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The Central Theme of Rich Dad Poor Dad by Robert Kiyosaki – Look For Assets Not Liabilities

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Rich Dad Poor Dad has been reviewed by many writers. The book, written in 1997 by Robert Kiyosaki, immediately became a success. The concepts expressed therein are the foundation of Robert Kiyosaki’s Rich Dad book series.

Rich Dad Poor Dad expresses a number of concepts that seem contrary to the established norms of accounting and finance. Robert Kiyosaki defines an asset as anything that puts money in your pocket and a liability as something that takes money away from your pocket.

In Rich Dad Poor Dad and indeed the entire Rich Dad series, Robert Kiyosaki encourages his readers to look for assets and avoid liabilities. This is the key message to those who want to become wealthy and prosper financially.

Based on the definition of assets and liabilities is the concept of making money work for you instead working hard for money. Money works consistently and diligently for a wise owner multiplying beyond expectations. You cannot become rich by working for money.

You earn passive income when you get your money to work for you, a concept explored exhaustively in Rich Dad Poor Dad. Passive income is the foundation of wealth as it gives leverage to your efforts. After setting up an income stream, it continues to make you money while you sleep.

The Rich Dad Corporation has three main shareholders: Robert Kiyosaki, his wife Kim Kiyosaki and Sharon Lechter. The three of them are co-founders of the RDPD Corporation under which they have produced a range of RDPD books.

Kim Kiyosaki has written her own line of Rich Women, Poor Women which is based on the same basic principles expressed in Rich Dad Poor Dad but is directed to a different audience altogether. Riding on the back of her husband, Kim Kiyasaki’s books have also been very successful, drawing millions of satisfied readers.

Robert Kiyosaki has influenced the lives of millions around the world through his books, helping many to become aware and get rid of doodads, thus eliminating liabilities from their financial life. He has conducted millions of seminars and training programs. He is dedicated to educating humanity in business principles and handling of personal finances, thus helping them to escape poverty.

The Rich Dad Series gives many practical examples of how to grow money using real estate, the stock market and business. The books confirm Robert Kiyosaki’s qualities as educator and motivator, and his understanding of economics and money concepts. Employing skills as educator and his knowledge of money matters, Robert Kiyosaki has been able to build an empire on the concepts expressed in Rich Dad Poor Dad.

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Source by Robert Mato

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January 9, 2020
Ways to Make Money Online at Home

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There are many methods that you can use so as to work from home. The internet offers great potential in this area and more and more people are enjoying lucrative returns from online ventures. A home based business offers great comfort, especially when it supplies you with the kind of returns that you may have always wanted. Some of the things that you can engage in may be long-term or short term and they include:

Writing and selling EBooks

If your writing is great and you have great prose, then you may consider writing an eBook. The market has become saturated, so choosing a great niche is still important. Usually, the books that help people learn more about technical topics are still great sellers. This is an amazing way to make passive income. There are different platforms where you can sell the eBooks. It doesn’t require a lot of money, but you will need to invest time when writing and when marketing them.

Audiobooks

EBooks are losing popularity and people are now trying out the audio books. People today prefer the audio and visual as they are more convenient, especially when there are technical subjects involved. It is a smart thing to start out with an eBook and then turn it to audio buy using various resources. You can make use of royalty share program to get a producer so that you don’t need to use too much cash when starting out.

Create apps

Creating an app is technical and it is only best suited for people with such skills. It takes a significant amount of time. Apps can be a great way to make some income, especially if they are created in the correct manner. With so many people using smartphones today, you need a great app that will attract a great number of them. If you have money but no skills, you may choose to hire someone to assist in the creation. Market research is required if you are to come up with an app that will sell.

Mechanical Turk

These are usually the micro jobs that you can carry out for people. These are usually tasks that are very simple and they can be done by just anyone. They pay little but if you are able to do a lot of these jobs for people who pay well, you can be able to make some money online.

