KNUTSFORD SCHOOL COLLEGE
KNUTSFORD BUSINESS SCHOOL
Abundant Dad Poor Dad by Robert Capital t. Kayosaki with Sharon D. Lechter, CERTIFIED PUBLIC ACCOUNTANT
Richmond Gyamfi Boateng
MISTER. ANTHONY ANNAN
MONDAY THE SPRING 4, 2011
Rich Daddy Poor Daddy is a book that gives thought invoking teachings on wealth creation and economical independence. The book can be describes like a narrative motivational novel that has four interesting characters, Abundant Dad, Poor Dad, Robert and Robert (the author). Poor Dad is a highly educated professor who despite have worked hard over the years scarcely meets his household expenses. His believe that on cash was that cash is reason behind all nasty. Rich Dad on the flip side was a school dropout who was not able to complete large but as they appreciated economic literacy, could build and grow a series of organization and become one of the successful businessmen in Hawaii. Mike was Robert good friend at institution who both equally set out to discover how to become wealthy. Their interest in becoming wealthy was captivated when a school mate left them away of a trip because they were not rich. They made a decision to make money and their first task was to start up a counterfeit profitable business which will collapsed within the first time because these were told simply by Mike's daddy that was illegal. Following series of idea, Robert suggested to Mike to ask the Dad (Rich Dad) if perhaps he will train them how to be rich, which Rich Dad grandly agreed. Through their very own interactions with Rich Dad, taught Mike and Robert six lessons which Robert recounst in the book. These lessons are; Lesson One: Wealthy don't be employed by money; they may have money be employed by them. Roberts recounts how Rich Daddy made all of them work for 3 hours every single Saturday and being paid 30 mere cents. This annoyed Roberts so much so that chosen to confront Rich Dad and demands a raise or quite the job. This individual discussed with Mike whom told him that daddy had informed him to get Robert to him if he complains. When ever Robert attained Rich Father, Rich Daddy pointed to him why it is annoying to help someone plus the need to become one very own boss. The lesson here was that even though the poor work hard to receive money, the rich operate their money to obtain more riches. The rich does not need to function three several jobs nevertheless would use someone to carry out all these jobs and pay them. Lesson Two: why educate financial literacy.
Here Roberts introduce readers towards the need to get knowledge in accounting, expense and rules if he or she desires to be abundant. In also introduces visitors to the concept of assets and liabilities. He differentiated his definition of resources from the typical definitions of assets expressing assets that do not effectively bring in salary are not resources but debts. He publishes articles that, even though the poor are busy acquiring liabilities considering they are resources, the wealthy are purchasing income making assets. The lesson will be here that, consist of to be wealthy, one need to aim at obtaining income making assets. Lessons three: Mind your own business.
Robert in this phase (chapter four) distinguishes between one occupation and your business. This individual asserts that most persons baffled their job with their business. One's career what the person does for a living, so if you are a baker, your job baking etc . One's business is the variety of other income generating activities which does not necessarily demands the presence of the particular owner, example purchases into stocks, bonds and real estates. Roberts encourages readers to generate a diversified portfolio of assets taking on risk. The lesson the following is that, one must build his or her possessions column although concentrating on the profession. The income from your profession must be channeled into the assets Line and not the liabilities steering column. Lesson four: The history of taxes and corporation.
Robert presents to readers a briefly great how taxes of introduced to the American economy. He said the reason was help redistribute cash flow...