Rich Dad Poor Dad is a starting point for anyone looking to gain control of their financial future
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- Bu səhifədəki naviqasiya:
- Financial Statement Poor Dad’s Financial Statement
- Assets Income INCOME STATEMENT BALANCE SHEET Expenses Liabilities
- Assets INCOME STATEMENT BALANCE SHEET Liabilities Income Expenses
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Liabilities Income Expenses Assets Liabilities Income Expenses Poor Dad’s Financial Statement Rich Dad’s Financial Statement Assets Liabilities Income Expenses Assets Liabilities Income Expenses Rich Dad’s Financial Statement Poor Dad’s Financial Statement Chapter Two: Lesson 2 64 Why the Rich Get Richer A review of my rich dad’s financial statement shows why the rich get richer. The asset column generates more than enough income to cover expenses, with the balance reinvested into the asset column. The asset column continues to grow and, therefore, the income it produces grows with it. The result is that the rich get richer! Assets_Income_INCOME_STATEMENT_BALANCE_SHEET_Expenses_Liabilities'>Assets Income INCOME STATEMENT BALANCE SHEET Expenses Liabilities Rich Dad Poor Dad 65 Why the Middle Class Struggle The middle class finds itself in a constant state of financial struggle. Their primary income is through their salary. As their wages increase, so do their taxes. Their expenses tend to increase in proportion to their salary increase: hence, the phrase “the Rat Race.” They treat their home as their primary asset, instead of investing in income-producing assets. Assets INCOME STATEMENT BALANCE SHEET Liabilities Income Expenses Chapter Two: Lesson 2 66 This pattern of treating your home as an investment, and the philosophy that a pay raise means you can buy a larger home or spend more, is the foundation of today’s debt-ridden society. Increased spending throws families into greater debt and into more financial uncertainty, even though they may be advancing in their jobs and receiving raises on a regular basis. This is high-risk living caused by weak financial education. The massive loss of jobs in recent times proves how shaky the middle class really is financially. Company pension plans are being replaced by 401(k) plans. Social Security is obviously in trouble and can’t be relied upon as a source for retirement. Panic has set in for the middle class. Today, mutual funds are popular because they supposedly represent safety. Average mutual-fund buyers are too busy working to pay taxes and mortgages, save for their children’s college, and pay off credit cards. They do not have time to study investing, so they rely on the expertise of the manager of a mutual fund. Also, because the mutual fund includes many different types of investments, they feel their money is safer because it is “diversified.” This educated middle class subscribes to the dogma put out by mutual-fund brokers and financial planners: “Play it safe. Avoid risk.” The real tragedy is that the lack of early financial education is what creates the risk faced by average middle-class people. The reason they have to play it safe is because their financial positions are tenuous at best. Their balance sheets are not balanced. Instead, they are loaded with liabilities and have no real assets that generate income. Typically, their only source of income is their paycheck. Their livelihood becomes entirely dependent on their employer. So when genuine “deals of a lifetime” come along, these people can’t take advantage of them because they are working so hard, are taxed to the max, and are loaded with debt. As I said at the start of this section, the most important rule is to know the difference between an asset and a liability. Once you understand the difference, concentrate your efforts on buying income-generating assets. That’s the best way to get started on a path Rich Dad Poor Dad 67 to becoming rich. Keep doing that, and your asset column will grow. Keep liabilities and expenses down so more money is available to continue pouring into the asset column. Soon the asset base will be so deep that you can afford to look at more speculative investments: investments that may have returns of 100 percent to infinity; $5,000 investments that are soon turned into $1 million or more; investments that the middle class calls “too risky.” The investment is not risky for the financially literate. If you do what the masses do, you get the following picture: Yüklə 11,31 Mb. Dostları ilə paylaş:
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