Starbucks with Song StoneCold: Assets I believe in.

Some of you might remember Song StoneCold's first guest blog here when he had kopi with you. For this guest blog, it is not just any kopi, it is Starbucks kopi. Hope you enjoy this date with Song StoneCold while sipping your kopi latte, kopi cappuccino, kopi mocha frappe etc.:

Song StoneCold says:
Human wants (and even needs) could be unlimited but too bad the cash in my wallet is rather limited.

Last week, I had one of those days when I felt a need to splurge on everything! Stocks, limited edition Batman watch and even a Rolex. I was brought back to Earth after I checked my Big Sweep tickets at the familiar Singapore Pools website. YES! You guessed it! I contributed to Singapore Pools again.

Well, I am not a spendthrift but I am not a penny pincher either. I believe in getting VALUE, buying at a value price. I am an ardent supporter of AK's blog. 

So, before I make any purchase, I will ask myself two questions (which I picked up from a blog post by AK - see related post #2 at the end of this blog):

1. Is this necessary?

2. Is it value for money?

"Simple questions. Always ask these two questions before we buy anything and, in all likelihood, we will be saving more money in future," AK.

Well, I have an additional question that I will ask myself before I "invest" in big ticket items. I like the word "invest" as it sounds very sophisticated! LOL. Besides asking the two questions that I learned from AK, I will ask myself: "Is it an asset or is it a liability?"

As what Robert Kiyosaki said: "Asset can be anything as long as it has value, produces income or appreciates, and has a ready market. Assets put money IN your pocket. Liabilities are defined as things that decrease in value. Liabilities take money OUT of your pocket."

Well my goal is to buy more assets than liabilities. I do buy liabilities too. My car is a liability but I am glad I bought it at a VALUE price. I bought my trusty Lancer Warrior for $38K with 8 years left. For me, it is "no value, no buy" or, as what AK says, "no discount, no buy".

What I consider to be assets can also be slightly different. Besides income generating assets like dividend stocks, I also consider the following as assets:

1) Courses and seminars. I consider attending courses and seminars an asset and I quote Warren Buffett: "The most important investment you can make is in yourself.…The best asset is your own self. You can become to an enormous degree the person you want to be.

"Generally speaking, investing in yourself is the best thing you can do. Anything that improves your own talents; nobody can tax it or take it away from you. They can run up huge deficits and the dollar can become worth far less. You can have all kinds of things happen. But if you’ve got talent yourself, and you’ve maximized your talent, you’ve got a tremendous asset that can return ten-fold."

Learning a skill will increase your market value and it will eventually "put money into your pocket".

Well, I always look for courses and seminars that are of value. Expensive doesn't guarantee that it is good.

2) Charity. Giving creates a feeling of abundance. It makes you feel good and makes you feel that you have more than enough. The main purpose of charity is not to expect any return of fame or accolade. Giving is from the heart and I believe you do not have to announce to the whole world what you have done.

Well, many say that charity will bring you good karma. So effectively, I believe what goes around comes around. One fine day if we are are down, who knows, our good karma might return and tide us through a difficult time. So it may be a good "asset investment" after all.

I shall end with a Warren Buffett quote:

"If you buy things you don't need, you will soon sell things you need."

So, let's spend wisely and buy more assets and less liabilities and live happily ever after! Cheers!

Another guest blog by Song StoneCold:
Getting value out of everything!

Related posts:
1. Counting our blessings.
2. Two questions that build wealth.
3. Robert Kiyosaki: 2 are better than 1.
4. The millionaire next door.
5. Affordability and value for money.