Rich Dad Poor Dad from Robert Kiyosaki is one of the best seller books about personal finance, and in this book, he mentions why you are poor. The major reason to become poor is that anyone didn’t tell you how to become rich.
If you want to learn personal growth or about Money Rich Dad, Poor Dad is the best book I recommended to start with. I will summarize this book.
The first thing in this book is rich don’t work for money, but money works for them. I already explain this concept in my previous article too. I will explain this in detail here. Imagin two-person named Paul and Rayen work for a company, and both of them are in the same paygrade think 3000 dollars per month. And the same level in position. Paul builds a home and lives there, and Rayn builds a home and rents it. Paul buys a new car, and he comes to work in that car. Rayn buys a car and rents it, and comes to work from the subway. Now Paul Income is still 3000$, but Ryen’s income has increased from 5000$ from the investment he made. I hope that you have understood the concept here.
When you invest properly and wisely, you will become rich that only investments are enough to spend money on day to day life. So you don’t need to work for money and money will work for you.
In Robert Kiyosaki’s book, you can find essential two words: Assets and Liability. This is the major concept of why rich getting richer and poor getting poor.
The reading of the assets and liability of Robert Kiyosaki is completely differnt from the traditional view. If someone asks you what your assets are, you will tell them like home, car and physical goods which you purchase as assets. But according to Kiyosaki, these are not assets. He says the real assets will make money into your wallet, and items that take money out of your pockets are liabilities.
So, according to that, the house and cars fall into the liability section, which takes money out of your pocket. So most middle class and poor people collect the liability, and true rich collect assets, which create income for them.
In this book, he explains the life story of his father and friend fater. According to the book, this birth father is well educated, but he is poor and doesn’t have enough money to spend good life. However, his friend father, who called Rich Dad, only pass 8th grade. Poor dad always believes that having a good job, home and car is the best thing to happen to anyone life, and he disrespects money and rich people. Rich dad thought that spending money on the house, cars are useless. The only thing important is to make money, so he brought lots of assets that generate income.
Hope that you have understood the basic concept behind the secret of riches. If I tell you this simply all you need to do is to identify what is assets and are liabilities. Then collect assets much as you can to become financially indented.
