Lessons taught by rich dad:
- The Rich don't work for money
When it comes to money, most people are motivated by fear and greed. Fear if they don't have it and greed if they do.
The rich have their money work for them.
- Why teach financial literacy
- If you want to be rich, you need to be financially iterate.
- Rule #1 is knowing the difference between assets and liabilities
- Assets add to your income. Liabilities takes money out of your pocket.
- Want to be rich? Buy assets.
- Assets fund luxuries like houses, cars, etc.
- Wealth is the measure of the cash flow from the asset column compared with the expense column. When your assets generate enough income to over your expenses, you are wealthy, even if you aren't yet rich.
- Rich people acquire assets. The poor and middle class acquire liabilities they think are assets.
- Mind your own business
Don't spend your whole life working for someone else.
Real assets are:
- Businesses that do not require my presence - they are managed or run by other people
- Stocks
- Bonds
- Income-generating real estate.
- Anything else that has value, produces income, or appreciates and has a ready market.
- The history of taxes and power of corporations
- Financial IQ is made up of accounting, investing, understanding markets and the law.
- Employees earn and get taxed and live on what's left. Corporations earn, spend and is taxed on anything that is left.
- The rich invent money
Small amounts of money can be turned into large amounts with astute, well-timed investments
- Work to learn - don't work for money
- Overcoming Obstacles
I'm not poor, just broke.