It is a good question that jstuart asks. I am not seeing a lot of posts on the subject of a debt reduction plan.

If we buy 10 homes @ $100,000 each at 80% lvr = $800,000 debt. If each house makes us $50/month = $2,000 cashflow/month.

Money should be kept aside for tax, say 30%. (if tax is not eligible then one is spending money on tax deductions and so the money needs to be kept for that)

If the remaining $1,320/month is put towards debt reduction, then it will take 50.5 years to pay off the 10 properties.

Right now is not a good time to be spending that income on lifestyle or leaving ones job too early. It takes a long time to become financially free as opposed to becoming financilly independent.

If one is hoping for capital gains, then perhaps we have just witnessed the biggest gains that we are going to see for a while. (see ’60 Minutes’ tomorrow night) Properties are not as cheap as they were four years ago and some of us are just getting into the market.

Can I suggest that quality time is spent on establishing a realistic debt reduction plan as it is very easy to get excited about the income but if we are not disciplined it can be easier to finish up worse off, which I would not like to see happen to anyone.

Best regards
Tony

Hi Westan,
As I said in my earlier post, I did not read the John Reed analaysis all the way through. There is two sides to every story and if it was all lies then I am sure Kiyosaki would have been sued by someone by now about something?

Just because he has made a point of view does not mean you or I will do it his way. At least we shoudn’t. Our job is to think about what was said and how that affects us or not, then act.

In becoming financially free at a young age, I was taught to think and concern myself with ‘majoring on the majors and minor on the minors’

It is diffrent for everyone, but for me this is a minor. I took what I could from the information Kiyosaki offered and I moved on.

I won’t be contributing anymore on this topic. I have already spent too much time on it when I could be out playing golf! Golf is a major for me now, focussing on some topic that I have no control over is a minor. lol

Best regards
Tony

I couldn’t make myself read the whole John Reed analysis, as I saw myself otherwise wasting as much time as he has.

Perhaps John Reed would be better off if he spent as much time sourcing a few more positively geared properties as the time he has taken to put forward his conspiracy theory?

If Rich Dad is not a real person, then more the clever Robert Kiyosaki, to break the paradigm of investment thinking with an analogy that he was clever enough to come up with, so the ordinary person can learn new ideas that have helped so many.

This website and hence forum may well not exist if not for Kiyosaki,as in Steve’s book he states it was going to the Kiyosaki seminar where he forced his partner, Dave to go as well, that was a turning point for them.(page 11)

Later in Steve’s book two testimonials credit Kiyosaki as a part of the process for them too. pp. 316 and 325.

So it MIGHT be a story and Robert is not telling? Get real and take the MESSAGE as it was intended.

But do not focus on someone who has made a lot of money doing what we could do ourselves.

If you help enough other people get what they want, then you can have anything that you want. That is Robert Kiyosaki and Steve McKnight have done. You can do it.

Best regards,
Tony