![]() ![]() The truth is, the rich don’t save their money. On our journey to financial freedom, Kim and I realized that in order to be rich, we had to pay ourselves first. If you bet on saving money as a path to financial security, you will lose - therefore, savers are losers. Rich dad’s mantra was, "Savers are losers." He didn't mean it as a personal insult to people who save their money. Rich Dad's Christmas money advice: savers are losers spenders are winners "If you're one of the lucky workers getting a monetary 'thank you' from your boss, it's a no-brainer to put that money in savings," writes Douglass. Bad Christmas money advice #2: save your Christmas bonusĪccording to the article on CNN, nearly 42% of people will get a holiday bonus from their employer. This compounding of assets, not just money, creates true wealth-and many happy and wealthy Christmases to come. The best part of this strategy is that the more cash-flowing assets you acquire, the more money you make each month from those assets that you could redirect into even more cash-flowing assets. And if you want the tax benefits of a 401(k) to do this, you can use a vehicle like a self-directed IRA. This is key because while you have little control over a 401(k), you have full control over investments in cash-flowing assets. Instead, you should use any raise or Christmas bonus you get to build an investment account for cash-flowing assets. ![]() If you want to be rich, the last thing you should be doing is increasing your contribution to your 401(k). ![]() Rich Dad's Christmas money advice: invest in cash-flowing assets If ever there was a real life Christmas Scrooge, it’s those 401(k) funds screwing you out of your money. Take for instance one reason from the horse's mouth, John Bogle, the head of Vanguard: "…The financial system put up zero percent of the capital and took zero percent of the risk and got almost 80 percent of the return, and you, the investor in this long time period, an investment lifetime, put up 100 percent of the capital, took 100 percent of the risk, and got only a little bit over 20 percent of the return." "This is extra easy if you get a pay raise at the end of the year, you can make the adjustment simultaneously with your paycheck increase, so you won't even notice the change."Īt Rich Dad, we've made no secret about why we despise 401(k)s. Take stock in your cash flow and decide if you can put more money in your 401(k) for the coming year, says author Michael Douglass. Bad Christmas money advice #1: Give more to your 401(k) In this article, you're encouraged to make financial decisions that will never make you financially independent. Take for instance an article from CNN Money called " 3 Smart Money Moves to Make in December". It is conventional advice that doesn't work anymore, advice the rich don't follow. By that I mean advice that keeps you in a poor mindset. The problem is that most of this advice is poor financial advice. From opting out of gift buying to making sure you use the best credit card to go into holiday debt, the advice runs freely this time of year from so-called financial experts. The media knows this, and there's no shortage of articles on how to save money during the Christmas season. You're probably going to go into some kind of debt to do it. And if you're like the average American, you don't have that extra money to spend. After all, estimates that the average American will spend over $900 on Christmas gifts this year. It's the time of year when money is on everyone's mind. ![]()
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