Gigs

You may have some sort of experience that is professional in different areas such as SEO training, web development, social media marketing, accounting, design and so on. You may handle different valuable services that you can up-sell so as to make money for every gig. There are different providers in this area and in such platforms; it is possible to sell a great number of products and services. Find out exactly what it is that you can offer people so as to start generating money.

Sell services professionally

There are other platforms that offer some great resources when it comes to the sale of professional services. With experience in a certain field, you can sell services on different platforms. Selling is difficult and getting reviews and building a track record takes time.

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Source by Shalini Madhav

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January 2, 2020
Cash Flow Statement Manipulation

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Unlike in the accrual accounting world, cash flow is an efficient way for investors to measure a company’s financial health and operational strength. The whole idea of recognizing revenues when realized or realizable can be tricky when an investor has to make a financial decision regarding a certain company. Whereas, having a good understanding of where the money is coming from and how it is being used is much more helpful for an investor. However, calculating and analyzing cash flow isn’t as easy as finding the difference between what money came in and what money went out in a company’s cash register. The difficulty arises from the tricks that companies use to manipulate their cash flow statement. Companies often try to promote the good and hide the bad in their financial reports, which is why the cash-flow statement has seen some manipulation over the years. The following explains how this is done.

When looking at a cash flow statement, there are three sections that the statement is divided into: operating, investing and financing. The most important section to an investor would be the operating section because this is where one can find the money a company is generating from its operations. Investors want to see more cash generated from a company’s operations rather than from borrowing or equity transactions.

Unfortunately, it is not always clear where a company is generating its cash from. One way company’s skew their operating section is through the misclassification of inventory purchases. The costs of purchasing inventory that eventually will be sold to customers, should be classified as an item in the operating section of the cash flow statement. However, some companies disagree and feel that purchasing of inventory is an investing outflow, which would increase operating cash flows. One should question this method of accounting because large investing outflows shouldn’t occur as part of a company’s normal cost of operations.

In addition to misclassifying inventory purchases many companies capitalize some expenses which increases a company’s bottom line. When a company capitalizes costs, they write off the cost of an asset gradually, in installments, instead of taking all the costs at once. This allows companies to record the cash going out as an investing activity, because the cash going out is considered an investment, rather than a deduction from net income or the operating section. As a result, the companies cash flow from operations will remain the same and look much better than it really is.

Next, companies give their operating cash a boost by selling their accounts receivables. This speeds up a company’s cash collections, but it also forces the company to accept fewer dollars than if the company had waited for customers to pay. This action can have a negative impact on a company’s operating section. The decline in accounts receivable means more cash has come in through the sale of receivables, but this would give investors the wrong message. By accelerating collections a company isn’t improving operations, they are just finding another way to boost the operating section of the statement.

Another cash flow statement manipulation is through the account payables. Sometimes there is a substantial increase in the accounts payable line item which would mean payments are not being made to suppliers. If these payables are left open for a long period of time, then a company receives free financing, which increases the operating section inaccurately.

All of these examples are ways that companies can easily manipulate their operating section. These examples give companies an opportunity to show that they have more money at their disposal for operating expense than they actually do. For instance, in 2000 Enron reported it had over $4 billion cash flow from operations, which in reality was overstated by $1.5 billion.

This manipulation caused Enron’s stock value to increase, which in turn led to Enron’s collapse. Another example in 2002, Tyco International delayed paying its executives their first quarter bonuses to increase the company’s operating cash flow for the quarter. This move caused the company’s operating cash flow to wrongly increase by $200 million.

The above examples show how easy it is for the cash flow statement to be manipulated.This goes to show that investors should be careful when looking at this particular financial statement. An investor should be consciences of any manipulation that can cause dishonest financial information. In conclusion, the cash flow statement is the most useful financial statement to an investor, but just as cash easily switches hands, the cash flow statement can just as easily be manipulated.

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Source by Ryan M Henzes

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December 30, 2019