Overview- Rich dad poor dad pdf

The Book in 3 sentences

• Rich Dad Poor Dad is about Robert Kiyosaki and two separate dads—his real father (poor dad) and the father of his closest friend (rich dad)—and the various ways in which both men influenced his opinions about money and investing.
• It’s not necessary to have a large salary to be wealthy.
• Rich people employ money to support them.

5 Big Ideas of Rich dad poor dad pdf

1. Both the middle class and the poor labor for pay. Rich individuals use money to help them.
2. The amount of money you make is important. It’s the amount of money you save.
3. The rich accumulate assets. Liabilities that the poor and middle class identify as assets are purchased.
4. Financial intelligence is the ability to manage money after you have it, prevent theft, extend the life of your wealth, and make money work hard for you.
5. Our minds are the most powerful tool we all use.

Rich dad poor dad lessons

• Lesson 1: Wealthy People Don’t Work for the money
• Lesson 2: What’s the Point of Teaching Financial Literacy?
• Lesson 3: Mind Your Own Business
• Lesson 4: The Evolution of Taxes and the Power of Businesses
• Lesson 5: Rich People Create Money
• Lesson 6: Don’t Work for Money; Work to Learn

Rich dad poor dad summary

Being broke and being poor are two different things. Broken is a temporary status. Poverty never goes away.

“Wealth is seasonal, but if you understand how money functions, you can manage it and start accumulating wealth.”

“Fear and greed are the two emotions that control people’s lives forever.”

“It’s a common statement, ‘Oh, I have no interest in money.'” Still, they will put in eight hours a day at a job.

“Believing that having a job makes you secure is lying to oneself.”

“Intelligence generates wealth and solves problems.”

“You need to purchase assets and understand the differences between an asset and a liability.”

An asset increases your pocket money. You have to pay for a liability out of pocket.

“The basis of financial struggle is illiteracy, both in words and numbers.”

“Money often highlights our ignorance and highlights our tragic human flaws.”

“A person’s cash flow reveals how they manage their finances.”

“Most people don’t understand cash flow, which is one of the main reasons they struggle financially.”

“Taxes are the main expense for most people.”

larger taxes result from larger incomes. We call this “bracket creep.”

“More money rarely makes someone’s financial problems go away.”

“Most people are afraid of being different, so they don’t look for new ways to solve problems.”

“A person can have a great degree, succeed professionally, and have no understanding of finance.”

“Trying to keep up with the Joneses leads to a lot of financial problems.”

After you have a clear understanding of the distinction between assets and liabilities, focus your efforts on purchasing assets that will generate revenue.

The issue with just working harder is that a larger portion of your extra effort is required for each of these three levels. You must figure out ways to immediately benefit yourself and your family from your increased efforts. (Rich dad poor dad pdf).

“A person’s ability to survive for a certain number of days in the future—or, if I stopped working today, how long could I survive?” is what defines wealth.

“Assets are purchased by the wealthy. The impoverished have only costs. The middle class purchases obligations that they mistake for assets.

“While everyone else concentrates on their income statements, the rich concentrate on their asset columns.”

“People who spend their entire lives working for someone else are frequently directly responsible for financial struggles.” (Rich dad poor dad pdf).

Being what you study is a mistake because far too many people don’t know when to shut up. They spent their entire life taking care of other people’s affairs and accumulating wealth for them.

“Minding one’s own business is necessary for financial security.”

“Working for someone else their entire life often leads to financial struggle.”

“The lack of a solid financial foundation is the main cause of the majority of the poor and middle class’s fiscal traditionalism, which is expressed as “I can’t afford to take opportunities.” (Rich dad poor dad pdf).

“The fact that you are taxed on any gains made as soon as you start selling your assets is one of the key reasons net worth is not reliable.”

“The moment you drive off the lot, a new car loses nearly 25% of the price you paid for it.”

“Maintain low costs, minimize liabilities, and conscientiously establish a foundation of sound assets.”

According to Kiyosaki, he owns companies that don’t need him to be present. “It is not a business if I am required to work there.” That turns into my profession. (Rich dad poor dad pdf).

Real assets, in Kiyosaki’s opinion, can be divided into the following groups:

• Stocks
• Notes (IOUs)
• Income-generating real estate
• Bonds
• Royalties from intellectual property such as music, scripts, and patents
• Anything else that has value produces income or appreciates, and has a market value.

“Those who dislike real estate should not to purchase it.”

Typically, Kiyosaki owns real estate for a period of no longer than seven years.

Put yourself in your own space. Maintain your day job, but begin investing in actual assets rather than liabilities.

By “mind your own business,” Kiyosaki refers to the process of creating and maintaining a robust asset column. Never take out a dollar once it’s been put in.

