Rich Dad Revisited

For Christmas, I got Rich Dad, Poor Dad from my buddy at work. She thought I never read the book before... how could she...?

But it was really timely. Not too long ago, I told myself to revisit the book again. I was halfway through another great book called The Richest Man Who Ever Lived, and wanted to complete that first. After I was done with that, I ordered a copy for my buddy for her Christmas gift because I thought the contents of the book was so crucial to financial and life success. In other words, I gave her what I wanted to give, and I got what I wanted to receive.

(Marge, if you're reading this blog, from the bottom of my heart, thank you.)

I'd like to share about one paragraph from Rich Dad.

In the last chapter, I offer ten steps that I followed on the road to my financial freedom. But always remember to have fun. This is only a game. Sometimes you win and sometimes you learn. But have fun. Most people never win because they're more afraid of losing. That is why I found school so silly. In school we learn that mistakes are bad, and we are punished for making them. Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk. The same is true for learning to ride a bike. I still have scars on my knees, but today I can ride a bike without thinking. The same is true for getting rich. Unfortunately the main reason most people are not rich is because they are terrified of losing. Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.

-- Rich Dad, Poor Dad by Robert T Kiyosaki

Well it's not just about buying stocks, unit trusts, real estate, setting up a business, or the likes. It's just the mindset of wealth. It's not about how much money you have today that determines your wealth, neither is it about how much you will get tomorrow. I've come to learn and accept that wealth is a mindset. The amount of money is usually just the by-product of the mind that is developed.

Do I have a lot of money? No, not yet. Am I still working like a cow to pay my bills? Do I still have loans? Do I still have debt? For the last three questions asked, my answer is -- you bet! These were mistakes made from the past, which my family and I still pay the price today. But failure is really not about how many times or how bad your fall is, but how long you stay down.

I wish you a great 2009 coming up soon. Opportunities abound in times of trouble.


PS: I've found a relatively cheaper way in buying books. If you intend to buy good books, drop me a mail to find out how.

Cash Flow is King

Yep. Self-explanatory title.

Especially with the oncoming real recession hitting us real soon (nope, it has not really hit yet, unfortunately), money matters are going to be the talk of the town. If it's not already the talk of your home, you'd better do it now.

How are you working on your income? If you are likely going to face retrenchment, do you have something else in the works? Why wait till you are laid off then start looking for something else.

There are other side-income earning opportunities (I'm sorry but I can't really help very much in this area, but this fella and this fella may be able to) that you can just source about for. Or, you can work on brushing up on your skills, or take this opportunity to explore new markets for your company while the majority are curling up in fear.

That's the offensive.

And you have to take care of the defensive. Be tactful of expenditure. I am currently in the process of reducing a client's insurance portfolio premiums by 25%! When the paperwork is complete, he will save a whopping $51 a month, or $612 a year! And mind you, his new portfolio will have much more comprehensive coverage. It makes sense that this can happen, when you bought insurance plans from agents who know nothing about the insurance product market except for their own companies', and are more concerned about their commissions.

Then there are also those things that you spend on. Robert Kiyosaki calls them doodads, meaning things that are desirable to buy, but aren't really helping you financially. That could be the car that you bought because of the low COE, but didn't really need. That could be the condominium that you are thinking of buying, even though if it means squeezing your CPF dry for the next few years unless you get a raise (... unless you get a raise??). Or simply those snacks you buy from the supermarket and food stalls, and cigarettes and beer, where you can save on not taking, because it's not only good for your wallet, but your health too.

Recessions are usually good to force out all those unnecessary expenditures that we carelessly lavish on, and also a motivating factor to create income and improve your work.

Know that "cash is king" is not entirely correct. You must have cash flowing in -- not just sitting around looking pretty -- thus cash flow is more important.

Happy Holidays!

Okay everyone. Don't forget to get your travel insurance.

I love this pic.

For great laughs, go to http://www.engrish.com/.

Happy holidays!