Rich Dad, Poor Dad

I finally got around to reading this book. It was published in 1997 and I was wondering how the economic downturn would relate to the story. Author Robert Kiyosaki's advice is really timeless.

Most of the stuff I already knew. Credit card debt = bad. But it was interesting how he put my assets and liabilities in check for me. I'm struggling with how to categorize my educational loans -- are they an asset or a liability? The asset is that they gave me skills to freelance and have my job. The liability is that they are something I have to pay each month -- like my car and mortgage. Ugh.

Basically it comes down to the fact that I have no assets and all liabilities. Assets are things like stocks, bonds, rental property, mutual funds, etc. that make money for you without you having to work for it. I am signing up for my companies 401k program next week but still. I have very little (5k about) in a retirement plan and even less (2k) in Roth IRAs. Yikes. My liability category, though, is full: mortgage, taxes, car payment, insurance, heating oil, loans, blah blah blah!

It did make me see my goals more clearly...which are to:

1. pay off my car and drive it until it falls apart at the seams.
2. get a pay raise
3. invest said money from no car payment and raise to create more assets
4. put an extra mortgage payment towards my house each year
5. not look to upgrade (ie, new car, new house, new luxuries)

I would love to own a rental property down the line, and living in a college town that's probably easier to do than if I lived in the middle of nowhere. I'd like to go into an investment like that with my family members but then again that can be tricky. I tried to talk my dad into doing something like that for his retirement. He and my bro-in-law John could be in charge of maintenance, I would be in charge of rent and tenants, and my sister could do...I don't know....something else.

I firmly believe in getting your money to work for you. And I know I need to be more financially savvy. It's my new year's resolution for 2010....thanks Rich Dad!