Thread by @kyle_chasse

Welcome to Bear Market Book Club.
A new Monday tradition to share books that really helped me along the way.

📖First up is a Thread on Rich Dad, Poor Dad.

"An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket"

7 Key Lessons from Rich Dad Poor Dad That Will Make You a Better Investor

This is one of the ULTIMATE finance books that has shaped my perspective immensely.

Save this thread.

1/ RICH PEOPLE PUT MONEY TO WORK FOR THEM

What they taught you in school was to keep you poor.

Poor people are taught to buy liabilities while Rich people are taught to buy assets.

Think buying a house is an asset? Think again..

This book deals fundamentals we need.

2/ Most people need to work (TRADE TIME FOR MONEY) to survive. If they are having financial issues, they either wait them out or request a raise.

The majority of middle-class and working-class people become caught in this vicious cycle.

3/ People who have less money typically study or research different ways to exchange "time for money" so they can become qualified for more profitable professions..

However as income increases tax bills and sometimes lifestyle inflation increase as well...

4/ YOUR MOST VALUABLE ASSET IS YOUR FINANCIAL LITERACY

This book contends that your greatest asset is not money

People tend to get richer if they are willing to adapt, have an open mind, and learn new things

There are things you can do with your money to make it work for you

5/ People who believe money can fix all of their issues typically struggle their whole lives.

Robert Kiyosaki claims that intelligence "solves issues and makes money, and money without financial intelligence is swiftly gone."

6/ WORK FOR KNOWLEDGE RATHER THAN MONEY

One of the book's many valuable lessons is that work should be utilized as a platform for developing your existing skills.

Kiyosaki advises seeking jobs where you can develop the necessary talents.

7/ UNDERSTAND THE DISTINCTION BETWEEN ASSETS AND LIABILITIES

"An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket"

8/ Wealthier individuals accrue assets (such as securities and investments), whereas the less educated accrue liabilities (commitments and obligations)

It's the key distinction that could fundamentally change the direction of a person's personal finances

9/ SPEND LESS MONEY AS OFTEN AS YOU CAN

#RichDadPoorDad suggests incurring as little debt as possible since it ultimately prevents you from achieving financial freedom.

General themes of the book are "reduce liabilities" & "power of compound interest"

10/ Kiyosaki goes on to mention the importance of understanding the distinction between "positive" debt, such as a well strategized mortgage with a purpose (not to just own a house for the sake of it), and "negative" debt, such as payday loans, or credit card interest payments

11/ RE-INVEST THE PROFITS YOU MAKE

#RichDadPoorDad suggests that you should reinvest your assets' profits into further assets

The best way to continue the cycle is to consistently seek more valuable assets rather than consider ways to increase your income
Build and diversify

12/ DON'T DEPEND SOLELY ON FINANCIAL ADVISORS

Although seeking financial advice from a professional can be beneficial, you must also be in charge of your own finances

Learn how to invest since no one will be able to do it as well as you can 🤝