Life and Money of an Ex-OFW
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?
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Right now, I think I'm a Koyosaki girl having some "good debts." But I want to be debt-free soon also. Yeah, to each his own. We have different financial goals and we have to use the best and most suitable methods to realize them. :)
ReplyDeleteKiyosaki*
DeleteYah, it's a nice feeling to be debt-free. The thought that your salary is 100 percent your own, aaaahmazing! It's ok naman to borrow as long as you can control it and not the other way around.
DeleteAko, Kiyosaki :) I like his idea about "leverage people" but I also want to know who Dave Ramsey is. But we have the same perspective (weird) save money to get into business and this is what I did. Sorry Pinasforgood ang kulit ko no? - it's Anne again :( (alam ko nakukulitan ka na sa akin)
ReplyDeletecorrection: we (Dave) have the same perspective..
DeleteTo know more about Dave Ramsey, go check out his podcast. It's really amazing and inspiring, especially the "debt-free scream" wherein in people do their "we are debt freeeee" shout because they wiped out their debts, from consumer loans all the way to mortgage. They also say how did they do it and such. I still get goosebumps hearing each and every debt-free scream, promise! It is really a nice feeling to have zero debts
DeleteAnd Anne,
Deletehind ka naman makulit! Ano ka ba? :)
I really don't know much of Dave Ramsey yet. But I think I started out as Kiyosaki, but now leaning more towards Ramsey. We do have debt now, a house loan, we took out for a condo, which we are renting out for income. In as much as I'd like to think that renting real estate is easy. It is not a stable and reliable source of income. In the end, you still have to be prepared. Have extra cash to cover times when you will need to pay off "good debt"
ReplyDeleteSo now, I am leaning more towards to the "no to debt forever. Cash is king." mindset
Hey, it reminded me about the old guy in the Queen of Versailles when he said that "banks got us addicted to cheap money and now they are taking it away from me" or something like that. When the real state bubble burst last '08, Dave Ramsey and Warren Buffett have been buying properties left and right. Talk about pouncing when everything looked bleak.
DeletePersonally I believe that it is best if you are debt free. This is still the best and ideal scenario that we should strive to be in.
ReplyDeleteI also like the idea of Robert Kiyosaki but I think it needs proper planning and careful thinking.
Though at the moment, I am more of a Dave Ramsey school of thought..:-)
Me too! I love the feeling of being debt free! I am a Dave Ramsey girl all the way. That's why I am saving heavily now coz, as much as possible, I don't want to take out loan when I put my plans into action once I come home for good.
DeleteHello PinasforGood! I stumbled Robert Kiyosaki's Rich Dad, Poor Dad book when I was in 3rd year college. It was an eye-opener and truly moving.
ReplyDeleteOn the other hand, I only knew Dave Ramsey through your blog.. hehehe... but, based on your description above. My attitude is more of Ramsey's.
Ching :)
*ching from askmeanything... hehehe..
I also read RDPD first way before discovering Dave Ramsey, and as you said, it is really an eye-opener though now, I am kind of denoucing the "good debt" theory coz I love the feeling of being debt-free! But I am not, in any way, a Kiyosaki hater. He was one of the authors who changed my personal finance life. :)
DeleteBased on the description I think I'm more on kiyosaki style -" I borrow money to earn" for now, but I am looking forward to a debt free life-masakit pa rin sa ulo mag-intindi ng bayarin :)
ReplyDelete