17 August 2007

Recent Book

Lessons learnt from Rich Dad, Poor Dad - Robert Kiyosaki & Sharon Lechter

Some key lessons:
1. Don't work for money (employed by Employer), make money work for you.
2. Know difference between Assets and Liabilities. Acquire assets, not liabilities.
3. Pay yourself first.
4. Assets: Stocks, bonds, notes, real estate, intellectual property rights, businesses that doesn't require your presence, unit trusts, mutual funds, things that appreciates.
5. Assets - put money into your pocket. Liabilities - takes money out from your pocket.
6. Income column: these represent working for the Employer. Expense column: these rep working for the Goven (taxes). Liabilities column: these rep work for the banks(credit cards). Assets - builds wealth!!
7. The Rich uses corporations/companies to get richer. Companies are taxed after what they earned and spent. People are taxed after what they earned and have little to spend.
8. Great opportunities are not seen with your eyes but with your minds. What you know is your greatest wealth. What you do not know is your greatest risk => manage your risks.
9. Four main skills for Financial Intelligence:
a. Financial Literacy - know the numbers
b. Investment strategies - learn from gurus, Warren Buffet, Peter Lynch
c. Market - know the ss & dd
d. Law - know the laws, work within it.
10. Main Mgmt skills that we need in life - how to manage cashflow; systems; people.
11. Many great people are one skill away from great wealth. They need the marketing skills, they have technical skills.
12. Work for what you'll learn rather than what you'll earn.
13. Have a think time. Don't just work very hard. Ask, "Where is this activities taking me?" Take a longer view of life - see beyond your paycheck.
14. Get some sales trg, learn to overcome fears of rejection and failure.

This is a great beginner book that opens the door to financial growth and debt awareness. It is written to inspire us that it is possible. My only caution is that it works well in a US context, but in Singapore? Nonetheless, I would recommend it as a good awareness read for financial literacy.

Should we read secular and for that matter books on Mammon? I think there is a place for it. But it should not supercede our faith in God, for He is the One that we should ultimately trusts in.

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