Sunday, January 22, 2012

Create Money (Rich Dad Poor Dad For Teens)

Rich Dad Poor Dad for teens is a book written by Robert Kiyosaki for teenagers, who want to learn the secrets about money. Robert Kiyosaki was very successful in business life, which enabled him to retire at his forties. He found a mentor who taught him and his best friend Mike about money and investment at a young age. We will call this mentor Rich Dad and his real father, Poor Dad. His real dad had a good education and job, but he had a wrong way to look at money. I will tell you about things Robert learned.

There are three types of income. The first one is earned income. It is the type of income you get from a job and every week or two weeks you get your salary from it. Poor Dad had an earned income.

The second one is passive income. The money flows in, but your not physically at work. When you write a book every time your book is sold, you receive passive income. You can also receive passive income from businesses you have started, but which you do not run yourself at a day to day basis. Robert and Mike had a business at a young age too. They had a comic library for kids and they could collect comic books that were not sold at the supermarkets in the neighborhood. Mike's sister was hired to run the library and Robert and Mike received passive income. Rich people often earn a lot of passive income and while the money flows in, they can set up a new business or just enjoy their lives.

The third kind of income is portfolio income. When you invest in stocks or other assets like that you have portfolio income. It works the same as passive income, but from this you will receive the money only one time.

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