The logic of a financial guru

ILIGAN City ― “You know, my friend, that famous author of books on correct financing, Robert Kiyosaki, is going bankrupt.”

“What?” I exclaimed, disbelieving. We were sipping coffee in a diner at that moment. “Oh, no,” I said.

“Oh, yes,” Fely replied, looking amused. We had both read “Rich Dad, Poor Dad,” and we both appreciated his insights into the ordinary individual when it comes to money. According to his concept, we study to land a good job in a business later, instead of keeping the goal of starting a business ourselves.

That is the mindset of most of us, which varies with the mindset of, say, Ernesto Toto Chu. With his mindset of setting up a business, he has provided employment and livelihoods to many in Mindanao.

So, with this Kiyosaki news, it was just unbelievable. “Bankrupt” or bankruptcy is seemingly a bad word, especially if associated with this Robert guy. He is Japanese-American, to note, and he knows what he is saying in these books.

On second thought, though, this is a redeeming procedure, as I have read in another book regarding finances. With proper procedures followed, one can avoid surcharges, interests, and penalties. Pay only what is owed according to your total assets. And climb your way to financial health again.

Besides, if “bankruptcy” is uttered softly, it does not sound really bad, says this author that I have read other than Kiyosaki.

And I remember the word “bankrupt” was also uttered by the Bangko Sentral ng Pilipinas chief Benjamin Diokno when he said that this country is in danger of meeting that word if the country persists in including the pensions of men in uniform in the budget, as in those who are police officers or army members, instead of deducting for their pensions from their salaries.

“There’s that elephant in the room,” he had said. Because this country’s leadership under past or present leaders did not see this elephant?

I then learned that the meaning of this disturbing “elephant” walking about the room is that there is a really serious concern or problem, but it’s ignored. Now, though Diokno is also in the news, not necessarily in connection with this particular elephant, but still in the matter of finances in the country.

But that is another matter. So, we’ll just leave that for the moment, even if the national budget now runs at over five trillion pesos, with the country’s loans to fund such a budget coming in trillions, almost one-third of the amount, if I am not mistaken.

Because this Kiyosaki guy intrigued me. For it is not only “Rich Dad, Poor Dad” that he has written. Other books on financial matters too.

So, I searched for his views on the matter. And I learned that true, he is two billion dollars in debt. And his logic? To expand his businesses because the banks are crashing. To further his passive income because those debts would take care of the additional businesses that he had kept us informed about.

At the same time, he said, his Rolls Royce and other cars are fully paid.

Because they are liabilities! Meaning they do not aid in his getting richer and richer!

I told all of this to my friend Fely a few days later.

Well, she just smiled a little. Because she too understood the logic and thinking of this Robert fellow!