#finance

4.7 / 5

Rich Dad Poor Dad

Robert Kiyosaki

Don't work for money; make it work for you.

Robert Kiyosaki

November 21 2019

Let money work

Job is an acronym for "Just Over Broke."
- p 136

Robert had two dads; one was, of course, his real dad; the other one was his friend Mike's dad. Both dads had different ways of looking at money, and that difference taught Robert greatly throughout his life. I will give you some examples of how Robert advises us.

Throughout the book, Robert repeatedly says that we need to "understand the difference between an asset and a liability." For example, "when I[Robert] want a bigger house, I[Robert] buy assets that will generate the cash flow to pay for the house."

The secret of rich is very simple in his book; "the asset column generates more than enough income to cover expenses, with the balance reinvested into the asset column. The asset column continues to grow and, therefore, the income it produces grows with it."

This book reminded me of the importance of being financially literate and using the corporation laws that save us from the huge tax burden, such as section 1031. Of course, paying tax is a patriotic thing for the country, but if there is a way to legally maximize your financial freedom, then why would you not consider it?

In my opinion, Robert showed us the way to think like the capitalists; for them, money is not something emotional or real; it is something that is virtually promised through papers and rules that give them a huge incentive for just knowing what to do with it.

Hi! I'm Mireu

I'm the author of this blog. Thank you for reading.

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