Archive for March, 2013

Rich Dad Poor Dad written by Robert Kiyosaki is a book which can actually make you rich. It opens for you the door to the world of financial intelligence. It advocates financial independence through investing, real estate, owning businesses, and increasing one’s financial intelligence. It tells you how to use your financial intelligence to get rich!

Rich dad Poor dad is Robert’s personal story.Robert writes about how he got his financial education from an early age only, along with a friend Mike,Robert talks about his 2 DADs, obviously- the rich one and the poor one. He compares their lives.

The poor dad is not actually poor that he can not even meet his day to day demands and run a family, Robert calls him poor because he is not financially intelligent. Poor dad earns an good enough to support his family, but so much that so as to fulfill all the opulent demands of his family. He lives a normal life, although he has a pile full of educational credentials including a PhD. Robert calls him poor because the poor dad is always caught in the rat race of making money. His income is only limited, he does not have assets which give him extra income, he is always suppressed by financial pressures, the numbers in his bank account can never thrive, but increase only once in a month when he gets paid and then decrease down, sapped by taxes, expenditures! His income also goes into pension plans, retirement plans!

The Rich dad- the the intelligent one, is a businessman. His earnings are nearly equal to the poor dad, but that, according to Robert is only temporary. Unlike poor dad, the rich dad pays less taxes, his income is sure to grow vigorously in future. He does not suffer financial tensions at all. He is focussed on building assets, which in future generate income, automatically and continuously so that he does not have to rely on a small pensions , he is building his perpetual money making machines. So, he does not saves money in retirement plans, instead, invest his money into making assets.(now you obviously know which dad is better, and which dad is the role model of Robert since his childhood!)

Robert writes about the one and only secret of becoming rich, which according to his Rich dad, is, understanding the difference between assets and liabilities. IF you understand this, you will become rich. This is the only rule.

I’ll be explaining assets and liabilities like Robert has explained in his book.


The above box is an Income Statement, often called a Profit and Loss Statement. It measures income and expenses. Money in and money out. The bottom diagram is the Balance Sheet. It is called that because it is supposed to balance assets against liabilities.

The arrows in the diagrams represent the flow of cash, or “cash flow.”


An asset is something that puts money in my pocket.
A liability is something that takes money out of my pocket.

Since assets put money in your pocket, you should keep buying assets, or building assets. Do not buy liabilities, do away with liabilities.



Job (provides income)-> Expenses(Taxes Food Rent Clothes Fun Transportation)
Asset (none)
Liability (none)

Middle Class

Job (provides income)-> Expenses(Taxes Food Mortgage Clothes Fun Transportation)
Asset (none)
Liability (Mortgage Consumer loans Credit Cards)


Assets(stocks bonds notes real estate intellectual property)->income (dividends interest rental
income royalties)
Liabilities (none)

The diagrams show the flow of cash through a poor, middle class or wealthy person’s life. It is the cash flow that tells the story. It is the story of how a person handles their money, what they do after they get the money in their hand.

“The rich acquire assets and the poor and middle
class acquire liabilities.”- Robert Kiyosaki

So that’s all I have for you about assets vs liabilities, I’ll be posting more about Rich dad poor dad, stick around till then, and keep SHARING.

To earn money smartly like Robert Kiyosaki- here’s a chance to build an asset to put money in your pocket for lifetime:

Feel free to contact me:


Just think of being an entrepreneur or businessman, you are a man of your own will, no strict and hectic schedule to reach office or listening to blatantly rude remarks of your exasperated boss! How would you feel if you can just sit back, satisfied, contented, watching you bank balance figures grow exponentially.Sweet dreams huh? Well trust me, its not that difficult to materialize this dream of yours! 🙂 I am talking about stocks, more specifically, owning stocks. I think of stock trading to be one of the best methods to grow wealth.When you start on your road to financial freedom, you need to have a solid understanding of stocks and how they trade on the stock market.   I have observed that interest of people in STOCKS has grown drastically over the last few decades.This demand coupled with advances in trading technology has opened up the markets so that nowadays nearly anybody can own stocks. But simultaneously, there are still many  people who are illiterate when it comes to stocks. Much is learned from conversations around the water cooler with others who also don’t know what they’re talking about. Chances are you’ve already heard your elders , like grandparents say things like “Stocks are risky, you can loose everything, its a gambling game, so stay away from stocks!”, and at the same time must have also got awestruck by seeing the hefty pockets of others.So much of this misinformation is based on a get-rich-quick mentality, which was especially prevalent during the amazing dotcom market in the late ’90s. People thought that stocks were the magic answer to instant wealth with no risk. Stocks can (and do) create massive amounts of wealth, but they aren’t without risks. The only solution to this is education. The key to protecting yourself in the stock market is to understand where you are putting your money.  Remember- EDUCATION CAN SAVE YOU!  So here’s something that can give you a jump start!

