Sunday, October 19, 2014
Kiyosaki VS. Ramsey: Which School of Thought Do You Follow?
I have been using the phrase "good debt vs. bad debt", as said by Robert Kiyosaki, way before hearing that "there is no such thing as "good" debt, debt is a debt no matter what," as said by Dave Ramsey.
I admire both guys. I read books written by them. I learned something from them, but which idea do I follow?
"I use debt to buy assets," you'll hear Robert Kiyosaki say.
"Be debt-free," says Dave Ramsey.
Both are into real state, by the way. Kiyosaki uses leverage or "other people's money" to buy real state, while Ramsey buys real state and properties outright.
You might say, "Dave Ramsey is freakin' rich, he can afford to buy million dollars worth of real state, but for us who are just starting out, we can't go into business without borrowing money."
Dave advocates working your butt off to be debt-free/save money for something. You might be asking yourself, "Do I want to really spend 3 years just to be able to save up cash so I can start my own business, or should I borrow money so I can start my business ASAP?"
While they have different philosophies and ideas, I respect both of them, but which idea do I follow?
For me, as of now, I am more of a Dave Ramsey girl. I have zero debt and heavily saving/investing for something. But what if I'll dabble into real state as part of my plans when I finally come home for good, would I become a Kiyosaki girl? (To know my plans,click here.)
Well, I'll cross the bridge when I get there, I guess. But for now, I am saving as much as I can, training myself to control my wants, as advocated by Dave Ramsey. For now, I don't feel the need to borrow money or go into debt. Maybe someday I'll use the power of leveraging so I can start to build my own empire, as what Kiyosaki teach.(HA!)
People has different ideas, and it's up to the readers which idea they should follow. No one should make fun of you just because you favor one ideology from the other. Different folks, different strokes.
How about you, which school of thought do you follow, Kiyosaki or Ramsey?