Rich Dad Poor Dad-I

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Tahir Jamal;
This Novel is Beautifully penned down by Robert T. Kiyosaki whose main thrust laid on making people aware of financial literacy. According to him. "The main reason people struggle financially is because they have spent years in school but learned nothing about money. Consequently people learn to work for money…but never learned to have money work for them." In the initial stages of novel we are introduced to a boy having two fathers, a rich one and a poor one. The poor one gave birth to him and the rich one whom he regarded as second father was his friend's father who laid the foundation stone of his success. Both men were successful in their careers, yet one always faced financial crisis. Both used to believe in education but with contrary views. One used to say "When it comes to money play it safe , don't take risks" The other said, "learn to manage risks". It was very difficult for a Nine years old boy, whom to choose? After an utter confusion, finally he decided to listen to and learn from rich dad about money even though he was'nt with college degrees. The rich dad taught him some simple tricky lessons to follow to become wealthier. Lesson 1: The Bourgeoisie class work for money. The rich have money work for them. People's lives are supremely controlled by two emotions: fear and greed. Most people have a price and they have a price because of human ardency. The fear of not having money urges us to work hard and once we are remunerated the desire gets birth about all the wonderful things money can buy. It's imperative for you to use those emotions to your advantage. Most people live their lives chasing paychecks and job security because of emotions not really thinking where those emotion-driven thoughts are leading them. It's just like a donkey dragging a cart with it's owner dangling a carrot in front of its nose. The donkey's owner maybe going where he wants to, but the donkey is chasing an illusion. Tomorrow there will only be another carrot or the donkey. Lesson 2: Why teach Financial Literacy? If people are prepared to be flexible, keep an open mind and learn, day by day they will grow richer and richer despite tough challenges. If they think money will solve knots, they will have a rough ride. Intelligence solves problems and produce money. Money without financial intelligence is "money soon gone". It's all about utilising money in a fruitful way, If utilised in buying assets they are large enough to nourish by themselves. It's like planting tree, you water it for years, and then one day it doesn't need you anymore and in return it will pay you back with it's shadow for your amazement. It's not how much money you make, It's how much you keep. "Rich people attain assets, the poor and middle class acquire liabilities that they think are assets." These words may sound good to an accountant but make no sense for average person. An asset is something that puts money in your pocket and a liability takes money out of the same pocket. The assets can be in the form of Real Estate , Stocks , Bonds , Property and so on…Most of the people regard their home as an asset but the truth is it is the biggest liability, the bigger the home the more the expenses. A person canbe highly educated, professionally successful, and financially illiterate. The Middle class struggle because they find themselves in a constant state of financial struggle. Their primary income is through their salary. As their wages increase, So do their taxes. Their expenses become directly proportional to their salary increase. That's the reason they treat their home as their primary asset, Instead of investing in income-producing assets. Lesson 3: Mind your own business In 1974, Ray kroc, the founder of McDonald's was asked to speak to the MBA students to motivate them at the Texas University Austin. While addressing class Ray posed a question "What business do you think I'm in?". One boy came up with a reply "Ray, who in the world doesn't know that you are in the Hamburger Business?". Ray replied "i was expecting this answer from you" and added "ladies and gentlemen i'm not in the Hamburger business. My business is real estate." And today McDonald's is the largest single owner of real estate in the world. A problem with school is that you often become what you study.

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