Pakdi.net

I know that many of you have not read this book, Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not! I’m not really sure why. Is it too technical or it is hard to find in our local bookstore.

Basically the idea is, you shall have 3 investment plans in your life.

1. Plan to be secure

2. Plan to be comfortable

3. Plan to be rich

Any licensed independent financial planner could help you to have the first & second plan. The plan is easy but still it required some degree of discipline. Just follow the plan and you will achieved it.

For a plan to be rich, Robert Kiyosaki has underlined 7 investing principles which must be really understood. I have summarized 2 of them in the previous article.

The main concept actually derived from Monopoly / Saidina board game. Buy four green houses, trade them for one red hotel, and repeat the process until you become rich. But many of you just play the game for fun. Yes, I agree that Monopoly game is too simple and it is not as easy as you think in real life, but the business principle is really great isn’t it ?

Here is the main principle in the game:

1. Buy a land (an asset)
2. Build a house and rent it (a greater value of asset)
3. Build 4 houses (There are some tax loopholes in Malaysia if you’re having a company)
4. Trade 4 houses for a hotel (a great greater value of asset)

This book starts with a topic “Are you Mentally Prepared to Be an Investor” and ended with “Why It Does Not Take Money to Make Money… Anymore.”

You will read on how to Start with Nothing, the 90/10 Rule of Money, How not to be Average, Investing Like a Rich Person and much more.

In this book too Robert Kiyosaki writes about how World Wide Web has changed the 90/10 Rule of Money You might wonder how a young boy like him can make money on the net already. The creation of modem & internet has created the world of abundance to all of us.

Here is one of the story in the book:

Bill Gates crossed the border from the United States to Canada. When the customs agents asked him if he had anything of value to declare, he pulled out a stack of floppy disks wrapped in rubber bands. “This is worth at least USD 50 billion.” The customs agent shrugged, thinking he was talking to a nut and let the richest man in the world pass through the border without paying anything in taxes. The point is that the bundle of floppy disks wrapped in rubber bands was worth at least USD 50 billion. That bundle of floppy disks was the prototype of Microsoft Windows 95.

p.s. do you know which location in Kuala Lumpur which have the 7 stars value?

Share This