Most of us in our bustling everyday chore forget to realise what we want with our lives. Sometimes at the end of the day it dawns upon us where our life is actually heading. We feel confused, perturbed and to be true to the word, despondent. This time of introspection brings us predominantly 3 reactions- a) Wish to die (happens to me very often) b) Vehement urge to do big (often fades away by morning) c) To believe what we are doing is the right thing and that to bring you luck and prosperity is prerogative of the god. Rich dad poor dad helps you eliminate the precocious third instinct and gives you a staunch way ahead in realizing your dreams. Things to know about middle class people. a) Poor people focus more on education and degree which would fetch them a good job. Better the degree, better the job and better you become at paying bills. The rat race. They are complacent with whatever that would let them go on with equanimity and security. b) This simply means poor people avoid taking risks and are driven by fear and self-doubt. c) Poor people are ignorant. d) Poor people snicker at the mention of money. This means simply that they avoid discussing money which might prove their incompetency or because they pretend to give money a much less prioritised state than they actually do. (happens with me a lot) e) Poor people are poor not because they earn less but because they spend mindlessly.(Financial Literacy) These are lessons that Richard shares that will get you out of the bewitching rat trap.
Lesson 1 Rich don’t work for money, they make money work for them.
Rich conceive themselves learning new things and grabbing opportunities to apply them for their good.
Lesson 2 Why teach Financial literacy?
First step of financial literacy is to know the difference between assets and liabilities. Assets should be self sustainable.
Lesson 3 Mind your own business.
Your business surrounds around your asset column not business column. According to Richard, two things that one should remember- a)Real assets are those businesses that do not require ones presence (Stocks, Mutual funds, Royalties, Patents etc.) and b)Assets should be one that you love.(so that you take proper care of it.)
Lesson 4 History of Taxes and Power of communication.
Its the bourgeois that pay more taxes for poor which they can avoid by simple planning and financial knowledge.
Lesson 5 Rich invent money.
Your financial genius require both financial knowledge and courage. Money is made up, the more you think money is real, the more you work hard.
Lesson 6 Work to learn
The businesses needs to focus on learning. Learning brings much needed growth. You just don’t have to be good at making hamburger, you have to be good at selling it.
More life changing thoughts that we learn from the book.
"Financial IQ has four areas of expertise.1)Accounting financial literacy. (the more money you are responsible of the more accurate you need to be.)2)Investing(The science of money making money)3)Expertise in understanding market.(Knowing how you can use market to your benefit.)4)Law"
"Humanity is the fight between ignorance and illumination."
"Ignorance is the moment to moment decision to open or close a mind."
"Excessive fear and self doubt are greatest detractors of personal grieves."
"Money can work 24 hours a day and for generations."
"Making asset column should come prior to making luxuries. That is how the middle class end up turning assets to liabilities. "
“A corporation earns, spends everything it can, and is taxed on anything that is left. It’s one of the biggest legal tax loopholes that the rich use.”
"The most important asset that we have is the thing lying between our ears inside our skull. We learn to use it, we become wealthy."
"What you give, you revive. It comes back to you in manyfolds."
0 Comments