3 Habits I’ve Developed from Rich Dad Poor Dad by Robert Kiyosaki(Since 15)
I still remember the first time when I was handed this book. It is my first book that made me realize that money needs to be earned in Life. I won’t bore the details as there are so many book summaries out there on YouTube or on the web.
1. YOUR LIFE Income Statement.
Dear Readers, Sorry if Maths is not your strong suit >.<
I have been keeping track of my expenses ever since my very first paycheck (2012) with Excel in Google Drive and only later decided to put it on an App(2015). I also bought the premium version as the free version had limited amount of entries that you can use after 2–3 years in of daily tracking.
Basically, in Life we should increase our Assets which generate us Income, reduce unnecessary Expenses and only have Liabilities that can be Income generating; And No, Buying that Expensive Tesla or Gucci Bag does not generate Income :)
If you think about it, we are actually managing our own “company” which is loss making for the first 18+ years of our lives “funded” by FAMA account till our very first paycheck. (FAMA = Father Mother)
“Its possible to have more than one source of Income?”
At an early age, I did work part-time as a P1-Wimax Agent, however I did not start any sort of business unfortunately as I did not really know how to go about it; which made stocks my next option.
I quickly realized that money was not taught in public school even though it played a significant role. If more parents and teachers gave a better focus money, perhaps the number of cases of bankruptcy in the younger youth in Malaysia could be lower as well.
Did you know that there is also such a thing as Licensed Financial Planning (LFP) Agents?
They actually assists individuals and organizations on planning the different financial modules such as Insurance, Investment, Zakat, Tax, Real Estate, Retirement and Inheritance for a percentage of a Fee or total wealth planned.
In Malaysia, we also have our own version of “Quora/Reddit” called “Lowyat.net” which have been my go to place to learn about finance including Real Estate and Investing.
2. “Got Cheaper but same function?”
I think I’m not the only one to say that if you are buying branded goods its mostly “status and marketing” that you are paying instead of the goods itself (although some have good quality products as well).
Why pay 3–10x more expensive just for an apparel that serve the same function as something from a departmental store?
Well, unless you have too much money , or you are running an influencer lifestyle, being a model, actor or being paid to showcase their products, then its part and parcel of your job isn’t it?
This is something I constantly ask myself whenever I spend.
Whenever I would see a certain product, the first question in my mind would be, is there a cheaper alternative that serves the same function?
3. Never stop growing
I’m pretty sure many started off with investing in KLSE Bursa. After sometime a couple of years looking at financials and comments on I3, I started to realize that the big institutions aka “whales” are actually manipulating the markets regardless of the region.
With each losses and gains, I start to learn and adapt accordingly.
How I usually track my gains and losses is by counting my Deposited Fund versus Current Market Value to determine the Profit/ Loss yearly.
PS: I did not include Crypto, Forex Trading which has a bitter sweet ending.
At the end of the day, if the money invested is not growing and even so losing, some would rather put it in Fixed Deposit instead since it is safer.
However, do not forget about inflation since our Ringgit is being depreciated against most of the ASEAN countries.
Up until today, I’m still looking out for better investments as you never know with the help of technology, many of the investment alternatives out there COULD be better than traditional investments.
“As the saying goes, always be diversifying”
Hope this helps and put some ideas and perspective in your mind.
Signing Off-
Kimican90
