Rich dad poor dad | quick summary | robert kioski
The rich get richer while the poor get poorer, why so you think ? The rich don't work for money nor they spend unnecessarily and create liabilities.

The rich get richer while the poor get poorer, why so you think ? The rich don’t work for money nor they spend unnecessarily and create liabilities. The highly rich always invest more than have liabilities on their side, their financial statements show more income or revenue coming from asset side while having less or no liabilities. They double their income and buy luxury or commodities from the revenues they got from their investments while still holding capital amount.

While the middle class on other hand create more liabilities, while their assets bring very less or no return on investments, having only one source of income. The middle class are bad at managing money. While the highly rich know how to be frugal with money and think in long term basis.

Now the working class people are usually the ones stuck in a rat race just living above the means, daily working for their piece of bread. Having no proper assets nor liabilities to support. They are usually ridden by on-going problem monetarily or other lack of resources.

The one of most important lesson i learned from this book is how financial management and resource leveraging is so important, you might have all resources you need to create something but if you don’t know how to use it, you cannot get any benefits. Same goes if you don’t invest your money earned instead of keeping lot of hard earned money in the bank, only banks make 10x returns out of the money you have, by lending it for higher rate of interest while giving you a small chunk of return.