Someone accidentally won 5 million yuan, and soon life returned to the starting point; Others became poor overnight, but after a while, they climbed to the peak of wealth.
The book Rich Dad and Poor Dad clearly explains the principle behind all this: the rich are getting richer because they buy assets.
Robert Toru Kiyosaki, the author of this book, is known as "godfather of millionaires" and "money coach". His "poor father" is his biological father, a university professor. Although his income was high, he often got into financial difficulties and left a pile of bills after his death. His "rich father" is the father of his good friend. He has a low education, but he is good at making money. He finally established his own business empire and left a lot of money to his children after his death.
The two fathers have completely different views on money and wealth. In contrast, Robert chose to follow the advice of his rich father, and eventually he became a rich man. He told us a truth by telling his personal experience: if you want to have money, you must first have the thinking of the rich.
What is the thinking of the rich? Rich dad taught him three truths about money and wealth:
1. The poor and middle class work for money, while the rich make money work for themselves.
What do you mean, "the rich make money work for themselves"? Can the rich turn money into people?
Actually, that's pretty much it.
According to the book, the poor and middle class tend to look for jobs in order to have a stable income, and no matter how high their wages rise, they will never satisfy their desire for consumption, so they become slaves of money.
Rich people think that money is "fake". Only by conquering it and using it can you show its true value and let money bring more money.
Second, buy assets, and you will become richer and richer; Buy debt, and your money will be less and less.
"Assets" and "liabilities" here are different from those in accounting.
The author gives his own definition:
"Assets" refer to things that can put money in your pocket, and "liabilities" refer to things that take money out of your pocket.
According to this definition, your car, house, mobile phone, computer and other things that you need to pay for constantly, but can't bring you financial benefits, are all liabilities.
This view may be hard to accept at first glance. Is the house in debt, too
Yes, if you buy a house for your own use and don't intend to rent it or sell it, it will only empty your wallet and bring you no income. Moreover, if you buy a house with a loan, you have to pay a certain repayment every month. He takes your money every month!
But if you buy a house and sell it after appreciation, it belongs to your assets, because it helps you earn back the difference.
Rich dad said that the poor and middle class often fall into financial crisis because they buy too much debt and too little or no assets. When assets are less than liabilities, of course, their money is decreasing day by day. So they can only work hard, but never make enough money.
Although rich people also buy luxury goods, houses, cars and other debt-laden things. But in general, their assets are always greater than their liabilities, and the money they earn from assets is enough to offset their expenses. At the same time, the rich continue to buy assets with extra money, and their money is always "inexhaustible".
Third, pay attention to your own career and invest in what is really important.
To understand this, we must first make it clear that occupation is not equal to career.
Occupation refers to the regular activities that people engage in with a certain goal, scale and system and have an impact on social development. To put it bluntly, it is a business empire that can support all your social expenses, a stable system composed of assets.
And this profession is essentially a part-time job.
As written in the book: the rich care about assets, while others care about income. The secret of getting rich is: pay attention to your career and don't work for others all your life.
Robert divides physical assets into the following categories:
1. Business that can operate normally without being present in person (if you have to work there, it is not a career but a career);
2. Stocks, bonds, bills (IOUs), etc. , related to finance;
3. Real estate that can generate income;
4. Royalties, such as music, manuscripts and patents;
5. Anything that is valuable, can generate income or has value-added potential and has a good market.
Understand your career and learn to invest in what is really important to you-your brain.
If he is well trained, he can create a lot of wealth in an instant.
The more financial knowledge a person knows, the more new ideas and models he knows, and the more opportunities he can find. But most people only know one way to make money: work hard, save and borrow.
Then to build your own business and succeed, you should achieve three things:
First, learn financial knowledge, establish various models, and strive to improve their financial quotient.
Rich dad told Robert from an early age that if you want to conquer money, you must first understand it.
What matters is not how much money you earn, but how much money you can save and how long you can save.
How much you know about finance determines how much money you can keep and how long you can stay.
To put it simply, if you want to start a company and be a boss, you must be able to read financial statements and see the company's operation and market trends through data. If you want to manage your money well, at least you should be able to list your balance sheet first.
In the book, the author thinks that financial quotient is composed of these four main skills:
1. Accounting (financial knowledge or ability to read and understand numbers);
2. Investment (science in Qian Shengqian);
3. Understand the market (the science of understanding supply and demand);
4. Laws (laws involving accounting, companies and taxation must be played by the rules).
Improving your financial quotient is investing in your most important asset.
Second, cultivate the necessary management ability and improve the skills you need.
Management skills necessary for personal success include:
1. Cash flow management;
2. System management;
3. Personnel management.
As an investor, you also need to improve three main skills:
1. How to find opportunities missed by others;
2. How to raise funds;
How to organize smart people and hire them to work for you?
In addition, there are basic abilities such as necessary communication skills.
Third, manage yourself-self-discipline.
The topic of self-discipline is a cliche, which is simply divided into four parts: personal health management (body is the capital of revolution); Personal time management; Personal finance; Personnel management (interpersonal relationship).
In addition, we must get rid of bad habits and develop good habits.
What is a bad habit?
Everything that is not conducive to your progress and limits your thinking and ability is a bad habit.
For example: fear, cynicism (hesitation, complaining), laziness, conceit and so on.
Rich dad said: the main difference between the rich and the poor is that they deal with fear in different ways; Feeling is the driving force of our action. Be true to your feelings, use your mind and feelings in the way you like, and don't let them control you.
The hard core knowledge in the book has come to an end, but the author has further added some knowledge and investment tips for your reference.
First of all, what people need to know is the history of taxation and the power of companies.
As for taxes, in fact, western countries did not have them in the early days. At first, only when there was a war did the government temporarily levy taxes on the expenses of the war. Later tax policies were generally accepted by the public because they were originally aimed at the rich.
For the government, when there are taxes to spend, it encourages spending money to hire others to expand the organization. With the expansion of government scale, more taxes need to be collected to maintain its operation.
As a result, the government's appetite for money is growing, so that the middle class is also taxed, and the scope of taxation is constantly expanding to the poor. Of course, what we are talking about here are all western governments, and what kind of system our government is remains to be verified. )
But interestingly, the rich are not willing to be taxed. They use enterprises, companies and laws to find reasonable and legal tax avoidance methods, so although they have money, they rarely teach taxes. It is said that the stock god Lafayette pays less tax than the secretary. Who knows?
As for the company, the author explains that it can be just a document stored in the government, which is our common shell company. But often you can use the company to do many things, such as tax avoidance.
I won't go into details about the tips on investment and action. They are all below:
The above contents are sorted and summarized by myself. Of course, I hope you can read the original for details. After all, original things are more interesting to read.
Finally, I'll give you a word from my rich dad about reflection and change:
Doing the same thing and hoping for different results is crazy.
I wish everyone can become "free men" economically and spiritually!