Have you ever wonder that despite you are a success at your study and have a high-income job and still struggle with money? I ask myself this question and wonder why my expense always greater than my income? why at the end of the month I always struggle with money? If you want to know the answer, let me tell you one of the secrets to getting rich, and this is the key summary from "Rich Dad Poor Dad" by Robert Kiyosaki.
It begins with this question "if you were to stop working, imagine this to yourself how long do u survive with all your remaining saving?" ok before you answer it let have a look at top 7 principles that summary from "Rich Dad Poor Dad".
"The rich don't work for money"
To sum this principle up let's take a look at this example :
John spending every hour of everyday working for his money. He's really mad at life and wonders why he can never seem to get ahead.
On the other hand, we have Ben. He made the same amount of money as John. But Ben spends most of his time looking for assets to add to his collection (wait till the next point I will explain what an asset is). Both of these guys make the same amount of money but, John trade his time for money, and Ben make money from his asset. The lesson here is that
"the rich don't trade their time for money, they acquire assets that make money for them"
"its not how much money you make is how much money you keep"
You must know the difference between ASSET and LIABILITY. If you want to be rich, this is all you need to know and understand most.
The Primary Cause of financial struggle is simply not knowing the difference between assets and LIABILITY.
OHH WAIT!!!! You don't know what an ASSET and LIABILITY is, don't you?
You see "The rich acquire assets" and "The poor and middle class acquire LIABILITY sometimes they think its assets". That's the reason the rich is richer and the poor are poorer.
to understand that you must know this cash flow: