Money affects everyone. Whether you like it or not, whether you have a lot or not, money has some effect on your life. I like hearing money advice from wealthy and famous people. Their interaction with money is on a larger scale than mine so I feel they’d be able to offer great insight.
So here are 4 views on different aspects of money by 2 funny and 2 money guys.
1st Money Guy
Robert Kiyosaki (2012 on GO Banking Rates)
On Job life and money
“The problem is the people that are still operating by industrial age ideas such as a job for life, job security, the company is always going to take care of me. Those are obsolete ideas. If you look at what’s going on today, things are fast, things are moving. If you’re moving too slow, you’re wiped out. And that’s why today you got to think differently, you got to think quicker, you got to make changes quicker. Because this is how fast things are changing, this is the information age. If you’re operating by old ideas, you’re obsolete.
I kind of wonder why people work so hard for money but at the same time say ‘I’m not interested in money’ or ‘money is not that important to me.’ How can a person spend most of their waking hours working for money, then say it’s not that important. It doesn’t make any sense to me, it’s kind of hypocritical. “
My take away:
I do believe it will become a very rare thing to meet someone who has only worked in one company their entire life. This does not mean it’s a bad thing if someone does not move around, it just means few people will be satisfied the first time around. However, I don’t believe if you’re moving slow and not following the trends you will be wiped out. I believe there is a way for every pace and the main thing is for that person to find and stick to the pace they like; don’t try to be something you’re not interested in.
I do agree with the last statement, people need to stop acting like they don’t care about money as if thinking like that will remove the necessary aspects of money such as paying for food, shelter and clothing. There’s nothing wrong with acknowledging that a greedy obsession with money is not important but be honest, there is some degree in which money matters to you and you should focus on that degree only.
1st Funny Guy
Chris Tucker (2012 on Sway in the morning)
“Invest in yourself, that’s the number one thing. Don’t go invest in stuff you don’t know about. 9 times out of 10 you’re probably going to lose it or you’re going to get scammed out of it. Whoever you’re investing with, they know more about it than you and they’re going to say well let me just take this if you don’t know what you’re doing. So invest in yourself and try to own as much as you can and save your money. By saving that’s investing in yourself, whether it’s equipment or keeping yourself healthy or whatever. The longer you stay in whatever business you’re in, the more likely you’re going to keep making money and keep being relevant. So just invest in yourself, that’s pretty much it.”
My take away:
Christ Tucker hit the nail on the head. His personal experiences have taught him a lesson that all good financial advisors will tell you, do not invest in something you do not understand. Investing is very important but becomes pointless if you’re investing in the wrong things. So the key is to make the right investments. The right investments are not necessarily the ones that look good or flashy. The best investments tend to take time and can be very “boring.”
I also love the “invest in yourself” portion. The older we get, sometimes we neglect ourselves. We should invest in learning new things, being healthy and taking care of ourselves. If we do well in financial investments but fail at taking care of ourselves, we rob ourselves of truly enjoying the fruits of our labour. So yes invest in yourself, take those swimming lessons you’ve always wanted to (I’m doing so now at the ripe age of 30), learn a new language, eat well, train and run for a marathon and whatever else you’ve always wanted to do.
2nd Funny Guy
Bill Burr (2014 on Wall Street Journal)
On buying a house
“I could have done that dumb thing where you’re just like ‘look all I wanna know is what’s the payment’ then you hear the shackles. Then you’re just on this *bleeping* thing that just takes you under. Or you could buy something that you can kick the *bleep* out of the principal. Which is what you want to do. That whole *bleep* that your house is gaining value, it’s gaining value for the bank. Cuz you’re paying interest. So it’s like as your house is gaining this amount of value, you’re paying this amount of interest. Then with all the upkeep and all the taxes and all the crap, water damage and whatever *bleep* is going to happen to your house, it’s like in the end of it, after 30 years of this crap, you’re lucky if you break even. It’s a terrifying place to live, by the way Los Angeles, living in this mirage where you know there’s no water supply. If I could give anybody advice I guess on money, I would look to Los Angeles. The only reason why it works is because the deal is still working but the second that pendulum tips just a little bit that’s going to be one of the first ones that goes down. By the way, that’s why I’m learning to fly a helicopter. Because I’m up and out, because there’s no public transports, there’s no roads, there’s no way to get the *bleep* out of there. But if you got a helicopter you got a shot.”
My take away:
Bill Burr has expressed in his own quirky way how I feel about buying a home. The idea of owning a home is a nice thought but the way some markets are, you’re better off renting. In Toronto, in my neighbourhood, 3 bedroom bungalows can run you about $600,000 to $700, 000. I’m the type that wants to buy a home with at least 25% down, that’s about $175, 000 at the higher bracket. Why would I want to tie up that much money into a home when I can invest and really enjoy my life? I’m not even sure I want to stay in this city for a long time, so without owning a home, I have the flexibility to move with ease whenever I want. If you can truly afford a home (paying down as much as possible without relying on debt) and it’s a long term purchase, then it’s a good idea. Otherwise, it’s as bad as Bill Burr has expressed and you are basically in shackles to the bank and interest payments.
