As this is my first blog I want to say about an interesting topic in everyone's life that is finance. Every individual wants financial freedom in their lives. I am not giving money to anyone but can give some useful tips to get free from financial problems. These points are not said by me but from very wonderful book called "RICH DAD POOR DAD" written by 'Robert Kiyosaki'.
In this book the writter had two dad's, one is rich and the other is poor, here two means one is his own dad and the other is his friends dad. His dad is very intelligent and highly educated, he had a PH.D, but his friends dad had not even passed out 8th standard. Even though his dad has so many certificates but he has no financial knowledge. But the other father had no certificates or rather completed his schooling but had a lot of financial knowledge which the author say in this book.
Some important points which his second dad said him are :-
1. First we have to become our own boss rather than working under others company or boss. Here becoming our own boss means not keeping big company's but try to keep a 'Side Hustle'.
2. Side hustle refers to a small business which generates income. It helps us by creating a second income which is very helpful to us financially. Always depending on one work and one salary does not make us rich , so income should be generated more than one way.
3. He also says money should be first saved and later been spent, but most of people first spend there salary for monthly expenses than later try's to save but there won't be any money to save. So the point here is money should always saved even though in small amount but it should be saved.
4. The saved money should be invested in some or the other ways which pays interest to it. But keeping it with us for long time makes no use.
5. The most important point is having Assets rather than Liabilities. Assets means the things which pay us money like investing in stocks, having properties, real estate etc.., Liabilities means the things which we should pay money from our pockets like buying car or house for loan, others things for EMI, etc...
The author give example about how the of middle class peoples life goes on. There is couple who married recently and lives in a small home for rent. The husband does job and the wife take cares of home, and monthly expenses is paid by his salary. Later a baby will be born and they plans to take a big house for them but they take house loan. Later for the big house their should be suitable things like expensive furniture, big fridge, T.V, and many more which suits the home but everything they buy in EMI plans. To pay those loans and Emi's now both started working. Their life goes on paying loans. Here the author particularly gives example about middle class people because most of people living in society are middle class who have big dreams to go ahead and easily fall in traps.
The below are the cash flow patterns of the people living among us.
 |
| This is the cash flow pattern of Middle class person showing that what ever the income they get is spent on their liabilities. There is no assets and no savings or very very less savings. |
This is cash flow pattern of Poor person showing
that they get less income and all the money is spent
on their expenses, so their is no saving and even no assets and liabilities.
This is all about the book and their is a lot to know and learn from this book which will help us in our daily life as Finance is the biggest lesson to learn in life. What ever we do is everything to lead a better life. And I strongly believe that life is going to better only when we have MONEY.
If you really want to read this book you can buy or download the pdf of the book, click on the below links:
Download pdf :- Rich Dad Poor Dad Download (241 Pages) (pdfdrive.com) Buy the book :- Buy Rich Dad Poor Dad : What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! Book Online at Low Prices in India | Rich Dad Poor Dad : What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! Reviews & Ratings - Amazon.in
As to become rich the author had used mostly about Assets and Investments, so in my coming blogs I am going to explain about the ways of investments like about Mutual funds, Stock market, etc... in detail.
Finally, I want to conclude with a quote "THINK RICH , GROW RICH".
From now in my every blog, I am going to give some useful tips, some daily hacks, useful apps and websites, etc... at the end of my blog which are useful in our daily life.
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