Below are some of my sharing of the main points that I find it inspirational from the book, "Rich Dad, Poor Dad."
If you find it interesting, go read the book! The meaning behind the points I stated are very profound. You might not get it in the first reading, so re-read it again, I'm sure you can get it some day :)
Here it goes...
LESSON 2: Why Teach Financial Literacy?
1) Wealth is a person's ability to survive so many number of days forward...or if I stopped working today, how long could I survive?
~Buckminster Fuller
2) Wealth is the measure of the cash flow from the asset column compared with the expense column.
3) Simple Observations to remember:
The rich buy assets.
The poor only have expenses.
The middle class buy liabilities they think are assets.
4)*** In the end, the one and only rule: You must know the difference between an asset and a liability, and buy assets.
5) It is said that the fear of public speaking is a fear greater than death for most people. According to psychiatrists, the fear of public speaking is caused by the fear of ostracism, the fear of standing out, the fear of criticism, the fear of ridicule, the fear of being an outcast. The fear of being different prevents most people from seeking new ways to solve problems.
6) It was said that the Japanese were aware of three powers: "The power of sword, the jewel, and the mirror."
The sword symbolises the power of weapons.
The jewel symbolises the power of money. There is some degree of truth to the saying, "Remember the golden rule. He who has the gold makes the rule."
The mirror symbolises the power of self-knowledge. This self-knowledge, is the most treasured among the three. For it is only when we as humans look into the mirror do we find the truth.
7) In conclusion, Why the rich get richer?
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.
8) Lesson learnt:
The rich don't work for money, they make money work for them. and avoid the "Rat Race."
