Rich Dad, Poor Dad....in pigs & goats:)

Rich Dad, Poor Dad is one of the most useful book I've read. I read it back in college. Thanks to a friend who couriered it to me to my hostel in some god forbidden remote corner of the North East. The book drove across many points which hit me bang on - and I've not forgotten them, even now. Asset & Liability - how do you differentiate between them, balance sheets, P & L etc. He made them seem so relevant to my life in its various ramifications that I started using those terms.

And was I not proud of it! I gifted copies of that book to all those who matter to me when I started earning.

But I was ashamed of myself when I got to know about the wealth creation abilities of the guy who takes care of L&S - Manoj. Manoj is a 16 year old boy from a remote village in Assam who lives with us. (How he came to live with us is another story which I will blog on later) Manoj has two responsibilities - his two sisters, one elder and one younger. He has nothing else in this world - but good people skills (amazing is the word!!), a sense of reality, ability to work hard.Manoj makes about Rs.2500/month. He saves this amount completely because his other needs are taken care of. He sends money home - but only when it is needed. He thinks his sisters may not have a sense of how much in the money at hand, and end up spending it all.

Anyway, Manoj just came back from home. As usual he gave me a trip recap. I was particularly impressed with his investments -

- 2 piglets. Female. Each @ Rs.1000.
- 4 goats.Each @ Rs.500
- 1 cow which gives 1 litre milk of everyday:)

He has "outsourced" the rearing of all the above to people who are experts in this field:)The deal: 50-50.

2 female pigs will rear 8-10 piglets twice a year. Each will sell for Rs.1000. 50-50%!!

Same logic applies for all.

Isn't that impressive! I know friends who make well over a lakh a month, but end up saving nothing. And look at him. Without reading "Rich Dad, Poor Dad", he is following the advice:

- started young
- he is paying himself (saving for the future is paying himself)
- knows the difference between asset & liability ( outsourcing, not giving into emotions but investing is assets)

Truly impressive!!