"Poor and middle class works for money. The rich have money work for them.

Poor mentality Poor and middle class firstly spend their incomes on the needs and liabilities. If something left after goes to the investment Rich mentality Rich people firstly invest a part of their income and then after spend the left out for need and luxuries. This thing make a huge difference.

Rich Vs Poor Mentality 

<ul><li>Our education system is designed to teach you to be a good employee not employeer.</li><li>It do not teach the financial literacy at all</li><li>Education is important to be good in professional life and make income but in order to make assets and to be rich in life financial literacy is must</li><li>One may get rich without financial literacy but cannot stay rich for long time</li></ul>

Flaws In Education System 

10 of 10 rule states that one should not spend more than 10% of its net worth on house and not to spend more than 10% of its house value on cars like liabilities. If this is followed by person then he/she will probably not face any money problems.

10 Of 10 Rule

Poor and middle class people remain poor or they are one step away from poverty because they depend on single source of income while the rich mindset people create multiple income streams. They use their available resources to create one income and after setting that works to make other income stream. This cycle repeats that's why they richer by time

One Step Away From Poverty 

The five main reasons financially literate people may still not develop abundant cash flow are:-<ol><li>Fear</li><li>Cynicism</li><li>Laziness </li><li>Bad habits</li><li>Arrogance</li></ol>

Why Financially Literate May Not Develop Cash Flow

Although we have been successful in our careers, they have not turned out quite as we expected. We both have changed positions several times-for all the right reasons-but there are no pension plans vesting on our behalf. Our retirement funds are growing only through our individual contributions. Michael and I have a wonderful marriage with three great children. As I write this, two are in college and one is just beginning high school. We have spent a fortune making sure our children have received the best education available. One day in 1996, one of my children came home disillusioned with school. He was bored and tired of studying. “Why should I put time into studying subjects I will never use in real life?” he protested. Without thinking, I responded, “Because if you don't get good grades, you won't get into college.” “Regardless of whether I go to college,” he replied, “I'm going to be rich.”

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Personal Development

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Leadership & Management

Kiyosaki is best known for his book Rich Dad, Poor Dad, the #1 New York Times bestseller. Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing.

10 Of 10 Rule

Similar ideas to 10 Of 10 Rule

The 10% Rule: Becoming A Better Planner

The Bottom Line

The origin of 10/20/30 Rule