The book that got me started on the journey of becoming financially fit was Rich Dad Poor Dad by Robert Kiyosaki. This book completely transformed the way I thought about money.
At the time I was a few years into college and had been dabbling in the stock market, but that was just about all I really knew about real assets. I thought that the key to becoming rich and comfortable was buying a home (with a mortgage), getting a fancy car (with a car note) and having as much “stuff” as possible. After reading this book I found out that I and the majority of Americans were under the wrong impression about prosperity, and the idea of the American dream was a pipe dream at best.
For me, the main takeaway from the book was about what assets really are, and how they can be used to generate wealth. As I read through the chapters, I had to change my perception of real estate as I once knew it and started thinking about it in terms of a tenant and landlord relationship. Most landlords that I had the experience of dealing with up until that point were all normal individuals but had one thing in common, they were all wealthy.
Why is this? Most rental real estate properties can be acquired with very little effort at a relatively cheap price. They can then be rented out at a markup recouping the upfront costs used to purchase the house, and eventually utilizing the monthly rental income to pay for the mortgage, utilities, taxes, and renovations that occur over the lifetime of the property (not to mention the monthly profits!). In simpler terms, the investment pays for itself.
The book taught me how to think out of the box and how to see the world in terms of opportunities and not obstacles. This coincidence ignited my passion for real estate and it will forever be a staple in my investment portfolio, for its passive income benefits and its wealth building capabilities.
If you’re always busy like me, but still want to become financially fit, head over to Audible right now and go download a free copy of Rich Dad Poor Dad for yourself and see how your perception of assets and liabilities is changed forever.