“The poor and the middle class work for money. The rich have money work for them.”
From the book Rich Dad Poor Dad, by American businessman and author, Robert T. Kiyosaki (b. 1947).
While the book contains many hard truths about life (as I believe), Kiyosaki’s route to riches is based, not on how much money you have, but whether or not, you have a rich or a poor mentality.
As Kiyosaki explains in the book, a rich mentality will attract wealth to you, while a poor mentality will erode any wealth you have - think about lottery winners that lose all their wealth after one year.
For Kiyosaki, a rich mentality is one that values assets over liabilities.
Assets put money into your pocket, while liabilities take money from your pocket.
Unfortunately, in today’s society, we value mortgages, car financing or mobile phone contracts, over investment accounts, gold or starting a business.
Assets will also work for you, even while you sleep.
For example, shares will put money into your pocket, through dividends, and through capital growth, if you decide to sell.
I encourage you to read this book, but to also do some homework.
Draw up your own personal balance sheet.
What do you have that keeps putting money into your pocket (assets), and what do you have that keeps taking money from your pocket (liabilities)?
This is a great first step towards increasing your wealth.
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