Today I have read a real great book, about how you should control your cash flow and become rich. The Book is called “Rich Dad – Poor Dad” from Robert T. Kiyosaki.
In the core it is about how you control your cash-in and cash-out and to understand what is the difference between assets and liabilities.
“.. it is enough to understand, that assets are something that you buy and then makes you rich”
We all have our plans for a – so called – better live, which means to have a bigger car, bigger house, security for our family, and so on. This cycle means, that in case we get a higher wage, a premium or any additional money, we use this money to follow our dreams. Thus, at the end there is again no money left. Or even worse, because we bought a car, or a house, or furniture with a loan.
Why? Because we haven’t bought assets.
An interesting question to think about is whether an own house is an asset or a liability.
In order to get out of this cycle, we have to stop following our emotions and start thinking about how to control our cash-in and cash-out and only buy emotional stuff with the cash flow that you generate from an additional asset.
To sum it up, this book is a real great starting point to learn more about basic financial knowledge.