Way to the rich from rich dad poor dad

Rich way

Which dad poor dad is a book made for financial success. It tells us how we can achieve it in each and every condition. First most important thing mentioned in the book or say the first step towards the rich is to get yourself out of the rat race. Rat race? Imagine you're working for a company paying you a good amount of salary but you're under debt of home loans, car loans etc. Whenever you get your paycheck, you first pay debt. You are working for paying debt from your salary which even had undergone through 50% of tax when you receive it. YOU ARE WORKING FOR MONEY. Even what stick you with the job is raise in your salary and further promotions. This is so called rat race which author had described in the book.

So today we will be discussing about how author had achieved his financial success whose net worth is around 80 million dollars. Author's rich dad (actually his friend mike's dad) said him that you should not work for money but instead make your money work for you whereas his own dad used to say him to get good grades and work for money. Poor dad taught author to get good job in a big company but his rich dad used to tell him that instead of getting good grades and working hard in a rat race, learn HOW MONEY WORKS AND TAKE FINANCIAL EDUCATION. This were all instances when author was a child of mere 9 year old. So what are the key that unlocked the door to such a massive success. Here are the points of the entire book which I had tried to cover which can help us too to get financial success.

1.Overcome you fear and greed— This is the point which help us to take ourself out of the rat race. We fear that if we would not work for money(job), we will not be able to complete those debt. WE WORK VERY HARD FOR SUCH SMALL AMOUNT OF MONEY TO JUST PAY DEBT AND EVEN ARE READY TO WORK FOR OUR ENTIRE LIFE. And another word greed, company use to pay us well and promises us to raise our income within 2 year interval of time which often makes us greedy and keeps us busy in the rat race.WE SHOULD FIRST GET OURSELF OUT OF THIS RAT RACE.

2. Understand the difference between asset and liability— You get you salary, pay debt and remaining pennies went into expenses such as food, clothing etc. So here those debt are your liabilities and you often waste your money in unwanted stuffs. This what poor and middle class do but rich, they don't. They invest their money which makes more money. In another way, they invest their money in buying assets which bring them profitable extra money, if any their debt are payed from this profitable money. RICH TRY TO MINIMIZE THEIR LIABILITIES AND FOCUSES ON BUYING ASSETS. Assets? Real estate investment, stocks, bonds, all these are assets. YOU MAKE MONEY AND PROFIT WHEN YOU BUY AN ASSET NOT WHEN YOU SELL IT.

3.Don't work to earn, work to learn— Author worked with xerox to learn the sales marketing because they provide a good training for it. He worked for merchant navy to learn the trading stuffs so when he started his first company of purses, it benefited him as he learned a lot from it. We should learn from above that we should try to learn a small amount from everywhere. We should try to improve our skills such as communication skills, writing skills, learn sales marketing from various classes, financial stuffs and seminars. Even we should pay for such things to learn this important skills.

4. Understand why you want to do it— I want to do it because I don't want to get involved in rat race, pay taxes from 50% taxed money by government for my entire life. I want to get my dream cars and all other luxuries from my asset column. So create your own do's and don'ts which will keep you driving towards the path to rich.

5.Learn 1.Accounting.
              2.Investing.
              3. Understand marketing.
              4. The law(which are in your favors to keep up your wealth up).
All this four can bring a million dollar if learnt.

6. Learn management skills of your own people. YOU SHOULD PAY YOUR PROFESSIONALS WELL such as real estate managers, brokers and others because they will give you good advice.

7. Take risk— Ask middle class why they don't invest. They will probably say that they don't want to lose their money or risk it. Author has well said in the book that you should take risk(calculated).Whenever you lose, learn from it and move on. YOU WILL PROBABLY FAIL A NUMBER OF TIMES BUT REMEMBER THAT FAILURE INSPIRES WINNER AND DEFEAT LOSERS. Tell me just one successful millionaire or billionaire or any successful person who had not failed(Edison failed 100001 times to get ready his first light bulb). Investing is fun, but remember too that you're not gambling unless you know what you are doing but you're gambling when you are just throwing money into a deal  and praying. Another big difference between poor and rich is that FOR POOR THE PAIN OF LOSING MONEY IS FAR GREATER THAN JOY OF BEING RICH. That's why they don't want to risk their money but love to work 50 years for a job.

8. PAY YOURSELF FIRST from the book The Riches Man in Babylon. Author said that his rich dad used to pay himself first, even if he had to pay tax or by any means any tax. With those money he buy assets. Money gained from the assets was used to pay debt and other stuffs. The fear of paying taxes and punishment from government officials helped him to find great opportunities and deals. Our mind is so powerful that whenever it is in trouble, it find great opportunities and ways to get out of it. This, author's rich dad used that fear to find great deal and opportunities. OPPORTUNITIES ARE SEEN FROM MIND AND NOT FROM EYES.

So that's all and remember make money from your money and million dollars are ahead