Reaction PaperRICH POORDAD
Reaction Paper
Rich Dad Poor Dad
Robert T. Kiyosaki
If we command our wealth, we shall be rich and free; if our wealth commands us, we are poor indeed. The very core of the story revolves with these three lessons: learning the importance of financial literacy; paying yourself first before others; and learning the cash flow of the high, low and middle class. One thing in common on all of these lessons is that it tells you how money can work for you.
Most people have poor financial literacy because they don’t want to learn. Learning is time consuming and expensive. Most people nowadays keep on looking for short term financial solutions like having another job, looking for higher paying jobs with better benefits and requesting for promotions. They don’t know that by just investing on their own selves by learning financial literacy, they can start their own financial plan. If they follow it, they can retire early with financial security. Learning financial literacy is important because it adds a few more options when making financial decisions. It also lessens the risk because of smart investing.
The term pay yourself before others has a message not to let money make your life miserable with better spending habits. With that it does not mean that you would not be paying your bills, it means not to waste on useless things. Your money is best spent on things that could generate income like investments. By searching well you might just find good deals that other people cannot see. The best thing is that will generate income, and the added money could also be turned to investments for more profits.
The cash flow statements of the wealthy, poor and middle class are very different. The high class starts from turning daily income to assets then assets then to income. The low class starts from a job to income/paycheck then into expenses, which leaves them almost nothing for assets or liability column. Lastly, the middle class starts from getting a job to have income,
Rich Dad Poor Dad
Robert T. Kiyosaki
If we command our wealth, we shall be rich and free; if our wealth commands us, we are poor indeed. The very core of the story revolves with these three lessons: learning the importance of financial literacy; paying yourself first before others; and learning the cash flow of the high, low and middle class. One thing in common on all of these lessons is that it tells you how money can work for you.
Most people have poor financial literacy because they don’t want to learn. Learning is time consuming and expensive. Most people nowadays keep on looking for short term financial solutions like having another job, looking for higher paying jobs with better benefits and requesting for promotions. They don’t know that by just investing on their own selves by learning financial literacy, they can start their own financial plan. If they follow it, they can retire early with financial security. Learning financial literacy is important because it adds a few more options when making financial decisions. It also lessens the risk because of smart investing.
The term pay yourself before others has a message not to let money make your life miserable with better spending habits. With that it does not mean that you would not be paying your bills, it means not to waste on useless things. Your money is best spent on things that could generate income like investments. By searching well you might just find good deals that other people cannot see. The best thing is that will generate income, and the added money could also be turned to investments for more profits.
The cash flow statements of the wealthy, poor and middle class are very different. The high class starts from turning daily income to assets then assets then to income. The low class starts from a job to income/paycheck then into expenses, which leaves them almost nothing for assets or liability column. Lastly, the middle class starts from getting a job to have income,