2nd Money Guy
Warren Buffet (1999 in Omaha, Nebraska)
On your financial future
“The biggest financial asset that you have going for you by miles is the value of your own earning power over the years. So that’s really what you should focus on, if you’re focusing on your financial future that means you should focus on you.
…..There’s two things that can hold you back….One of those is a lack of education…if you didn’t have a chance to get a decent education in life it wouldn’t make any difference what that potential was because you’d never unlock it. But the second most important thing is in terms of the habits that you develop in terms of what you do with yourself. When we hire people, we look for 3 qualities. We look for integrity, we look for intelligence and we look for energy. But if they don’t have the first one integrity, the other two will kill you. Because if you’re hiring somebody without integrity you really want them to be dumb and lazy don’t you because the last thing in the world you want them to be is smart and energetic. So smart and energetic only goes with integrity.
I would suggest you play this little game with me. Think about the person you would most like to be in life… Pick out the person you admire the most, the person you’d change places with if you could. Then write down why you admire them, put it on a piece of paper. Then figure out the person you would least like to change places with you. Who really turns you off, who do you find repulsive. Then list the reasons why that person turns you off so much, put those down on the other side of the paper. And then look at that list and you’ll find that everything on the left hand side which you admire in other people, the qualities they bring to life (cheerfulness, generosity) you’ll find those are things you can do yourself, it’s very simple. You got to apply yourself but the habits you form in doing that early on will carry you through life. And on the other hand, you’ll find the things that make people repulsive (selfishness, egotism) are things that no one has to have. If you find those in yourself you can get rid of them as long as you get rid of them early…if you do that when you’re young, it’ll carry you through the rest of your life.”
My take away:
As for Mr. Buffets first point, I do understand education is important, but in terms of a reliance on university/college, I don’t think that’s the only way a person can become educated. However, it’s his second point that I love. Habits are essential. Habits will make or break you. If you have all the education and talent in the world but lack motivation or discipline or a good character, you will never be able to unlock your full potential. I use to think talent was all a person needs but talent without the right attitude is pointless. I used to love watching Basketball and during the time I was into it Vince Carter and Kobe Bryant were very popular. Vince Carter had amazing athletic abilities and could dunk like no other. Kobe was an ok dunker but he was working hard at every other aspect of his game. Today, Kobe Bryant has retired with an amazing NBA legacy behind him while Vince Carter is still in the league with a disappointing career that could have been amazing had he tapped into the same discipline and work ethic Kobe had.
Whatever you want to do in life, I think you should heed Mr. Buffet’s advice and look to someone who is successful and has a great attitude that you can emulate. Do the exercise Mr. Buffet presented above and spend a lot of time perfecting your habits and working on self improvement.
Also integrity is another area where we should strive to perfect. I wouldn’t want to do business with someone who did not have any integrity so why would I operate without integrity? The golden rule, do unto others, has a lot of bearing on financial success in our lives.
Warren Buffet (1999 in Omaha, Nebraska)
On Credit Cards
“One other small piece of advice…one piece of specific financial advice. I would say avoid credit cards…if you start revolving debt on credit cards, you’re going to be paying 18 or 20% and you can’t make progress in your financial life going around borrowing money at 18 or 20%. You don’t want to be on the side of the equation that’s always behind in life. I was lucky, I had saved about $10,000 by the time I got out of school. That $10,000 was really worth millions I might have earned later on because after you get a family and everything the expenses roll in. But those were my tools to work with but it was only because I was ahead of the game. If you’re behind the game by $10,000 at some point and paying 18 or 20% interest on it you will never get out of it…You want to figure out where you don’t want to be and avoid that. I get a dozen letters a day from people who are having terrible problems. There are two reasons why they are having terrible problems. One is a number of them have had health problems of some sort or somebody in their family has been hit by catastrophic illness and it’s a terrible thing to happen to any family. And they run up bills they can’t pay and really only society can solve that one in terms of protecting people against that, that’s just plain bad luck. But the other one is from people who run up credit card debt and they’re facing bankruptcy or they’ve been through bankruptcy once before. And they owe a whole bunch of money and they can’t even pay the interest let alone any principle. Half of my letters come from people like that and that problem is avoidable. Catastrophic illnesses is not but credit card debt is something you bring on yourself. Its way better, way easier to stay out of trouble then to get out of trouble financially. I will guarantee if you run up big credit card debts you will be in trouble probably the rest of your life in terms of your financial situation. On the other hand if you get ahead of the game, even on a very modest scale, so that money is coming in from investing, people owe you money or equities owe you ownership, you will be way ahead of the game compared to always paying your creditors every month. My advice to you is, if you can’t pay for it don’t buy it, get yourself in a position where you can pay for anything.”
My take away:
What more can I add? Credit Card debt is detrimental to your financial future and success. I think you can overcome it, but it will take a lot of time, energy, sacrifices and diligence. If you’re in that position right now, stop adding to the debt and seek out advice on how to best pay it off (I really like Dave Ramsey’s plan because it worked for so many people). If you’re not in any credit card debt, stay right there and focus on getting ahead financially.
Good financial advice generally has remained the same over the years. The fact that 4 people from different areas and fields in life can say what so many others have said must mean something. Stop looking for something new and flashy. Stick to what works:
if it ain’t broke don’t go broke trying to fix it!!