RICH DAD POOR DAD by Robert Kiyosaki
6 LESSONS FROM RICH DAD POOR DAD BOOK
Lesson 1: The Rich Don’t Work for Money
By starting into business, we were in
control of our own funds, not reliant upon an employer. The best
part was that our business produced money for us, in any event, when we
weren't actually there. Our money worked for us.
Rather than paying us money, rich dad had given us quite a lot more.
The poor and the middle class work for money.
The rich have money work for them
Lesson 2: Why Teach Financial Literacy?
It’s not how much money you make.
It’s how much money you keep.
Cash flow tells the story of how a person handles money.
Rich people buy assets only, So the rich get richer.
Poor people buy liabilities only, so the poor get poor.
Schools and universities never teach you about money, investing, financial freedom.
- The rich buy asset
- The poor only have expenses.
- The middle class buys liabilities they think are assets.
Lesson 3: Mind Your Own Business
The rich focus on their asset columns while everyone else focuses on their income statements.
Financial struggle is often the result of people working all their lives for someone else.
Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities or personal effects.
Keep expenses low, reduce liabilities, and diligently build a base of solid assets. It is important for parents to teach them the difference between an asset and a liability.
Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities.
LESSON 4: THE HISTORY OF TAXES AND THE POWER OF CORPORATIONS
This war between the haves and have-nots has raged for hundreds of years. The battle is waged whenever and wherever laws are made, and it will go on forever. The problem is that the people who lose are the uninformed: the ones who get up every day and diligently go to work and pay taxes. If they only understood the way the rich play the game, they could play it too. Then they would be on their way to their own financial independence. This is why I cringe every time I hear a parent advise their children to go to school so they can find a safe, secure job. An employee with a safe, secure job, without financial aptitude, has no escape.
If you work for money, you give the power to you employer. If money works for you, you keep the power and control it.
LESSON 5: THE RICH INVENT MONEY
Often in the real world, it’s not the smart who get ahead, but the bold.
Most people only know one solution: Work hard, save, and borrow. So why would you want to increase your financial intelligence? Because you want to be the kind of person who creates your own luck. You take whatever happens and make it better. Few people realize that luck is created, just as money is. And if you want to be luckier and create money instead of working hard, then your financial intelligence is important. If you are the kind of person who is waiting for the right Chapter Five: Lesson 5 98 thing to happen, you might wait for a long time. It’s like waiting for all the traffic lights to be green for five miles before you’ll start your trip.
The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.
LESSON 6: WORK TO LEARN— DON'T WORK FOR MONEY
Job security meant everything to my educated dad. Learning meant everything to my rich dad.
Most people need only to learn and master one more skill and their income would jump exponentially. I have mentioned before that financial intelligence is a synergy of accounting, investing, marketing, and law. Combine those four technical skills and making money with money is easier than most people would believe. When it comes to money, the only skill most people know is to work hard.
In this chapter, actually author says first you have to learn one more demanding skill, then you can earn more.
CONCLUSION...
The examples in this book are ageless.
The time has come to procure information about finance, markets, charge rules and guidelines, and life abilities to assemble riches.
From my perspective, this book has opened up my eye to investing, finance. Even I am also like everybody going to school get a job and work for money. before reading this book, I didn't know about money and was also ignorant of entrepreneurship.
Definitely, this book helps for your financial freedom.
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