People’s lives are forever controlled by two emotions: fear and greed. Offer them more money and they continue the cycle by increasing their spending. This is what is call the Rat Race. Fear keeps them in this trap of working, earning money, working, hoping the fear will go away. But every day they get up, and that old fear wakes up with them, hoping that a paycheck will kill that fear gnawing at their soul.

People’s lives are forever controlled by two emotions: fear and greed

<ul><li>It’s like planting a tree. You water it for years, and then one day it doesn’t need you anymore. Its roots are implanted deep enough. Then the tree provides shade for your enjoyment.</li><li>Money without financial intelligence is money soon gone.</li><li>You must know the difference between an asset and a liability, and buy assets.</li><li>If you want a bigger house, you first buy assets that will generate the cash flow to pay for the house.</li></ul>

Why learn Financial Literacy?

"Wealth is a person’s ability to survive so many number of days forward—or, if I stopped working today, how long could I survive?"

It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying. This is why it is absolutely necessary to understand and learn how money works.Sometimes you win and sometimes you learn. But have fun. Most people never win because they’re more afraid of losing.

The Rich Invent Money

Taking to heart the message that the poor and middle class work for money, but the rich have money work for them, the authors lay out a financial philosophy based on the principle that income-generating assets always provide healthier bottom-line results.

books

Books

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.”

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.

Rich Dad, Poor Dad

Anurag Dhungana