How to be rich? Based on rich dad poor dad and how it can be applied in steemit?
Robert name person has two fathers, now you were thinking how a person can has two fathers. It can be explained as one his own father and other his friend`s father who he considered as guardian (father).
First was PHD and other was 8th pass only. Both were smart and hardworking but with different mindsets, and teach different things to Robert.
First father thinking:
-Money is root of all evil
-Prohibits his son (Robert) from buying expensive things by saying ‘we cannot afford it”
-Ask his son for studying hard so that you can get job in best company
Second Father Thinking:
Lack of money is the root of all evil
-Give ideas about making money so that expensive things can be purchased, which ultimately increase new ideas
-Ask his son for studying hard and open own company so that you can provide jobs to many people
Robert has benefit that he used to listen ideas of both fathers and after thinking he followed the second one and ultimately when he grew older he became richest person of Miami Florida while his father remained poor for whole life.
Most important thing which Robert learned from his rich dad was difference between assets and liabilities.
This is bit difference from normal commerce meaning.
Asset= Asset is thing which creates money in your pocket
Liability= Liability is a thing which loses your money from your pocket
Rich people are rich because they create assets results in creating of money, while middle class people spend only on liabilities.
For Example:
Ramesh and Suresh were two friends, both were at same post and same salary.
Ramesh:
Ramesh when get salary, used to purchase things like new cloths, phone, gadgets, bike etc. which feels him rich, but he was unaware that these all things are liabilities. These type of things consume money not only at the time of buying but also for maintenance and which also loses money in the form of depreciation without any monetary benefit.
Suresh:
Suresh was not Ramesh. He used to buy things when he needs the most and saves his money. When sufficient amount is saved he used to spend on assets like stocks, bonds, real state or some services in which he learns different skills which in the end leads him to make more money.
After two years, Suresh Became millionaire and Ramesh at the same post with low income as compare to expenses, and used to say low salary is cause of being middle class.
Further this can be understood with the help of cash flow.
Poor Person Cash Flow:
He gets money and spend in necessary expenditure.
Middle Class Cash Flow:
He gets money and spends in necessary expenditures and liabilities as mentioned earlier. That’s why there is no much difference between middle class and poor person.
Mostly middle class people think their home is their asset but infect they are not, as they are not earning money.
Rich Person Cash Flow:
He gets money and spends on assets and then income generated from that assets is then spent on expenditures. That’s why they get richer because their sources of income increases.
If you want to be rich then remember, it doesn’t matter how much you earn despite where you spend is important.
SHIFT FROM CONSUMER MENTALITY TO INVESTOR MENTALITY
People complain that reason for their bad condition is low salary, as salary will grow they will live peacefully. But the problem is that with increase of income, expenditures also increases because the more you earn the more you incur expenditure like purchasing better phone, better car, better home which are all liabilities that won`t make you rich.
These all matters can be learned from the book, RICH DAD POOR DAD. And I have translated it from a google videos named as How to be rich..
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