This episode, Mak & G look at how we should shape our thoughts around money and investing, and the five big ideas you need to follow to get rich.
People manage their money in different ways and this can be what makes someone poor or rich.
This “Money With Mak and G” podcast episode, Mak & G look at the lessons learned from Rich Dad Poor Dad, the difference between buying assets and liabilities, and the four key areas of financial knowledge…
“Rich people spend less money than they make. Rich people buy luxury items last… but poor people tend to buy them first.” – Ben Jones
“Working a job is needed, but unless you get your money to work for you, you’ll never be rich.” – Mak
00:35 – Elite athletes and how they pass their knowledge on to their kids.
04:05 – What acupuncture is and the benefits it has.
06:55 – What ‘Chi’ is.
08:20 – The different ways of managing your money.
10:15 – How rich people manage their money.
10:40 – The importance of making your money work for you.
12:05 – The difference between assets and liabilities.
13:49 – The four areas of financial knowledge.
14:04 – How to use this law to your advantage.
14:35 – The biggest asset anybody owns.
15:30 – Reasons people fail at getting wealthy.
Connect with Ben Jones:
#1 Where are higher-income families more likely to do most of their Christmas shopping, compared to lower-income families?
A) At a pet store
B) At the North Pole
D) At a yard sale
#2 What are lower-income families more likely to use to pay for Christmas shopping?
A) Home-grown vegetables
B) Compliments to the store clerk
C) Monopoly money
D) Credit card
#3 How do 29% of Americans plan to pay off their holiday bills?
A) By doing the dishes for six months
B) By joining TikTok and hoping they go viral
C) Using their tax returns
D) With money from generous strangers
#4 How long did we calculate a typical $1500 credit card bill would take to pay off at average interest rates if you only paid the minimum amount?
A) 44 months
C) Ten years
#5 Prices today are around 50% higher than 20 years ago because of what?
A) 44 months
C) Ten years
MAK: Grant, I’ve been thinking about some of the stuff dad spoke about on the last podcast. You know, learning stuff from your parents.
GRANT: It is interesting. Dad and I spoke about how almost 50% of all players in the NBA were related to current or former “Elite” athletes.
MAK: What’s an “Elite” athlete?
GRANT: Well, they say someone who played professionally, in the NCAA or at a national team level.
MAK: Do you think Dad is an “Elite” financial guru?
GRANT: HE says he is, and with all those letters behind his name, you know “C-this, and C-that”, it makes sense.
MAK: Did you know he has more letters behind his name than in his name. That’s crazy. Do you think professional players learn a lot from THEIR dads?
GRANT: Well, if you think about the NFL, Peyton and Eli Manning had to have learnt something from their NFL father Archie Manning, right?
MAK: Dad did say it was amazing watching Peyton play in Indianapolis from 1998 to 2011. By the way, where’d you find this info?
GRANT: It was in the Wall Street Journal, you know, the financial bible. But, having that many players related to other elite athletes is freaky, right?
MAK: It is.
GRANT: And maybe they have great “genes” as well as learning from their parents. Peyton was 6 foot 5 inches and 230 lbs. That had to have helped.
MAK: Can’t agree more. You know who has some great “J-E-A-N-S”… I DO. Mom and I went out and got some really cool stuff for school.
GRANT: Nice one. I got some cool new clothes too, but right now, mom and dad may be the only ones who are going to see them.
MAK: Yeah, if we stay home for distance learning, there won’t be a lot of people who see my sweet new duds when doing Zoom.
GRANT: Maybe you should sell your jeans and buy really cool shirts.
MAK: Why????? OOOOHHHH. Great idea, if they are going to see me from the waist up, then forget the jeans and buy the shirts. Got it.
GRANT: We just have to think differently about the “new normal”. New clothes below the waste aren’t normal, even if they make you feel good and no one sees them, right?
MAK: Agree. So, do you think we can ask dad about some of the important lessons to becoming wealthy?
GRANT: I’d like to learn them early, before I get to be dad’s age! Ready????
