Rich Dad Poor Dad is a book written by Robert Kiyosaki and it cotains very useful and interesting ideas that I really want to share with you.
I hope these ideas help you in your economic life.
- This is not a summary, this is a recovery of ideas provided by this wonderful book. -
Let's begin:
First of all we need to know that there are two ways of earning money:
-You can earn it working. This will be the first form of income.
- Or you can earn it by assets that generates more money for you (a very good example could be cryptocurrencies).
With the second option you can make money while you sleep and propably this is the kind of dad you want to be.
On the other hand there are two ways of loosing money:
-Expenses such as food and parties.
-Or liabilities.
Differentiate these concepts is the first step to be the rich dad.
Now we need to understand how we should spend our money:
-The lower class has only expenses.
-The rich grow the assets.
-The middle class buy liabilities and they think that these are assets.
Regarding to the third point:
Think, for instance, in a house. What would it be? A asset or a liability?
A house needs maintenance and it could take out money from you. It would only worth the money and it will only be an active if what you earn with rent and its valorization exceeds its passive value. So becareful with the magic advice that you should invest in properties, put it on the scale and, if the house can be considered a good investiment, go ahead with it.
But how do we really get rich?
To get rich, or you are born rich, or you need to learn how to earn more money than you spend.
To achieve that you need to earn more money in your job or increase your income with the acquisition of assets.
The rich use their money to invest in assets and with time they achieve huge amounts of money and then they start using it to buy their luxuries. In the meanwhile the others do the same but in the opposite direction (they care first with liabilities): buying expensive things, leaving aside the assets and converting theirselves in slaves of their work.
The most important thing to the rich are the assets, for others, the passive.
The key point is to understand that you should not work for money, but learn how to make the money work for you.
What I want to share here is a world different from the one we are used to: A world in which to be rich, you don't need to kill yourself working without break, you just need to learn how to make the money work for you!
