Rich dad poor dad cashflow chart8/7/2023 ![]() ![]() In the far left, income comes from the job, flows through a litany of expenses, and down the tube.The line in each diagram represents where cash flows. It's oversimplified but it gets the point across. Figure 1 shows a cash flow diagram to illustrate different ways money flows through people's lives. If being harsh helps you put things in perspective, then go for it I'd rather ignore them. In the figure below, I find the labels a little harsh. Instead of limiting your purchase of liabilities (although if you're overspending, you probably should), buy more assets. Instead, I'd recommend being brutally honest with your potential purchases and put each into one of these two categories. The Peloton that keeps popping up on my Instagram feedĪs doctors, we're all used to delayed gratification, and I'm not advocating for more.Real estate including rental properties.With these simple definitions, I've begun to reclassify what I purchase. Liabilities are anything that takes money from your pocket.Assets are anything that puts money in your pocket.Kiyosaki passes on one rule from his rich dad: "You must know the difference between an asset and a liability, and buy assets." that's a pill harder to swallow than PO potassium. Few realize that it's their lack of financial education that is the problem." On top of that, they wonder why they have money problems. They go to work, get their paycheck, balance their checkbooks, and that's it. ![]() The first chapter opens with an audacious quote, "Most people never study the subject. Similar to the author and like a good immigrant, I believe that education is the key to success. While I spent two whole years learning calculus and precalculus, I only dedicated time to one project in the seventh grade learning how to balance a checkbook or make well-informed financial decisions. The same goes for my public school education. In medical school we got a one-hour lecture on finance it was a snooze fest, and none of my classmates cared because it wasn't going to be on Step 1. Now as a fellow that has been in the medical field for the past 10 years, I relate too much to Kiyosaki's dad: highly educated with very little financial education. ![]()
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