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Author Topic: Financial Education Rich Dad Scam#2: Get a Job  (Read 1616 times)

A7x

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Financial Education Rich Dad Scam#2: Get a Job
« on: September 26, 2014, 01:20:30 pm »

By:RK

We see scams every day. Sometimes they are easy to see and call out, like spam emails that promise riches in exchange for your bank information. But some scams are a lot harder to spot. From my rich dad, I learned financial smarts, which taught me how to spot scams—and how to not be taken in. Unfortunately, without those financial smarts, it can be very easy to be taken in by scams, especially the scams that the rich use to keep the poor in their place.

Those scams are what I’m writing about in a series called Rich Dad Scams, and to break away from them you usually need someone else to warn you that you’re being duped, to tell you that you’re being taken advantage of, and to tell you what you can do about it. The first Rich Dad Scam I wrote about was Higher Education. Today, I’m writing about the Rich Dad Scam of “Get a Job.”

The big one: You need a job

When I was young, my poor dad always told me that I needed to go to school so that I could get a good job. To my poor dad, getting a good job was the most important thing in life. My poor dad worked very hard. And he was always worried about money. Yet, he never got ahead. His job was one of the things that actually kept him from succeeding. He toiled away working for others, often getting raises only to keep up with the cost of living and paying a high percentage to the government in taxes.

My rich dad, on the other hand, never had a “real” job, and he was rich and successful. My rich dad understood that the sentiment, “Get a job,” was a scam. Rather than get a job, he made jobs. Rather than work for someone else, he worked for himself. Rather than pay high taxes, he used the tax code to get rich.

How the scam works

The reason Get a Job is a Rich Dad Scam is because it makes you poorer, especially if you have a high paying job, because you pay the most in taxes.

And guess who isn’t paying a lot of taxes? The owner of the business you work for. The scam gets even worse when you look at it long-term. If you do well at your job, if you claw your way up the ladder, what is your reward? A small increase in pay and a bigger increase in taxes.

It gets even worse if you work for yourself. You pay the highest taxes in the form of self-employment taxes.

The only way to avoid this is to be the owner of a big business or to be an investor, to put your money to work for you. That’s where the rich work and live. The system is set up to benefit the rich so they can keep their money while making sure you keep getting taxed.

The tax scam

When you realize that taxes are a way of keeping you in your place, you can see that this Rich Dad Scam is really just an extension of Rich Dad Scam #1, “Go to School.” It’s in school that you learn to be a good employee, that if you work hard you can succeed. But really, you can’t, not on those terms.

The government gives tax breaks to those people they identify as creating jobs: entrepreneurs and big business owners. They want the private sector to develop real estate, start companies, and generate wealth. The government rewards that. In return, the government expects employees to pay taxes that cover things like Medicare and Social Security.

Some people argue that employers pay these taxes too, but really what they are doing is using money that would otherwise pay you to pay their share of the taxes.

False security

The idea that a job is an important part of your personal security is a big part of the Rich Dad Scam #2, “Get a Job”. The reality is that having a job does not make you secure. You only need to look at the state of our economy or turn on the news to see that people are losing their jobs. In an economy where people are losing their jobs, the more secure position is to own the company that is firing people.

Stepping away

My poor dad, just like most people, was conditioned and taught from the day he was born to be an employee. My rich dad broke away from that thinking and was an entrepreneur. He put his money to work. He was on the side of the rich, the side protected by the government. But how do you get there?

The first answer is simple. You do it by increasing your financial education and beginning to think like an entrepreneur instead of an employee. When you do that, you break out of the rat race. You realize that everything you’ve been taught about getting a job and finding success is a lie, and that there is another way— a better way that actually works. And that’s the secret the rich don’t want you to know.

tigerwing

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Re: Financial Education Rich Dad Scam#2: Get a Job
« Reply #1 on: October 01, 2014, 04:39:07 am »
The only way to avoid this is to be the owner of a big business or to be an investor, to put your money to work for you.

