Wednesday, 23 March 2011

Learn From the Book - Richdad Poor Dad

Many people know their dreams, and most people dreamed  to be rich.However there's only 20% of people in this world owned the 80% of assets from the world, and these 20% of people become the richest man in the world because they have the rich knowledge and put the ultimate efforts towards their dream.

I remember during the year of 2007, I met the incredible power of Robert Kiyosaki in a bookstore.
The first book i read from Richdad series was Richdad Poor Dad. (Chinese translated version).

I believe this is the best financial- knowledge book ever to builds up all the newbie's basis towards their financial ability.I found that other than learning to be financially freedom, i also learnt  the power of money and how to differentiate between Asset and Liabilities.

The reason why i picked up the book is because I have an ambition to become a businessman since i was studied my secondary.

This is making me a different boy from many friends who already planned to study into college and get a degree therefore work in the big company.

Finally i found that I couldn't get the knowledge needed neither from school nor my friends. I thought I need a book that could leads me to my dream and makes big money in real life.                                                

Idea of The Book

I had have read the book twice so far and i found every time i read, I got some inspiration and awareness of somethings.One of the beauty of the book is we're not necessary to have some accountancy knowledge, but Robert had tought  how you need to  look at your cashflow by financial statement.He gave us a brand new concept between Asset and Liabilities.

The most simple way to defines Asset and Liabilities is ,Asset is something  that can put money into your pocket while Liabilities is something that take out the money from your pocket.

For example, buying a house should considered as Liabilities and not an Asset, it's because if we by the house by mortgage, and only if one day we're not able afford the loan, it will be confiscated by the bank.
While only the cashflow from monthly rental could only considered as your Asset.

The Power of Investment
After the book , I had also read Richdad Guide to Investing, i found that other than making business and
financial planning, investment is also of of the important step to get financially freedom and rich. You should know the multiple return that you can own via investment. This so-called ''multiple return'' power also known
as ''Compound Interest'' has already been created by the greatest scientist Mr.Albert Einstein.

From the book ''Richdad Guide to Investing'', I learnt that there are actually 4 kinds of working territory exist in our society. Robert has divided these difference into 4 quadrant, where 20% of the richest people in this world    are belongs quadrant of ''Investor''.

Most of the people from ''EMPLOYEE'' are not rich because they have a job, and they work hard for their money. However, "INVESTOR'' knows that they will only get rich by let the ''Money Works For Them''.They knows that the only way to run out from the ''rat race'' (financial freedom) is to stop working for money.

Last but not least, I think the idea of the book may indirectly proportional to those who thought that: :

-  I should work hard for my company.
-  My paid is high, no necessary to take risk for investment.
-  Government & Company will caring my retirement pension.
-  Owning business is not easy.
- There is a risk for Investment.
-  Money in the bank is more safer than money in Stocks or Real Estate.
-  I don't want to learn Investment, taking too much time etc

Reasonably say it might be right for certain people, but the truth is, if you don't learn to manage your money from now on, your money will ''gone'' in one day. Today, money in the bank is not the best choice ever, the low interest given will not able to block  ocean of  ''economy crisis'' too. Moreover, the higher inflation rate which boost up almost yearly will also makes our money deteriorated.

Other the other hand, investing doesn't risk at all, it will only be ''risky'' when we try to ''invest ''blindly'', where this is the most common error by so-called  ''investor'' today.People who investing blindly means they invest an activities without the knowledge,they buy the stock only by the information by friends,broker, and never do any investigation or studied  the financial statement of that company.

People are doing so because they wanted earn fast money from investment. They did know the rules of buying low and selling high in stock market,but  they will insist to buy high and sell low in the stock market when they heard of any  uncertainty or news. Some people even put most of their property into the activities of speculation.

    You May Like This Post Too :

    Run Out From the Rat Race - Learn Investment

   How Investment Can Help You Tackle Inflation

   Work At Home, Make Money At Home

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