How To Generate More Income - Rich Dad Poor Dad

Personally I am not an absolute expert in regards to building up passive income, but I am surely somebody who loves focusing on this area of my life.

I have recently read the book Rich Dad Poor Dad and I can recommend it to anyone who is searching for new ideas to grow your financial intelligence. I think one of the best parts of the book is when Robert Kiyosaki talks about Assets, Liabilities, Expenses & Income and in what the rich invest to become rich and what the poor and middle class does.

At the end of the book he mentiones something like that the middle class things they become rich by investing into houses and are actually not really right.
As they actually also grow their liabilities by doing it. I guess this point is a bit controversial but I think he means that it should not be your aim to buy a house and then have a mortgage running for another 20 years. Kiyosaki speaks of the earned money which should be transformed into passive income or portfolio income. 

I think the key message that the book tries to transport is that you don't need to earn much to become rich but you have to start with the little money you have. He does not say that you should risk anything, but evaluate your options, learn and educate yourself and the risk will decrease. You can make hundred of thousands by just starting to invest small amounts. You just have to be clever and invest in smaller things. 

Often people belive that they have to wait until they have a certain amount of money to buy this big house. They save year after year and then one day they decide to buy this huge house. Sure this is the way the hard working, middle class is doing it. But the much smarter way is it to invest into assets along the way. 

Kiyosaki himself says that out of ten investments, maybe 2 will be really profitable, 6 or 7 will be more or less neutral or creating a bit of income and from 1 or 2 investments he makes losses. But these losses can be limited, you just have to decide before investing at which time you want to sell your investment. 

I can't repeat Kiyosaki's words exactly but I guess you get the message. When I read the book, I was very interested in it all over the time. It showed me that also I don't have to wait to invest in things. I mean, actually we all could invest in nearly anything, but only the investments that have a return on the investment are creating your financial freedom. 

As a good example, instead of investing in a house, you could invest in a very small shop on a busy road and rent the small store. You could screen the stock market and buy a share somewhere. You could buy a small flat with just 1 bedroom and a small kitchen/living room. Instead of investing hundred of thousands into an apartment it might make sense to start small and think big. 

You could also screen the offers on different peer-to-peer landing pages or instead of buying a house, you could just buy a parking space. 

There are many different ways, I would be so happy if you would let me know which ways of investing you have utilised so far. Here is the link to Rich Dad Poor Dad.