channel/UCIzp4EdbJVMhhSnq_0u4ntA
  4. Podcasts: https://www.spreaker.com/user/thearseniobuckshow, https://open.spotify.com/show/7hdzplWx6xB8mhwDJYiP6f, https://www.buzzsprout.com/165390
  5. Website: https://thearseniobuckshow.com/
  6. Twitter: https://twitter.com/arseniobuckshow?lang=en

The Failure of Credentials (part 1/2)

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.

Blockchain in Bangkok: Neighborhood is Buying & Selling Energy

I normally give Thailand (primarily the women) a hard time in terms of treating individuals the same.  However, I love innovation.  As the mass transit system sets up across Bangkok, I’m like a child on Christmas, jumping around deliriously and anxiously waiting for the grand opening.

With the Sky Trains (grey, red, pink, brown, green line extensions, orange, yellow) going up around the city, there’s an even greater story: Thais buying and selling electricity using blockchain.

Source: World Economic Forum

 

So, the infographic might be hard to understand, but let’s just say the generating capacity of is enough to trade electricity between a mall, school, dental hospital, and apartment complex.

The managing director of the Australian firm, Power Ledger, said that enabling renewable energy trading will reduce our carbon footprint.

Just recently, Elon Musk heading to my native Puerto Rico and provided dozens of solar panels to a children’s hospital.  Furthermore, neighborhoods all across the globe are implementing solar panels in neighborhoods — encouraging everyone to switch to renewable energy.

This not only puts a spark into humanity, but for countries such as Thailand, which are notorious for pollution, there are people who are pushing to make the switch.

Most notably, the gym I go to, Lab BKK, is all renewable; from the lightbulbs, to taking out all plastic, to having all their products + humanity.

Times are getting interestingly exciting!

Questions & Answers: International Schools vs. Solopreneur (In Thailand)

Government schools, private schools, international schools….you name it.  It’s all part of the “system” here in Thailand.  One of my students recently asked me “why don’t you work at an international school and get better pay?”  Well, let me break down the reasons WHY.

1) Freedom to Accept & Deflect

When I was working at a job recently (3.5 years and hated the last 1.5 years of it), I was being forced to teach at bad projects.  I told the “head” teacher that one place was racist as hell, but he didn’t care and forced it down my throat by saying: “we expect to be the number one priority.” Guys, when you’re a solopreneur, you don’t have to be stressed to the max.  I had a project at a bank during this time and he was telling me to “do this or go part-time” instead of compromising and saying, “ok, you don’t want to do it because of this.  I understand.”  That’s just historical thinking and it’s no wonder the place is completely collapsing to this day.

Just think about it.  If I told my part-time banking job “no” at the time, I wouldn’t have gotten the dozens of other projects I have today.  There’s always a ripple effect.  I would’ve been doing for other assholes rather than achieving and gaining projects by myself.  ALWAYS look out FOR you!

What I learned is you have to rebel.  If a boss, coordinator or any other jackass starts to threaten you in the beginning stages, walk out.  There’s absolutely no need to stay.  I recall the most EVIL BOSS IN THE WORLD saying “I shouldn’t even give you a work permit or visa!”  Like, I was an idiot to stay after being verbally insulted like that.

And what happened next was simply me going home, looking for another job — and found one.  Left without telling them a god damn thing, too.  That’s how I roll.

Freedom to Call the Shots

When you’re a solopreneur, you don’t have to report to a manager who has a 3-decade old perception of life.  I don’t have to create grades for a soul.  I’m calling my own shots and that’s the best thing to do.  When someone comes to you and says, “I need this, I need that, this is the due date.”  Ummm, f*** you….babe.  I have my own due dates.  That’s a BEAUTIFUL thing.

Freedom to Travel

Working at an international school in Thailand entails that you can only take holidays on specific periods.  Ummm, no.  I’m going to take a holiday whenever I want.  When I come back, I better still have my job.

At my first language center job, I took holidays whenever I wanted until an OLD BRIT wanted to gain that control over me.  Ummm, again, f*** you.  I don’t give a damn how old you are.  If you don’t respect my goals in life, bye.  That feels SO GOOD.  Never have I EVER had a job in the world that I can say, “hey, I won’t be here next week…I’m going to Cairo.”  No way.  In America, you get fired in the matter of seconds.  Hell, in America you don’t even get a holiday.  If you get a holiday….it’s going to be a permanent one.  You’re just a number.

