1. I ran across this quote I had saved from awhile back and thought I would share..Its actually quite interesting IMO.

    "Rich people buy luxuries last, while the poor and middle class tend to buy luxuries first. The poor and middle class often buy luxury items such as big houses, diamonds, furs, jewelry or boats because they want to look rich. They look rich, but in reality they just get deeper in debt on credit. The old money people, the long-term rich, built their asset column first. Then, the income generated from the asset column bought their luxuries. The poor and middle class buy luxuries with their own sweat, blood, and children's inheritance."
    Robert T. Kiyosaki
  2. That's a very unintelligent assumption. The writer is obviously ignorant. There are a lot of people who are considered "old money" that have awful spending habits and make terrible decisions concerning their funds, and many middle-upper middle class people (or new money) that manage their funds perfectly. You can't assume that much about ANYONE, because everyone has different priorities.
  3. So nice to be pidgeon holed! :wtf:
  4. This quote is a good summation of the books he has written. The rich get richer, not necessarily because they work for the money, but because the money works for them; not necessarily because they are very smart, but because they surround themselves with smart people.

    You can't look at the number of bankruptcies, credit card debt and foreclosures in the US now and say that the quote is unfounded.
  5. It is a gross overstatement, no matter what, because it simply doesn't apply to everyone. I could site personal examples of the foolish rich and the wise "middle class" but I'm sure you all have your own personal experiences.

    Hell, read some of the reviews of his book!
  6. It is a sweeping generalization but it would not be fair to say it's never true.

    There's a great passage in The Rise of Silas Lapham by William Dean Howells.

    (I got this from

    The Rise of Silas Lapham (1885) is Howell's best-known work, and this elegant tale of Boston society and manners is rightly regarded as a subtle classic of its time. Silas Lapham inherits his father's paint business, from which he makes a great deal of money, and moves his family from rural Vermont to cosmopolitan Boston. Attempting to break into the city's sophisticated society he becomes bent on the acquisition of both money and social position. Howells contrasts "old" and "new" money, presenting the representatives of both sympathetically and portraying the attempts of the self-made man to break into the world inhabited by those from "established" families with humour and delicacy.

    When Silas made his money, he decides he wants a library. He buys all of his books at the same time, which screams New Money to the rest of society. All of his books are new and have never been read. The 'correct' way to go about it is to gradually build up your collection with antique books and family heirlooms.
  7. Agreed.
  8. not really. the key words here are "old money". in other words, families that have been rich for decades or even centuries (the Huntingtons, the Rockefellers, the Chandlers, etc). at least in my personal experience, I have found the statement to be more the rule than the exception and of course there will always be exceptions (especially when it comes to the jet-setting grandchildren). But a few of our wealthy friends are the cheapest s.o.b.'s known to man! They don't drive brand new cars and live in modest, but very nice homes. They don't spend their money on jewelry or luxuries of that sort. They invest their money, send their kids to incredible universities, travel and just sit on their ever growing bank accounts. So there is alot of truth in the statement - it wasn't meant to cover everyone. I understand what the author means by "old money" vs. nouveau riche.
  9. I watched a couple of "Trading Spouses" episodes and notice that sometimes the families were economically very different. The way the rich and poor spend their money were very different I thought. I remember one episode where the richer spouse used the $10K for the other family instructing them to set up an education acct, savings, things of that nature meant for future investment. The other family seemed disappointed, they had hoped for lots of electronics and gadgets, things of immediate gratification.

    I think the original quote is talking about these kinds of extremes which is alot of people out there. But there's also the group who have a good middle ground, making a living like everyone and saving what they can and still enjoy a lifestyle within their means.
  10. All I am going to say is that I should listen to this quote because I have all the nice luxury items (so I guess I look like I have $) But I'm a total broke-a$$!

    Wether or not the quote is true, false, generalizing... I should LISTEN TO IT!
  11. Some of the sincerest people I've met are from "old money". They treat everyone on the same level as themselves. I think this is what is lacking in the nouveau riche these days. Alot of it seems to be up-onemanship. I recognize some young couples today with money who will eventually become "old money". They are quietly wealthy and rarely flaunt their prosperity.
  12. In my personal experience I have seen this to be true most of the time.
  13. Sounds about right...but there has to be a good medium somewhere which I'd like to be.
  14. I'd like to think that we look for quotes like that as excuses to point fingers and either agree or disagree.

    This could be a life lesson to some, an insult to others and absolutely confusing to even more.

    I am not innocent of this, but I hate to see things like these that pop up-they do nothing but spark insult and hurt, sometimes. Amazing how we all read those things so differently...
  15. I read this book a few years ago, and unfortunately I don't remember too much about it. The one main take away was that you should pay yourself first. This is definitely good advice. But given the real estate market now, I wouldn't follow his investment advice right now.

    A much more interesting book in my opinion is The Millionaire Next Door.