Save Money, Diversify, Invest for the long term, Get out of debt

IF YOU are an avid reader of newspaper's finance section or listener of any investing channels, these 4 advices would not be unfamiliar:

1. Save money

2. Diversify your investments

3. Invest for the long term

4. Don't get into debt

I'm sure some people will be saying, these are good advices, I should follow them.

Nothing against the widely accepted investing doctrine.

I just find them Bullshitish.

Robert T. Kiyosaki talked about these advice and why they are bad advice if you want to get rich.

I shall now give my interpretation of what he taught me.

Let's start off with the first "Golden" advice. Save Money.

I'm sure the term Inflation is not an uncommon word to many people, in my context, it means the depreciation of a currency's buying power.

Ever since I was financially literate, I've noticed that inflation rate in Singapore fluctuates between 4 to 7.5%.

Let's say you follow the "golden" advice of saving all your money. Putting it into a fixed deposit account which gives more interest then a saving account, for say 1.2% interest.

While your money sits in the bank gaining the wonderful 1.2% interest every month, the constantly rotating world has already eaten away your money's buying power by approximately 2.8 to 4.3%.

So when the inflation rate is at 5%, you are actually losing 3.8% of your money every month. Wonderful? You bet. Good advice? Tip top.

Next is the favourite advice any financial adviser loves to give. Diversify. In essence, it means to put your eggs in separate basket so that when one over turns, you still have the rest of the eggs. Good idea isn't it.

Congratulations, you've just made your broker a sum of good money for his retirement.

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This post is in complete, might update, might not.