HOW TO REACH FINANCIAL FREEDOM?
Do you wonder why riches get richer? Do you want to reach financial freedom? So, you’re at the right place.
First of all, I think we need to explain what is the phrase ‘financial freedom.’
Simply, financial freedom means having enough savings, financial investments, and cash on hand to afford the kind of life we desire for ourselves and our families. It means growing savings that enable us to retire or pursue the career we want without being driven by earning a set salary each year.
Sounds great right? Exactly
Everyone wants to reach this point in The financial side, so I will help you to reach The stage of financial freedom by introducing this man to you.
An American investor, entrepreneur, motivational speaker, author and also a financial knowledge activist. His net worth is roughly $80 million. This man knows what he is talking about. Trust me!
What is very important about this man is his books, and one of them is rich dad poor dad which is a book talking about how to reach financial freedom. I read this book. I like it and found it very useful, so I will give you the summary of the book in this essay.
In this book, Robert tells us his story with his two fathers. One of them has a PhD; the other never finished 8th grade. Both earn substantial income, but one of them always struggled financially. While the other is going to become one of the richest men in Hawaii. One is going to die, leaving tens of millions of dollars to his family.
The other is going to leave bills to be paid.
The reason why most of the people struggled financially is that they have not any knowledge of Financial Literacy because schools don’t teach these topics. What schools teach is how to work in jobs under a manager and just doing instructions.
But, through my reading of Robert Kiyosaki rich dad principles. Now, I am having a very excellent knowledge of Financial Literacy, which I’ll talk about it in the next moments.
But before I start if you want to watch the summary as a video, you can visit my youtube channel CLICKHERE.
Okay, through my reading, I noticed that the book revolves around one idea I said it at the beginning of thearticlewhich is to reach the point of fundamental freedom. You need to have Assets and income that cover your liabilities and Expenses.
This is the main idea of the book. Bye.
Hey, wait I am joking.
Let’s continue so that you will ask me now. What is the meaning of Assets and what is the meaning of liabilities
Assets are: things put money in your pocket.
and liabilities are: things take money from your pocket
Assets are things such as:
- and Investments
And liabilities are things such as:
- and Bank debt
Are you wondering why I put the house in both Assets and liabilities?
I put the house in both because the house sometimes can be an asset if you can make money from it and in others a liability if you spend money on it.
Stop reading and think for a moment.
The main problem with Assets and liabilities topic is that poor and middle-class people think they are buying assets, but they are buying a liability. They do not know the difference between assets and liabilities, and I can give you an example which is the house.
For some people buying a new house for living in it is an asset, which is wrong because you will spend for example a 1000$ dollar a month on it for things like Mortgage and bills, but you can turn the house to an asset if you rent it for somebody. You can make an income from the house, so in this case, the money works for you and are following now one of rich dad principles which is
“Do not work for money let money work for you ”
One of the principles of rich dad is:
Mind your own business
to sum this principle up the book is telling you ‘that the rich focus in their assets while everyone else focuses on their income statements.’
To follow this principle, you need to build and maintain a strong group of assets, and one of them is your own business, keep this idea in your mind.
Also, The book telling you a lot of lessons and here are some of them:
Don’t learn to get a job, learn to make jobs and you can do this through having a company, for example.
The most important things to learn to be rich are:
- how to invest
- laws around you that effect on your businesses.
- how to study the market
- and accounting
It does not depend on making more money, it depends on how to manage money.
Poor people always want to have things with other people money
and what I mean here is poor people just want to have things such as luxury cars and expensive tv screens, but not with their own money, but from other money such as banks and they do that because they are not growing their own assets. They are focusing on having things.
Rich people always spend their money on their assets and then they buy things for themselves and pay bills.
and the last lesson is
Work to Learn — Don’t Work for Money
That was the summary of Rich dad poor dad book by Robert Kiyosaki. Personally I really like the book. It is my favourite book in Financial culture and I recommend it to someone who wants to change his vision to money and become rich because in this book the author will tell you what
rich teach their kids about money
This is just a summary of the book if you want to learn more you can buy the book through CLICK HERE.
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