hey friends
Today am going to tell a key to get super rich which deals with the fact why only few people really get rich and why most of the people die living a poor and middle class family
Lets begin with a story of Robert who had 2 fathers. One is his father and the other is his friend's father. One had a P.hd degree and the other never finished his 8th grade. Both were very smart and hard working but had very different point of view regarding success. And they gave different teachings to Robert. One said "The money is the root of all evil" while the other said "Lack of money is the root of all evil". One always said we can't afford expensive things while the other said Robert to find ways to get what he want as that exercises the brain to come up with ideas. One told him to study hard and get a job in big company.
while the other told him to study hard and try to open his own company and create jobs. Robert had and advantage as he had two dads and saw both of them growing from his childhood. He used his logic and followed his second dad's advises who later became the richest man in Miami Florida. And with his teachings Robert kiosaki himself became a multi millionaire. While his first dad kept on struggling financially throughout his life. One of the most important key for SUCCESS which Robert got from his rich dad was financial literacy which is knowing the difference between 'ASSETS' and 'LIABILITIES'. He gave a really simple definition for them. Assets are things which makes money for you and liabilities are things that take money away from you. The reason which people are rich because they acquire assets while the middle class just buy liabilities.
example:there were two friends Bob and Bill. Both were working on same post for same salary. As soon as they got salary Bob used to go and buy stuff like latest cell phones, cool gadgets, branded clothes, shoes, bike and others which would make him look good and rich. But he failed to think that these were just liabilities as they took his money away from him not only while buying it but in future for maintenance. Even it went on loosing its value in time and did not returned any profit. But Bill did not bought all that things unless it was really necessary. He used to save money and spent it on assets like bonds, stocks, real estate or in developing his own skills which could generate more income for him in the future and make money. After 2 years Bill became a millionaire while Bob kept on struggling financially and blamed his low salary for the reason of his struggle. The cash flow of poor people goes something like this.
They get income and they have expenses which eats all three income. For the middle class the income goes to expenditure and liabilities which they think are assets.
Example most of the middle class people think that the house they own is their asset but that is not true as the house does not put money in your pocket or make money for them. It's just a liability unless they give it for rent. The RICH class in other hand spends their income to make assets which can in return make money for them. And then they mostly spend expenditure from that income so by doing this they continuously grow and keep on getting rich as their sources of income increases. If you really want to get rich let this simple idea fit in your mind. It's not the amount you earn but the about you spend. You have to shift from a consumer mentality to an investor mentality. People keep on complaining that they should get better income which would improve their life. But the problem remains same. Even if their income increases it will just increase their expenditure as high income will make them to desire to have a better house, car etcetera which again are just liabilities that will keep them away from getting rich and struggle financially.
So to conclude it's not how much you earn but hope you spend it will make the difference. These concepts were taken from Robert. T.Kiyosaki the author of book Rich dad Poor dad. I think you should definitely read it once.
