创客小说网

手机浏览器扫描二维码访问

第10部分(第2页)

As an adult; I have difficulty explaining it to other adults。 Why? Because adults are smarter。 In most cases; the simplicity of the idea escapes most adults because they have been educated differently。 They have been educated by other educated professionals; such as bankers; accountants; real estate agents; financial planners; and so forth。 The difficulty es in asking adults to unlearn; or bee children again。 An intelligent adult often feels it is demeaning to pay attention to simplistic definitions。

Rich dad believed in the KISS principle…〃Keep It Simple Stupid〃…so he kept it simple for two young boys; and that made the financial foundation strong。

So what causes the confusion? Or how could something so simple be so screwed up? Why would someone buy an asset that was really a liability。 The answer is found in basic education。

We focus on the word 〃literacy〃 and not 〃financial literacy。〃 What defines something to be an asset; or something to be a liability are not words。 In fact; if you really want to be confused; look up the words 〃asset〃 and 〃liability〃 in the dictionary。 I know the definition may sound good to a trained accountant; but for the average person it makes no sense。 But we adults are often too proud to admit that something does not make sense。

As young boys; rich dad said; 〃What defines an asset is not words but numbers。 And if you cannot read the numbers; you cannot tell an asset from a hole in the ground。〃

〃In accounting;〃 rich dad would say; 〃its not the numbers; but what the numbers are telling you。 Its just like words。 Its not the words; but the story the words are telling you。

Many people read; but do not understand much。 Its called reading prehension。 And we all have different abilities when it es to reading prehension。 For example; I recently bought a new VCR。 It came with an instruction book that explained how to program the VCR。 All I wanted to do was record my favorite TV show on Friday night。 I nearly went crazy trying to read the manual。 Nothing in my world is more plex than learning how to program my VCR。 I could read the words; but I understood nothing。 I get an 〃A〃 for recognizing the words。 I get an 〃F〃 for prehension。 And so it is with financial statements for most people。

〃If you want to be rich; youve got to read and understand numbers。〃 If I heard that once; I heard it a thousand times from my rich dad。 And I also heard; 〃The rich acquire assets and the poor and middle class acquire liabilities。〃

Here is how to tell the difference between an asset and a liability。 Most accountants and financial professionals do net agree with the definitions; but these simple drawings were the start of strong financial foundations for two young boys。

To teach pre?teen boys; rich dad kept everything simple; using as many pictures as possible; as few words as possible; and no numbers for years。

〃This is the Cash Flow pattern of an asset。〃

The above box is an Ine Statement; often called a Profit and Loss Statement。 It measures ine and expenses。 Money in and money out。 The bottom diagram is the Balance Sheet。 It is called that because it is

supposed to balance assets against liabilities。 Many financial novices dont know the relationship between the Ine Statement and the Balance Sheet。 That relationship is vital to understand。

The primary cause of financial struggle is simply not knowing the difference between an asset and a liability。 The cause of the confusion is found in the definition of the two words。 If you want a lesson in confusion; simply look up the words 〃asset〃 and 〃liability〃 in the dictionary。

Now it may make sense to trained accountants; but to the average person; it may as well be written in Mandarin。 You read the words in the definition; but true prehension is difficult。

So as I said earlier; my rich dad simply told two young boys that 〃assets put money in your pocket。〃 Nice; simple and usable。

〃This is Cash Flow pattern of a liability。〃

Now that assets and liabilities have been defined through pictures; it may be easier to understand my definitions in words。

An asset is something that puts money in my pocket。

A liability is something that takes money out of my pocket。

This is really all you need to know。 If you want to be rich; simply spend your life buying assets。 If you want to be poor or middle class; spend your life buying liabilities。 Its not knowing the difference that causes most of the financial struggle in the real world。

Illiteracy; both in words and numbers; is the foundation of financial struggle。 If people are having difficulties financially; there is something that they cannot read; either in numbers or words。 Something is misunderstood。 The rich are rich because they are more literate in different areas than people who struggle financially。  So if you want to be rich and maintain your wealth; its important to be financially literate; in words as well as numbers。

The arrows in the diagrams represent the flow of cash; or 〃cash flow。〃 Numbers alone really mean little。 Just as words alone mean little。 Its the story that counts。 In financial reporting; reading numbers is looking for the plot; the story。 The story of where the cash is flowing。 In 80 percent of most

热门小说推荐
天美地艳男人是山

天美地艳男人是山

从农村考入大学的庾明毕业后因为成了老厂长的乘龙快婿,后随老厂长进京,成为中央某部后备干部,并被下派到蓟原市任市长。然而,官运亨通的他因为妻子的奸情发生了婚变,蓟原市急欲接班当权的少壮派势力以为他没有了后台,便扯住其年轻恋爱时与恋人的越轨行为作文章,将其赶下台,多亏老省长爱惜人才,推荐其参加跨国合资公司总裁竞聘,才东山再起然而,仕途一旦顺风,官运一发不可收拾由于庾明联合地方政府开展棚户区改造工程受到了中央领导和老百姓的赞誉。在省代会上,他又被推举到了省长的重要岗位。一介平民跃升为省长...

悦女吴县

悦女吴县

书名?阅女无限??呵呵,广大银民,请看清楚哦。吴县,这个二十岁的青涩小子,进城上学,居然一不留神,取悦于众多美女,在众女的帮助下,事业也是蒸蒸日上。且看主角如何将有限的生命,投入到吴县的悦女事业中去。蹩脚的猪脚,由一个初哥,逐渐成为花丛高手。...

鹿鼎风流记

鹿鼎风流记

少年附身韦小宝,和康熙做兄弟,唬弄皇帝有一手绝色美女尽收,色遍天下无敌手!睿智独立,诱惑惊艳的蓝色妖姬苏荃花中带刺刺中有花的火红玫瑰方怡温柔清新纯洁可人的水仙花沐剑屏空谷幽香,善解人意的解语花双儿倾国倾城,美丽绝伦的花中之王牡丹阿珂诱惑惊艳美艳毒辣的罂粟花建宁空灵纯洁娇艳精怪的山涧兰花曾柔...

倚天屠龙夺艳记

倚天屠龙夺艳记

赵敏的娇蛮狐媚周芷若的举止优雅小昭的温柔体贴不悔的秀丽美艳蛛儿的任性刁蛮  一梦醒来,该是倚天屠龙的另一个新主角上场了...

超凡世界

超凡世界

地球少年江云卷入了一个神秘的超凡世界之中,获得了超凡之力,并且开始在地球以及一个个超凡世界,开启了自己追逐巅峰的超凡旅程。VIP。全订阅可入,要验证。普通。(ps已经完本神卡...

魔师逆天

魔师逆天

前世孤苦一生,今世重生成兽,为何上天总是这样的捉弄!为何上天总是那样的不公!他不服,不服那命运的不公。自创妖修之法,将魔狮一族发展成为能够抗衡巨龙的麒麟一族,成就一代麒麟圣祖的威名。...