Perhaps the most important chart from reading Rich Dad Poor Dad
The balance sheet on the left refers to a normal working class person’s balance sheet. The income comes from salary and is used to pay off liabilities and repeats itself.
The balance sheet on the right refers to a rich person, who uses his income to purchase even more assets which generate income.
Decided to do a cash flow analysis of my own
Some ideas I have to increase my asset column for the year 2014
1. REITS – This asset class will give stable income quarterly, however currently I do not have this expertise to analyze this asset class yet.
2. Dividends stocks – Dividends wohoo……
3. Value investing – Attempting to do a demo trade this for a year (started in 1st May 2014 – Hopefully by May-2015 this demo account shows me that this strategy works)
4. Invest CPF using IVY portfolio strategy. Would need to find 5 assets classes which can replace the ivy portfolio ETFs which can be found in SGX. Lots of back testing still needs to be done.
– US index
– Foreign Index
– Commodities Index
– 10 year Bonds
– Real Estate Index
5. Trade FX weekly charts
6. Continue my permanent portfolio allocation (25% STI, 25% 30 yr govt bonds, Gold, Cash)
just do your best, your time will come.