This secrets of the rich video by Robert Kiyosaki is a must watch if your financial life is not what you would like it to be. The subject of “Money” is not learned in school. We learn how to read and write, but we don’t learn how to read financial statements.
Nowadays, having a job is not what will bring you security considering that it is almost impossible to stay in the same company for a life career as it used to be. Even so, the income would not be enough to retire with the same lifestyle at age sixty.
Companies are looking for ways to be in better health financially and make more profit. They are looking into downsizing all the time. Keith Cunningham, a financial specialist, who helps companies to just do that explains it very well in the video.
People have to learn how to make money with money.
The Secrets of the Rich by Robert Kiyosaki
Robert Kiyosaki explains in very simple terms that everyone can understand how finance works. You have an income statement with “Income” & “Expense”, then a balance sheet with “Asset”and “Liability”. These are the basics for financial intelligence and you just have to know how to read these statements and understand how each element works.
The main cause of financial struggle is the confusion in definition of an “Asset” and a “Liability”. So, what is the difference between the two?
The dictionary’s definition is confusing and Robert Kiyosaki made his own.
Asset: Something that puts money in your pocket.
Liability: Something that takes money out of your pocket.
For example, a house is not an asset as the bankers would like you to believe, but a liability. They are not totally wrong in the sense that the house is their asset, not yours, with the mortgage that puts money in their pockets…
That’s the same with your car, it’s not an asset, but a liability.
There is even a simpler definition:
If you stop working…
Assets feed you!
Liabilities eat you!
Now, don’t you think it’s time to learn more about financing and how the rich make their money work for them?