Definition of assets

By Robert T. Kiyosaki

Who controls the past controls the future, who controls the present controls the past.

Self study tasks:

Read and translate INTRODUCTION and CHAPTER ONE.

Write down all the new words.

Write a plan of the text.

Put 15 questions to the text.

Write an abstract of the text.

Be ready for discussion.

INTRODUCTION

Rich Dad Poor Dad is a book by Robert Kiyosaki. It advocates financial independence through investing, real estate, owning businesses, and increasing one's financial intelligence.

Personal finance author and lecturer Robert T. Kiyosaki developed his unique economic perspective from two very different influences - his two fathers. This text lays out Kiyosaki's philosophy and his relationship with money.

Summary

The book is largely based on Kiyosaki's upbringing and education in Hawaii. It highlights the different attitudes to money, work and life of two men (i.e. his titular "rich dad" and "poor dad"), and how they in turn influenced key decisions in Kiyosaki's life.

Among some of the book's topics are:

· Robert Kiyosaki's personal story

· The difference between assets and liabilities

· What the rich teach their kids about money that the poor and middle class do not

· The idea that your house is not an asset, unless you are using it to produce revenue

· The value of financial intelligence and financial literacy

· How corporations spend first, then pay taxes, while individuals must pay taxes first

· How corporations are artificial entities that anyone can use, but the poor usually do not know how

· The importance of investing and entrepreneurship

Kiyosaki advocated Dr. Buckminster Fuller's views on wealth, that wealth is measured by the number of days the income from your assets can sustain you, and financial independence is achieved when your monthly income from assets exceeds your monthly expenses.

Definition of assets

One statement made throughout the book was the cause of both criticism and praise in the media. In the book, Kiyosaki claims that an individual's house is not an asset, although bank permits people to enlist it as such. In fact, a house is a liability. His definition of assets and liabilities are somewhat simplistic, and are written as such: "During hard times assets feed you, and liabilities eat you". Kiyosaki was indicating that liabilities are, by definition: "anything that takes money out of your pocket"; while assets, are "properties that bring money into your pocket." Therefore a house that costs you money is a liability, and a rental property that produces positive cash flow income is considered to be an asset. A profitable business is also an asset, while a business that loses money is considered a liability.^[8]

Дата добавления: 2015-11-16