The problem with personal finance books – Part 2

How can there be a Problem with a book, unless perhaps it falls and hits you (or maybe challenges you beyond your comfort zone)? Regarding Personal Finance books and how they ‘strike’ you; there are huge differences between the philosophies presented in the wide range of books that are available. Most books and associated TV shows that this author has enjoyed consuming are of the Larry Winget – Dave Ramsey genre’ of cut up your credit cards, live as poorly as possible and save as much as you can. Note that this characterization is very general and of course does not fully describe their strategies, while I feel to me it describes the general interpretation I had after reading their books and watching their shows.

The other end of the spectrum by my evaluation is found in the teachings of “The Don” (aka Donald Trump) and Robert Kiyosaki (of Rich Dad fame). These people, who have earned my vote, espouse making the pie bigger and devoting your energy to learning as much as possible, making your own decisions, and striving to be rich. In the last eighteen months, this humble engineer has (at the ripe old age of sixty-one) undertaken the path of learning as much as possible about finances – and applying the knowledge gained.

Perhaps my favoring of the ‘Rich Dad’ philosophy affects how I evaluate and present the differences; but please bear with me with your tongue at least edging towards your cheek. One bookend in this shelf of possibilities would have you move into the cheapest survival-dwelling abode possible (a tent, maybe?), eat noodles and tuna, pay off everything, and save as much money as possible as securely as possible (Mutual Funds sound good?) in the hopes of spending your remaining days as close to the abject poverty of a monk as society and health allow. (I told you I might overstate things a tad, didn’t I?). This alternative is based upon the concept of ‘security’.

The other gold-and-jewel-encrusted bookend (The Maltese Falcon of Bookends, perhaps?) encourages us to study and learn as much as possible with the goal of leveraging your money, talents and good debt capacity such that you can live how you wish, where you wish, and with Passive income from Businesses and Investments sufficient to fund that lifestyle while you give back to society in return for your success. This alternative is based upon the philosophy of ‘freedom’.

Now, I’ve vacationed in Hawaii and stood in enough airport security checkpoint lines to make my personal choice pretty easy. Think of the freedom of being able to pick up the phone (or better yet, ask your personal assistant to) and schedule your private charter jet to be waiting at the time of your choosing. You are whisked off, in the company of whoever you choose, and fly in total comfort to wherever you wish. On arrival, the limo (or personally driven convertible, is I so desire) conveys me to whatever form of resort or private mansion I have selected.

As I contemplate the unknown future, I have studied these financial alternatives quite seriously; and choosing to hunker down and hope to outlast whatever I can save through a meager and impoverished existance just comes off as a distant second-choice to that private jet and sunny beach. So, really, what IS the Problem with these finance books – All they are doing is daring us to dream . . . !?!