"Rich don't work for money, rich makes money work for them"
-Robert Kiyosaki.
Recently I have heard a book in podcast named "RICH DAD POOR DAD"
written by Robert Kiyosaki, published in 1997. It describes that how rich becomes richer, poor becomes poorer, and middle class remains middle class.
I would definitely recommend to read the whole book to understand the basic concept of working of money for rich people and poor people. The book gives primary lessons on money management,investing,accounting and budgeting.
Here I am gonna give the 7 money lessons from the book- probably the outline of the book. If you follow this, you can definitely move up to the next level.
1.THE RICH HAVE MONEY WORK FOR THEM.
The poor and middle class are in the constant rat race; getting up,going to work,pay the bills, buy luxuries,go back to work again.They are controlled by fear, lack of knowledge and greed.
Meanwhile, the rich often have business which doesn't require their presence.They are constant life learners,Thy don't let emotions control them and their lives are not determined by their paychecks.
2. IT'S NOT HOW MUCH MONEY YOU MAKE, IT'S HOW MUCH YOU KEEP.
Money draws attention to the cash flow you have in your head.It's crucial then to understand how accounting works.But what's more important is to know the difference between an asset and a liability.
An asset is anything that puts money in your pocket.Assets can be: a business which doesn't require your presence, real estate, stocks, bonds, notes, royalties from intellectual property.
A liability is something that takes money out of your pocket. For instance if you buy a house, it is liability-It needs EB bill, Water tax, property tax etc., Liability also includes car loans,credit/debit cards,school loans etc.,
3. FOCUS ON YOUR ASSET COLUMN NOT YOUR INCOME STATEMENT.
Your need to have your own business which revolves around the asset column not the income column. More money brings more problems,learn cash management instead.
Acquire assets that you love, if you don't love it ,you don't take care of it.
"RICH PEOPLE BUY LUXURIES LAST, ONLY THE POOR BUY LUXURIES TO LOOK RICH."
4. THE RICH ARE NOT TAXED.
You may get confused if rich have black money! No, but the rich create corporations as a vehicle to limit their risk of being taxed.
"A corporation is merely a file folder with some legal documents in it,sitting in some attorney's office and registered with a state government agency."
Having a corporation means, utilizing the financial IQ in the categories of accounting,investing,understanding markets ad understanding laws.
5. IT'S NOT THE SMART WHO GET AHEAD BUT THE BROAD.
What holds
us back is some degree of self-doubt. The single powerful asset we all have is
our mind, if trained well, it can create enormous wealth seemingly
instantaneously.Have guts
and take risks. Risks will always be there, instead of avoiding them learn to
manage them.The
three skills of investors are to find an opportunity that everyone has missed,
to raise money and to organize smart people. And when you need advice choose
your advisors wisely.
6.WORK TO LEARN,DON'T WORK FOR MONEY.
Seek a job for what you will learn, more than what
you will earn. There are skills which you should learn, depending on your type
of profession. For example, a young writer can go for skills like advertising,
copywriting, sales and public relations.
"Some people are one
skill away from great wealth."
Remember to work on your management skills;
management of cash flow, systems and people. Also, work on your communication
skills and, sales and marketing.
7. CHOOSE HEROES.
Heroes do more than inspiring us. Heroes make
things look easy. Copying heroes is a powerful way of learning. If
they can do it, so can you.
YOU MAY THINK WHY I POST THIS. iT IS THE MANDATORY THING FOR EACH AND VVERY HUMAN BEING.
I AM GONNA POST THESE TYPE OF LIFE SKILLED POSTS 1 PER MONTH
PLEASE COMMENT YOUR SUGGESTIONS!!
Comments
Post a Comment