Rich Dad, Poor Dad by Robert T. Kiyosaki

Being brought up from a typical ordinary family background, I have never had any big dreams of wanting more in life. I can still remember vividly that after landing on my very first job, my most ambitious dream was to earn a monthly salary of S$2000 which I then deemed was more than enough.

So, when I read “Rich Dad, Poor Dad”; for the first time my whole paradigm about finance made a massive 180 degrees shift. What I learnt most, out of this book, is the ability to differentiate between assets and liabilities.

Having studied accounting before, I think none of the academic definition describes more clearly and simply than the explanation in “Rich Dad, Poor Dad”. In a nutshell, assets mean money into your pocket. Liabilities mean money out of your market.

Most of us are conditioned or at least mis-educated by the media to think that the more we ‘own’ like property and car, equates more assets. It is not until I understood the concept from “Rich Dad, Poor Dad” that I started to develop keen interest to learning and mastering my financial destiny.

Back then, my dream was so ‘small’ that I never even thought of owning a car. I was very contented to just take a public transport through and fro to wherever I want to go. My philosophy then was Singapore transport system is very efficient and convenient. So, a car is more of a “can-be-done-without“ luxury.

In the midst of my quest to equip myself with more financial knowledge, I stumbled upon Jerry Clarke’s workshop. I attended his workshop for the sole purpose of sharpening my communication skills but throughout his impressive workshop, the one message that hit upon me even till date is PSM – Poverty Stricken Mentality.

Indeed, Singapore transport system is definitely one of the world-class. It was my philosophy back then that carried the subliminal message that I can’t afford a car.

I still do not own a car. But combining the re-definition of assets and liabilities from Rich Dad, Poor Dad and Jerry Clarke’s infamous abbreviation PSM, I have reprogrammed my mindset to acquire assets; (be it house or car) through income generated from the pipelines of my businesses.

A property like the HDB flat or condominium that one ‘owns’ is NOT an asset. Back to the basic, asset is anything that puts money into your pocket. In this case, by paying the monthly instalments, utilities and other overheads of a house is a liability because money flows out of your pocket.

And if the prediction of what Robert T. Kiyosaki and Clement Chiang came true regarding the economical downturn in 2010, I shrug to think the consequences of those who have ‘invested’ heavily in the private properties especially in the case of those who own 2 properties and still having to pay for the instalments & other overheads from own pocket.