“What the rich teach their kids about money that the poor and middle class do not.”
Rich dad Poor dad by Robert T. Kiyosaki is a personal finance book that highlights lesson about money, investing, financial instruments and how to achieve financial independence. Basically in the book he has talked about 2 fathers that is first his biological father who is highly educated, works at job but is poor & in second case his friend’s father, who has formal education and is an entrepreneur who is rich.
There are various lessons which are mentioned in this book which I highlighted as below-
1) The rich do not work for money-
Generally rich people create system in which money comes in their pocket as it creates passive income for them.
2) Assets versus Liabilities-
In second chapter he talks about rich make asset and poor people buy liabilities. Asset is basically what puts money inside your pocket & liabilities take money from pocket.
3) History of taxes and power of corporation-
If you work for money, you give the power to employer. If money works for you, you keep the power to yourself and control it.
One should understand the history of taxes, accounting, investing, markets, and the law, protection of law suits as rich people pay zero taxes and middle poor people are always paying taxes.
4) Work to learn and do not work only for money-
“Job security meant everything to my poor dad while learning meant everything to my rich dad.”
Now a day’s people do not want to learn as they think when schooling, college ends learning stops but that’s not true, learning is continuous process. It never stops. So never stop learning.