Wednesday, January 7, 2009

The 5th income category to RichPoorDad

I mentioned before that Rich Dad Poor Dad's income categorization is more of a concept and not finite categories.  It covers E as Employment, S as Self Employ, B as Business and I as Investor.

Well, there is one type of income I was trying to match into those categories but without success.

One of the examples I used in that old post is beggar.  I was showing how begging can be E, S and B.  However, in real life, no beggar is going to do anything like I suggested there.  Beggar simply beg for things without rules, timing or any pre-requisite.


Like wise, I also cann't find a category match for charity.  Old folk homes and orphan centers require high coordination and managment skill to make them run smoothly and their 'income' is one of the very important parts.

Sometimes I recycle quite a lot of stuff and I get money out of it.  I didn't really spend time and effort to recycle, its more like a mind set and way of life.  Yet I get income out of it.


Most religions in our world receive money from their belivers too and form a major part of the religion's income.

All these are real Incomes but not fall under E, S, B and I.  So I came up with the 5th category.  I don't really have a good name for it yet but I have been calling it "Charity".

Do not underestimate the power of charity.  The whole of our society today is run base on this income category.

There are a few ways to identify this income category;

1.  It starts with almost 'Nothing' and ends with an 'Income'
2.  Since it starts with nothing, you can actually "make any excuses" out of it without penalty
3.  It usually touches a human trait to do good, either for himself or for others.

Rob said the best way to earn income is by investing.  Well, that is because he didn't know the power of Charity at that time !

Just to bring us back to reality, quite a lot of illegal income falls under this category too.


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speaking of which, its about time I need your donation to keep this blog going

4 comments:

marxy said...

Michael said:
"One of the examples I used in that old post is beggar. I was showing how begging can be E, S and B. However, in real life, no beggar is going to do anything like I suggested there. Beggar simply beg for things without rules, timing or any pre-requisite."

Nope. These days there are really "professional" beggars. Just visit the Pasar Malam in various different locations you will know what I mean. You will see the same group of beggars "working" as "E" there. They are really belong to the same "begging consortium". And every now and then you will notice some "part-time" beggars "working" as "S" also. I have met a "TOP" beggar who "gather, calculate & distribute" the sum of his group of beggars manage to get after the Pasar Malam. This "TOP" beggar is running a "B" in fact.

marxy said...

Actually what Kiyosaki forgets to mention and to be qualified as the 5th group is "L" for "Legislation" or "Legislator", that is, taxes paid to governments. Every government simply get incomes by making "tax laws".

Michael Tsen said...

thanks for pointing that out, I do write differently to bring out different points in different topics :)

in this post I was referring to those non-employed 'true' beggars :)

I like this word Legislation, thanks ...

marxy said...

Keep your "naked truths" coming in, Michael. Keep it up as it is noble!