MAK/GRANT: Teach us, oh “ELITE” financial guru, the lessons to be wealthy.
DAD: OUCH!!. Oooh that feels good.
MAK: What is going on? Dad? Are you ok?
DAD: 1, 2, 3 Ouch!! Ooh, that feels so much better.
GRANT: Sounds like he’s upstairs in his room. Ok, this is bizarre.
MAK: Do you think he’s hurt? He’s not really screaming.
GRANT: And, he acts like “It feels sooo good”.
DAD: 1, 2, 3. Ouch… “oh yeah, that hit the spot”.
MAK: Dad, are you there?
GRANT: O—M—G—-. DAD, are you ok? What happened to your face??
MAK: What are those needles sticking out of you?
GRANT: Did you fall into a box of nails?
DAD: Ha ha. No, I didn’t. I’m alright. You don’t have to be afraid. It’s called acupuncture.
MAK: It looks accu-painful.
GRANT: Does that feel good? What does it do?
DAD: Facial acupuncture is used for anti-aging. It relaxes the muscles in the face and boosts collagen to reduce wrinkles. It also increases circulation and boosts elastin to firm and tone the face, while promoting detoxification so you have a clearer, more even complexion.
MAK: So essentially look younger like us. Does it do anything to get rid of your gray hair?
GRANT: Nice one Mak. Dad, you need it, with all the extra stress this year. Sorry to say it, but 2020 hasn’t been kind to you. Heh, can I try one?
DAD: Wow, that comment hurt G. Remember, you have my genes, pretty boy. Sure, I can put a couple needles in that pretty young face of yours.
GRANT: No, no. I meant, can I try putting a couple in YOUR face? How long until you look younger? It doesn’t seem like it’s worked yet.
MAK: Dad, I don’t think you should let him do it. That could be dangerous. His hand shakes. He had too much caffeine. By the way, do you know if there are scientific studies that say it works?
DAD: I would be scared of having Grant do it, but I don’t think it can be worse than me doing it to myself. That’s why I counted to 3, to get ready. Did you know acupuncture started over 2,000 years ago?
GRANT: What exactly is acupuncture? I mean, how’s it supposed to work?
DAD: It’s a traditional Chinese Medicine practice that is used to improve the body’s functions and promote natural self-healing. You stimulate acupoints with a needle.
MAK: So it started in China, and you poke a NEEDLE in an area in your body to help yourself heal naturally?
DAD: Yep. You can think of your body as having several highways that go from your feet or hands up your body up to your head. They’re called meridians. There are 12 of them.
GRANT: And, what travels on those highways?
MAK: Did you say “cheese”. That makes no sense. Sounds yummy, but doesn’t make sense.
DAD: No, Qi is your “life force” or energy. Sometimes the highway has a traffic jam, and the qi can’t move. Maybe you get hurt, sick or your body isn’t working right. So, it’s stuck and the qi builds up.
GRANT: So, are you saying you have to release the “qi”, so it can flow naturally along these “highways”?
DAD: Yep, it’s like a kinked hose, where water can’t get through. You stick in a needle to release it. By stimulating the area with a needle it balances the flow of qi to put you back into balance.
MAK: A little bit like going to the chiropractor?
DAD: Exactly. Some of the science isn’t sure it works, but when you were in mom’s belly we tried it. Did you feel the needles?
GRANT: Come on dad, we were babies. But, that might explain the small hole in Mak’s head.
MAK: Are you “off your rocker”, G? I don’t have a hole in my head, big or small. Is something wrong with you?
DAD: G, be nice. There are various types of acupuncture. Some use bee venom for pain from arthritis and other diseases. Go figure. I don’t think I’m ready for that. What do you guys need?
GRANT: We were thinking about stuff you learnt from your parents or through reading, and we’re hoping you could share some of your “Dad wisdom” on how to be rich.
DAD: I’m really glad you asked, since I would have loved to have known some of these items when I was young. Remember how we spoke about each of my grandfathers?
MAK: Yep, one focused on the farm and the other focused on businesses, investing, and earning a degree in accounting to understand money better.
