In this book, Robert classifies people in the work field into 4 types;
- Employees
- Self Employed/ small business/ specialist
- Big Business/ Business Owners
- Inestors
When we graduate from school/college, we are well trained- or programmed- how to be employees, or self employed, rarely any institute trains you into becoming a business owner with the mindset of a business man or investor.
One of the big and most important difference between the left and right side of the quadrant is the tax law - and this applies for most countries…. Robert explains it around the US Market, but you can find almost the same difference if you compare it to your country’s.
Simply put: when you are an employee you only get paid after taxes, and what’s funny- and sad at the same time- the more money you make the more money the government will take from you, how pathetic and unfair is that…The harder you work, the less money you make…
However, as a business owner or investor, you get paid first then you pay taxes, and they are much less (as a percentage) than the Employee or Self-Employed.
In this book, Robert will teach you how to switch first to becoming a Business Owner (and how it is different from being Self- employed) and then use the excess money to become an Investor, and possibly pay zero taxes - legally!
And thats why the rich get richer!
In this book, Robert goes more into details into how to read financial statements, and how to link between Income Statement and Balance Sheet, and the difference between assets and liabilities. “Assets” are simply what puts money into your “Income” - put money in your pockets- while “Liabilities” add to your “Expenses” - take money from your pocket.
Hope you take the time to read the book and let me know what you think.
Happy reading!