Freedom to Make Your Own Assets

If you want x amount for this month, done.  If you want to work real hard this month, ok.  If I want to teach online in the evening and call off the next day….perfection.  Also, you don’t have middle-men/women.  Most language centers in Thailand are corrupted.  Their CEO’S try hosing the majority of the teachers.  My last job made 90% and I made 10% working at a completely discombobulated company called Toshiba.  Is that fair?

How about 20-25%?

Do you think that’s fair?

50%? Not bad, but now I’m 30 and I want my own projects.

So I’ll do 100% because at least the student knows where there money is going.

Here’s my Podcast and YouTube video down below to break it down in micro.

 

 

YouTube

Is A Four-Year Degree Worth It? What’s Education?

First, it was a couple of comments on Gary Vee’s Linkedin, stating that Gary Vee was going over-the-top in terms of his comments about reading books.  He said, “reading is ridiculous.  Stop reading and more action.”

Reading changed my life completely.  I went from being just a color, to being an inspirational figure.  If we dig deep into the context of what’s in books, some of the greatest secrets are revealed.  I had no idea about what Personal Development was before 2016.  After one day and searching a library, where I am now is just remarkable.

So, everyone is entitled to their own opinion, but reading, or at least listening to audios, is absolutely essential in growth.  And as a human being, we’re insatiable about growing.

However, we need to shift focus and look at what’s happening from an educational standpoint.

What is education?

Is it your mom saying, “go to school and get a good education! You’ll be successful if you go to university!”  Yeah, 100k in debt and no job offers with your obsolete ass degree.  What am I suppose to tell my daughter and son, if I have one, when they get older? I’ll have to tell them the truth.

Everyone isn’t built to become an entrepreneur because most people can’t take repetitive punches to the face, A.K.A Faiure, but we know working a job is the worst way to earn money…and that’s what education is breeding.

So, here’s my two cents in the podcast down below.

https://www.spreaker.com/user/thearseniobuckshow/is-a-four-year-degree-worth-it-what-is-e

Dealing With Potential Jobs & Saving Yourself Time

I’ve been on such a tear in terms of trying to find a part-time/full-time job in Thailand.  Over the past few months, I’ve come across the most ridiculous potential employers, as we’ve all had in our lifetime.  How can you save yourself a peace of mind during the process? Let’s go over the past potentials — turned laughing stocks.

The One That I Thought Was Cemented

Ahhh, this was was a gut-check.  This was the one that made me throw my hands in the air incredulously and say, “how did that happen?! It was a perfect interview!”

Rule Number 1: If they want you, they’ll call you within 24 hours. 

If you have the interview and they tell you to have a good weekend, chances are they’re not going to call you back EVER AGAIN.  I thought I landed what could’ve been a dream job, but for whatever reason, it vanished.  The worst part about it is I gave myself false hope.  I had the interview on December the 18th and I was still telling myself, “he will call me” around the 27th.  Into New Years, I was still clinging onto hope, thinking I would get an email for an orientation of some sort.

My student gave me the wake-up call and said, “you already know what happened.  You’re wasting time thinking about them.”

Hard dose of reality.  If a potential employer wants you, they’ll ask you to start almost immediately.  Back in America, I had my first ever interview at a newly opened dental practice and he called me the next day around mid-morning saying, “we decided to hire you.”  It was the most glorious moment of my life.

Don’t get bent out of shape and jump to conclusions.  Whatever the reason may have been, which might include an extensive list, they don’t want you.  Move on, like I did.

The We Will E-Mail You Once We Find Out

HA! These are the deceptive ones that make you wait.  I had a great email response to an individual who said, “thank you so much for your extensive and impressive resume.  We’ll find out soon about times and let you know.”  This was in regards to a corporate employer.

Was it true? No.  I told him that I’d be waiting and then he sent me an email back saying, “we also have jobs in China.”

So, I think his intent was to find someone here in Thailand and ship him/her off to China.

REDUNCULOUS

Rule Number 2: You can’t bullshit a bullshitter.

That “we’re waiting on a response” is horseshit.  But thanks!

Please make sure you tell them that.

The Apply For Jobs But Never Get A Response

Now let me tell you this.  This probably doesn’t relate to people outside of Thailand, but I want to give you some stories to some notorious teaching agencies.

There was a girl I met who was running an agency online.  She said she had quite a few corporate clients and wanted me to teach one in particular out in the boondocks.  She then gave me another one, reconfirmed for a particular morning during the weekend, and then she went silent.  About three days later (and just before I blocked her through messaging), I asked her “so, what happened with that particular company?”

She retorted, “oh, they chose another teacher.”

As a man of color, these agencies are not only impossible to work with, but it’ll drive you insane, destroy your confidence, and make you want to leave the country.  So basically if a Thai company is going to choose between 5 white men and 1 black men….who the hell do you think they’re going to choose?

