At the age of 9, Robert Toru Kiyosaki was isolated by his classmates because of his poor family, and he began to make efforts to become rich.

At first, he and his companion Mike unconsciously forged counterfeit money and were scolded by their poor father. On the recommendation of his poor father, he went to Mike's father (the rich father mentioned in the book) to ask the secret of getting rich.

Rich dad promised to teach Robert Kiyosaki to make money, but he had to do what he wanted.

At first, rich dad asked Robert Toru Kiyosaki to work in his shop for three hours every Saturday, with an hourly reward of 10 cents.

Soon, Robert Toru Kiyosaki began to complain that rich dad didn't take the initiative to teach himself how to get rich, and he gave himself too little reward, so he went to find rich dad's theory.

To his surprise, instead of getting more pay, he was persuaded by his rich father to help him work for free.

Three weeks later, rich dad came to see Robert Toru Kiyosaki and told him about money. Rich dad told him that many of us have been working all our lives because of fear and greed. We go to work because we are afraid of having no money. With the growth of desire, we work harder, hoping to earn more money, and finally fall into a vicious circle of "rat race". But money can't solve the problem. Only by changing our understanding of money and learning to let money serve us can we solve our predicament.

Soon, Robert Toru Kiyosaki found an opportunity. He and Mike rented a reading room at a low price and hired others to manage the reading room for them, making a lot of money. They learned the first lesson of making money work for them.

Next, we will learn the second chapter of the original book: Why to teach financial knowledge.

When you run in the right direction, success will come unexpectedly.

Let's take a look at Robert Kiyosaki and his companion Mike when they grow up.

1990, Mike took over rich dad's business empire, and his wealth was unimaginable. Now, he has begun to train his children to take over, just as his rich father trained him and Robert Toru Kiyosaki.

Robert Toru Kiyosaki retired at the age of 47 on 1994. His assets can already be self-appreciated, and he doesn't need to spend time and energy to take care of them. As Robert Toru Kiyosaki himself said, his assets are like planting trees and watering them year after year. Finally, one day it no longer needs to be cared for, its roots have grown deep enough, and now it can begin to enjoy the shade it brings.

Nowadays, people often ask Robert Toru Kiyosaki the secret of getting rich, and his answer is often this sentence: "If you want to get rich, you must learn financial knowledge."

Why did Robert Toru Kiyosaki emphasize the importance of financial knowledge so much? Next we will interpret them one by one.

0 1. Money earned without financial knowledge will not last long.

Robert Toru Kiyosaki said, "In the long run, what matters is not how much money you earn, but how much money you can keep and how long you can stay."

We often hear stories about lottery winners. They became rich at once, but soon returned to poverty.

In addition, Robert Toru Kiyosaki mentioned an athlete's story: a young athlete, who had millions of dollars a year ago, can only do the lowest-paid job in a car wash at the age of 29.

I don't know if you feel this way. If you don't have the habit of keeping accounts, you really don't know where all your money is spent. You want to save money. As a result, you have already spent your salary this month before your salary is paid next month, and then you have to pay borrow money to spend with flowers, IOUs and credit cards.

Because we don't use financial knowledge to manage our money, often our money is spent under emotional impulse.

You must understand the difference between assets and liabilities. Buy assets instead of liabilities.

We often complain about the widening gap between the rich and the poor. The so-called "the richer the rich, the poorer the poor". Maybe we think that the rich are rich in resources, well-connected and sociable, but this is not the most essential reason. Rich dad told Robert Toru Kiyosaki that the fundamental difference between the rich and the poor is: "The rich get assets; The poor and the middle class get debts, but they think those debts are assets. "

The distinction between assets and liabilities is very simple, but even if it is simple, the poor don't understand it. Rich dad said: "assets are things that can put money in our pockets, whether I work or not;" Debt is something that comes out of our pockets. "If you want to be rich, you just need to keep buying assets.

Rich dad told Robert Toru Kiyosaki about assets, liabilities and cash flow with a few simple pictures:

The first is the cash flow of the poor:

The second is the cash flow of the middle class:

The third is the cash flow of the rich:

These cash flow statements illustrate a problem, that is, how a person handles his money. Robert Toru Kiyosaki firmly believes that "money often can't solve people's financial problems", because more money will only make the cash flow pattern in your mind more obvious. If your pattern is to spend all your money, then the most likely result is to increase your income and increase your expenses.

For example, after a newly married couple gets married, they may both have the opportunity of promotion and salary increase, but they will consider buying a house, so they will take out a loan to buy a house, then buy furniture, then overdraw their credit cards, and then spend more money on education after their children are born ... Although they earn more money, they spend more money.

Many people think that a house is an asset, but it is actually a liability, unless you rent it out, unless your house is located in a geographical location that can make it continuously increase in value, but this probability is very low.

03. Correct wealth accumulation posture

If we only know how to make money, then the result of our efforts is like this:

(1) works for the company. Employees' jobs will make employers or shareholders richer.

(2) working for the government. The more you earn, the more tax you pay to the government.

(3) working for a bank. After paying taxes, our biggest expense may be mortgage and credit card bills.

So how to solve this dilemma?

-Keep your job, start your own business and buy assets that can increase in value.

So how do we judge our financial situation after buying assets?

Buckminster Fuller defined wealth as the ability to support a person for a long time, or how long I can live if I stop working today.

Wealth is determined by comparing the cash generated by assets with the cash flowing out of expenses, which represents how much money you can earn.

Therefore, as long as the expenditure is controlled under the cash generated by assets, it will become more and more abundant and non-labor income will increase.

Summary:

In this chapter, we only need to remember the following three points:

So we should learn financial knowledge, know the difference between assets and liabilities, and learn to buy assets instead of liabilities.