It shows how much in assets and liabilities you have. The top box is an income statement, measuring how much income you get in a period, and how much expenses you pay out. The Rich Dad, Poor Dad Cash Flow Chart and Balance SheetĬonsider how the cash flow chart and balance sheet relate to each other. You can see this philosophy clearly outlined in the Rich Dad, Poor Dad cash flow chart below. You want your money to make enough money that you don’t have to work anymore. The key to financial independence is having money that makes more money. Even further, if your work isn’t just a pure service but also builds value in the company – say in R&D or product improvement – the value may be many multiples of your salary.Your work may allow your employer to earn $100k in sales that year, yielding a clean profit after deducting your salary.
When you work for an employer, you get paid only a fraction of the value that you generate for the employer (otherwise, if the business would go bankrupt). Rich Dad, Poor Dad‘s cash flow chart offers a unique idea. How Can The Rich Dad, Poor Dad Cash Flow Chart Help You?
You can look to the Rich Dad, Poor Dad cash flow chart to understand how money generates money. The Rich Dad, Poor Dad, cash flow chart addresses an important basic principle of finance: having consistent cash flow helps make you rich. What Rich Dad, Poor Dad‘s cash flow chart, and what can it teach you about managing and making money?
#Cashflow chart trial#
Like this article? Sign up for a free trial here. Shortform has the world's best summaries of books you should be reading. This article is an excerpt from the Shortform summary of "Rich Dad Poor Dad" by Robert T.
0 kommentar(er)
