I thought it was funny to read about himself and his wifes accountant and how she (the accountant) reacted when the couple wanted to take 30% of $1000 to invest instead of paying the bills. Even though they owed $1500 to creditors. The accountant became very upset.
This lesson about paying one-self first is something that very few do. They pay themselfs last, but think they pay themselfs first. The thing is that people pay themselfs what is left over. That is not paying yourself first.
It takes a certain kind of guts paying yourself first. Especially 30% of income. Robert Kiyosaki and his wife actually made money through business dealings and paid themselfs 30% before taxes. That takes real guts. Though I would guess the taxman got the first rights to the money on what was left over, before the other creditors.
But I can’t help it, I like Robert’s crazy way with money. It resonates with me and makes real sense to me. I like his creative financing schemes as well. I really do. Others thinks he is a total moron, I can’t agree at all. He is probably the sanest person out there.
This guy knows that in the end, yourself goes first in line. You only have yourself in the end. I find it (just as the author does) funny that we prioritize others more than ourselfs. People think that this is our responsibility. That is BS, I am responsible for me first. Always. Then I can be responsible for others. But I need to secure my ass first. How can I secure my own ass first when everyone else is entitled to my money before I am entitled to it?
So think about this:
Every time you get $1 in your pocket from business dealings, take 30 cents right of the top and invest it. Pay taxes on what is left and the other creditors. The creditors that are left when there is no more money, need to wait until you earn some more money. This makes you really productive. You have to be..hehe. You have no choice.
Creditors of importance are always:
Banks and financial institutions
Other small time creditors.
If you are dealing with criminals and the Mafia then I would propose for you to stop dealing with those people. It can become a problem if you pay yourself and fall short of paying those guys.
Read the book by all means, you can never get enough of Robert’s refreshing view on finance and business.
I would like Robert to write a whole book on creative financing examples. I think that would have been a slam-dunk. I would have bought it directly.