Books Better Than Rich Dad Poor Dad – Robert T. by Kiyosaki. This book provides a very comprehensive approach to wealth management so that one can achieve financial freedom. Although it does not go into detail about investing, trading or running a business,
It provides a solid foundation of financial literacy. I found this book very enlightening and it has shaped the way I look at my personal wealth and make financial decisions.
Books Better Than Rich Dad Poor Dad
Because this book is about the lessons he learned from the two most influential mentors in his life, his biological father (poor father) and his friend Mike’s father (rich father). Although the poor father is highly educated, with a Ph.D. And while he earned degrees from Stanford University, the University of Chicago, and Northwestern University, he continued to struggle financially. The rich father, on the other hand, has not completed the eighth grade, but still manages several successful businesses and is, according to Kiyosaki, “one of the richest men in the world.” Hawaii. The rich father, Kiyosaki writes, “died leaving millions of dollars to his family, his charities and his church” while the poor father “left to pay the bills when he died”.
Rich Dad Poor Dad By Robert T Kiyosaki
The wealth gap is the result of a rich father and a poor father having two very different financial means. My poor father, like many people, traded his work for money. The problem with this method is that people become a burden to your work if it is your main source of income. He got into the habit of “wake up, go to work, pay bills; Wake up, go to work, pay bills”, which Kiyosaki called the “rat race.” There is nothing you want more than to stay in this cycle because your life is coming from your work. Money until Immortality.. Not very good. life.
On the other hand, the rich father has many businesses and earns his money from their profits. Even though Rich Dad came from a poor family, he focused on building his own money and reinvested his profit in income that generates assets (his money, stocks, real estate, etc.) -so). Because Rich Dad has hired talented people to run his business, he can set his own schedule. In fact, if you have a vision for your business or want to start a new business, Rich Dad will actively participate, but as long as your property will generate income regardless of whether you work or not (if it is called income), the body of the rich father is real. money. It gives freedom.
The advantage of the rich father is not that he is not tied to a job for his life and that he is free to do other things, but also that most of the wealth he creates in the economy comes from money and money- money. You can only deduct these assets if you own assets that have a track record of making profits and capital gains, and most people don’t. Many people, like poor fathers, earn their wages through hard work, and labor is one of the many expenses of a business. The rich make money when their companies make money, while others make money when the companies they work for make money. In order for any economy to last, businesses generally have to make more money than they spend, so that the rich can make more money. Additionally, there are often far fewer people who own businesses than people who work for those businesses, so owners have a larger share to take home. In addition to this, tax laws in the United States and many other countries favor business owners and investors over income earners. Corporate laws, lower corporate taxes, and lower income taxes allow the wealthy to pay less to the government than low income earners.
Kiyosaki devotes an entire chapter to understanding taxes and corporations, which he calls “the great secret of the rich.” One of the most popular ways for professional entrepreneurs to pay less tax is to use companies. Since businesses are allowed to deduct expenses before paying taxes, they can significantly reduce the amount of taxes they pay. As Kiyosaki said, “An organization takes in money, spends what it can, and charges whatever is left over”. On the other hand, workers must pay taxes before they are allowed to spend what they have left. Owners of their companies are able to spend pre-tax dollars that employees cannot. For example, “Vacations can be board meetings in Hawaii. Car payments, insurance, maintenance and health insurance are company expenses. Many meals are partial expenses, and the main”.
Rich Dad Poor Dad , What Rich Teach Their Kids About Money, That The Poor And Middle Class Do Not!
One of the main reasons this book emphasizes why it is important for people to find wealth is that work is a temporary solution to a long-term problem. People don’t have a job forever. A job can collapse, someone gets fired, a business fails, and finally, people have to retire and make sure they have saved enough money before going abroad.
Assets on the other hand can appreciate and generate cash flow regardless of whether people are working. It is true that assets sometimes lose value or even default, but it is much easier to find more assets to reduce risk than to run more jobs. If you have money, you can start buying products now and build your wealth. Income from property is a long-term solution to a long-term problem.
Now that the importance of acquiring wealth has been established, it is necessary to explain what wealth is and what it is not. Kiyosaki gives a simple but useful definition for wealth: wealth is something that puts money in your pocket. In other words, assets increase your income by increasing income or appreciation. Examples of assets include businesses, stocks, bonds, real estate and investment properties.
It is also important to understand what accounting is. To use Kiyosaki’s definition, loans take money out of your pocket.
Rich Dad Poor Dad Quotes On Success, Money, Learning & Investing
Therefore, the key to financial success is acquiring assets and avoiding debt. It seems simple but unfortunately many fail at it. Here are simple pictures from the book that show the cash flow patterns of the poor, the middle class, and the rich, respectively.
What makes most people in the middle class is access to debt such as mortgages, credit card debt, and mortgages, as opposed to assets such as real estate, stocks, bonds, notes, and real estate. Because debt takes money out of your pocket, middle class people need to pay off their debts and cover their expenses before they can even think about getting rich. This goes back to the traps Kiyosaki calls the “rat race”: the middle class has to work hard in their jobs and pay others, and those who have no access to resources that lead to financial independence. . .
One of Kiyosaki’s interesting points is that housing is not an asset. While corporate accountants consider a home an asset, Kiyosaki does not because it collects money from homeowners through mortgage payments, property taxes, insurance, maintenance and/or utility bills. I agree with Kiyosaki and think that while owning a home is great, a homeowner should not believe that their home is an investment, especially since there are many other financial vehicles that do not require ongoing cash flow. Treatment
. I found the last few chapters of the book to be unhelpful as they are mostly regurgitation of previously mentioned ideas, Kiyosaki trying to sell his books and other products, and Kiyosaki sharing sound success stories. -real estate that looks completely vague and silly. . .
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A new concept that I found useful from the last few chapters of the book is the importance of investing in yourself. Luck comes and goes, but knowledge stays with you throughout life. Knowledge is power and it is what allows people to find and preserve wealth. Continuous learning throughout your life empowers you to develop your skills and abilities.
Some of you may think, “That sounds great but I’m not rich and I can’t be rich”. Remember that Rich Dad himself came from a poor family and many others do the same. In fact, a 2017 study by Fidelity Investments found that 88% of billionaires are self-employed, while the 2019 Wealth-X Billionaire Census found that 55.8% of billionaires are self-employed.
Becoming rich is not as difficult as many people think. Setting up a stock broker account is very easy, and many products are sold for a few dollars, tens of dollars, hundreds of dollars, all at prices accessible to the average person. Even buying a home these days is easier with REITs (Real Estate Investment Trusts), which are often publicly traded. You can buy bonds and notes to continue building your wealth. Bonds and notes may not be able to provide much cash