my magazines and chick-lits have taken a rest, at least for this past week. my brain was still in overdrive as usual, but i've been having a new train of thought. for the past couple of days i have been busy reading this book. something that i should have read years ago. although if i did get to read it earlier, it probably wouldn't make much sense and it wouldn't have made an impact. i've been reading Rich Dad, Poor Dad by Robert Kiyosaki.
it is a very famous book and it was worth reading because i learned a lot. (yep, i have been taking notes while reading. parang college lang haha.)
there are sooo many ideas in the book that i'd like to share. parang makaka-ilang blog ako para masulat lahat. so here's the compact version instead:
- scenario: corporation announces downsizing. employees get laid-off. price of stock usually goes up. employees lose, owner and investors win.
- "I can't afford it" = mental laziness. say "How can I afford it?" instead.
- what's important is to be able to correctly identify an asset vs a liability. (apparently, my pad is a liability. a necessity, but still not an asset.)
- why middle class people struggle: income goes up, expenses go up. assets do not increase, liabilities increase.
- why the rich get richer: use income to build assets, assets get more income. expenses are low, liabilities are low.
- your business revolves around your asset column, not your income column.
- rich people buy luxuries last. poor and middle class people tend to buy luxuries first. (guilty!) use your assets to buy luxuries. most people buy luxuries on credit, which is easier short-term but harder long-term.
- "work your way up the corporate ladder" --> "why not own the ladder?"
- 4 areas of expertise needed: accounting, investing, understanding markets, the law. for most people, the only skill they know is to work hard.
- this line, i like: "life is much like going to the gym. the most painful part is deciding to go. once you get past that, it's easy."
- "giving money is the secret to most great wealthy families."
- what i know: makes me money.
- what i don't know: loses me money.
- arrogant people: what i don't know is not important. some people use arrogance to hide ignorance. not good.
- how come mcdonald's makes more money than most people who cook better hamburgers? because most talented people "focus on building better hamburgers and know little about business systems".
- ask questions instead of argue. open your mind to new ideas.
- savings are supposed to be used to create money, not pay for bills. (sort of guilty, again.)
- every month, allocate money to you asset column before paying for your expenses.
aaaaaaahhh! so much more to learn! reading Mr. Kiyosaki's book makes investing look easy. but i'm pretty sure implementing these ideas and actually making money isn't a piece of cake. i am taking little steps though. for someone who's not much of a risk-taker, it's a start.
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