Rich Dad Poor Dad (I)

Our first foray into the concepts of financial freedom came from a book called "Rich Dad Poor Dad" by Robert Kiyosaki. It was recommended to us by a long time friend called Ah Tiong. After reading this book, we began to understand why the rich are rich and the poor are ....poor. We are sure many people have read it because its on the bestseller list for years. If you haven't, go read it, its a good foundation.

In this book, we "learnt" something very important (learnt in quotation because it was something so basic and yet not many people actually practises it) and that is the term Financial Freedom. Basically, the concept is if you use your time to earn money, it is active income and in layman's term, No work = No pay. And if you have income that comes in whether you work or not and that's passive income. Therefore, if your passive income is greater than your expenses, hey you are financially free. Isn't that simple? Then why is it that there aren't that many financially free people around or at least around us?

The answer is simple because if you were like us who tried to look at how he did it and concluded that, well, that's in US and his method can't work in Singapore and we stopped there. That's exactly what happened to us. Though in our mind, we understand the concepts but it was not "do-able" so we did not take any actions and our financial situation remains pretty much the same i.e. kept working very hard for the meagre pay cheque.

Quote of the day:

"Success breeds success"