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No, a house is not an asset...
Rank: Veteran Joined: 3/25/2010 Posts: 939 Location: Nai
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In Kenya a house is an asset!! but if am spending between 60-70% from my only total income for next 10-15 years is it really an asset worth investing in??
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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Nabwire wrote:I wouldn't follow Kiyosaki or Suze Orman or any other financial gurus blindly, I would just take bits and pieces of advice. Kiyosaki is like the kindergarten equivalent of financial knowledge, as long as you read his stuff ( preferably books borrowed from the library not bought)and graduate on to elementary, high school and eventually college and graduate school, then I would recommend. But if you stay stuck in his kindergarten level, you are in trouble. @ Nabwire, kindergarten level is an overstatement. It should be lower than that- the one where u take kids and they sleep all day and only get their diapers changed and you pay for it! Books that teach on "how to get rich" are just like pyramid artists who thrive on the masses wanting to get rich quick. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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Gathige wrote:Nabwire wrote:I wouldn't follow Kiyosaki or Suze Orman or any other financial gurus blindly, I would just take bits and pieces of advice. Kiyosaki is like the kindergarten equivalent of financial knowledge, as long as you read his stuff ( preferably books borrowed from the library not bought)and graduate on to elementary, high school and eventually college and graduate school, then I would recommend. But if you stay stuck in his kindergarten level, you are in trouble. @ Nabwire, kindergarten level is an overstatement. It should be lower than that- the one where u take kids and they sleep all day and only get their diapers changed and you pay for it! Books that teach on "how to get rich" are just like pyramid artists who thrive on the masses wanting to get rich quick. They get rich because you buy their books. Not because they follow their own advice.
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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Which is a better book?
One titled "How I made my millions"
or
One titled "How YOU can make millions"
...and in which category do Kiyosaki's belong?
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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We should stop demonizing Kiyosaki. I have read his books and can understand what he means. In his books, he defines an asset as something that puts money in your pocket and a liability as something that 'removes/takes' money from your pocket. Thus he recommends that one should always strive to invest in things that put money in their pockets e.g rental property, land, business, shares, tbills etc. He says one should avoid liabilities such as cars (e.g a Range rover you buy at 5m, pay 4.5% insurance p.a., fuel 1k daily, and it's only worth 2m after 3yrs - a total waste of money).
I think the house he calls a liability is one where you are paying mortgage, maintenance and insurance whose total value may be more than the savings made in rent and value of the house in a depressed market such as the US housing market. However, this may not be the case in Kenya where the housing market has been very vibrant.
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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jaggernaut wrote:We should stop demonizing Kiyosaki. I have read his books and can understand what he means. In his books, he defines an asset as something that puts money in your pocket and a liability as something that 'removes/takes' money from your pocket. Thus he recommends that one should always strive to invest in things that put money in their pockets e.g rental property, land, business, shares, tbills etc. He says one should avoid liabilities such as cars (e.g a Range rover you buy at 5m, pay 4.5% insurance p.a., fuel 1k daily, and it's only worth 2m after 3yrs - a total waste of money).
I think the house he calls a liability is one where you are paying mortgage, maintenance and insurance whose total value may be more than the savings made in rent and value of the house in a depressed market such as the US housing market. However, this may not be the case in Kenya where the housing market has been very vibrant. If the use of the car is to put money in your pocket, then it is an asset. Some things like self aggrandizement ( eg like the pleasure one derives from driving such a car) cannot be quantified. As they say, one man's honey could be another man's poison. So, it all depends from individual to individual and cannot be a gospel truth. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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Gathige wrote:jaggernaut wrote:We should stop demonizing Kiyosaki. I have read his books and can understand what he means. In his books, he defines an asset as something that puts money in your pocket and a liability as something that 'removes/takes' money from your pocket. Thus he recommends that one should always strive to invest in things that put money in their pockets e.g rental property, land, business, shares, tbills etc. He says one should avoid liabilities such as cars (e.g a Range rover you buy at 5m, pay 4.5% insurance p.a., fuel 1k daily, and it's only worth 2m after 3yrs - a total waste of money).
I think the house he calls a liability is one where you are paying mortgage, maintenance and insurance whose total value may be more than the savings made in rent and value of the house in a depressed market such as the US housing market. However, this may not be the case in Kenya where the housing market has been very vibrant. If the use of the car is to put money in your pocket, then it is an asset. Some things like self aggrandizement ( eg like the pleasure one derives from driving such a car) cannot be quantified. As they say, one man's honey could be another man's poison. So, it all depends from individual to individual and cannot be a gospel truth. Blowing millions just to 'feel good' and impress your peers and neighbours at your rented flat in kilimani doesn't make financial sense.
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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jaggernaut wrote:Gathige wrote:jaggernaut wrote:We should stop demonizing Kiyosaki. I have read his books and can understand what he means. In his books, he defines an asset as something that puts money in your pocket and a liability as something that 'removes/takes' money from your pocket. Thus he recommends that one should always strive to invest in things that put money in their pockets e.g rental property, land, business, shares, tbills etc. He says one should avoid liabilities such as cars (e.g a Range rover you buy at 5m, pay 4.5% insurance p.a., fuel 1k daily, and it's only worth 2m after 3yrs - a total waste of money).
I think the house he calls a liability is one where you are paying mortgage, maintenance and insurance whose total value may be more than the savings made in rent and value of the house in a depressed market such as the US housing market. However, this may not be the case in Kenya where the housing market has been very vibrant. If the use of the car is to put money in your pocket, then it is an asset. Some things like self aggrandizement ( eg like the pleasure one derives from driving such a car) cannot be quantified. As they say, one man's honey could be another man's poison. So, it all depends from individual to individual and cannot be a gospel truth. Blowing millions just to 'feel good' and impress your peers and neighbours at your rented flat in kilimani doesn't make financial sense. @ Jaggernaut, I used to think so until one time thugs broke into house and almost got to my bedroom. I purposed the day i will make some real cash, i will move from that locality to the leafy side " just to feel good and be enjoying a sound sleep". Life is short and is best enjoyed when one has means. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
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@ Jaggernaut, I used to think so until one time thugs broke into house and almost got to my bedroom. I purposed the day i will make some real cash, i will move from that locality to the leafy side " just to feel good and be enjoying a sound sleep". Life is short and is best enjoyed when one has means.
[/quote]
Uli manage kumove Bw. Gathige?
How is the feeling? pls!
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Ngong wrote:
@ Jaggernaut, I used to think so until one time thugs broke into house and almost got to my bedroom. I purposed the day i will make some real cash, i will move from that locality to the leafy side " just to feel good and be enjoying a sound sleep". Life is short and is best enjoyed when one has means.
Uli manage kumove Bw. Gathige? How is the feeling? pls! [/quote] Just wondering whether he could have made the money he talked about in just a few hours 
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