Rich Dad Poor Dad

1. RICH
DAD
POOR DAD
Presented By : Sheeza Rafaqat
Iqra Akram
Mian Zaid
Nimra Basheer
Touqeer
MLT 2ND SEMESTER

2. Rich Dad Poor Dad
LESSON 1: THE RICH DON'T WORK FOR MONEY
The poor and the middle-class work for money,
the rich have money work for them.
In the first chapter, the author describes how he and his best
friend, Mike, want to get rich and make money using the illegal
method of creating nickels.
Their plan was foiled by Mike’s father or the rich dad. Rich dad
then shares the necessary financial education with both, and
their first lesson is about escaping the Rat Race.

3. The rich challenge themselves, take risks, break (preconceived)
rules (not laws), and seek financial freedom.
The rich get themselves ready for opportunities when they come
not get ready after the opportunity is come and gone.
Because opportunities in life come and go, the rich make sure
that they are ready to jump on.
The rich don’t get rich merely by being paid higher salaries
(though this is a great help). They get rich by owning things that
make them more money. them when they come.

4. The poor stay comfortable and play it safe in their jobs while
the rich take chances and make themselves uncomfortable
The quote ”nothing ventured, nothing gained” stands as a
reminder that if you don’t try and break out of the mold, you
will stay in it.
People who don’t become rich either spend all their income
on expenses or buy liabilities that increase their expenses but
don’t add income.

5. The key to financial independence is having money that makes
more money.
You want your money to make enough money that you don’t
have to work anymore.

6. Lesson 2:Why Teach Financial Literacy?
It’s not how much money you make. It's how
much money you keep.
In this lesson, rich dad teaches Robert the difference
between an asset and a liability.
We are all taught through the educational system that an
asset is something that you own, and a liability is something
that you owe.
Rich dad challenges this understanding of what an asset and
liability are.

7. Rich dad defines an asset as something that earns you money
in the form of positive cash flow every month.
He also defines a liability as something that Even though
bankers will tell you that your home is an asset because it has
value, the rich see their home as a liability.
The reason why is that a home takes money out of your
pocket every month. takes money out of your pocket every
month.
That same home can become an asset if you move out of the
house and rented the property to a tenant who paid you
enough to cover the expenses plus the extra money in the
form of rent.

8. If a home puts money in your pocket every month it’s an asset, but if
that same home takes money out of your pocket every month it is a
liability.
The rich become rich by accumulating assets and these assets put
money in their pocket every month.
Robert explains that if you want to be rich, you need to play Monopoly.
We all know the monopoly was a fun game but not many of us knew
that it had financial principles that we could all learn to help us be
financially free.
Rich dad said that if you want to be rich you need to play Monopoly
because it will show you how to gain assets that make you money

9. In Monopoly you can earn money through hotels, houses, utility
companies, railroads, etc.
The way you win in Monopoly is by collecting the most assets
and gaining the most money than your opponents.
In Monopoly you are buying businesses and real estate that
make you money if you work or not.
The Business or property is doing all the work for you, so you
don’t have to work.

10. O

11. Lesson 3:Mind Your Own Business
Employed people mostly work for everyone but themselves – they enrich
their employers or the owners of their company, then they pay their taxes to
the government, then they pay the bank where they mortgaged their house.
When you see a financially struggling family, that didn’t happen overnight.
That’s usually the culmination of a lifetime of making poor financial
decisions, working everyday to make somebody else’s dreams come true,
reporting every month to a boss whose only goal in life is to wring out one
more drop productivity out of your lifeblood to turn a profit for the company.

12. Professionals have only their job as a source of income.
Rich people, on the other hand, have their assets as sources of multiple
income streams.

13. Types Of Real Assets
● Businesses Run By Other People (Managers)
● Mutual Funds
● Bonds
● Stocks
● Notes (IOU)
● Real Estate
● Royalties From Music, Books, Patents
● Any Valuable Item That Produces Income

15. Taxes were originally voted into law only for the wealthy
citizens, but as government bureaucracies grew bigger and
needed more funding, taxes were levied on the middle class.
But the rich found ready loopholes and created corporation to
limit their risks.
Knowledge of how a corporation works gives the rest an unfair
playing field to lord it over the middle class.
Corporations protect the rich because they’re taxed way less
than an individual worker gets taxed.

16. Corporations can also write off certain expenses as tax deductible,
saving even more money for the company.
Make sure each dollar in your asset column multiplies and gives birth
to more dollars so that you can quit your day job and focus on
nurturing your own business.

17. Lesson 5:how The Rich Invent Money
Each person naturally holds massive potential inside.
Each one is gifted with a skill or talent that’s more developed
than a few others.
But self-doubt and insecurity get in the way of our “becoming”
that we settle for safe, unfulfilling jobs that won’t rock the
boat too much.
Once out of the safety of the academic gates, a person needs
to rely on more than just his scholastic degrees to make it big:
inner resolve, guts, bravado, sixth sense.

19. This something extra, when called forth and used liberally in
everyday dealings, makes the difference between a so-so
future or an awesome one.
This something extra, when called forth and used liberally in
everyday dealings, makes the difference between a so-so
future or an awesome one.
Develop your financial IQ in order to open more options in
your future.

20. This something extra, when called forth and used liberally in
everyday dealings, makes the difference between a so-so future
or an awesome one.
Kiyosaki developed and launched a financial education game
called Cashflow 101 specifically to familiarize his students with
investment terms and understand complex financial concepts.
.

21. LESSON 8:There is gold everywhere. Most people
are not trained to see it.
I wish I could say acquiring wealth was easy for me, but it wasn’t. So
in response to the question “How do I start?” I offer the thought
process I go through on a day-to-day basis.
It really is easy to find great deals. I promise you that. It’s just like
riding a bike.
After a little wobbling, it’s a piece of cake. But when it comes to
money, it takes determination to get through the wobbling.

22. That’s a personal thing. To find million-dollar “deals of a lifetime”
requires us to call on our financial genius.
I believe that each of us has a financial genius within us. The problem is
that our financial genius lies asleep, waiting to be called upon.
It lies asleep because our culture has educated us into believing that
the love of money is the root of all evil.
It has encouraged us to learn a profession so we can work for money
but failed to teach us how to have money work for us.
It taught us not to worry about our financial future because our
company or the government would take care of us when our working
days are over.

23. I offer you the following steps as a process to develop your God-
given powers, powers over which only you have control.
Find a reason greater than reality: the power of spirit
Make daily choices: the power of choice
Choose friends carefully: the power of association
Master a formula and then learn a new one: the power of learning
quickly

24. Pay yourself first: the power of self-discipline
1. Cash flow
2. People
3. Personal time
Pay your brokers well: the power of good advice