For many years, I blindly followed that definition, until one day when my good friend Peter Lim pointed out a misconception, a flaw in Rich Dad’s definition. I suddenly have much more clarity about the meaning of assets and debts, and how it is good or bad.
I once talked to a business owner who has over ten properties in Penang. "Wow, you have so many properties!" "The banks own it", he replied, implying that he still owes the
Indebtedness -what motivates people to accumulate debts? The reasons are many and varied.
Have you ever seen the movie "Confessions of a Shopaholic" or read the book "The Secret Dreamworld of a Shopaholic?" The character in the story by the name of Rebecca Bloomwood, is a classic example of a person who can't seem to manage her finances and ends up owing a lot of money to various creditors.
Generally, do all people have a choice to avoid going bankrupt? Can unfortunate circumstances cause a person to become bankrupt?
The number one financial problem is bad debt. You see, bank lend you money to buy the stuff that you can’t afford yet. For example, you borrow money to buy
This is a case study and a real story of a working adult making all the major financial mistakes in life. But he managed to turn the situation around and currently own six properties and a well-invested nest egg.