DAD: Couldn’t have said it better Mak. There’s a great book that I read many years ago that meant a lot to me and a lot of other people. It’s called Rich Dad Poor Dad by Robert Kiyosaki.
GRANT: That sounds spooky. It sounds like Grandpa O and Grandpa Jones.
DAD: Agree. Grandpa Jones was smart and a hard worker, but he didn’t go down the same path as Grandpa O. The author’s dad was the poor dad, but he learnt a lot from his friend’s rich dad.
MAK: Ok dad, I’m listening. Bring it on. I can probably guess the first big idea. You have to make a lot of money at your job, right?
DAD: Funny enough, you do have to make a decent living, but it’s NOT about how much you make, it’s about how much you KEEP.
GRANT: Ok, I’m lost already.
DAD: Ok, did you know in our family Uncle Tony was going to be the first to make $1mm, I was going to be the first to save $1mm and Uncle Weston was going to be the first to spend $1mm.
MAK: Doesn’t that mean you all had to make $1mm? Dad, I’m confused again.
DAD: You’re right. But, Uncle Tony was going to build a business to acquire wealth, I would take a good job and save my money to get there, and Uncle Weston was going to earn a lot, but also SPEND a lot.
GRANT: That’s really interesting. Uncle Tony did sell his business, we’re doing pretty well, and Uncle Weston does have a lot of nice stuff we don’t.
MAK: So, what do rich people do?
DAD: “True” rich people, which is much better than being poor, spend less money than they make. Rich people buy luxury items like nice cars, expensive watches and clothes, LAST, but poor people buy them FIRST.
MAK: Sounds like you have to save money to make this work. Didn’t your mom always say “Pay yourself first”.
DAD: Right you are Mak, she learnt that from her dad , my Grandpa O. who acted like Rich dad. Rich people think a J-O-B means being “Just Over Broke”.
GRANT: I’m not sure I get that. Are you saying you don’t get wealthy by just working a job?
DAD: Absolutely. You can have a good job and save, but in the book, Rich Dads don’t ONLY work for money, they make MONEY work for them.
GRANT: Ok, so if you spend everything you make, you’ll never build wealth. That makes perfect sense. We all need to make good decisions when we spend. And, wait to buy luxury items.
MAK: Isn’t that where the budget comes in. Working a job is needed, but unless you get your money to work for you, you’ll NEVER be rich.
DAD: That’s it. Nice job Mak!!! Do you remember what YOU love about investing…
MAK: DIVIDENDS!!! You just sit there on your butt eating chocolate doing nothing and they give you money. I LOVE IT.
DAD: Exactly. So that’s the next big idea. Money has to work for you. Uncle Tony took his money from the sale of his business and bought assets.
MAK: Are assets what you buy, when you invest in companies, stocks, bonds and things that grow in value.
DAD: You got it. Assets build your wealth.
GRANT: So, if you’re “poor”, what do you buy?
DAD: Liabilities. And, that’s the next “big idea”. Rich people buy assets, and poor people buy “liabilities”.
MAK: Wait a second. That sounds CRAZY. Why would anyone do that?
GRANT: I think dad is talking about owing money on your credit cards, for buying stuff you don’t need. For me, it could mean buying too many video games, clothes that cost a lot or other “junk”.
MAK: Could it also be from buying a new, expensive car, because it decreases in value, which isn’t an investment? Sounds like this type of debt doesn’t help you make money.
DAD: That’s exactly what I’m talking about. Good debt helps you make money, and bad debt takes your money away from you.
GRANT: So, what is good debt?
DAD: If you borrow money to buy an apartment building, where you get to collect money from rent, that would be good debt.
MAK: It sounds like you have to learn about investing, so you can put your money to good use. Just like what we’re doing with this podcast.
DAD: That’s absolutely true. Here it comes. You have to gain financial knowledge, so once you earn money, you know how to hold onto it, keep people from taking it, and how to make it work for you.