It wasn’t just one company, it was five other potential suitors.  They would say, “ok, we will send you profile to the student and it’s up to them to contact you.”

They would never contact me.

Rule Number 3: When dealing with a company of this nature, STAY THE F*** AWAY! If not, your confidence and self-esteem will be battered. 

The Respond 6 Weeks Later & No Human Follow-up

Oh, we have all had that job that responded way too f***ing late, right? LOL! I think my record was about 3 months.  This one that happened recently caught me off guard.  I jumped up in JOY because it wasn’t just one job offer, it was 6 in total with different timings and all in the same area.

I said, “OMG! This is perfect! I knew I would attract this to me!”  I sent somewhere between 4-6 emails back in terms of choosing jobs.

However, this is there little memo they had at the bottom….

Please note, this is not a job offer, this is a job listing that is distributed to our mailing list of teacher candidates. Please read the information above carefully and respond to the listing if you are available to teach the contract, we will then get back to you if you are short-listed and arrange an interview / orientation.

We apologise in advance but due to high numbers of applications we will only respond to short-listed candidates. However, you are on this mailing list because we have already reviewed your resume and consider you a viable candidate to work with. If this opportunity does not work out please continue to let us know if you are interested and available for future openings.

If you would like us to remove you from this mailing list, please let us know and we will do so immediately.

Wow….so teaching candidates — of what could be more than fifty teachers; let alone fifty white teachers.   Not only that, only short-listed ones will have an interview arranged.

They went on to say, “due to high numbers of applications, we will only respond to the short-listed ones.  You are on this mailing list because WE CONSIDER YOU A VIABLE CANDIDATE. If it doesn’t work, please continue to let us know about future openings.

If you would like to be removed from the mailing list, please let us know.”

OH-MY-GOD.

You’ve got to be shitting me.

Not only did they it might not work, but they said if I want to remove myself off the list, please ask them?

WHO THE HELL SAYS THAT?!

That’s like me saying, “Margaret, you probably won’t get the job, but please inform us if you want one in the future and we’ll continue to beat around the bush and waste your time.  If not, we’ll block your email.”

I mean, that’s got to be the most outlandish s*** I’ve ever seen in my life.

And out of all six of those jobs that were sent to me by email a week ago, I never got a human response from them.  I never got a follow-up to why they didn’t work.

I went on google to google the company and realized that it was the most PRO-WHITE company I’ve ever seen.  Every single teacher there was over 50 and beyond white.

Rule Number 4: Are you looking in the wrong place?

Yeah, I should definitely be my own boss now after these happenings, but I’m contemplating staying here any further in this country.  The ignorance and racism continues to get worse and worse.

However, to everyone who is reading this, when you’re looking continuously in the wrong place, you’re going to continue to find the same problems.

Time to open up some new doors.

Don’t give up!

What Would I Tell To My 19-Year-Old-Self? What Do You Really Want.

In the picture was Thanksgiving holidays in 2007.  Yes, I was 19-years-old, taking classes at college and not having a goal in mind whatsoever.  I did make up my mind in terms of Dental Hygiene (which later failed), but what did I truly want?

It’s hard to say going back, but if I had been able to travel for a year, I would’ve gotten a really firm grasp on life at a very early age.  I love going back to my student — Kim Kim — who knows just as much as me at the age of 16.  I didn’t have this at that age.  I was taking Algebra II and worried about a girl name Maria Ventura cheating on me in 10th grade of high school.

The insights and everything I have now in terms of schooling, international schools focusing on the core genius of their students, Finland completely dropping all subjects (just as NIST does here in Bangkok), and so many other things could’ve helped me in terms of making a decision.

If I can tell my young self something, it would be, “get off the god damn games.  You’re living in the age where people are soon to become billionaires and you’re letting it go right past you.”

Myspace in 2004 — Tom took that 41 million + and that was it.  Mark of Facebook stole and idea and now he’s one of the richest men on the planet (that was between 2004-2006).  The internet was not in the embryonic state, but it was already a kindergartner.  The Twitter, Instagram, Uber, Snapchat and dozens of other apps changed the world right around when I was in my dormitory playing God of War.

Those times I complaining about my ex-girlfriend leaving me in the beginning of 2009, there were NO VIDEOS on YouTube in terms of how to deal with breakups.  I didn’t know the Napoleon Hills, Dale Carnegies, Gary Vees of the world.  I had blinders on with my hands out, searching for something that didn’t exist.

Now I’m telling myself that I have no regrets.

But what if?

Podcast