Greatest lesson from novel rich dad poor dad
Many of my friends have a hobby of reading a lot of books especially novels. And On my friend’s recommendation. I tried to read it but was unable to complete. Thanks to my laziness. But it surely taught one of the greatest learning of life. It showed me what is the key reason that only few people get super rich while most of people live a poor and a middle class life.
What’s the story
There is a boy named Robert who had two dads. Don’t take it wrong one was his real dad. And other was his friend’s dad. One of his dad was a PHD and other had not even passed 8th. They both were smart and hardworking but their thinking was totally different. First told him money is the root of all evil. The other one told him lack of money is the root of all evil. First one told him that we can’t buy expensive things and other told him that he should find the ways to get what he want. By doing this he will get new ideas. Now my favorite the line which inspired me more than anything. He told him to get the education, do hard work and get a job. Other told him to get the education, do hard work to open his own company so that you van give other jobs. The primary reason of providing basic knowledge is so you can build something of your own.
Also read : Myths that jobs are better than business
Later in the story
Robert had an advantage that he had seen thinking and success of both his dads. So he followed the advice of his second dad. And his second dad became one of richest person in Miami and with his own teaching he made millions. And his first dad remained poor all his life.
The best thing he learned form his second dad was financial literacy. It simply means difference between assets and liabilities. Assets are something that can make you money and liabilities is something uses your money. Rich people are rich because they make their assets while middle class people build their liabilities.
Lets suppose thee are two people . That are working on a same post and same salary in an company. One used his money in buying gadgets, bikes, new clothes that gives him rich feeling but these all are liabilities. They will use your money later in maintenance. And the value of these thing will decline with time. While the second doesn’t buy these things until there is an extreme need. He uses that money in stocks, bonds, real estate, and to improve skills of his own. Later the second person got rich and first person remained at the same level.
The cash flow of three classes are different. Poor uses their income in expenditures. Middle class uses their income in expenditure and liabilities. But the rich uses income is making assets and then uses their money for other work.
ITS my personal recommendation that every one must read this book
click here to get the book