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Wednesday, January 6, 2010

Rich Dad,Poor Dad Says-What Being Rich really means?

When I was growing up, I was taught very little about the true meaning of being rich. What do you think being rich means? Is it having lots of money? Is it owning lots of things? Is it being able to buy the very best house, car and clothing that money can buy?

If you answered yes to any of these questions, I would have to sadly tell you that you are wrong. While reading Rich Dad, Poor Dad by Robert T. Kiyosaki, I learned alot about what being rich really means. It's really a simple thing; knowing what assets and liabilities are, acquiring assets and minimizing/eliminating liabilites. Simply put, assets are things that put money into your pocket, while liabilities are things that take money out of your pocket. Examples of assets are bank accounts that earn you interest, businesses that generate income, or stocks and bonds. Examples of liabilities are credit card debts, car loans, home loans, (yes, buying a home can be a liability). Remember, assets help you regenerate income. It makes more money for you. So, let's say you buy a house and you take out a loan with the bank. You move in the house and you pay the bank mortgage payments every month. The value of your house may be good, but it is doing you no good if you do not make income off of it. You live in it and make payments to the bank. This is a liability for you. Now, let's say you buy a house and rent it out. You make money by having someone pay you. Your house now becomes an asset. You might be saying to yourself, I cannot afford to own houses and rent them out. How about starting your own business? Even still, not everyone is meant to start their own business, so maybe you could invest in businesses that have already been well-established. Visit to learn more about investing. You could also open CDs, Mutual Funds and IRAs with your local bank. The key is to find assets, so they can work for you and start making you money. Eliminate credit card debt, buying the latest gadgets that you don't need, but have to have because everyone else has it. These are liabilities. You'll be rich when you keep the money working for you, instead of you working for the money.

Starting to see? Money is just a tool. It has no mind. So you have to use your own mind when using it. It is your thoughts about money that will help make you rich. Below are some resources I suggest for you:

For more information on Rich Dad, Poor Dad Author, Robert T. Kiyosaki, visit

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Sarah Kim,
Sarah's Super Center Blog Manager