I am watch a big fuss about the book "Rich Dad, Poor Dad" Robert Kiyosaki. Many people are attracted to the word "rich" in it. The book offers a different perspective on how the money work in the modern Western world, but it, in itself is not a universal key to wealth. Many real action are needed. The specific business described in the book may not work on absolutely everywhere. But, unless you live in the woods, in the countryside, in remote locations, if you produce everything you consume and you are self-sufficient, this book is likely to be for you and bring you valuable knowledge and a different way of thinking.
What is a wealth for you? Perhaps the figure in the bank account? Or the iPhone, the sophisticated clothes, expensive car, house, yacht? Or maybe freedom, leisure, the ability to do whatever you want - to be lazy, to travel? Or a large loving family and domesticity? Depending on the state in which everyone is of his life, would give a different definition.
The book explores mostly the financial type of wealth. The crucial question that it asks is, "How long can you live, if today you stop working?". This generates a lot of thoughts and reflections. Think independently, without taking into account neither my opinion nor the opinion of those around you.Buy from Amazon
- Assets - things that bring money. Many people, including myself, had a distorted view about the asset. The house or the apartment or say the home insulation can save you money in the future - in form of rent, energy etc, but are not assets while you live in them. Unless you rent them, they will only bring you Expenses. The car can save time, expenses for taxis and buses, but brings repair and fuel expenses. Unless you use it as a taxi or for transporting goods, it remains in the column liability. I will examine several types of assets:
- Assets - time for money - ie salary. Their size depends apart from yourself - how well you "sell" yourself, largely from one person or group of people to whom you sell your skills and your time for money. Time and freedom are the smallest here and even doing your job well, there is no certainty that revenues will increase due to the presence of an intermediary (the employer). This does not mean to not work well. There is a principle characteristic not only for the money and work - if you want to get more, you have to give more.
If you are currently sure that you give more value than you receive, the next step is to request it. Ask and you shall be given. This principle is taken from the Bible. The result of this action may be:
Whatever you do, however, You will exit victorious. Or will you get the desired, or you will know what exactly to do.
- Your own judgment is wrong and it is necessary to give more value - it is something that happens to everyone, including me;
- To get the desired promotion;
- To not get the promotion. In this case you may think about changing the employer.
- Assets of trade and business - buying something at one price and selling it to another another. Investing money in manufacture or cultivation of a product and selling the fruits of labor, so the balance is at plus. This is the second type of asset that still, in most cases, requires much time and effort to operate.
- The third type of asset is rental income, advertising, stocks, interest from deposits, a business that does not require your presence and others. This kind of assets may seem, at first site to generate the least, but they are the most sweet, because in most cases they do not need our personal time to work. And time is a resource for which we do not think about as much;
- Liabilities - things that take money from us, one time or multiple times - housing, energy, automobiles, telephones, loans and so on;
- Revenue - Positive financial flow;
- Expenses - Negative financial flow.