“The greatest thing about money is that it is a resource that lasts for generations and works around the clock.”

“One significant difference is that luxury purchases are typically made by the middle class and poor first, and by the rich last.”

“Investing in and growing a real asset is rewarded with a true wealth.”

Robin Hood was not a hero in Kiyosaki’s wealthy father’s eyes. He referred to Robin Hood as a liar.

“When you labor for pay, you give control to your employer. You maintain control and authority over money if it serves your interests.

“Every dollar in my asset column represented a fantastic worker who put in a lot of effort to hire more people and purchase a new Porsche for the boss.”

Kiyosaki reminds readers that information from four major areas of competence makes up financial IQ:

1. Accounting
2. Making Investments
3. Knowing the markets
4. The regulations

“A company makes money, spends it all, and then taxes what’s left over. One of the largest legal tax havens used by the wealthy is this one.

“Garret Sutton’s corporate books offer fantastic insights into the influence of private corporations.”

“In the real world, brave people frequently succeed instead of intelligent ones.”

Kiyosaki believes that everyone, including himself, has one thing in common. Every one of us is blessed with gifts and possesses immense potential. But the one thing that prevents us all from moving on is some level of self-doubt. (Rich dad poor dad pdf).

From Kiyosaki’s own experience, financial genius demands guts in addition to technical know-how.

Teenagers are always pushed by Kiyosaki to view games as a reflection of their knowledge and areas still in need of development.

“Behavior is reflected in games. These systems provide immediate feedback.

“Having more options is simply a sign of financial intelligence.”

“The most potent tool we all possess is our intellect. It can generate a great deal of wealth if properly trained.

“Every day of your life, the world presents you with opportunities of a lifetime, but all too frequently, we fail to recognize them.”

Richard mostly invests in small-cap companies and real estate as means of achieving financial success.

“You only need basic math and common sense to manage your finances well.”

The issue with so-called “secure” investments is that they are frequently made so safe that the returns are negligible.

If you know what you’re doing, it’s not gambling. If you’re just investing money and hoping for the best, it’s gambling.

“The majority of people never become wealthy merely because they lack the financial literacy to see opportunities when they present themselves.”

“You cannot notice great possibilities with your eyes. You can see them with your thoughts.

Rich Dad suggested, “You want to know a little about a lot.”

“Job” stands for “Just Over Broke.”

“Consider what abilities they wish to have in the future before settling on a career path and entering the Rat Race.”

“In the long run, education is more valuable than money.”

“The focus on creating a better hamburger and their lack of knowledge about business systems are the reasons why so many talented people are impoverished.” (Rich dad poor dad pdf).

The primary managerial skills required for success are:

• Management of people
• Management of cash flow
• Management of system

“The two most crucial specialized skills are marketing and sales.”

“We must be able to give as well as receive if we are to be truly wealthy.”

“The key to most great wealthy families is giving money.”

“The ability for dealing with fear is the primary difference between the rich and the poor.”

Financially knowledgeable people might not yet have many asset columns that could generate a significant cash flow for five primary reasons. The following are the five reasons:

• Arrogance
• Bad habits
• Fear
• Cynicism
• Laziness

“Most individuals don’t succeed financially because they find that the anguish of losing money outweighs the happiness that comes with wealth.”

Winners are inspired by failure. Losers are defeated by failure.

“Anyone aspiring to financial independence or freedom can benefit greatly from real estate as an investment vehicle.”

“The secret to real estate success is a professional property manager.”

Keeping occupied is the most common way that people become lazy.

Rich Dad thought that saying, “I can’t afford it,” would cause your brain to shut down. “How can I afford it?” creates excitement, opportunities, and dreams.

“The only question you should ask yourself is, ‘What’s in it for me?'” if you find yourself putting off doing something you know you should be doing. Have a small amount of greed. The best treatment for laziness is this. (Rich dad poor dad pdf).

Richard has discovered that a lot of people try to cover up their ignorance with arrogance.

“Gold is present everywhere. Most individuals aren’t taught how to recognize it.

In order to uncover million-dollar “deals of a lifetime,” we must employ our financial knowledge.

A purpose or rationale is the result of combining “wants” with “don’t wants.”

“Most people don’t invest first to learn about investing; they just buy investments.”

Richard thinks that staying loyal to oneself and being prepared to oppose others are two of the most difficult aspects of generating money.

“The wealthy are aware that savings should only be used to generate income, not to cover expenses.”

“‘How quickly can I get my money back?’ is the first question that a savvy investor asks.”

That’s the idea, if Richard could only leave you with one. Give what you want first if you’re feeling low or in need of anything, and luxury will follow. (Rich dad poor dad pdf).

Within the accounting domain, there exist three separate sorts of income:

• Passive
• Ordinary earn
• Portfolio

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