Rich Dad, Poor Dad

One will never finish reading this book as getting rich is a continuing life-long learning process!

The six secrets ( as a refresher course )

(1) The rich do not work for money. Money works for them

(2) Assets bring in cash flow. Liabilities suck it out. To be rich, keep accumulating assets. Turn active income into passive income the fastest you can.

(3) Mind your own business. Keep your day job, but work your money at night.

(4) Taxes and corporation. Tools of the rich.

(5) The rich create money.

(6) Work to learn. Not work to earn money.

Very profound principles. Very powerful.

He also lists the Obstacles to Getting Rich...

(1) Fear ( of losing ) and how you handle fear ( low APtitude, high aTTitude game)
(2) Cynicism
(3) Laziness
(4) Bad habits
(5) Arrogance

And to Start, here are his 10 rules :

(1) Reason greater than Reality. Have a list of "DON'T WANTS" and "WANTS" to motivate you.
(2) Choose daily. Every dollar that gets into our hands can be turned into assets or liabilities. The choice is yours.
(3) Choose friends carefully. A rotten apple gets all the apples in the basket rotten.
(4) Master a formula and then learn a new one
(5) Pay yourself first. Let the others scream at you, it motivates you to find more money, it forces your brain to work.
(6) Pay your Broker Well
(7) Be an Indian giver. Always get your original investment back.
(8) Assets buy Luxuries.
(9) Heroes. Find someone to emulate.
(10) Teach and you shall receive. Docendo decimus!

And some extras to start...

(1) Stop doing what you are doing
(2) Look for new ideas : seminars, books, someone who has done it before.
(3) Take action!

In pg 190, he made a comparison between buyers of supermarket goods and buyers in the stock market. When a supermarket gives discounts , people flock to buy. When they raise prices, consumers shop elsewhere. In reverse , when stocks become cheap, people dare not buy. When prices go up, people rush in.

Now 15 years after reading the book, I finnaly found out why. The supermarket is displaying "fundamental economics" whereby when prices go up, people stay away. In contrast, the stock market is where "auction economics" is at play. The higher the price, the more people want it! This realisation also helped me become a better trader and investor. Traders practise auction economics, they buy high, sell higher! And they will never catch a falling knife! An investor, in contrast, practises fundamental economics : buy when there is blood in the streets! Buy low, sell high!

Bet Robert knows about this but has yet to put it in any of his books... perhaps I will write a book called " Rich Son, Poor son"and be the next best seller?

Now, where has my assets accumulating blueprint gone to....?