Why you should read Rich Dad poor dad Before You Die
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
Some key concepts of this book are:
1) Assets put money in your pocket even when you are on vacation. Liabilities take money out of your pocket, therefore your house is a liability
[unless you rent out rooms and the garage as one person I know did while rebuilding his asset base].
2) Wealthy people buy assets first, and then let their assets buy their luxuries from the surplus cash flow.
3) Wealthy people continuously increase their assets by reinvesting their surplus cash flow in more assets.
4) There are 3 primary asset classes: Real Estate, Businesses, and Paper assets (stocks bonds notes, etc)
5) Cash Flow is more important than Net Worth. Net Worth is similar to potential energy, to use it you have to spend it, then it is gone. Cash Flow is like power from a hydroelectric dam, constantly replenished.
6) The rich don't work for money, they work for assets.
The tax laws are fair from the standpoint that the laws that the rich spent billions of dollars to have modified and interpreted apply to everyone who learns how to use them.
A great foundation book for beginning to improve your financial intelligence so that you don't work 4 or more month's of every year for the Taxman, more months for the banks that hold your mortgage and credit cards, and whatever is left making the company you work for wealthy. Good luck on your journey to being Rich, poor, or middle class.
Why you should read Rich Dad poor dad Before You Die
We all have one thing in common we need more money so we should follow some discipline that is saving money, however, we may not know how to create or manage our money. Many books on personal finance, from Napoleon’s ‘Think and Grow Rich’ to Thomas J. Stanley’s ‘The Millionaire Next Door’. One of the best-selling personal finance books ‘Rich Dad, Poor Dad’ by Robert T. Kiyosaki helps to open up your mind on how to improve your financial knowledge.
If you still need convincing, here are 3 reasons why you should read ‘Rich Dad, Poor Dad’.
- It teaches you to understand that you have a choice in life
We often fail to realise that we have the ultimate ability to choose how we live, how we earn our income and how we spend it. In this day and age, there are a plethora of ways to generate income. Instead of staying at a job we don’t like for the sake of paying bills, ‘Rich Dad, Poor Dad’ encourages us to explore more options on how to make money in order to escape from the rat race.
- It teaches you that mastering your emotions is necessary when dealing with money
“Learn to use your emotions to think, not think with your emotions”
Although mastering your emotions can be a tough one, it is possible. In ‘Rich Dad, Poor Dad’ Roberts rich dad states that the two emotions that trap most people in life are fear of and desire. Fear and desire can certainly affect an individual’s thought process leading them to make decisions that aren’t rational.
By choosing your thoughts you can confront fear, weaknesses and any other emotions you may experience. You can also begin to think of different solutions to your financial difficulties, rather than allowing your emotions to control you and your monetary situation.
- It teaches you that learning doesn’t end when you leave school
When you leave compulsory education most people believe that education is done. Whilst you may be done with education, there is no end to learning. If you want to gain more income or make money work for you, then it starts with learning. Whilst money is needed in order to function in today’s society, the only way to gain more income is to gain more financial knowledge.
“Money without financial intelligence is money soon gone”
Let’s take those who win the lottery who are poor and then gain millions become suddenly rich and then revert to being poor again; without financial knowledge, their money is gone in a blink of the eye. Building wealth takes time and understanding, take the time to understand money and how it can work for you.
Hey Guys Thanks for reading.
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