Rich Dad Poor Dad – Chapter Three

 

 Why teach financial literacy?

Money doesn’t solve problems, intelligence solves problems and produces money. Money without financial intelligence is money soon gone.

In life, it’s not how much money you make, it is how much money you keep, and how many generations you keep it.

We have all head of lottery winners who are poor, then suddenly rich, then poor again. They win millions and soon back to where they started.

My educated poor dad stressed the importance of reading books, while my rich dad stressed the need to master financial literacy.

If you want to be rich, you must know the difference between asset and liability. If you want to be rich this is all the rules you need to know.

Rich people acquire assets. The poor and middle class acquire liabilities; but they think they are assets.

If you want to be rich, you have got to read and understand numbers, if you cannot read numbers you cannot tell an asset from liability

The most important rule is to know the difference between an asset and a liability. Once you understand the difference, concentrate your efforts on only buying income generating assets. That is the best way to get started on the path to becoming rich.

The rich buy assets. The poor have expenses. The middle class buy liabilities they think are assets.

Robert T. Kiyosaki

Up Next: 

Chapter Four