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	<title>Live Truly &#187; Start-Ups</title>
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		<title>Rich Dad, Poor Dad and the Silicon Valley</title>
		<link>http://www.livetruly.com/rich-dad-poor-dad-and-the-silicon-valley/</link>
		<comments>http://www.livetruly.com/rich-dad-poor-dad-and-the-silicon-valley/#comments</comments>
		<pubDate>Sat, 07 Jan 2006 10:04:30 +0000</pubDate>
		<dc:creator>Boris</dc:creator>
				<category><![CDATA[Financial IQ]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Investing Books]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[Kiyosaki]]></category>
		<category><![CDATA[Rich Dad]]></category>
		<category><![CDATA[Start-Ups]]></category>
		<category><![CDATA[Stock Options]]></category>
		<category><![CDATA[Wealth]]></category>

		<guid isPermaLink="false">http://www.livetruly.com/?p=42</guid>
		<description><![CDATA[In the Silicon Valley, when you join a company, you also become an investor.]]></description>
			<content:encoded><![CDATA[<p>My boss pointed out an important fact not mentioned in <a href="http://www.amazon.com/exec/obidos/redirect?tag=livetrulycom-20%26link_code=xm2%26camp=2025%26creative=165953%26path=http://www.amazon.com/gp/redirect.html%253fASIN=0446677450%2526tag=livetrulycom-20%2526lcode=xm2%2526cID=2025%2526ccmID=165953%2526location=/o/ASIN/0446677450%25253FSubscriptionId=0EMV44A9A5YT1RVDGZ82" title="Rich Dad, Poor Dad">Rich Dad, Poor Dad</a>: in the Silicon Valley, when you join a company, you also become an investor. It&#8217;s not the salary, but the stocks that build your wealth. They are your assets. This is the advantage of joining a start-up. You own a large percent of the company, and you&#8217;re taxes on it are on the money you invested (if it&#8217;s a founder&#8217;s stock). So when there is nothing and you buy your parts at $0.001, that&#8217;ll be what you&#8217;re taxed on. The other side of it is the company uses this to keep you in, you don&#8217;t get all your shares transfered to you right away. They come with a percentage each year. So, if you leave right away, the company can buy back the shares not transfered to you at the old price. It&#8217;s kind of a leash thing, but it&#8217;s something that Rich Dad never gave the people working at his stores.</p>
<p>So why do companies do this? Why give away a share? Because when a person actually owns part of something, she becomes a lot more productive. She has an interest to succeed, and an interest to stay. </p>
<p>Other things, joining established or not? Here&#8217;s the gamble, on one hand it takes luck but on the other without taking this risk, it&#8217;s hard to ever get passed regular income. Joining a small starting group or starting your own thing means a very high investment of time and energy and it might not succeed. If it does, you&#8217;re set. If it doesn&#8217;t you&#8217;ve lost time but learned a lot. On the other hand, say you join a big company, in fact an ideal working environment by <a href="http://www.amazon.com/exec/obidos/redirect?tag=livetrulycom-20%26link_code=xm2%26camp=2025%26creative=165953%26path=http://www.amazon.com/gp/redirect.html%253fASIN=014200409X%2526tag=livetrulycom-20%2526lcode=xm2%2526cID=2025%2526ccmID=165953%2526location=/o/ASIN/014200409X%25253FSubscriptionId=0EMV44A9A5YT1RVDGZ82" title="Good Business at Amazon">Good Business : Leadership, Flow, and the Making of Meaning</a> standards. You get paid a nice salary, are gauranteed a steady, and secure life. You also get stocks, but at such a high price, the exponential growth point has most likely passed (although it did grow a lot this year). </p>
<p>This is the tough choice. As someone just starting out, and very eager to make my first hundred thousand and go to Thailand to study (yes, that&#8217;s part of the plan now, once I make my first first hundred thousand, I&#8217;ll study for all those pesky certifications and exams in Thailand, it&#8217;s a good motivation to get myself to make it fast), I wondered if it wouldn&#8217;t be just easier to join the simple happy job, instead of working like mad and risking not getting anything. However, seeing yesterday&#8217;s events and seeing how a real passive income generation works and how a business starts to take off, I got really inspired. It may be harder right now, with little income coming in. But I&#8217;m determined to break out of the rat race.  I know that a person cannot depend on an hourly wage to truly live and I want to build something, whether it&#8217;s a real estate empire, an invention, or a product. For a while, I was getting really tired and annoyed, but yesterday inspired me. I&#8217;m more eager than ever to finally get this project done, and I&#8217;m really annoyed at myself for having taken this long and for not really appreciating how great an opportunity this is.</p>
<p>I have an interview with the big established company next week. The phone interview was a disaster, but I guess my resume and writing helped a bit. I don&#8217;t know. I&#8217;m actually not that interested, which makes the whole idea of interviewing kind of fun. For the position and for the long term, they&#8217;d have to offer something really creative. Perhaps they will. I&#8217;m just curious at what it could be. Nearly half a dozen of my aquaintances work there right now, and they love it, and the lure of having that steady income sounds really nice when you don&#8217;t have it. But I&#8217;m just checking it out. I&#8217;m determined to finish this project first and hopefully get the chance to grow where I&#8217;m at right now.</p>
<p>So much going on right now: project, tutoring, real estate class. As the <a href="http://www.amazon.com/exec/obidos/redirect?tag=livetrulycom-20%26link_code=xm2%26camp=2025%26creative=165953%26path=http://www.amazon.com/gp/redirect.html%253fASIN=0446694088%2526tag=livetrulycom-20%2526lcode=xm2%2526cID=2025%2526ccmID=165953%2526location=/o/ASIN/0446694088%25253FSubscriptionId=0EMV44A9A5YT1RVDGZ82" title="ABC's of Building a Business Team details at Amazon"> The ABC&#8217;s of Building a Business Team</a> points out, now is the time to develop character. I have a few goals, very little spare time, and very little sleep. We&#8217;ll see how it all turns out.</p>
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