Rich Dad Poor Dad
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maintain your wealth, it’s important
to be financially literate, in words
as well as numbers.
The arrows in the diagrams
represent the flow of cash, or “cash
flow.” Numbers alone mean little, just
as words out of context
mean little. It’s the story that counts. In financial reporting,
reading
numbers is looking for the plot, the story of where the cash is flowing.
In 80
percent of most families, the financial story paints a picture of
hard work to get ahead. However, this effort is for naught because
they spend their lives buying liabilities instead of assets.
This is the cash-flow pattern of a poor person:
Assets
BALANCE SHEET
Liabilities
Income
Expenses
INCOME STATEMENT
Taxes
Rent
Food
Transportation
Clothes
Job
Salary
