Recommended Reading Rich Dad Poor Dad

First of all, sorry about not writing anything last week. I was still working on finishing off our new home office, and it took a little longer than expected. My son has had a cold for the last two weeks, so we have not been getting very much sleep.

First book I would recommend anyone to read is

Robert T. Kiyosaki’s Rich Dad Poor Dad.

First time I read this book, I recognised my father in both the Rich Dad aspect, and the Poor Dad aspect of the book.

While my dad has Rich Dads aspect to how you spend money, he also had Poor Dads aspect on how to earn the money.

The short of it is basically that the way that most of us are brought up (Poor Dad) is to value education, and to strive for a good education, in order to get a good job, as with a good job normally follows a good income. Promotions are good, as they increase the income. The only problem with Poor Dad is that with the increased income, all the expenses also increase, and as long as the expenses increase at the same rate or faster than the incomes, you will stay poor, or get poorer.

The aim on the Rich Dads side is instead the following:
1. Don’t work for money.
2. Get financialy literate.
3. Mind your own business (i.e. run your own company).
4. Taxes and corporations.
5. Rich people invent money.
6. Work to Learn – Don’t work for money.

So, what can you learn from the book?

First and most important thing you learn is about emotions (fear and greed), and using intelligence when it comes to money, rather than emotions.

Second thing you learn is about assets and liabilities, and the difference between them. Crucial if you want to ever get Rich.

Financial literacy, and cash flow. This part is very much about why most of us, eventhough our incomes go up don’t get a better life.

I highly recommend this book as a book to start with on your way to financial freedom.

I will try to advice on more books in the near future.

“Fredrik Sohlberg is a participant in the Amazon Europe S.à.r.l. Associates Programme, an affiliate advertising programme designed to provide a means for sites to earn advertising fees by advertising and linking to”