Saturday, September 02, 2006

While in KL I'd the opportunity to read the book 'rich kid smart kid' (same author as 'Rich dad poor dad') which has almost similar content as Rich dad poor dad.

I would say that book gave me many insights about people.

There are 3 people in general:

  1. The Poor
  2. The Middle-class
  3. and The Rich

The poor are people needing money, always seeking for financial help from the government.

The middle-class are people having stable jobs and are termed "passive investors". They only invest in low-risk funds such as mutual funds.

The rich are investors and entrepreneurs .

People from the olden days used to think, 'go to school, get good grades and get a good job'. A good job gives them a good sense of job security and stable income but what they didn't know is that even a high-paying job DOESN'T make you rich.

Robert kiyosaki (author of that book) went on to say that 'The poor and middle class work hard for their money. The rich have their money work hard for them.' (good point to ponder on)

And he said that to become rich, one has to think how many people he/she can serve. For eg in his case, the author initially gave classes to teach people to become rich. But then after thinking of how limited the number of people he could serve, he came out with the best-selling book - 'rich dad poor dad'. Now he could serve more people!

Besides, one has to be risk-taking and change the perception he/she used to have. Many people always have the fear that he/she might lose all the money in a business. But if we do not learn from past failures, we would not improve.

A few things I learned from the book:
  1. Getting good grades in school doesn't make you rich in the end. The banker doesn't ask you for your report card. But instead, he asks you for your FINANCIAL STATEMENT.
  2. Everyone is smart. But too bad the current education system only recognises people who are verbal-linguistic geniuses.
  3. When we see something which is too expensive, we should say 'how can I afford it?' instead of 'I can't afford it'. Because as we say 'how can I afford it' will make us think of ways to buy it and therefore exercises our brain to be financially active. But 'I can't afford it' puts our brain at the stop.
  4. Don't work for money but have money work for us.
I truly recommend people to read 'rich dad poor dad'. I finished reading 'rich kid smart kid' but only read halfway through 'rich dad poor dad' coz I was too lazy to stay in Borders for too long to read. Wanted to buy but...


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