Revisiting: Rich Dad, Poor Dad

The last time I read this book was when I was 18.

It struck me pretty well into my head back then.

But I did not take strong actions to apply it to myself as what was presented in the book.

Let me list out (based on what I can remember off my head right now):

1. Assets bring money into your pocket

2. Liabilities takes money out of your pocket

3. Focus on increasing the asset column

How? By investing in different investment vehicles:
- Business
- Stocks,
- Properties
- Anything that brings passive income (of course ethical investing plays a part too, that I will discuss in a different post)

4. With the passive income, reinvest back to the asset column and continue to grow the assets

5. Reduce expense and avoid liabilities

6. Even if you want buy liabilities, generate enough passive income to comfortably afford that liabilities

7. Use the power of corporation (PRIVATE LIMITED in our Singapore context)

How does it help?
- To reduce taxes
- To minimize your liability risk

8. Remember this Quardrant:
Employee --> Self-Employed --> Business Owner --> Investor

9. Move from the 1st quadrant to the 4th quadrant, in the best possible time

10. If you are an employee, work hard and increase that income column and save as much as possible

11. When you are applying for a job, remember; Don't work for money, work to learn

12. Money is still important, but knowledge is more important to set the foundation for growth and opportunities

13. If you are already run a business, remember; work ON the business, not IN the business

14.Work ON the business to automate process and hire talents

15. Work IN the business, and you will still be an employee and slave to your business

16. Keep pumping your savings into the asset column till it is able to generate enough passive income for your lifestyle

17. Your house is NOT an asset. It takes money out of your pocket each month (mortgage loans, electricity, water, cable TV bills etc)

18. House is only an asset when you rent it out and bring you positive income

19. Stay prudent and live within your means

That's my 19 learning points from this book (could not come up with the last 20th point). I must say this book has enlightened me, yet again as I re-read it. Now that I am already working full-time (about a year now), I'm much more motivated to take actions and apply it in my life.

For my readers who have yet to read this book, I strongly recommend you to read it. It will save you lots of time and pain from the consequences of poor financial planning and financial problems that may arise if you are not taking proper actions now.

Let me know your experiences.
Till then, stay safe, stay positive and stay hungry.