GRANT: Ok, 1) spend less than you earn, 2) know how to hold on to your money, 3) buy assets and 4) make them work for you.
MAK: Grant, you rock. It’s not about starting with a lot, though that would be nice, but building on the key ideas.
DAD: The author talks about 4 areas of financial knowledge. 1) Accounting 2) Investing 3) Understanding the markets and 4) The law.
GRANT: We’ve talked about the first 3 for sure, what about the “law”, dad?
DAD: A big part of the author’s discussion on the law is how to use it to your advantage through the way you start a business and deal with taxes.
MAK: We definitely know something about taxes. Maybe we can talk more about taxes or how to set up the right business at another time.
DAD: Absolutely, I dig me some good tax discussions, for sure.
GRANT: So, we have one more big idea. Are you going to tell us?
DAD: How about I ask a question. What is the biggest asset that any of us own?
MAK: Ok, that sounds like a trick question, and it sounds like something we’re born with…
DAD: You’re very warm, Einstein.
GRANT: Ok, that was a hint. It’s got to be your mind.
DAD: You got it. Your mind is your BIGGEST asset. It will help you make the right decisions, get past fear, take opportunities based on calculated risks, and learn the lessons that are important.
MAK: So, you mentioned fear, and taking opportunities. Is this something rich people do?
DAD: Yep, the rich see opportunities, and take risks. Based on the book, poor people figure out ways not to take on new opportunities.
GRANT: Is that part of the reason why more people aren’t wealthy? It doesn’t sound complicated to move toward being wealthy.
DAD: That’s a great question, here are a couple reasons the author says we fail. 1) Fear 2) Laziness and 3) Bad Habits.
MAK: We all have to face our fears, but I understand it, I’m afraid of bees.
GRANT: I know I could be a little more motivated, and my video game playing isn’t the best habit. It makes sense.
DAD: I’m so happy to hear that. Realizing the issue is the first step.
MAK: Dad, I think this really helped. It’s good to see the difference between the Rich Dad and Poor Dad. I can see how this would be important.
DAD: Focusing on these 5 will help when you’re trying to make a big decision like buying a new car, or a smaller decision about whether to stay home to eat or go out.
GRANT: It really does add up, and if you just master one at a time, slow and easy, then it doesn’t have to be overwhelming.
MAK: I’m in.
DAD: Time to probably say “Goodbye”, and we’ll see everyone on the next podcast with some more great insights by some great authors!
GRANT: Sounds good.
MAK: Thanks Dad.
Ben’s 2 Cents
Becoming wealthy or improving our financial position is something we can all learn how to do. It’s a mindset, along with a framework to live by. Rich Dad Poor Dad is about Robert Kiyosaki and his two dads—his real father (poor dad) and the father of his best friend (rich dad)—and the ways in which both men shaped his thoughts about money and investing.
There are Five Big ideas:
1) Spend less than you make
2) Acquire Assets
3) Make you money work for you
4) Increase your financial knowledge
5) Your mind is your biggest asset
I think we can all live by these lessons. If you need to, write it on a piece of paper, hang it in your bathroom, where you can see it when sitting on your toilet, on your refrigerator or anywhere it can remind you. I have a dollar bill that I modified, that reads $1,023,984 which is a number I dream about, and it keeps me in the money mindset, so I taped it to the steering wheel of my car. A big part of the battle is focus and staying on your game.
It’s not an overnight change. Start with making small adjustments to your spending. I’m sure we can all make one better decision a day. Stay at home and eat at a restaurant instead. It starts with one small adjustment.
Then, after some time, you’ll see the fruits of your labor, and you’ll be so happy you did it. The money you save can now be invested, which makes your money work for you. The circle continues with acquiring money, increasing your financial knowledge and using your #1 asset.
The journey is empowering, exciting, and very fulfilling. That’s why we want our children to start early. When you buy assets that make you money, it just keeps getting bigger and bigger as the years carry on.
Thanks for being here, and we’ll see you in our next episode. Don’t forget to like, comment and share with your friends and family. Until then, keep your mind on your money and your money on your mind.