Retire rich from paycheck to paycheck

'If HR comes, tell them I'm in the meeting.'

He was a senior who earned respects from many. However, he couldn't make promotion. When the company started layoffs, he became the target. After all, his attitude wasn't appropriate. 

I and my wife were both busy all the time in the company. I managed to make an appointment with her for dinner. While I was waitining for her, I went into a book store and picked up one red book talking about real estate investment. My wife suddnely called me and apologized that she couldn't make it because of the meeting arranged out of nowhere. I was a bit sorry to miss the chance for dinner and kept reading the book. The book was interesting, but I didn't want to buy it. It was my ego resisting to buy the book. 'Investment is for the people not capable of getting good job.' I thought so. On the way back home, I was just looking outside in the bus, and suddely one thought struck me. The senior running away from HR was in my age when I just joined the company. 

'Am I already in half way through...?'

Next day, I ran into the bookstore and bought the book and kept reading the book. I changed my steroeype on investment and decided to do the right thing to survive in the capitalism. 

 

Above is the prologue of the book. My translation of the book title is 'retire rich from paycheck to paycheck.' The author of the book changed his skeptical view on real estate investment and transformed to a professional investor.

 

Chapter 1: Why do we need to invest?
1) The company doesn't take care of my life after retirement. Therefore, it is my job to prepare my retirement. Who will take care of my life after retirement if I myself is not interested in it?
2) My money is melting out through inflation. As liquidity increases, my money is devalued. To protect myself from inflation, you need an asset whose value is increasing along with inflation.
3) Your salary will not increase. In fact, family income is decreasing. You need to think about your future after retirement. If you just work hard, nothing will be prepared.

Chapter 2: Future direction for you and your money
1) Do you make money by spending your time on it? or do you make money regardless of your time? There are two different ways of making money.
2) Do you spend money for somthing devalued along the time? or do you spend money for something whose value increases? Which one do you spend money most of time?
3) There are many different ways of investing. However, real estate is the best option to earn asset through leverage.

Chapter 3: Profit that any employee can make (personal experience as an investor)
1) First investment was almost thrown away because of pushing hard during the price negotation. Don't be stubborn about the price if the property is good.
2) Underpriced property will appear to you if you keep searching and checking more properties in different region.
3) Always be ready with alternatives for the negotiation to get a better position.
4) Understand the other's position to get a good result from the negotiation.

Chapter 4: Essential knowledge for successful investment
1) Control your cash flow first before starting investment. You can't start if you don't know your income and expenditure. Save for your seed money.
2) You will understand if the apartment is underpriced by comparing many properties. Same priced but better location, or same location but cheaper price.
3) Do not flipping, but building the system. Asset will grow exponentially. Initially, slow, but rapidly increasing later.
4) You can't take away risks. Be prepared.

Chapter 5: Investment recipe for newbies
1) You need your own principles. Do not invest without principles.
2) High demand, high price. Same for the apartment.
3) Do some research before visiting the properties.
4) Always visit and check the properties before invest. Data you collected before the visit can't be sufficient to make decision.
5) Negotiation requires understanding. Offer something beneficial to the other party for getting what I want. One way negotiation can't work.

Chapter 6: If you want to increase the size of your money bucket
1) Focus on what you can do. Not what you can't.
2) Don't be impatient. Repeat what you should do.
3) Get to know collegues heading toward the same goal.
4) Money is not on the top priority. Your investment should be harmonized your life with family and work.

We are living in the capitalism. Therefore, understanding the rule of game called 'capitalism' is very important. Working hard is not enough to prepare my reitrement and protect my family. This book gives good starting point for anyone thinking about investment.