Retire Young Retire Rich

I dug out this book by Robert Kiyosaki (Author of Rich Dad, Poor Dad) which had been collecting dust on my bookshelf.

I read it 6 or 7 years ago and decided to do some re-reading to see how far I have followed Rich Dad's advice.

Why I first started reading the Rich Dad Poor Dad series is simply because Robert Kiyosaki started out with nothing and achieved financial freedom in nine years when he retired in 1994. He started with nothing and exited with $85,000 to $120,000 a year in income which came solely from investments. He was not rich but he was financially free as his yearly expenditure was only $50,000.

Reading just the introduction of the book Retire Young Retire Rich, I realised how I have not followed what he had been telling me to do. In a sense, I had only remembered one key thing from Rich Dad Poor Dad: Buy Assets.

In the introduction to the book, 2 important points are made about money.

The first important word about money is Cash Flow. The second most important is Leverage.

I realised that I sort of understood the cash flow portion but have somehow neglected the portion on leverage. As Rich Dad says: "Leverage is the reason some people become rich and others do not become rich.....Becuase leverage is power, some use it, some abuse it, and others fear it."

It seems like over the years, I have sort of feared the power of leverage. I have not made use of good debt. Instead, I have gotten myself into bad debt by buying a car and a house - both are liabilities as they are taking money out of my pocket.

Good debt makes you rich, Bad debt makes you poor. That is the power of leverage and it is something which is just head knowledge to me and not something that I have applied in my life.

In this book, Robert Kiyosaki outlines that leverage takes place in your mind, your plan and your actions. He also outlines the three assets that make people rich and allow them to be retire young.

I will be exploring and re-reading this book again in the next few weeks. Do drop by again to see the lessons that I have learnt!


Read Releated Posts:
1. Key Lessons from Rich Dad, Poor Dad
2. Donald Trump Lessons
3. David Bach Automatic Millionaire