“Financial Literacy” is the phrase first time I have heard in my entire life, or it can be said as my entire 18 years of Educational life that I have spent in School, college and University. At least I am happy that I read this book “Rich Dad Poor Dad” (what the rich teach their kids about money- That poor and middle class do not!) by Robert T.Kiyosaki, by now. It is wonderful book that I would suggest everyone to study. Especially the teens… It is the right age to learn how money works around them and be prepared to face the odds in future. For people above their thirties, it will still be useful; to educate their children and make them smart to avoid the rat race they would face once they become responsible youth.
Later few months before, I have read few books about stocks and finance. But after few pages of reading those books I would end up disgusted and confused about stocks, shares, tax-saving scheme and happy retirement etc. I would open a book with lot of interest to know about finance, hoping to build my future but all my efforts of understanding the book would result in vain since it involved graphs, terms about stocks shares etc which a normal person like me could not understand and feel abstruse.
This book, enlightened me about the basic things like why money is needed? How to build your own empire? What is the difference between Income statement and Balance sheet? How cash flow happens? How we spend most of our years wasting our hard work to pay government as taxes? How to build your assets? When and where to invest our earned money? Now I am really worried why financial education was not given to me during my school days. I have been watching news since I remember they bought a television in my home. Never in my life I queried or bothered about the stock market news. Even if I had questioned it, I hope I would have not got any appropriate answers.
This book Rich Dad Poor Dad enlightens us on:
• What is Wealth? Which it explains as ‘How long a person (or his generation) can survive if he has stopped working’.
• How Employees and Educated try to play safe; Rich play smart;
• Deep knowledge on Assets, i.e. Wealth which would withstand and bring cash flow to our income statement. Eg : stocks, Bonds, Notes, Real Estate, Intellectual Property etc.
• Also knowledge on Liability: i.e. people considering as wealth but would bring lots of expenses than cash flow. Eg : Mortgage, Consumer loans, Credit cards etc.
• Pictorial Representation of CASHFLOW:
A must read book….
Later few months before, I have read few books about stocks and finance. But after few pages of reading those books I would end up disgusted and confused about stocks, shares, tax-saving scheme and happy retirement etc. I would open a book with lot of interest to know about finance, hoping to build my future but all my efforts of understanding the book would result in vain since it involved graphs, terms about stocks shares etc which a normal person like me could not understand and feel abstruse.
This book, enlightened me about the basic things like why money is needed? How to build your own empire? What is the difference between Income statement and Balance sheet? How cash flow happens? How we spend most of our years wasting our hard work to pay government as taxes? How to build your assets? When and where to invest our earned money? Now I am really worried why financial education was not given to me during my school days. I have been watching news since I remember they bought a television in my home. Never in my life I queried or bothered about the stock market news. Even if I had questioned it, I hope I would have not got any appropriate answers.
This book Rich Dad Poor Dad enlightens us on:
• What is Wealth? Which it explains as ‘How long a person (or his generation) can survive if he has stopped working’.
• How Employees and Educated try to play safe; Rich play smart;
• Deep knowledge on Assets, i.e. Wealth which would withstand and bring cash flow to our income statement. Eg : stocks, Bonds, Notes, Real Estate, Intellectual Property etc.
• Also knowledge on Liability: i.e. people considering as wealth but would bring lots of expenses than cash flow. Eg : Mortgage, Consumer loans, Credit cards etc.
• Pictorial Representation of CASHFLOW:
