Robert Kiyosaki is a clear message. The U.S. should provide financial education. Currently our education is broken and nothing was learned that prepares people to financial freedom. All books by Robert are good and learn the basics of financial education and the need for continuing education. Rich Dad / Poor Dad is another famous book by this author. This article is about Book summary by Robert Kiyosaki.
The Cashflow Quadrant is a very important concept that people need to consolidate in their memory, if they want to get a handle on the financial freedom. The standby employee
2) S -. Stands for small businesses or self employed
3) B -. On a side note, I was very fortunate to grow financially with an excellent teacher. My father learned of the principles that Mr. Kiyosaki teaches in his books, Rich Dad / Poor Dad, The Quadrant cash flows and this book unfair advantage. I can also tell you that most people are financially illiterate. You know the difference between good debt and bad debt? So if you have a debt in a rented house that produces a monthly positive cash flow is that the debt is good. If your credit card debt to pay each month then that’s bad debts. In short, making good money debt and bad debt costs money.
Assets and liabilities! Anything that generates positive cash flow is good, while everything that costs money is a responsibility. The three types of income are: ordinary and passive portfolio.
1.Knowledge – The use of knowledge is power. There are several ways to make money is a business, real estate, stock market, content creation, licensing, Internet marketing or more attempts than others. Warren Buffet the second man in the wealth of the world is known for his constant reading and learning skills. The premise of unfair advantage is a very high financial education, more money flows in and out. You can pay anything in taxes and earn millions with a very low risk, using other people’s money in the economy good or bad.
2.Taxes – Taxes are government incentives to make people do what they want them to do. In this way, as companies create jobs and wealth, have tax strategies to encourage the economy afloat. Is there a big assumption that people need to understand. Enter the difference. If you are an employee, you work, pay taxes and then get the money to pay your expenses. When you run a business, work, pay all expenses and then pay taxes on what remains. This is perfectly legal and can legally increase the yields. Remember one thing – it makes sense to tax evasion and tax avoidance mean jail.
3.Debt – Good Debt creates real wealth, so you OPM (Other People’s Money) to use. Please note that the debt can be used wisely and take advantage of unlimited wealth. Debt much misused to create financial ruin.
4. Risk – The greatest risk is to invest financially ignorant by giving their money to financial planners and hope that things work. Save money when an investment is a bad idea, because in time the value is eaten away by inflation. Also, do not control your money. According to Warren Buffet – “Diversification is a protection against ignorance.”
5. Compensation – The rich do not work for money. Think for a moment to work hard. If the overtime hours, you’re trading in dollars. The problem is that your marginal tax rate increases with increasing profits. Your overtime is taxed higher as it works harder. I’m not against hard work. Work rich in goods that generate cash purchase. Your goal should be to make your money work harder for you and make you more money in the shortest possible time.
Which assets will pay for your liability? This concept is covered with Rich Dad / Poor Dad. I think it is the best Business books. This means that if you want a new boat than what assets will pay for the boat?
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