In 2005 I first chanced upon Robert Kiyosaki’s “Rich Dad Poor Dad” book at my classmate’s place during a group project, and it’s that book opened my eyes to:
- Assets put money into my pockets/bank account (conversely, liabilities take money from me)
- Positive cashflow investing (same meaning as passive income) is the difference between liabilities and assets
- If my monthly positive cash flow or passive income is more than my monthly living expenses, then I am financially secure and dont have to worry about money anymore
It is item #3 that is constantly on my mind, because I understand that once I achieved #3, I no longer have to worry about money, expenses etc, as long as I keep my expenses low.
Of course, any of my assets and investments need to be aligned to “good” and ideally God because I do not want to be associated with businesses or assets or people that are negative, evil, corrupted, exploitative etc (this matters to me).
And that’s why I’ve been reading, practicing, testing, applying it since, and documenting it as much as I can here.
With time, age, experience and fatherhood, I have added additional dimensions to life as well – not only is passive income is good to ensure my financial security…but it’s an utmost requirement to “unlock” the next stage of life.
The Rich Life.
I finally “get” what Robert said in the same book, that to first gain financial security, and THEN you can work to get rich – this may not be just limited to material possession and riches. And this is inline with what Ramit Sethi has been saying also, about the Rich Life.