As life becomes increasingly expensive, you may be hearing yourself recollect how much cheaper things were way-back-when and gaining unwitting empathy for older generations who frequently and painfully reminisced on 'better economic times'.
Inflation, it appears, happens to all of us as the years progress. Its so inscidious that you hardly notice it happening, until you reach a certain age or time in your life when your income growth hits a peak. The younger, fresher and more recently educated (not necessarily smarter) begin to run up behind you in the employment, work or business sectors and begin to earn as much as your 'far more experienced' self. Thats when you realise that, you had better have the law of compounding on your side; your compounding pension, your low mortgage on your long occupied home, your investments all heading for 'maturity' just like yourself.
Of course, older and wiser people know of the benefits of this, having wasted time, money, resources and opportunity in their youth, they know only too well of the benefits of compounding. Little and often, slow and steady - the multiplying effect. The difference 2% or more can make over time.
Educated to be an employee, a leader or entrepreneur?
In a culture where we are lead to believe that education gains you an advantage financially; that education is now costing more, with no guarantee of career or financial advancement.
Life is a Game of the Survival of the Fittest
Drive, ambition and a competitive spirit may encourage many to pursue adventurous acts of accomplishment to gain social or financial advantage. If you're this type of person, you may be suited to an occupation where results, targets and deadlines are important. In general however, that kind of mentality can lead to you work hard now, get larger debts, bigger houses and cars and if you haven't succumb to the stress of it all, if you survive, then you have won!. What you have won though, I can never be sure.
Was Robert t Kiyosaki Right?
But was Roberts perpective right? Did everyone profit from his principles and if not, why not? For now thought, while you research Rich Dad, Poor Dad and his theories, I will leave you with this metaphor for consideration. Make of it what you will.
The Mexican Fisherman
An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.
The Mexican replied, "only a little while."
The American then asked why didn't he stay out longer and catch more fish?
The Mexican said he had enough to support his family's immediate needs.
The American then asked, "but what do you do with the rest of your time?"
The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life."
The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC where you will run your expanding enterprise."
The Mexican fisherman asked, "But, how long will this all take?"
To which the American replied, "15-20 years."
"But what then?"
The American laughed and said that's the best part. "When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions."
"Millions.. Then what?"
The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."