![]() ![]() He lists a personal residence as a liability, not an asset, because it has many associated costs with it. Robert Kiyosaki defines assets and liabilities as follows:Īnything that has value, produces income or appreciates, and has a ready market. If you want to be rich, this is all you need to know. You must know the difference between an asset and a liability, and buy assets. Lesson 2: It’s not how much money you make. If a young person can read these ideas, internalize them, and take action, they can become quite wealthy at a relatively young age. What a valuable concept! I wish I had learned this when I read the book the first time. I’ve learned to put my money to work for me and enjoy the tax benefits of generating income that doesn’t come from a paycheck. High-paying jobs mean two things: you’re working for money and the taxes you pay will probably increase. The rich have money work for them.īuying or building assets that deliver cash flow is putting your money to work for you. Lesson 1: The poor and middle class work for money. Here are some of the lessons I learned from the book… I bought a hard copy of the Rich Dad Poor Dad from National Book Store and it was the first book I read this year. Many authors and successful people recommended the Rich Dad Poor Dad, so I thought, “I need to go back and read that book.”Īnd that’s what I did. Then pandemic came and I started reading self-help books. Robert Kiyosaki and the book have received support from Oprah Winfrey, Will Smith, Donald Trump, and more. While there are many critics of the book, there’s also no doubt the book has been a massive success. That the author, Robert Kiyosaki, is a fraud/cheat/swindler/you-name-it.That there was no rich dad - it’s a fictional account being presented as fact.Maybe because I was bothered by these controversies: Similarly, while running your online boutique, you'll be able to find and spot good suppliers and products with time and asking yourself how can I do better.I considered a re-read a few times, but for some reason I couldn’t finish reading it. Differentiating a good deal comes with time and experience. Had I just focused on adding more assets, I would have not been left with any cash to buy the better deal and would have been stuck with the first one. However, the next deal I picked was also for a duplex but with less downpayment and more cashflow. I remember the look on my partner's face when he saw me pass the deal because I still had a long way to go to get out the rat race. Even though I had $10,000 and could invest, there was something inside of me that told me to pass. ![]() While playing the game last night, I came across a big deal for a duplex with a downpayment of $8000 and cashflow of 160. Sometimes you'll we have a good deal right under our nose and it slips away because you did not realize it. One of the biggest challenges in the game and real life is to spot a good deal and grab it. First, have the boutique generate cash and then use that cash to re-invest and grow your business rather than jumping in with all the savings and then trying to figure out what to do. If you want to start your online boutique, start small. Starting with small deals give you the opportunity to start building your portfolio until you can flip them for profits and buy big deals that generate more cash flow thereby helping you to get out of rat race. Start small, don't jump straight onto big deals.Keeping your overhead business expenses low when starting out means saving more to re-invest back into your business thereby making money work for you. Similar principles also work in real life when you are starting your own boutique. When your salary is low, your expenses are low which means everytime you get paid, you can use the cash invest and create more passive income. Every time I picked an easy profession like a teacher or a truck driver or even a mechanic, I was able to get out faster in comparison to complicated professions like Pilot, Doctor or Lawyer. As a part of playing the game, every player has to pick a profession and work their way on getting out of the rat race by increasing their cash flow. Keeping things simple both in the game and real life is going to help you get out of rat race or any situation faster. Use the KISS Principle and get out of the rat race faster.6 Lessons I Learnt From Playing Cashflow 101 (+ How they can help you grow your business) After having played the game numerous times, I've learned a lot of lessons that not only help me in my business but also in my real life. It's pretty much like monopoly but also different in a lot of ways as it teaches you how to become rich and financially independent even on a small salary. It's an interesting game that allows you to get out of Rat Race through buying/selling properties, businesses, and shares. I purchased Robert Kiyosaki's Boardgame Cashflow 101 and immediately got hooked on it. ![]()
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