IS THIS THE CORE OF GETTING RICH?

As a disclaimer, this post is mostly taken from the book Rich Dad Poor Dad. It’s a very informative book written by Robert Kiyosaki, who explains the fundamentals of wealth very explicitly and accurately defines the process of growing your own wealth.

Kiyosaki mentions that the core for getting rich lies in one simple action: acquiring assets and eliminating liabilities.

With this, one is able to earn income much faster than the poor and middle class.

So what are assets and liabilities?

Assets
People usually define assets as ‘something I own’, or ‘something of value to me’. While this is not mostly untrue, this definition is not fine-tuned to the prospects of becoming rich. Assets are things that can generate a revenue for you. In other words, assets give you money. One example could be your spare room in your house. While mostly unused, this spare room can be rented out, generating a revenue (note passive income.).

As such, your house, or rather your room, automatically becomes an asset as it’s helping you earn money.

Liability

Liabilities can be considered the direct opposite of assets. They are what takes money away from you. One common example is your car. Most of the time, your car consumes hefty sums of money in terms of petrol and maintenance, and the starting cost of the car isn’t a price to scoff at as well. Hence as long as the car is underused, it is considered a liability.

Disclaimer: Cars are not always a liability though. Cars can be used to travel to work, and the time you save traveling in public transport could be used to generate profits. In this case, a car could be considered as an asset.

So the formula is simple. Maximize assets, minimize liabilities. That’s all that there is to become rich.

If it is so simple, why aren’t many people rich?

While the process seems simple in writing, in truth many people get confused over whether an item is an asset or a liability. A sports car or a landed property may seem like a valuable asset, but if it is eating up your savings rather than generating more income, it remains nothing more than a liability.

Bottom line is, know the difference. If it seems like a good deal, take it. Acquire assets that are guaranteed to mature in the future, and get rid of stuff that does so otherwise.

KNOWING MY MONEY.

This would be my approach to the first post to kick start the financial education:

 

What is financial education about?

Being financially educated means to be financially literate, just like how basic literacy enables us to spell words and communicate in a manner which other people understand, it teaches us how money works in the world, how one manages it and invests it to let it grow.

More specifically defined, being financially educated means having the skills to make informed decisions with all of your financial resources, such as cash and assets.

In essence, you can soon dump the old school concept of ‘working for money’ as you embark on this journey and open up the pathway to letting money work for you!

 

Why the need for financial education?

 

 You might be wondering about this question, why the need for financial education at our age? We are staying in an affluent country, where many of us come from decent families, and pay for minimal expenses we incur, such as transportation, food and entertainment. Many of us do not pay for our own education costs. We are still too young to bear the financial burden of paying for a house, a car, and a family. Hence, most of these individual expenses we incur could be covered by taking up part time jobs, and the rest of our pay goes to our savings account in the bank, we are satisfied. If this scenario clicks with your life, or you find this  comfortable, it is time that you start educating yourself financially.Because what you are about to see are some Cold Hard Facts which would serve as a wake up call to many of us.Yes, I think financial education is important, but do I need to start now?

 

To all young adults and teenagers out there, It is never too early to start. But it can be too late if you don’t take action. Besides how the effect of compounding would work wonders in building our wealth, which would be illustrated in the next few lessons, there is no better time than now to embark on this life-changing journey.

If you are in your late tens or early twenties, you would be stepping into worklife soon, enrolling into University, or enlisting. Financial education is most crucial at this point of time as most of you know that our financial burden would get heavier in time to come. Fortunately, you are currently free of much worries which would hit later in life. Take advantage of your youth and this freedom to truly enrich yourself with financial knowledge and start to cultivate the good habits. There will not be a better position in your life to do it!If you are in already ten years into working life, you might want to build your nest egg for retirement, or looking to more financial stability in your life. I would like to congratulate or thank you for making the effort join this group. Whether you are new to financial knowledge or not, we are committed to impart this wisdom to you and allow you to gain more exposure to it.

Closing Statements

“If you are born poor it is not your fault, but if you die poor its your fault” -Bill GatesBen Franklin once said, empty your wallet into your mind, and your mind will fill your wallet. Hence, investing in knowledge is the key to becoming financially free.To all those who want to make this change in their life, I welcome you with open arms! I hope place adds value to your life and feel free to contribute in the upcoming discussions!

Written by Thomas Wu

The Main Website

So this is how the main website will look like

To go over a few parts, there will be

The Home Page

Where the main introduction will be placed together with a link to the blog and a list of different projects and seminars that are recommended to attend, as well as a forum for the members.

Blogs

Here there will be a link to blogs created by our very own team members. It’s also a good way of learning more from different people with different viewpoints.

Contact

Here you can send an email to any of our admins. We strongly believe in a 2 way communication.

our blog as of now is

http://sgratpack.tk/

As for now we’re using a free domain, at least until everything is settled and we’re willing to spend money on a domain itself.

Do keep a lookout for updates!

Peace out!

Creation of RAT PACK Club

Hello world!

Welcome to the first official post of this Rat Pack Blog!

For those who are wondering what does ‘Rat Pack’ mean, it simply means to ‘Retire at 20s’. This club is a community of people who see the joy and importance of retiring early and retiring rich. As such, this club will present members plenty of opportunities, insight and real-life experience in working towards obtaining a passive income that is sufficient in supporting themselves and hopefully their families.

The main website is still undergoing construction and it should be pinned up in the Facebook wall, or the top of this website.

Do join in the fun! There’s absolutely no cost in joining and there will never be one. It’s simply a community of like-minded individuals with a common goal: Financial Freedom. Keep an open mind, and get ready to interact with many different people from all walks of life.

More details about the website, and each part of it will be given soon. So do stay tuned!