After arriving and settling down at the US, I ask myself what can I do to change myself for a better and brighter future? I have been saving up for school to get certification and looking for job. Ever since 2018, I and my wife have decided to change our life. We started to do everything we can to pay off our loans. During the period for paying off loans, I started a new hobbit: reading non-fiction books. <<Rich Dad Poor Dad>> is the first book I read that I decided to change my fate. When I finished reading this book, I changed my view on money, wealth and net worth. I will be sharing the highlight of this book <<Rich Dad Poor Dad>>.
Asset:
Asset are things that generate income or appreciate in value.
- Stock and bonds
- Non-owner-occupied rental home
- Businesses
- Royalties
- Interest generating saving account
Liabilities:
Liabilities are things that will take money away or cause a cash outflow.
- Loans
- Owner Occupied home/property
- Cars
- Credit card debts
Types of Income:
Revenue that from working for money, rental revenue or gains and dividends from investment.
Salary, commission or tips Income from working.
Rat Race:
It is a cycle of life habit that human needs continuously work for salary, pay their bills and loads; then they finance or borrow more money for things that they want and work for money again and pay the bills and loads again and again.
Value:
It is the value of an item that people are willing to pay for.
- Items’ price
- House’s market value or the house’s going to be sold at a certain price
- Pattern value
In this book, it tough us how to understand what is asset and what is liabilities. How to cumulate more asset and reduct liabilities, in order to escape the never ending cycle of rat race. “Rat Race” proves to many people that no matter how hard people work to stabilize financial stability and growth. After understanding and changing this rat race situation, people can start to build the base of healthy financial and work towards financial freedom. In addition, this book also talks about how to create or find value in asset and to gain it. I am not entirely agreeing with it. However, this book does let me understand asset and value and how to escape this vicious circle.
Everyone see things differently, this is only my personal opinion. If you wanted to find out what this book means to you and brings you a brighter future, I will recommend reading this book <<Rich Dad and Poor Dad>>.
