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1. Investing is more important than saving.

2. Don’t work for the sake of money. Concentrate on making your money work for you.
3. Transform your active/working income into passive income. Passive income is income derived from your own assets.
4. Instead of saying, “I can’t afford it,” say, “How can I afford it?”
5. Never make a purchase on credit. You can’t afford it if you can’t pay cash for it.
6. Always keep an emergency fund of at least 5% of your gross income on hand.
7. Pay yourself first; you are entitled to 10% of everything you earn.
8. Understand the distinction between good and bad debt. Bad debt takes money out of your pocket, while good debt puts money in your pocket.
9. An asset is a financial asset that puts money in your pocket. A liability depletes your bank account. Invest your funds in assets.
10. Make it a priority to improve your financial literacy. 9 times out of 10, financial literacy is learned on one’s own. It isn’t covered in school.

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Thanks for putting this summary of Rich Dad Poor Dad & The Richest Man In Babylon together -- both really great books!

I think I agree for the most part.

For point 5, I'd say use credit cards to buy stuff if need be, just make sure you have to cash to pay back the card. If one says "never buy anything on credit" it would directly imply to never use a credit card, because credit cards are always based on credit.

Credit cards, when used, and paid in full so that it never accrues any interest is exceptionally good because:

1) It makes your credit score go to the moon, which means you'll save an enormous chunk of money when it comes time to get financing for a mortgage.

2) Credit card points = free vacations (i.e. one of your biggest regular expenses are reduced to 0. For example, I'm going to Italy soon for 2 weeks and I don't have to pay a single dime for nice hotels -- and these points are generated money I would have spent anyway, and I incurred $0.00 interest on it since I just pay my CC in full, every time).

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https://goodmoneygoodlife.com/

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