Wednesday, January 9, 2008

Book 1: Rich Dad, Poor Dad

Title: Rich Dad Poor Dad --
What the Rich Teach Their Kids about Money -
That the Poor and Middle Class Do Not!

Who wrote it: Robert T. Kiyosaki / Sharon L. Lechter C.P.A.

Whom I borrowed it from: Man Ho

What is it about:
A) Poor Dad: Education -> Specialized Career
-> Work Hard -> Job Security
Rich Dad: Education -> Diversified Career
-> Invest -> Be Your Own Boss

B) Asset = Money working for you;
Whatever you don't have to pay a penny for
Liability = Anything you have to pay for;
including your apt/house, car, luxuries...

C) Watch how you spend!
Spend every penny the minute you earn it = Poor;
Spend half of what you earn & save the rest = Middle Class;
Spend the minimum & invest the rest -> become Rich!

D) Pay yourself first, not your debts
-> Motivate your mind to work harder
on finding new ways to earn $$.

What went through my mind:
Avoid thinking about money is not 'innocent.'
Thinking about money is not 'evil.'
Planning well & investing wisely is biblical,
as Parable of the Talents (Matthew 25:14-30) illustrated.
I want to be called good & faithful,
but not wicked & lazy, of which i have been : /

What came out of this:
* Goal: Learn about trading / investments.
* Dream: Open up my own business -- Bakery? : )
* Caution: Curb poor/middle-class spending mentality.

Why Should you read it, too?
To be inspired by a financial genie,
and forsake that blinded veil of "I can't do math" fear.

1 comment:

Crimson Heart said...

Hmm so it sounds like you enjoyed the book -- i read it several years ago .. and didn't really understand how anyone would truly benefit from reading this book. it was just ... stating the obvious. if you dont save, reduce your spending, invest on something long term ... you will be doomed or your future will look grim. and then i just recall something ... about real estates and stocks ... a little too advance for the middle/poor class to be investing/studying no? well that's just me. keep the reviews going!