How exactly can you do this if you do not have a job that pays? Where will you get the money to build a big business and invest? Aasa sa mauutangan?

lets get this straight. Based on your post titled "Financial Education Rich Dad Scam#1: Higher Education". You should not go to college, its a scam. Now getting a job is a scam as well. So basically you"ll become someones who's under educated, unemployed and broke (wala ka nga trabaho diba?)..  Again, forgive me pero sinong t***a ang mag papautang at magtitiwala sayo ng lagay na  yan? ::lmao ::lmao ::lmao

« Last Edit: October 01, 2014, 04:42:56 am by tigerwing »

A7x

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Re: Financial Education Rich Dad Scam#2: Get a Job
« Reply #2 on: October 01, 2014, 11:55:53 am »
What the author is trying to say here is that choosing job security over financial freedom is not the way if you want to get ahead financially. In schools we are taught how to work for money by working for a job but never how to have our money work for us. Let me give you an example, let's just say you have a job right now in a big company with a very high salary and I have a small business or an investment of course you earn more than what I am earning since I am still starting (You might be asking, how are you going to get your capital since you do not have a job? Simple answer, I pay myself first before my bills and everything.)  5yrs - 10yrs from now you still have a job and I may have 5 - 10 more business (the difference between a job and a business is the word LEVERAGE.) Now, let's say due to an unfortunate event you got sick and the company you are working fired you. On the other hand I also lost 1 of my business as well. What would you think will happen? I still have 9 businesses that are working just fine and I'm still earning money while you are struggling to make ends meet since you lost your job which is your only source of income. The lesson is never depend on a single income because you will never know what will happen.. The author is not anti education but rather he teaches how we should not depend on job security.
« Last Edit: October 01, 2014, 12:05:23 pm by A7x »

BlueAlphaZero

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Re: Financial Education Rich Dad Scam#2: Get a Job
« Reply #3 on: October 01, 2014, 03:44:17 pm »
5yrs - 10yrs from now you still have a job and I may have 5 - 10 more business

The operative word here being "may", Seigneur Tigerwing. Five or ten years down the line, you may be running the company where you work or you may have resigned from your job because you finally earned enough money to run a charter boat in the Bahamas. It's happened before. You can never really tell.

Custodite fideliter quod quae credita est fideliter ad vos.

tigerwing

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Re: Financial Education Rich Dad Scam#2: Get a Job
« Reply #4 on: October 01, 2014, 08:37:39 pm »
What the author is trying to say here is that choosing job security over financial freedom is not the way if you want to get ahead financially. In schools we are taught how to work for money by working for a job but never how to have our money work for us. Let me give you an example, let's just say you have a job right now in a big company with a very high salary and I have a small business or an investment of course you earn more than what I am earning since I am still starting (You might be asking, how are you going to get your capital since you do not have a job? Simple answer, I pay myself first before my bills and everything.)  5yrs - 10yrs from now you still have a job and I may have 5 - 10 more business (the difference between a job and a business is the word LEVERAGE.) Now, let's say due to an unfortunate event you got sick and the company you are working fired you. On the other hand I also lost 1 of my business as well. What would you think will happen? I still have 9 businesses that are working just fine and I'm still earning money while you are struggling to make ends meet since you lost your job which is your only source of income. The lesson is never depend on a single income because you will never know what will happen.. The author is not anti education but rather he teaches how we should not depend on job security.

5-10 yrs from now, since my salary is quite big, I will also have significant investments. Even if I lose my job, I'll still have money. And since I'm a very,very good employee, my track record will make me "in demand". I will not stay unemployed for long. But what if I didnt lose my job? In 5-10yrs chances are I'll be promoted and as BlueAlphaZero mentioned, who knows I might actually become the CEO of the company I work for. 5-10yrs from now while youre still busy working with your business I might be gearing for retirement..

Really, who knows what will happen? The employee may actually end up several times richer than the business owner who believed that being employed is a bad thing..
« Last Edit: October 01, 2014, 08:53:17 pm by tigerwing »