Ray Dalio (Principles)

[clarkfan1979]

https://www.youtube.com/watch?v=PHe0bXAIuk0

I read Rich Dad Poor Dad at age 21. The thesis of the book is that the rich buy assets and the poor buy liabilities. Now, 18 years later I have been reflecting on my effort to buy assets and minimize the purchase of liabilities.

To take it one step further, Ray Dalio explains that countries often try to buy themselves out of a recession by printing more money. This devalues the dollar and increases inflation. People who own assets will keep pace with inflation. People who do not own assets will be left behind.

College is viewed as the gateway to the middle class. However, reflecting back on the last 18 years, it seems as though owning assets is the gateway to the middle class. If you have a fancy degree and even a fancy wage, but no assets, you might still be left behind.

[Monkey Uncle]

The college degree is the gateway to the fancy wage, which will improve your economic circumstances if you use it wisely instead of blowing it on depreciating and/or consumable products and services.  You can't buy assets if you can barely afford to feed, clothe, and house your family.

That said, not all college degrees are equal.  Some don't do much for your income, and there are still ways to make a decent income in trades that don't require a four-year degree.  If I had a kid in high school right now, I would advise him/her to seriously consider becoming a plumber or electrician instead of getting a liberal arts degree.  Assuming, of course, he/she doesn't have the aptitude or interest in pursuing a high-paying STEM career.

[soccerluvof4]

The college degree is the gateway to the fancy wage, which will improve your economic circumstances if you use it wisely instead of blowing it on depreciating and/or consumable products and services.  You can't buy assets if you can barely afford to feed, clothe, and house your family.

That said, not all college degrees are equal.  Some don't do much for your income, and there are still ways to make a decent income in trades that don't require a four-year degree.  If I had a kid in high school right now, I would advise him/her to seriously consider becoming a plumber or electrician instead of getting a liberal arts degree.  Assuming, of course, he/she doesn't have the aptitude or interest in pursuing a high-paying STEM career.

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