Recently I was reading The book ‘Rich Dad, Poor Dad: What the Rich Teach their Kids About Money that the Poor and Middle Class Do Not! authored by Robert T. Kiyosaki. The book majorly talks about how to be in the budget and avoid debt. This book helped me to clearly understand a quote by Warren Buffett on money management.  


Warren Buffett put it very crystal and clear, “If you buy things you do not need, soon you will have to sell things you need.”

Some financial literacy is needed to actually comply with the above rule to avoid debt. 

In this world where we are more attracted to show-off, it is difficult to control over spending. We show-off so much that we choose to live on credit cards. This creates trouble for not only us but upcoming generation too. 

To come out of live-on-credits trap and live the peaceful and happy life we have to follow some money management tips and tricks. Fortunatly, the book ‘Rich Dad, Poor Dad’ explains it very clear. 

The famous proverb that goes as such “Jitni Chadar ho utna hi pair phelao” (Cut your coat according to your cloth). 



However, sometimes it gets difficult to fulfill the requirements out of the money that we have. To solve this we have to increase the size of cloth to cut the coat more i.e. to increase the income. Not opt for credits.

Here are some money tips from the book that will help us to increase income. 

Pay yourself first
Everybody works hard in school college to grab high paying and secure job for a better living. But after leaving college our lives turn out to be a rate race. As soon as we leave college and dive in professional life we struggle to pay bills every month. We live on one paycheck to another paycheck. Even though we wake up every morning, go to office work hard. We repeat this until we retire and then wait for the government to feed us through pensions schemes and senior citizen benefits. 

Robert says in his book that majority, rather middle class and poor people make one big mistake while keeping day job is they pay everyone first from the government to debt collector, rent and electricity provider. However, they promise to pay themselves in the last. Unfortunately, they remain unpaid because nothing is left after paying everyone. In other words, they do not save money at all.  

We should fix some percentage of savings from our every paycheck. Do not dare to compromise with savings no matter if money is short sometimes. 


Invest somewhere to increase assets
Now you have been saving money from your monthly paychecks. However, mere saving money will not generate more money. Look for some opportunities to invest somewhere.

 There are many opportunities such as stock market, real estate and some small businesses. Investing somewhere will help you to increase your assets that generate money while you are keeping your day job. 

Small businesses can be good for increasing assets. Because, You keep your day job and receive monthly income. Side by side you open a business and ask someone to run it. You pay salary to your worker and you generate income while you are not presenting there at your business. 

Moreover, investing in stock market and real estate is actually little technical rewarding too. It takes time and a little bit of research but they generate money in just few hours while you are sitting at home and sipping coffee.

 In this case, you need to have one expert that can keep eyes on some investment and real estate opportunities and help you to figure out where and when to invest. 

In your day job, you pay most of the money to the government. Whereas, in business and investment you pay yourself more than to the government. And that helps to increase your assets. 


Improve your lifestyle accordingly
The poor and middle-class people buy expensive house, car, cell phones even if they don’t have enough money. They opt for credits. They do not even bother to make more money to afford the luxury.  

On the other hand, rich people don’t just go and buy expensive things and improve lifestyle. Instead, they wait for their assets to grow more and generate more money. they see if their assets are generating more than enough money to afford luxurious life then they choose luxury. 

Rich people avoid credits and work hard to generate more money from their assets. 

Before you think of expensive car and luxurious life you should look for generating enough money to afford your desired lifestyle. 


Financial literacy
Saving money. Investing somewhere. Increasing assets. Generating more money. All these cannot be possible without financial literacy. We don’t learn finance in school and colleges unless we are not commerce students. That is why we do not know how to increase assets that generate money. We need to invest some time in learning numbers to learn how actually money works in the market.

Some people take advantage of price hike of some products by investing in the products. Some people cry foul for the price hike. The difference comes from whether we are literate or not financially. 

Join some seminars, courses and read books on financial literacy to enhance your knowledge in this field to become master of your finance.  


Follow the above strategies and generate money in accordance with your needs. Because you not only have to control your spending but you have to save yourself from being miser too. 

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