This is the Summary of Why A students work for C students written by Robert Kiyosaki. This is Rich Dad's Guide to Financial Education for Parents. In this book, he teaches, how to become an Entrepreneur and a Capitalist, how to use other People's money and Talent. Good Debt and Bad Debt.
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1. • Financial Education
• Rich and Poor
• Becoming a Capitalist and Entrepreneur
• Debt can be Good
• Spiritually align yourself to earning more money
Summary of “Why “A” Students Work for “C” Students”
2. Summary of Why “A” Students Work for “C” Students
-By Robert Kiyosaki
CAPITALISTS
ENTREPRENEURS
EMPLOYEES
1. Problems in becoming an Entrepreneur.
2. Changing your perspective about Money.
3. Teaching your child financial Education.
4. Becoming a Capitalist.
3. Genius in Your Child
SCHOOL
• Safegaurd And Encourage Your Child’s Talent
• Teach him Financial Education.
Cashflow
Once a week
• Education has become a Trillion Business which Impacts every Person on this Planet.
• Lack of Financial Education is the reason for our Financial Crises.
Lag of 35 Years
HOME
• Financial Education should be taught at home.
4. Education
Future of Education
• Academic Education
• Professional Education
• Financial Education
Read, Write, maths etc
Specialised skills
• A Students : Doctors, Lawyers, Engineers, CA, etc.
• B Students : Mechanics, COOKS, nurses, Secretaries, etc.
• Education of the future : Teaches about money
Playing Monopoly with rich dad taught him:
Other People’s Talent Other People’s Money
EffectiveLearning
Rich dad’s Teaching : By Doing and stimulating real life experience
Poor dad’s teaching : by reading and listening
Collecting Rent, Saturday
meetings, Etc.
Remember 90%
Studying in Schools,
Getting an MBA, Etc.
Remember 10%
Discussing about the money problems instead of fighting over them.
5. 4 biggest problems of life
Age Increasing national debt
The new
depression
Higher taxes
CashFlow Quadrant
6. When to start your kids financial Education
Age of Quantum Learning
Forming Neural Pathways
ASSET – Puts money in your Pocket.
LIABILITIES – Takes Money from your Pocket.
Rebellious Learning.
They decide what to Learn.
Don’t Care about the consequences.
Be a part of the best team.
Be a Generalist.
Know little about everything.
Speak the language of the Profession.
Professional Learning.
Each Quadrant is a Different classroom and every
classroom has different teachers, so if you want to be
a capitalist choose your education process carefully.
This shows the performance of Parents and Teachers in
the overall development of child.
7. Why rich people go broke
The Sense of Entitlement – Government shall take care of me
Content vs. Context
Banks
Ordinary Income – Employees – Most taxed
Portfolio Income – Middle class – Minimal Tax
Passive Income – capitalist – no tax
8. Content – Glassof water is content
Context – Water is the context
Education
I can be rich/poor
9. Poor Middle Class Rich
I must get good education to be rich
I need a high paying job
Job security is Important
How much vacation time do I have
I’ll never be rich
Rich are bad
Money is not Important
Government should take care of people.
I must be rich
I own my Business
Freedom is more important than security
Take on challenges
Money does not make people rich, their context does.
10. Why Geniuses are Generous
• Generosity is the key to success
• Your job as a parent is to find the environment where his Genius
shines.
Physiological Needs
Safety Needs
Belonging Needs
Esteem Needs
Self Actualization Needs
Security , Safety
Morality, creativity, Spontaneity, Problem solving,
Lack of Prejudice, Acceptance of facts
11. Financial Statements
Poor Middle class Rich
Income
Expenses
Assets Liabilities
5000 - 50000
Loan Expenses
0 0
Income
Expenses
Assets Liabilities
50000 - 500000
Taxes
Mortgage
Car repayment
savings Home Loan
Car loans
Student loans
Credit catd
Debt
401k retirement plan
Income
Expenses
Assets Liabilities
Often no job
Income from Assets
Businesses
Realestates
Paperassets
commodities
12. businessmen / capitalist Poor people
Create 100’s of jobs
Provide a service to the government
Build their own companies.
