Disposable Income?

Rich E. Obscure in his blog (www.richeobscure.com) brought up this interesting phrase – Disposable Income.  We have heard of earned income and passive income from Robert Kiyosaki’s “Rich Dad, Poor Dad”, but disposal income?  The concept of disposable income comes from the idea that after all your expenses are paid, presumably including savings, the money left over is for you to spend on anything you want. Maybe you choose to go out to diner with your “disposable income” or maybe you spend…

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Mind Your Own Business

No, I am not telling you off.  “Mind your own business” is one of the advices that you can find in “Rich Dad, Poor Dad” by Robert Kiyosaki.  The meaning behind this is that you should focus on building on your own business; and your own business revolves around your asset column, as opposed to your income column. I found this article by Sharon Lechter on motivation.blogharbor.com, which summaries the essence of this phrase very well. Are you minding your own business? If…

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Cut Up Your Credit Card

Robert Kiyosaki, in his 22 Jan 2007 Yahoo Finance column, wrote about his take on the classic credit card debt problem. In the real world, credit cards are essential. It would be extremely difficult to rent a car or make hotel and airline reservations without a credit card. It would also be tough to pick up the tab at a business lunch or shop online without a credit card. Personally, I love my credit cards because of the financial freedom they…

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Cash Flow vs Account Balance

The FireValt Blog (http://www.firevalt.com/blog/2006/04/28/cash-flows-vs-account-balances/) tried to compare the important of Cash Flow with Account Balance, and concluded that Cash Flow has more importance in building wealth. What’s more important – having a large bank account balance or a healthy positive cash flow each month? I’m sure both are important, but which one should we focus our attention on when budgeting? Should we budget and plan based on money in our bank accounts? The amount in a bank account is the least important factor…

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Is Cash Flow better than Capital Gain?

My co-worker and I were driving past the construction site of a high end condominium near to our work place.  Naturally, the conversation shifted to the condominium and my co-worker muttered that if he has the money, he would seriously consider buy a unit although his current place is less than 3 years old.  He was speculating that the property price will go and in a few years time, he would be able to sell it off for a tidy…

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Income and Expense

To reach our financial goal, one of the first things that we should do is to figure out what is our financial situation, so as to better chart our path.  And to do that, we need to determine what are the monthly flow of cash into our pocket and the monthly flow of cash out of our pocket.  That is our income and expenses, which will define our cash flow. Income  Income is money that goes into our pocket.  Some…

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Investor and Gambler

Ariffmahmood in his/her blog (www.bizliner.net/finance/?p=10) discussed about active and passive income with relative to Robert Kiyosaki famous Casflow Quadrant. The author mentioned that to become rich, it is necessary to switch from an active income earner to a passive income earner.  And one way is to become an investor as in the I quadrant of the Cashflow Quadrant. The author then questioned the difference between an investor and a gambler. In my opinion, I see that the primary difference between an investor…

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How to Teach Your Children the Value of Money

In the book “Rich Dad, Poor Dad”, Robert Kiyosaki was taught financial knowledge from a young age of about 9 years old by his Rich Dad.  This laid a strong foundation for him which benefited him later in life. You do not have to simulate Robert Kiyosaki and his rich dad and waited until your children is 9 years old before you can teach you children financial related knowledge.  As long as your children start to understand what is money,…

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Top 6 personal financial obstacles – Part IV

Robert Kiyosaki listed 6 top personal obstacles that can block your path to financial success.  In the previous 3 installments, I have covered 4 of them.  In this last installment, I will be talking about the rest of the 2 personal obstacles – Arrogance and Disappointment. Arrogance Robert Kiyosaki’s definition of arrogance is ego plus ignorance.  The ignorance is hidden behind the ego.  Because of the ego, many people will try to bluster their way through financial discussions when they…

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Does U.S. Need Secretary Of Personal Finance?

Robert Kiyosaki’s “Rich Dad, Poor Dad” book illustrated the importance of financial literacy and exposed the low level of financial literacy in the US. While Office of Financial Education was created in 2002 in the US with the objective to improve on the financial literacy, Nathan Dungan argued that it has not shown results He wrote in KCCI.com Money column: A few weeks ago, I was flying back to Minnesota, my home state, after doing a workshop for a large community organization and the…

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