Rich Dad, Poor Dad by Robert T. Kiyosaki has become a personal finance classic and best-seller since its publication in 1997, selling close to 40 million copies worldwide.
When I initially started out as a company owner in 2014, I read the book. Now that I've lived more of a life, I figured I would read it again. Apart from that, I also wanted to check how well Rich Dad, Poor Dad has held up and if I still enjoy it as much as I did when I originally read it. In the previous 20 years, a lot has transpired in the financial world, and I'm intrigued to see if some of Kyosaki's forecasts come true. basketball stars
The aspect of Kiyosaki's worldview that I enjoyed the most when I first read the book was its originality. That changed the way I previously thought about my business and investments.
I enjoy how Rich Dad Poor Dad's second chapter explains the distinction between an asset and a liability. How much money you keep is more significant than how much money you generate, as demonstrated in Chapter 2.
A valuable item that generates income or rises in value and has a market where it is simple to buy and sell is referred to as an asset. bing maps
Assets generate revenue.
Asset values increase.
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Liabilities, on the other hand, cost you money because of the expenses associated with them. This was one of the most contentious statements Kiyosaki made when Rich Dad Poor Dad was published in 1997.
The reason for this is that a house isn't an asset by definition until its value increases by enough to offset the costs of ownership. Contrarily, a rental property is an asset if it can generate enough passive income to exceed the costs of maintaining and financing the property.