This was once a best selling book a few years back, and I think most of you must have heard of it. Ya, I was late until the end of 2008 that I get myself to read up this book. Learning will never be late, the worst thing is you do not initiate to learn.Financial literacy is a knowledge that I find myself lack of as a student. As an engineering student, what I learn all these years is the complex equations but nothing about how to face the real world after graduate. Get great grade in school, get a good job, work hard seem to be the answer. But the recession around the world prompt me to think more about it. When all the companies start downsizing and layoff their employees, what will happen when most of us depends on the paycheck every month to pay the bills. How can we get ourselves out of the mess and be financial independent? I realize that I must be prepared with certain financial knowledge, at least to know how money works and how to not to work for money.
I did not get all the answer from this book, but a broader view on what money is, the do and don't. The main point to become rich by the author is the power to control the cash flow. Maximize the income generate assets and minimize the liability expenses. But how?
The example always limited to real estate speculation. Which I think this is what the book lack of -- examples- examples other than real estate.
As mentioned in this book, investment is a method to increase the income generate assets. How to? is the knowledge that we need to acquire. Anyway there still a big question in my head, when a big investment company like Lehman Brothers can face bankruptcy, how should we invest?
There still a lot to learn and this one book alone is not enough. Read and learn more about finance is one of my target next year. If you recommend any book please let me know in the comment. Thanks a lot!
1 comment:
Hey, it's good to know that you like finance. As the book says, school doesn't teach us about financial literacy or in other words, "how to get rich". It does broaden our mindset about money but I do agree with u that the examples are rather hard to follow focusing only on landed properties investments in the US.
If you are interested in investment, I would recommend u to learn from Warren Buffett, the CEO of Berkshire Hathaway. He is also known as the GOD of Stocks in Asia who also became the richest man in the world this year. He gave a talk to a bunch of MBA students in 2006 and u can find it in youtube. I found it very interesting as he is surprisingly humorous and down to earth, doesn't act like an arrogant rich man at all.
One student asked him, out of so many options in the stock market, how would u know which to invest?
He said: I only invest on something I understand, and that narrows the options down to 1%.
wat a funny comment but there's truth in it as he elaborates that he prefers Coca-cola to Google because he thinks everybody would drink it in goodtimes and badtimes but Will Google still be leading the IT industry in 20years?
Well, now as the recession hits the US, it's interesting to see whether or not he can manage to survive.hehe.
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