Sunday, February 12, 2012

Rich Kid, Poor Kid

I have finally finished reading my first book of the year. Well, actually…I started reading the book last year…I was half-way through…but I still consider as finishing reading my first book of 2012 :)

Rich Dad, Poor Dad is a book by Robert Kiyosaki and Sharon Lechter. It advocates financial independence through investing, real estate, owning businesses, and the use of finance protection tactics. I actually don’t like to read books that have figures, figures-related issues, investment…because I find the material to be too heavy for me to read. I enjoy reading light contents. For materials with substance, I prefer watching than reading. That is why I rather watch National Geographic documentaries than reading their magazines. But surprisingly, this book is written in the style of a set of parables, ostensibly based on Kiyosaki's life. Kiyosaki stresses the ownership of high value assets, rather than being an employee as a recurring theme in the book's chapters. The book is largely based on Kiyosaki's upbringing and education in Hawaii. The book highlights the different attitudes to money, work and life of two men, and how they in turn influenced key decisions in Kiyosaki's life. Among some of the book's topics are the values of financial intelligence that corporations spend first, then pay taxes, while individuals must pay taxes first and that corporations are artificial entities that anyone can use, but the poor usually do not know how. According to Kiyosaki and Lechter, wealth is measured as the number of days the income from your assets will sustain you, and financial independence is achieved when your monthly income from assets exceeds your monthly expenses. Each dad had a different way of teaching his son.

I agree that in this age of time, having one income is really insufficient…and it is a very good advice that we should use our income to buy assets which in turn will generate a second source of income for us in the long run. But unfortunately, not many people are as lucky as the authors because I notice that people (including myself) are not equip with the necessary financial knowledge, how to seek the know-how, what to know, who to ask, where to invest etc. But after reading this book, I’ll definitely have changed my perspective on money, retirement and attitude towards my life.

Not everyone have the privilege like Kiyosaki. Growing up means getting your qualifications in place, finding a great job, finding love, falling out of love, making that commitment, signing those legal documents, trying for a baby, getting that baby, learning how to cope, becoming a parent, getting a maid of your own for the first time. This recurring theme is in everyone’s life is almost patterned, and sometimes, rather predictable. But I would say that this book is indeed a good read. I recommend it. But don’t just read one book and follow it to the letter. Form your own opinions; pick and choose what techniques work for you and your family in your own unique situation. Or you’ll get too confused by all the different opinions and teachings.

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