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Assignment # 3
E&L
Submitted to
Submitted by
Enrollment #
Section
Date
: Sameen Arshad
: Muhammad Aleem Tahir
: 01-134142-086
: BSCS-5D
: 21-November-2016
This story is about Robert Kiyosaki's childhood in Hawaii and his two
fathers (one rich father and one poor father).
Rich Dad Poor Dad is organized into six main lessons that Kiyosaki
presents to becoming successful in his opinion:
1. The rich don't work for money
2. Financial literacy is key
3. Own businesses, rather than work at them
4. Understand taxes and the power of corporations
5. The rich invent money
6. Work to learn rather than work for money
These above six lessons combine the teachings of Kiyosaki's rich dad
with understandings from his particular lifespan. They contain frequent
themes, such as the rank of refining your financial IQ and financial
learning, a set of skills that Kiyosaki believes is lacking from the
current education method.
Kiyosaki was forced to choose between following in the footsteps of his
poor father which is a highly educated government worker or his rich
father whos an businessperson(entrepreneur) who never graduated
high school .
But ultimately, Kiyosaki decides to pick up most knowledge from his
rich dad.
The book focuses frequently on the education and financial advice
Kiyosaki learned from his rich dad. His rich father was able to build a
multi-million dollar empire from practically nothing, using his financial
insight and the power of his imagination.
Rich Dad Poor Dad also shows how the rich don't effort for money,
they force money to work for them. The rich get assets rather than
accountabilities. Kiyosaki stresses the importance of being able to
distinguish between an benefit and a responsibility. He states that in
order to be really rich, your skill column must be strong and able to
I have gained a lot from this book that ,most of us learn how to make
money , how to get a job and work hard yet we don't learn how
to manage it, the important part.
(Two Dads, Two Different Philosophies, Two Different Outcomes)
It's also important to note that more money will frequently not solve
your commercial problems. "In fact, it may composite the problem
You don't need to be an expert, have an MBA, or even study private
finance books cover to cover to get financial intelligence. Start by
learning the change between an asset and a liability, the single most
important difference to distinguish if you dearth to get rich.
Its somewhat that gives you cash. Your car and your house do not give
you money, right? In fact, you have to pay for your household loan and
your carriage loan.
Assets are simply things that create cash-flows directly to
your pocket
And Liabilities , are belongings that take cash out of pocket. These are
the things that are essential to pay for, things that you owe, and things
that you need to purchase. So your carriage, your outfits, your Bills
are liabilities.
Then you need to buy as many assets as you can and decrease your
liabilities in order to form prosperity.
Most of the time, people have more liabilities than assets. If that
occurs, its not the end of the world.
Remember that you can always turn liabilities to assets.
One of the most debated ideas from Robert Kiyosaki is considering
your home as a liability. According to his meaning, it is a liability
because it does not put cash in your pocket and it grosses money out
of your pocket. We decide with these opinions but we trust that there
are other things to consider. For example a house does not depreciate
like a car.
As we all know, households can increase In value as years pass by. In
addition, most of the time, it is inexpensive to pay for a loan to own a
house than to pay for the rent to live in that household.
This is a condition we should look for and this is a method that in
statistic your home would put cash into your pocket by saving you
additional money for the rent.
The middle class devotes the way the poor do. They spend their
incomes and extras on more stuff that will not return a profit to them.
While rich people recognize that money comes to them by providing
products or facilities that people want to buy.
For most people, the reason they dont win financially is because the
fear of losing money is far-off greater than the happiness of being rich.