Lesson from " Rich Dad, Poor Dad"

“Rich Dad, Poor Dad” is one of my favourite books. If you have had an opportunity to read through it, you would have known that it is important to make money work for you rather than working for money. I replicate my favorite paragraph from the book over here.

“An important distinction is that rich people buy luxuries last, while the poor and the middle class tend to buy luxuries first. The poor and the middle class often buy luxury items such as big houses, diamonds, furs, jewellery and boat because they want to look rich. They look rich, but in reality they just get deeper in debt on credit. The old-money people built their asset column first. Then, the income generated from the asset column bought their luxuries”.

These are the age-old concepts that used to be traditionally followed in India. Of late, we see a drift towards the credit culture, i.e we consume and then earn for the consumption rather than earning and consuming. This may not be really healthy for wealth making.

Also read, pay yourselves first

No comments:

Web ideasmoney.blogspot.com

Simple Indian Food - Feel @home ( Best veg food blog )

" A Ship is safe when it is in Harbour, but the ship was not built for that"


These are just opinions/ ideas exchanged. No one can claim us responsible for any investment failures /losses based on the ideas expressed here.

Feel free to mail your queries/ comments to ideas.money@gmail.com