Poor dad depends on active income from "summary" of Rich Dad Poor Dad by Robert T Kiyosaki
The concept of poor dad depends on active income is a fundamental principle that many people adhere to without even realizing it. Poor dad believed that in order to make money, one must work for it. This meant having a job that provided a steady paycheck, which was necessary to cover expenses and save for the future. However, poor dad's reliance on active income meant that his financial well-being was tied directly to his ability to work. If he stopped working, the money would stop coming in. On the other hand, rich dad understood the importance of generating passive income. Passive income is money that comes in without having to actively work for it. It is generated through investments, real estate, royalties, and other sources that continue to produce income over time. Rich dad recognized that by building multiple streams of passive income, he could create financial security and freedom for himself. By contrast, poor dad's dependence on active income left him vulnerable to economic downturns, job loss, and other unforeseen circumstances that could disrupt his financial stability. Rich dad's focus on passive income allowed him to build wealth that would continue to grow even when he wasn't actively working. This gave him the freedom to pursue other interests, spend time with family, and enjoy a more fulfilling life.- Poor dad's reliance on active income kept him trapped in a cycle of working for money, while rich dad's focus on passive income allowed him to build wealth and create the life he desired. By understanding the difference between active and passive income, one can begin to shift their mindset and take steps towards financial independence and freedom.
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