The book teaches those things that are not taught at school by our teachers (as schools focus on scholastic skills and not
financial skills), and not even by most of our parents; because they themselves are not aware of it. The knowledge of how money works in this world, where spending is emphasized over savings, is explained here. It provides valuable insights into the way true investors analyze their investment decisions.
This is different from the other books in the sense that, it does not tell you to start a company of your own to become
rich; rather it gives ways in which you can get your money work for you,
keeping your day time job. All through the book, it emphasizes on learning as a primary objective to develop upon.
The book explains about money, in 6 steps
1. 1. The
poor and the middle class work for money. The rich have money work for them.
2. 2. Financial
intelligence is learning about money, and how money works. Financial literacy or financial intelligence is the key to success. Money without financial intelligence is money soon gone. There is one skill that keeps people away from great wealth; its financial intelligence.
3. 3. Keep your day-time job and mind your own business in order to become financially secure. Minding your own business means, building-n-keeping your asset column strong, and keeping your expense column as low as possible. One of important distinction between the rich and the poor is that the rich buy luxuries last, while the poor and the middle class buy luxuries first.
4. 4. The history of taxes and power of corporations. With money comes great power that requires right knowledge to keep it and multiply it. So, you
need to develop financial IQ i.e., accounting, investing, understanding markets, and the law. You need to find out more about the benefits and protection offered by a corporation (by law) as soon as possible.
5. 5. The rich invent money and have more options.
6. 6. The rich work to learn and not for money. The ability to sell and market is very important to get rich.
Every person
wants to become rich. But the reason why they don’t win financially is because the pain of losing money far greater than the joy of being rich. As said by author, “Everyone wants to go to heaven, but no one wants to die”. Failure inspires winners, and defeats losers. One has to come out of that fear. One needs to take a few risks in order to get rich. Of course these risks would get minimized with increase in financial literacy. The author says “If you have to loose, loose before age of 30, you have strength to earn during rest of your life”.
Robert concludes the book by saying that ‘You do not need money to make money. What you need is just the financial intelligence’.
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