Rich Dad Poor Dad Say about Debt
Rich Dad Poor Dad is my Most favourite book and the lessons about money in the book are amazing. In one lesson, the author Robert T. Kiyosaki has told about Debt. According to Robert’s Rich Dad, there are mainly 2 types if Debts – Good Debt & Bad Debt.
Good Debt – Any Asset producing Debt is a Good debt. Means the money that you borrow for the purpose of creating or acquire Assets is known as a Good Debt such as Mortgage for Rental Properties, Business Loans, Education Loans…etc…
Bad Debt – Any Liability producing Debt is a Bad Debt. Means the money that you borrow for the purpose of acquiring liabilities is known as a bad debt. The Examples of Bad Debt are Credit Cards, Car Loans, Personal Loans, Consumer EMIs…etc…
According to Robert’s Rich Dad, Rich people always take a good debt to get richer while Middle class people always take a Bad Debt and remains middle class and struggle financially. The main reason behind the struggle of the middle class is that, they always take a bad debt and that’s why at the end, NO Asset is created and that’s why they struggle financially all of their lives.
While on the other hand, rich people always take a good debt. They use Debt to get more richer than before. At the end, they have an Asset in their control and that’s why they become more richer. So according to Robert’s Dad, if you want to get richer than you have to take good debt only all of your life. …!!
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