You know, I have just completed Robert T. Kiyosaki's famous best selling book "Rich Dad Poor Dad" I recommend, every student should read it. One of great know which has given in this book, "The knowledge of Balance sheet"
As founder of Accounting Education, I also motivate to understand balance sheet. When the question of personal financial management, to understand the balance sheet must. All the employees who do not know the balance sheet, do biggest mistake in their life.
(A) Balance Sheet of Poor Dad
In this book, poor dad is because his thoughts were poor. He does not give the importance of learning of balance sheet. He gives the importance to getting more and more degrees for getting job promotions. But still, he is under debt and he is facing the problem of money. Here, we are telling what did he do mistake due to ignorance of balance sheet.
1. He will pay more expenses for food, clothes and other expenses. He will forget and pay bills first due to this he will take loan. Loan will increase the liability side of his balance sheet.
2. He will not able to pay loan on the time. So, there will big penalty and high interest payable in his liability side of balance sheet.
3. He will buy new car and new house for personal use due to this, every-month his big salary will become zero.
4. When he will get promotion, he will pay more tax. In India, TDS can easily deduct from employee's salary but for businessman, tax department has to wait and check his income statement.
5. Poor dad will always do his duty for his boss, for Govt. for bankers because he is increasing his liability side. So, he should see above picture and stop more increase of liability side of balance sheet.
(B) Balance Sheet of Rich Dad
Rich dad has invested his small income in business assets. Same assets will start to give him incomes. He will start to reinvest same incomes in assets. Now, assets will increase day by day with bigger amount. So, every year, he will become richer and richer because there is only asset side of his balance sheet and other side will become his own capital.
Conclusion from Above Discussion
Whether you are doing job, you are CA, Advocate, doctor, or other professional. We have to make the balance sheet of rich dad . We do not take the loan from anybody. We have to decrease our expenses. We have to invest our income in our business asset which asset will increase our income 10 times. Day by day, our balance sheet's asset column will increase. This is happy news because One day, money works for us and we will leave our job for earning money.
Related : Pay Yourself Before Paying Bills
As founder of Accounting Education, I also motivate to understand balance sheet. When the question of personal financial management, to understand the balance sheet must. All the employees who do not know the balance sheet, do biggest mistake in their life.
(A) Balance Sheet of Poor Dad
In this book, poor dad is because his thoughts were poor. He does not give the importance of learning of balance sheet. He gives the importance to getting more and more degrees for getting job promotions. But still, he is under debt and he is facing the problem of money. Here, we are telling what did he do mistake due to ignorance of balance sheet.
1. He will pay more expenses for food, clothes and other expenses. He will forget and pay bills first due to this he will take loan. Loan will increase the liability side of his balance sheet.
2. He will not able to pay loan on the time. So, there will big penalty and high interest payable in his liability side of balance sheet.
3. He will buy new car and new house for personal use due to this, every-month his big salary will become zero.
4. When he will get promotion, he will pay more tax. In India, TDS can easily deduct from employee's salary but for businessman, tax department has to wait and check his income statement.
5. Poor dad will always do his duty for his boss, for Govt. for bankers because he is increasing his liability side. So, he should see above picture and stop more increase of liability side of balance sheet.
(B) Balance Sheet of Rich Dad
Rich dad has invested his small income in business assets. Same assets will start to give him incomes. He will start to reinvest same incomes in assets. Now, assets will increase day by day with bigger amount. So, every year, he will become richer and richer because there is only asset side of his balance sheet and other side will become his own capital.
Conclusion from Above Discussion
Whether you are doing job, you are CA, Advocate, doctor, or other professional. We have to make the balance sheet of rich dad . We do not take the loan from anybody. We have to decrease our expenses. We have to invest our income in our business asset which asset will increase our income 10 times. Day by day, our balance sheet's asset column will increase. This is happy news because One day, money works for us and we will leave our job for earning money.
Related : Pay Yourself Before Paying Bills
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