These Books will open then horizon of how education system fail totally to make you understand how money works.
Robert Kiyosaki is well know investor and Author of series of books.The book Rich Dad Poor Dad is the most popular book to get insights of role of money and its function.
I will quickly highlight main ideas of Robert Kiyosaki’s BOOK RICH DAD POOR DAD.
1)Four Quadrants of Occupation:
B) Small Business
C) Big Business
- First two Quadrants people live their entire life in short of money and enjoy their life a little.
- Last two Quadrants people live life in abundance and Happy.
INVESTOR is the Main point of this book.
2)ASSET is something that provides CASHFLOW.
EX : Renting a House will give cash at regular interval.
LIABILITY is something that incur EXPENSES.
EX : CAR take money from you as gasoline and maintenance EXPENSE.
#ROBERT says Your House you consider as ASSET is actually LIABILITY.
3) RICH buy ASSETS.
POOR buy LIABILITIES.
4)POOR tends to SAVE Money.
Rich tends to INVEST Money.
5) POOR work FOR Money.
RICH have their Money Work for them.
6) Poor Pay more Tax as their Income Increase.
RICH starts CORPORATION/COMPANY to obtain Tax Benefits.
7) POOR pay tax prior from their Income and then PAY their Personal EXPENSE.
RICH having corporation deduct EXPENSE PRIOR and then Tax is Calculated.(Saves TAX)
ROBERT KIYOSAKI CLAIMS THAT HE PAYS ZERO TAX EACH YEAR BY TAKING ADVANTAGE OF LAW FOR BUYING HOME IN USA.