Introduction Rich Dad, Poor Dad is a book that educates readers about financial literacy. Robert Kiyosaki, the author, has two dads – one rich and one poor, although the rich dad is not his, but his friend’s dad. Both dads have different views about earning money, and Robert had the choice of contrasting both views while growing up. His rich dad’s views were more powerful and useful to Robert. The author guides the reader through six main lessons his rich dad taught him on how to let money work for you, instead of working for money. Lessons Lesson 1 – The Rich don’t Work for Money “The poor and the middle class work for money. The rich have money work for them.” The first lesson focuses on the two reasons behind poverty and unhappiness in the middle and lower class. 1. Fear • of being without money • people react emotionally instead of using their brain and thinking about their fears 2. Desire • to have materialistic riches • drives people and makes decisions for them • once achieved, people fear losing the riches These two are the reasons why people in the middle and lower class get stuck in the “Rat Race”, which is the continuous cycle of earning money and spending it on expenses. You should ignore these emotions of fear and desire, which control you and your thoughts. Lesson 2 – Why teach Financial Literacy? “In order to understand financial literacy, you need to know the difference between an asset and a liability.” The second lesson concentrates on the importance of financial literacy. There is one rule to follow so as to understand financial literacy – “Know the difference between an asset and a liability, and buy more assets.” In order to do this, you need to be able to understand and comprehend numbers instead of jus... ... middle of paper ... ...job to earn, you should be able to manage the following through your management skills: 1. Cash flow 2. Systems 3. Employees Beginnings Overcoming Obstacles This chapter shows the readers five reasons why financially literate people may still have trouble increasing their assets. 1. Fear – of losing money 2. Cynicism – overcoming pessimism 3. Laziness – by staying “busy” 4. Habits – of paying others first 5. Arrogance – ego + ignorance Getting Started This chapter teaches ten steps to develop powers and have control over yourself: 1. Have a reason greater than reality. 2. Choose daily. 3. Choose friends carefully. 4. Master a formula and then learn a new one. 5. Pay yourself first. 6. Pay your brokers well. 7. Be an “Indian Giver”. 8. Assets buy luxuries. 9. The need for heroes. 10. Teach and you shall receive. Works Cited Rich Dad, Poor Dad by Robert Kiyosaki
Hickman, K. A., Byrd, J. W., & McPherson, M. (2013).Essentials of finance. San Diego, CA: Bridgepoint Education Inc.
PROTECTIVE DAD My paper is called “Protective Dad”. I decided to use a Hyundai commercial featuring Kevin Hart as the main character. Kevin Hart is playing the role as the father in the commercial. His daughter’s boyfriend wants to take her on a date so Hart gives permission.
I chose to do my book review on Brad and Ted Klontz’s “Mind Over Money: Overcoming the Money Disorders That Threaten Our Financial Health” because I have observed, and participated in, bad financial decisions that have greatly impacted my family for decades. I’ve taken many personal steps to attempt to break the cycle of destruction that ended my parents’ marriage, and to raise my children in a debt free environment. Unfortunately, it has not been an easy task. I have read many financial self help books and attended seminars on the subject. This book caught my attention when it said that simply learning how to budget and pay off debt isn’t enough, that one has to first understand our psychological relationship to money, and then move beyond the financial constraints we put on upon ourselves. For years I had struggled with debt and money management. I had always assumed it was my lack of education that held me from moving forward. Reading this book has been a welcome eye-opener.
The love of material things is considered the root of all evil. Money, as well as desire for fame and power, are powerful motivators that drive people through certain shortcuts called decisions. Every day, people drive through this shortcuts, big and small.
...illionaire Next Door is insightful guide and story of how to reach your goals of becoming a millionaire. Through real life examples, these stories persuade us to walk the path of financial independence. American’s live lavishly and take vast amounts of debt; we have the illusion of these individuals possessing great wealth. The book says otherwise. The typical millionaire drives a used car, inexpensive items, and is frugal about saving. Throughout the book the main lessons were to be frugal, live well below you means, save violently, and to teach your kids how to be financially independent. If these principles are practiced in this book the possibility of someone becoming a millionaire is one step closer.
