I have heard many positive reviews about the book "Rich Dad, Poor Dad" written by Robert Kiyosaki. Driven by my interest and curiosity in financial success recently, I picked up the book at Times, and never regretted.
Being a thrifty saver (in other words a miser), I never buy the book. Not because it is not worth it, but due to the price. However, I have been dropping by Times to read the book using the identity of a perfectly random browser in the store.
One of the greatest lessons I have picked up (so far) is the building of one's asset column.
Asset (noun)
1. a useful and desirable thing or quality
2. a single item of ownership having exchange value
3. items of ownership convertible into cash
The aforementioned definition belongs to the dictionary. However, according to Rich Dad, asset is something that brings about future economic benefit. To put it simply, it puts money into your pocket in future. On the other hand, he defines liability as something that takes money away from you in future.
He went on further to explain why the rich gets richer whereas the poor gets poorer. It is all but a simple logic. The poor mistakes liability as an asset, and incurs costs in future, reducing the purchasing power for real asset. The rich correctly identifies and buys assets, and generate more money which in turn is used to purchase more asset.
Therefore, according to Rich Dad, to get rich, one must build a good foundation of assets in order to generate future cashflows. This is perhaps what they call "making your money work for you". Effortless money isn't it?
Now the trick is, can you identify assets correctly?
Being a thrifty saver (in other words a miser), I never buy the book. Not because it is not worth it, but due to the price. However, I have been dropping by Times to read the book using the identity of a perfectly random browser in the store.
One of the greatest lessons I have picked up (so far) is the building of one's asset column.
Asset (noun)
1. a useful and desirable thing or quality
2. a single item of ownership having exchange value
3. items of ownership convertible into cash
The aforementioned definition belongs to the dictionary. However, according to Rich Dad, asset is something that brings about future economic benefit. To put it simply, it puts money into your pocket in future. On the other hand, he defines liability as something that takes money away from you in future.
He went on further to explain why the rich gets richer whereas the poor gets poorer. It is all but a simple logic. The poor mistakes liability as an asset, and incurs costs in future, reducing the purchasing power for real asset. The rich correctly identifies and buys assets, and generate more money which in turn is used to purchase more asset.
Therefore, according to Rich Dad, to get rich, one must build a good foundation of assets in order to generate future cashflows. This is perhaps what they call "making your money work for you". Effortless money isn't it?
Now the trick is, can you identify assets correctly?
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