《SO YOU WANT TO BE RICH?》CHAPTER 9 [ASSETS AND LIABILITIES]

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If you want to get rich, increase your assets not liabilities. This is the only by which you can become rich sooner and faster. And that's how Kiyosaki made it possible.

That's what he's trying to explain in each and every chapter of Rich dad poor Dad is to increase your assets. That's how he became rich. He started business increasing his assets day to day, once the money from assets became more than from as compared to the business, he made is business an asset, gave it to his friend and he's wealthy now! However he kept increasing assets and them focused on liabilities. So you do the same.

Let's understand with an example.

You bought a house for $800,000. For which you have to pay EMI of $5000 per month. In this way you can complete that EMI in 160 months (4800 days) or 14 years approx. But the bank charges 1.4% of interest annually. So the interest after 14 years will be (14*1.4) = 19.6 or 20% approx.

20% of 800,000=160,000.

$800,000+$160,000= $960,000.

You didn't had money for the interest. You borrowed it from your friend and he also took some interest. Approx Total payment you've to give is $1m or $1000,000.

But then what if you bought that house for $800,000 and gave it rent for 14 years at $6000 monthly. You pay $5000 each month to bank as EMI and get $6000 from the person living in your house. You simply get profit of a thousand dollars every month. After 14 years. You'll get profit of $420,000+ your new home of $1m or $800,000 [No interest].

You got profit+ your home. [That's how it's done]

Rich people use thinking and mind, they use other people's money for their benefit without any loss of the person!

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You can buy a Lamborghini for that $420k! Because that's your own thinking which brought you this!

House+Lamborghini= $1m

House+Lamborghini= $1.42m

[That's why financial IQ and learning to invest money is important]

These subjects aren't taught in school. If they knew the secret, your school teacher would come everyday in a Ferrari and not by school bus or a $500 scooter.

Think great and think rich, that's how you can be rich. Kiyosaki did the same and bought a house to live with his porche.

‘It's easy and I can do it!’ ‘If he can, why can't I?’ Motivate yourself saying these words everyday and I bet success!

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