Avoid overspending on liabilities from "summary" of Rich Dad Poor Dad - 20th Anniversary Edition (Hindi) by Robert Kiyosaki
The rich do not work for money. They make money work for them. One key principle they follow is to avoid overspending on liabilities. Liabilities are things that take money out of our pocket. They do not generate income. In contrast, assets are things that put money into our pocket. They generate income. Many people fall into the trap of overspending on liabilities. They buy things like expensive cars, designer clothes, and flashy gadgets. These items may give them temporary pleasure, but they do not contribute to their financial well-being. In fact, they end up draining their bank accounts and keeping them trapped in a cycle of debt.
Instead of focusing on liabilities, the rich focus on acquiring assets. They invest in things like real estate, stocks, and businesses that have the potential to generate passive income. This income allows them to become financially independent and live life on their own terms.
To follow in the footsteps of the rich, we must shift our mindset from consumer to investor. We must prioritize acquiring assets that will increase our wealth over time. This may require sacrificing short-term pleasures in favor of long-term gains. It may also require changing our spending habits and being disciplined with our finances.
By avoiding overspending on liabilities and focusing on acquiring assets, we can set ourselves up for financial success. We can break free from the paycheck-to-paycheck cycle and build wealth that will last for generations. It is a simple yet powerful principle that can transform our financial future if we are willing to embrace it.
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