Another example of how to organize your personal finances using the concepts from Rich Dad Poor Dad.
If you want to become wealthy, you need to manage money like wealthy people do. As Robert Kiyosaki explains in his book, Rich Dad, Poor Dad, people who are poor or middle class have money come into their pockets through work and then right out again for expenses. Rich people use some of their money to acquire assets – things that make money for them. These assets keep paying them their whole lives, allowing them to increase their income little-by-little. This is having your cake and eating it too. When you have a cash flow plan where the income from assets is used to buy more assets, you really have the recipe for building wealthy.
In Chapter 6 of The SmallIvy Guide Book of Investing, Book 1, I go through the process of creating a cash flow plan. A cash flow plan shows how money comes into your life…
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