Tags

,


It was during those days of my MBA, when i used to read books in Crossword for hours together (for free, of course :-)), i spotted this book called “Rich Dad, Poor Dad”. I just flipped through the book and kept it down. After so many years, finally in 2011 i read it completely and i was wonderstruck. I was so angry at myself about not reading it that time almost around 8 years back. Had i read it that time itself, i would certainly not have committed some of the financial blunders that i have committed within these years.

I was so very much impressed by that book, that i decided to read other books of him. After ‘Rich Dad, Poor Dad’ i read ‘Cashflow Quadrant’, ‘The ABC of Real Estate Investing’ and one more small book, of which currently i am not remembering the name. All these books were impressive and easy to follow.

I also searched about Robert Kiyosaki and i found that on Wikipedia, people have criticized him about only giving some vauge ideas but not giving the full proof, concrete plan. I certainly did not agree to those comments. According to me his books are a real eye opener and they atleast make you think to become financially literate.

I am an engineering graduate with an MBA in Marketing. All these years i use to think that i do not need financial knowledge, i was afraid of the words “Debit” and “Credit”. The reason for this is i struggled with those concepts in the first year of MBA when some of the subjects are common to all and finance was one of them.

But slowly and gradually i realised, that everybody (be it a doctor, engineer or any non-finance personnel) should have basic financial knowledge. They should be able to make bear minimum meaning out of the numbers that they read in their day to day life. By the phrase “numbers in day to day life”, i mean:

  • number in the payslip
  • number in the financial statements of companies
  • number in the passbook (which generally people will understand, for sure :-))
  • numbers in the news (company performance for the quarter, year etc)
  • numbers that are related to personal finance (insurance, FD etc)

I personally think that having this knowledge of ‘numbers’ and to be able to make meaning out of it, is no big deal. You just have to read and make yourselves aware about the basic concepts of finance. Once you develop interest, you can then google out the terms and you will find loads of sites helping you understand the language of numbers.

The reason i am saying this so passioantely and from the bottom of my heart, is beacuse, after reading Robert Kiyosaki, i was encouraged unknowlingly to increase my understanding about ‘numbers’ and there hidden meaning. Really now i feel so relieved, that i can:

  • understand the P and L statement of a company
  • make sense out of Balance sheet and Cash Flow statement
  • can understand the language of ratios
  • can make correct decisions in the area of personal finance etc

I know, for some this may be sounding a little childish. Even some may be thinking that an MBA is assumed to know all this. But, to be frank, i did not and that took a toll on me too.

From my experience, i just want to share that, it was Robert Kiyosaki, who enlightined me and then i further delved deeper into the basic number crunching and its analysis. Believe me its fun, once you start understanding it. I can proudly say, i now feel comfortable after i hold Economic Times and flip through it :-)))

I would strongly recommend following websites and books:

  • http://www.accountingcoach.com/
  • All Robert Kiyosaki Books (but Rich Dad Poor Dad, initially, as it is the basis for other books)
  • Books of Ravindra Desai (On Shares, which has detailed Financial Analysis and that to in Marathi, for people who speak marathi)
  • http://www.raagvamdatt.com/ (a website about personal finance)

Just wanted to share this new experience with you all. Try this out…its a fun learn…

K Sarang