Responsible for the losses
Entitlement mentality
If fired, find a new job
Net worthMillionaires
Brought a home in 1975 for $ 1,00,000
Today valued at $ 2.5 million
Still worry about day to day living expenses
Highincome millionaires
Income from E & s quadrants
Example : ceo’s, film stars, professional athletes
Cashflowmillionaires– trulyrich
Receive income from assets
Do not need a job
Most of the income is passive income
Millionaires
13. HOW DEBT CAN MAKE YOU RICH
debt IS GOOD
DEBT IS OPM(OTHER PEOPLES MONEY) WORKING FOR YOU
Good Debt Bad debt
Used to acquire assets Used to acquire liabilities
Makes you rich Makes you poor
14. taxes
Government gives tax breaks to -
Employers – government needs more jobs
Debtors – Dollar is now a debt
Real estate investors – government needs more housing
Commodity producers – we need more food and oil
15. Financial advice vs. financial education
Stay away from brokers
Wall street is only place that people ride into in rolls Royce to get advice from those who take the subway
-Warren buffet
The seven words of money
Income – ordinary , portfolio, passive
Expense – taxes, liabilities
Assets– business, real estate, paper assets, commodities
Liabilities– mortgage, school loan, credit card debt
Debt – sum of money that is owed or due
cashflow– used to differentiate assets from liabilities and expenses from income
Capitalgains – profit earned on sale of an asset
Saving your money via Legal Entities which will protect them from the lawsuits of your friends, partners and enemies.
A person should have Academic, Professional, Financial, Spiritual education.
Making more Money
Keeping more Money
Protect more Money
16. Unfair Advantage
The ability to transform your Money and your Life.
The ability to be Generous.
Lower taxes : Be in the “B” and “I” quadrants.
Use debt to become Rich – Good debt makes People Rich.
Bad debt makes People Poor.
Expand your means – Have your Assets buy your Liabilities.
Buy an Asset that buys the Porsche.
Increase your Emotional Intelligence, Success Intelligence. Eg Delayed Gratification.
Understand the different paths to Wealth. Be a Cashflow Millionaire.
Protect your Assets, by making them Legal Entities. Eg LLC’s, C corporations, etc.
Retire Young
Use the law of Compensation.
- Know how to Raise Capital.
- Know how to Lead People.
- Know how to Design Business.
- Know how to use Debt to make more Money.
Editor's Notes
1.The Sense of Entitlement ie the government should take care of us. Medicare, Social Security, ObamaCare, etc
2.Content vs Context
3.Using bank loan to move from E and S quadrant to B and I quadrants.
Ordinary Income –- Salary (Most Taxed) - Employees
Portfolio Income - Shares, Bonds - Middle class
Passive Income – Investments - Capitalist
Frames of mind by howard Gardener:
Linguistic intelligence -is the capacity to use language, our native language, and perhaps other languages, to express what's on our mind and to understand other people. Poets really specialize in linguistic intelligence,
logical-mathematical intelligence - e understand the underlying principles of some kind of a causal system, the way a scientist or a logician does; or can manipulate numbers, quantities, and operations, the way a mathematician does
Spatial intelligence - refers to the ability to represent the spatial world internally in our minds--the way a sailor or airplane pilot navigates the large spatial world, or the way a chess player or sculptor represents a more circumscribed spatial world. Spatial intelligence can be used in the arts or in the sciences. If you are spatially intelligent and oriented toward the arts, you are more likely to become a painter or a sculptor or an architect than, say, a musician or a writer.
Bodily kinesthetic intelligence- s the capacity to use your whole body or parts of your body--your hand, your fingers, your arms--to solve a problem, make something, or put on some kind of a production. The most evident examples are people in athletics or the performing arts, particularly dance or acting
Musical intelligence - e is the capacity to think in music, to be able to hear patterns, recognize them, remember them, and perhaps manipulate them
Intrapersonal intelligence - e is understanding other people.
Naturalist intelligence - designates the human ability to discriminate among living things (plants, animals) as well as sensitivity to other features of the natural world (clouds, rock configurations).
Emotional Intelligence is Success Intelligence.
Money does not make people rich, Their Context does.
Whenever the government increases the taxes the poor and the middle class pay more in taxes, not the rich
You cannot help the poor by destroying the rich
You cannot help the poor permanently by doing for them what they can and should do for themselves.