Last week I have completed reading RICH DAD POOR DAD, the most popular book on personal finance. Although Rob tries to sugar coat usual things like multiplying your income rather than depending on income fromjob for lifetime, I wanted to see if I can try to apply some of the simple principles discussed therein.
As a step towards that the first step is to pay myself before paying my monthly bills. As per the book Rob asks us to make use of the money to be used to pay our bills to first be utilized for investment. In practical terms this might sound impractical. Say, we live in a condo and I got my electricity bill this morning.
It read $100+. I'm not sure what investment I can make with this $100 and make sure I pay the bill wihtin a month after making profit frm this $100. One quick thing that I cna think of is ultra penny stocks traded around $.01. If my luck favours me I might end up doubling my money. Ultra penny stocks are ultra risky. I might lose my money as well.
Also, as part of trading I need to consider $20 towards trading fee. As such I was looking for some safe bet to pay myself before paying the bill. The easiest and safest idea that did pop up is the savings account. I have habit of paying my bills day 1 all these days. Instead I've decided to make it a habit to pay my bills one day before due date and park money in savings account until then. I'm in process of reading and learning different form of investments. In future if I find something interesting I'll share the information here
As a step towards that the first step is to pay myself before paying my monthly bills. As per the book Rob asks us to make use of the money to be used to pay our bills to first be utilized for investment. In practical terms this might sound impractical. Say, we live in a condo and I got my electricity bill this morning.
It read $100+. I'm not sure what investment I can make with this $100 and make sure I pay the bill wihtin a month after making profit frm this $100. One quick thing that I cna think of is ultra penny stocks traded around $.01. If my luck favours me I might end up doubling my money. Ultra penny stocks are ultra risky. I might lose my money as well.
Also, as part of trading I need to consider $20 towards trading fee. As such I was looking for some safe bet to pay myself before paying the bill. The easiest and safest idea that did pop up is the savings account. I have habit of paying my bills day 1 all these days. Instead I've decided to make it a habit to pay my bills one day before due date and park money in savings account until then. I'm in process of reading and learning different form of investments. In future if I find something interesting I'll share the information here
