Wednesday, July 21, 2010

A book to share: Rich Dad,Poor Dad

"Rich Dad, Poor Dad" is such a very great book for us, who are still studying in University, to learn something new and true in this real and fast pace environment.

Why is it so worth to read?

First, it is not written by me. Yeah, if I wrote that, I guess no one will read it.XD The author of this book is Robert Kiyosaki, who is an American investor, who wrote 15 books and over 26 million copies were sold throughout the world. Mr Robert is also an motivator who write this book to motivate, and let everyone to understand what is the truth of money.

Secondly, it is understandable by everyone from every level of the community, either students, employees, pro's, businessmen or even entrepreneurs. Unlike other books like "100 Thousands of Why's", "Astronomy", "Automobile" and so on, which require some professional knowledge to understand. Why is this book understandable? Because everyone is standing on the same boat, that's why everyone "underSTAND". :D

Thirdly, the knowledge from this book is not learnt from any school. From primary to secondary, and even those who learn the accounting, business, did not really learn the facts of money is. Are you working FOR money? Or you are working WITH money? How do you operate the money that you own? How do you define money?

Here I simply share what I get from the books. One, we know everyone study in university to get a good jobs, so that we will have stable INCOME. When we are hired, we are working, of course, we have stable INCOME, meanwhile we have EXPENDITURE. Normally, people will only see these two parts. That's the usual CASH FLOW. So, the culture tell us that we study hard, get a good job, and earn stable income. This is what culture tells us, so that we have the lowest risk in managing our money or financial.

However, there are another two aspects, which money does really flow through. As we know everyone works for INCOME, and daily EXPENDITURE for life, such as food, rental fees, government tax and so on. The money everyone we accumulate, we save in the bank, has become our ASSETS. What does asset mean? I don't provide the best definition here, but from my idea, ASSET means it is a storage where CASH FLOW into it so that we can use it when we really NEED it.

At the same time, we never forget that we have LIABILITIES, which simply means what we owe. The very obvious thing is like PTPTN that lend us money to study, my OCBC bank loan (T.T), and everything that we owe others.

What to do with four of these aspects? Briefly, we earn INCOME when we have a job, we spend money everyday as EXPENDITURE, and save some money to put in bank as ASSET, and also pay back the LIABILITY which we owe to the bank and government. INCOME will stop one day, which is the day when we get retired, or maybe fired. But, EXPENDITURE AND LIABILITY never stop, because we are still owing and we need to eat and stay. What we need when we have no more INCOME? We need ASSET. From this flows, we can see that everyone need to have strong ASSET, to sustain our lives. How do we strengthened our ASSET? Read this book...Haha

Those are just some ideas to share with you guys. By the way, there are still long ways to go. Don't let financial be the problem of our future, let the financial management solve it.

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