Book Review: Rich Dad, Poor Dad | Passive Income M.D.This book summary is part of an ongoing project to summarise 35 books on Money and Personal Finance - for more, see the full reading list. And his answer? And this simple idea has a simple solution. To be financially free, your passive income must exceed your expenses. And for your passive income to exceed your expenses you must:. But what are these things? How do we find them?
Rich Dad Poor Dad Summary
In fact, the rich are hardly taxed, the author says people can even make money with no capital. In the meantime? The author felt that his poor dad was more interested in these factors rather than on the job itself. The most powerful takeaway is that assets put money in your pocket and liabilities takes money out.
Here are some of his key concepts:. But poor? And because you are working all the time to get raises to keep up with inflation and debt interest, you have no time to discover alternative investments. The author compares his poor dad to those people who are perpetually scampering in the Rat Race, helplessly trapped in a vicious cycle of needing more but never able to satisfy their dreams for wealth because of one pood lack: financial literacy.
Read the full comprehensive summary at Shortform. The Poor Dad represents the traditional view on work and money - go to school, get a good job and climb the ladder, prize stability over independence, buy a house, and spend money without a clear long-term plan. The Rich Dad represents what was then a more contrarian view - work for salary if you have to, but aim for financial independence; have your money generate more money; and take calculated risks boldly.
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The major thing worth noting here is that corporations let you deduct legitimate business expenses pre-tax, instead of paying from post-tax dollars. You do NOT want to buy things that lose money over time or incur large expenses liabilities. Winning requires being unafraid to lose. Even if short of cash, people must pay themselves first.
What sort of knowledge foundation do you have. Rpeort key to financial independence is having money that makes more money. Keep Learning, regardless of what other people think. Focus on yourself and your personal goals, and Learn Quickly Great opportunities arise in a changing world.
Check it out. Ramit Sethi. I decided to start reviewing some books that I read. If you have books you like, let me know. First off…. This book is like the kid you hated in high school, but he let you cheat off his test a couple of times so you kind of like him. I have grudging respect for this book, but every time someone raves about it, I usually just want to punch them in the face.
People who avoid failure also avoid success. In steady state, this represents monthly negative cashflow that requires income to compensate. The book is enlightening if somewhat insidious. What should you look reportt.
I better start organizing my blog more. By feeding the mind, the author contends that people acquire power of choice. If you are someone who have good monthly income and can save part of your cad, than you might find this books very useful. You would probably spend the next two weeks digging up your backyard.