I found this interesting video on Youtube which actually tells you what stocks are, and why does a company issues stocks! What happens when you buy a stock of a company when the company grows, the value of that stock increases, and you become rich! This is a real simple video which can teach even a teenager about ‘stocks’.  – STOCK MADE EASY-by WallStreeSurvivor

This video takes an example of Julie who lives in Paris, and wants to open a bakery.

She calculates the total cost of opening up a bakery, including the supply, the staff and cost of starting a business, it comes out to be $100, 000! A BIG PROBLEM: Julie has only $10,000. So she takes $10,000 each from her 9 friends and makes them the stock owner/ or share holder of 10% each!



After 5 years, when the company grows to $1000,000, each of the investors(friends) turn their investments from $10,000 to $100,000! This is the power of stocks!
Similarly, you can purchase stocks of various public and private companies.

Stock/share/equity. Well they all mean the same! 🙂 ‘SHARE’ simply, as told by the meaning, is your ownership of the company. This ownership is nothing but the firm’s assets and earnings. So, more the number of stocks of a company owned by you, more is your ownership stake in the company. for example- suppose apple has 100 shares, and you own one of them, your ownership on company is 1%.


A building is made of number of bricks and all the bricks combined, make a building. Same is with company and stocks. Where in, company is a building and stocks are the bricks. If you own at least one stock of a company, you are called the owner of stock, or SHAREHOLDER, because stock is nothing but a tiny share of the


company(just like brick is a tiny share of a building!!) Being a shareholder means that you have a share on company’s profits and assets. Now it definitely makes sense to say that your share on company increases with ownership of stocks. The best thing about being a shareholder is that the growth, development, and management of the company is beyond your concern, you just sit back, relax, and enjoy profits as company grows! Moreover, if the company suffers a loss, even if it is as big as bankruptcy, you do not loose your personal assets( your personal assets can be anything you see around in your house, your electronic items, furniture..etc), in fact ,the maximum loss you can ever suffer is the value you have invested while buying stocks! Cool enough, isn’t it?


Rise of the MAHADEV

Lord Shiva, or the Mahadev, the protagonist in Shiva Trilogy (author-Amish Tripathi) has taken over the position of role model of every youth who has read the trilogy. In the trilogy, Shiva is portrayed as a human being (not trilogyGOD), his contributions to the ancient India, confrontation against the evil, has been showed to be great, which made him a god.

Shiva trilogy- Immortals of Meluha, The secret of the Nagas, The oath of the Vayuputras, is a story of an uncouth barbarian who went from being the chief of his tribe- the Gunas to the most revered person in India- the Mahadev– or god of gods. Shiva, a ferocious warrior, a consummate dancer, a charismatic leader, an ardent lover of his wife-Sati , has become an inspiration for the readers. Trust me, I am a big fan of Shiva now, I believe in him, as a god, as a friend, as a Mahadev.

Shiva trilogy is a lot different from the mythology we see on TV channels, it has a scientific explanation for everything, that’s the best thing I love about it. It explains how the Somras, drink of gods works for a human body and dramatically delays the aging process. Even in the ancient India, there were beautiful architectures in cities; efficient defense systems for armies were engineered from very simple ideas, simple and perfect. Smart use of weapons and ingenious battle strategies leaves you awestruck.

Issues like cast discrimination and gender discrimination which exist today have also been enlightened on. Immortals of Meluha shows how Vikrama people or the Untouchables in Meluha are treated and Nagas considered being evil in the society.

All 3 books are gripping and spell bounding, while I was reading, I could not just wait to flip a page, there so many twists and turns, revelation of mysteries and secrets.Description of the characters and their emotions are so well written that you actually get the feel of story as if it’s happening around you in real, reading the intricate details of scene makes you feel that everything has materialized in front of you.

Har Har Mahadev!! every person is a Mahadev.