Though money may not be the root of all evil, it certainly contributes to inequalities between those on opposite ends of the wealth distribution map. Upward mobility becomes difficult for those whose income does not match that of the wealthy because of the lack of opportunities provided to the people who are in the working class (Marx). Unfortunately, this repetitive cycle of wealth inequality draws parallels with the racial inequalities that are seen today. Statistically, people of color and women collect less revenue than white men, who are less restricted in their mobility, in America (Rowe). According to Karl Marx, money can buy anything from education to beauty, due to the fact that money is valued more than the lives of those who do
In society today, everything is about the “now”. Everyone wants something instantaneously. Because of the desire for instant gratification, people are overcome by what they desire which causes them to quench their yearnings by obtaining what they want. For example, an individual that has just graduated from high school and he wants money, so he gets a job at a fast-food chain instead of pursuing a college degree. He wants money now and does not want to pay for college even though he would be making more money over his lifetime in his profession than he does at the fast food-chain.
In schools where financial literacy courses are foreign, for example, students as well as teachers may find themselves lost and confused. In Document A, 64% of teachers K-12 reported being unprepared or “not-well qualified” to teach finance. These problems have been outspoken by several critics, such as in Document B, where Burns cites that high schoolers that took a semester-long personal-finance course tested worse than those who did not, and that some feel math or statistics would be much more useful than finance. It’s hard to refute evidence such as this, but subjects can be changed, revamped. Much like we add new things to history when events occur, or science when research proves a new theory, we can improve financial literacy by how the world economy moves. In the digital age of commerce, we can adapt and change our system, much like Thaler in Document C advises, promoting In-time education when needed, simple rules of thumb to create everyday knowledge, and user-friendly support on the Internet to digitalize finance. In an age where you can know the time, temperature, and weather of London at any moment, from anywhere around the world, why should we not be able to ask how to save, when to save, where to save, or whether we're overpaying on a house or car? Those who deem studies on present financial literacy evidence of it being useless and a waste of money must understand that the subject is not set in stone. We will experiment, shift, change, and one day, we will find the right
Carnegie opens his essay with the statement that there are three main ways most wealthy people use or distribute their money. First, some pass their money on to the next generation. Children...
...ep the money in the bank because the bank is the safest places to keep money. In addition, investing money in stock is the best way to make the business grow because stocks have the highest returns of any asset. Lesson 9 is full of important information about credit -card debt. According to the lesson 9, “The average American household with at least one credit card has nearly $15,950 in credit-card debt”. People borrow a lot of money that they cannot afford to pay back. Falling into a debt is the fastest way that people face because some people use their credit card for meals and vacations, but they cannot afford to pay off their monthly bills. Thus, people should write everything they spend for a month because a lot of people spend thousands of money without thinking about what they are buying in order to start saving the money and reduce the debt quickly.
Making improvements on our financial literacy results in a wave of impacts on our economy and the financial health in our society because of responisble behiavior with our finances. These modifications to our behavior are neccesary because it let's us address primary cultural problems, for example over-credits on your purchases, mortgages possibly resulting in debt, dealing with expectations on inflation and also planning on your retirement.
“If you owe your bank a hundred pounds, you have a problem; but if you owe it a million, it has.(1)”
Money is an essential part of life where every people can satisfy whatever they need and every person in America has a chance to find a job. However, some of the people in the country wanted to go on with their life freely by being a part of a welfare. Furthermore, distribution of wealth is a huge demand of every citizen. Everyone today is trying to look down for every people in the lower class, as they did not give any benefit to the country, waiting for the benefits that they will receive from the government. For instance, when most lower class people have gone through a financial crisis due to overspending, insufficient fund or pay for their work to support themselves and/or their family. The example shows that lower class people made the economy of the country unstable, however, the middle class and the higher class is at fault as well. Furthermore, even though the benefit of that the lower class received is from the middle class, the middle class as well benefits from the higher class. To sum up, every class is at fault towards giving the country’s economy a positive
The desire to have money is ingrained in people today as explained by Ventura (1995) when he said that money has become the absolute standard of access and status.
Business finance has taught me how to manage risk and return as well as making capital investment decisions throughout the semester. Professor Schott has gone through each chapter carefully well making sure that each student grasps each concept before moving on. He has used many tools such as LearnSmart, lectures and homework assignments to make sure that us students have a good idea of the concept before giving us exams.